Pampa Metals Starts IP Geophysical Program at its Block 4 Project to Refine Drill Hole Locations at Buenavista and to Explore Post-Mineral Cover for Further Drill Targets

VANCOUVER, May 24, 2022 - Pampa Metals Corp. ("Pampa Metals" or the "Company") (CSE:PM)(FSE:FIRA)(OTCQB:PMMCF) is pleased to provide a further update on exploration activities at its 6,800-hectare Block 4 project in northern Chile, and announces the start of an Induced Polarisation ("IP") geophysical program at the property including coverage of the Buenavista target.

Block 4 is located along the principal porphyry copper belt of northern Chile, about 110 km south of the giant La Escondida copper mine. The principal target identified to date, called Buenavista, comprises a poorly exposed quartz-veinlet stockwork zone hosted within a dacite porphyry intrusion, which is spatially coincident with a magnetic high and anomalous molybdenum geochemistry. Copper oxide occurrences and anomalous gold values are zoned around the central stockwork zone.

Key Takeaways:

A ground magnetics survey and follow-up geological fieldwork led to the discovery of a porphyry-related quartz-veinlet stockwork zone spatially coincident with a magnetic anomaly (see news release date November 18, 2021), subsequently named the Buenavista target. A trenching program returned copper and gold values including 24 m @ 0.14% Cu and (separately) 24 m @ 0.25 g/t Au (see news released date March 15, 2022).

The trenching program at Buenavista revealed relicts of coarse chalcopyrite dissemination from a skarn-type system on the eastern edge of the stockwork zone, as well as green and black copper oxide mineralization from in-situ oxidation of gold-bearing chalcopyrite-pyrite mineralisation in a quartz-sulfide breccia on the west flank of the stockwork.

Other magnetic anomalies, with similar footprints to that at Buenavista, were also defined under post-mineral "pampa" cover to the north and east. These anomalies are located on NW and N-S faults and lineaments of the Domeyko Fault System, where past exploration has identified copper-gold mineralization in quartz structures.

The IP survey is designed to investigate the presence of sulphide minerals, which may suggest additional targets for possible drill testing, related to the various post-mineral covered magnetic anomalies, as well as helping map out the sulphide progenitors to the oxide copper occurrences at the Buenavista target.

Block 4 - Details of Geophysical Surveys

A total of 37 line kilometers of pole-dipole IP surveying have been contracted with Quantec Geoscience Chile Ltda. ("Quantec"), a long-standing and reputable geophysical contractor. Survey work has already started in the field. The survey total will be distributed between five east-west lines with 200m dipoles that cross a series of magnetic anomalies detected under post mineral cover, as well as the Buenavista target area. One line over the Buenavista stockwork zone, quartz-sulfide breccia, and skarn-type mineralization observed in the trenching, will be surveyed twice with 200m dipoles and 100m dipoles, in order to obtain the best possible resolution with respect to deep and shallow sulphide mineral sources.

Additionally, Quantec will be tasked with extending the existing ground magnetics coverage at Block 4 to the edges of the Block 4 property, which was extended after the original magnetics survey had been completed in 2021. This will require a further 165 line kilometers of ground magnetics surveying and is scheduled to start in late June.

ABOUT PAMPA METALS

Pampa Metals is a Canadian company listed on the Canadian Stock Exchange (CSE: PM) as well as the Frankfurt (FSE: FIRA) and OTC (OTCQB®: PMMCF) exchanges. Pampa Metals owns a highly prospective, wholly owned, 62,000-hectare portfolio of eight projects for copper and gold located along proven mineral belts in Chile, one of the world's top mining jurisdictions. The Company is actively progressing four of its projects, including completed and planned drill tests, and has two additional projects optioned to Austral Gold Ltd., with Austral already drill testing its first target on Pampa Metals' ground. The Company has also signed an agreement with VerAI Discoveries Inc. giving Pampa Metals access to the latest in artificial intelligence technologies in relation to mineral exploration, as well as a further 18,700 hectares of highly prospective terrain in the core of the highly productive mineral belts of northern Chile.

The Company has a vision to create value for shareholders and all other stakeholders by making a major copper or gold discovery along the prime mineral belts of Chile, using the best geological and technological methods. For more information, please visit Pampa Metals' website www.pampametals.com.

Qualified Person

Technical information in this news release has been approved by Mario Orrego G, Geologist and a Registered Member of the Chilean Mining Commission and a Qualified Person as defined by National Instrument 43-101. Mr. Orrego is a consultant to the Company.

Note: The reader is cautioned that Pampa Metals' projects are early-stage exploration projects, and reference to existing mines and deposits, or mineralization hosted on adjacent or nearby properties, is not necessarily indicative of any mineralization on Pampa Metals' properties.

ON BEHALF OF THE BOARD

Paul Gill | CEO & Director
www.pampametals.com

INVESTOR CONTACT

Ioannis (Yannis) Tsitos | Director
investors@pampametals.com

The CSE nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

FORWARD-LOOKING STATEMENTS

This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, which address events or developments that Pampa Metals expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential", "indicate" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although Pampa Metals believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guaranteeing of future performance and actual results may differ materially from those in forward-looking statements.

SOURCE: Pampa Metals Corp.