Pampa Metals Confirms Tertiary Age for Host Rock Porphyry and Native Gold-Sulphide Mineralization in Quartz-Veinlet Stockwork at the Buenavista Target (Block 4 Project)

VANCOUVER, August 8, 2022 - Pampa Metals Corp. ("Pampa Metals" or the "Company") (CSE:PM)(FSE:FIRA)(OTCQB:PMMCF) is pleased to report the reception of key radiometric age dating and petrographic studies of quartz-veinlet stockwork samples from the Buenavista target at the Company's Block 4 Project, which is located 110 km south of the Escondida mining district in the Cordillera de Domeyko porphyry belt in northern Chile.

The recently obtained Tertiary geological age date is an important additional component adding to the attractiveness of the Buenavista Target. The most productive porphyry copper deposits along the Domeyko Cordillera mineral belt all have Tertiary-aged hydrothermal systems. This data point adds to the geological, geochemical, and geophysical information acquired by Pampa Metals, which together comprise a compelling case for Buenavista to represent a priority drill target along the Domeyko Cordillera - the most productive copper belt in the world. Further geophysical anomalies - combined magnetic and IP responses - under post-mineral cover to the east and north of Buenavista represent additional drill targets of high interest.

Paul Gill, Pampa Metals' CEO, stated: "We are delighted with the latest information from the Buenavista Target. Although no two porphyry systems are exactly the same, the overwhelming evidence to date is that there is a significant system to investigate by drilling at Buenavista, together with several other geophysical anomalies located within the property that appear to have a similar signature."

DETAILS & KEY Findings:

• Pampa Metals geologists selected valid samples of the central Buenavista porphyry and quartz-veinlet stockwork zone for radiometric age dating and petrographic studies, which were forwarded to the Chilean National Geological Institution ("Sernageomin") and to a prominent Chilean petrographer with extensive experience in porphyry systems, respectively.
• A radiometric age date of 60.3 +/- 1.0 Ma (U-Pb; zircon) corresponds to the host rock of the porphyry-type quartz-veinlet stockwork with molybdenum anomalies found at the Buenavista target in Block 4 (see previous news releases dated June 23, May 24, May 3, March 15, 2022, and October 18, 2021).
  • This confirms that the Buenavista target is a Tertiary-aged hydrothermal system.
• Petrographic studies of the age-dated rock sample show that it corresponds to a magmatic-phreatomagmatic breccia with dacite porphyry clasts, which is highly leached with a "vuggy silica" texture and evidence of silica, illite-sericite, quartz, alunite, and pyrophyllite hydrothermal alteration assemblages. Relicts of leached pyrite mineralization were also determined.
  • At least three types of quartz veinlets were identified: i) saccharoidal quartz with bands of fluid and solid micro-inclusions; ii) gray crustiform quartz with bands of fluid and solid micro-inclusions and with the development of banded dark veins; and iii) low temperature veinlets comprising quartz in rosettes.
  • All of these contain pyrite micro-inclusions, with late fractures occupied by goethite after coarse pyrite, and rare native gold flakes.

Conclusions:

The Early Tertiary (Paleocene) age date obtained for the host rock porphyry at the Buenavista target in Block 4 would be the first for the Sierra Vaquillas Altas area in northern Chile. This age is equivalent to that of intrusions to the southeast at Cerros Corral de Alambre, and to that of volcanic rocks to the northwest in the western block of the El Profeta and Sierra de Varas faults, both of which have been associated with the magmatism of the widespread Chile-Alemania Formation.

A Paleocene age is considered the maximum age for the porphyry system at the Buenavista target, but may in fact represent the host rock for a younger porphyry event. This is a situation described for other porphyry deposits along the Cordillera de Domeyko porphyry belt, such as El Salvador located 115 km SSW of Block 4, where mineralizing porphyry intrusions from the Middle Eocene are intruded into Lower-Middle Paleocene magmatic rocks.

The petrographic study revealed successive pulses of hydrothermal infill, with at least three generations of porphyry-style quartz veinlets cutting through an initial phreatomagmatic brecciation event. Hydrothermal alteration associations indicate that the system is exposed at a relatively high level between the phyllic and epithermal transition, which is consistent with oxidised relicts of pyrite mineralization in the centre, together with evidence of quartz-sulfide structures with copper-gold-silver-arsenic values observed around the periphery of the Buenavista stockwork zone.

The geologic age date and petrographic study provide strong support for Pampa Metals' plans for drill testing of the previously undrilled Buenavista target, in addition to previously reported results from geological mapping, ground magnetics surveying, and induced polarisation reconnaissance survey lines. Field collection of more than 2,500 soil samples centred on the Buenavista target has recently been completed, with results pending.

About BUENAVISTA & Block 4

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 dacite porphyry and magnetic anomaly (see news release dated October 18, 2021), subsequently named the Buenavista target. A limited trenching program returned anomalous molybdenum geochemistry associated with the stockwork zone, together with copper and gold values around the margins, including 24m @ 0.14% Cu and (separately) 24m @ 0.25 g/t Au (see news released date March 15, 2022).

The trenching program at Buenavista revealed relicts of coarse chalcopyrite disseminations 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 chalcopyrite-pyrite mineralisation in a quartz-sulfide breccia on the west flank of the stockwork. Gold anomalies are also associated with this latter area.

Simultaneous soil geochemistry and reconnaissance pole-dipole IP geophysical surveys were initiated in May 2022, centred on the Buenavista target. Highly encouraging IP results were published (see news released dated June 23, 2022), and field sampling for the soil survey totalling around 2,500 samples is 100% completed, with all assay results pending. Soil sampling results will be published in due course.

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, 60,000-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 having drill tested 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.