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Palladium One announces $4.35M private placement of Flow-Through Shares

Dec 6, 2021

Palladium One Mining Inc. has announced a non-brokered private placement of 15,000,000 flow-through common shares of the company to be sold to accredited investors at a price of C$0.29 per Flow-Through Share for gross proceeds of C$4,350,000. Desjardins Capital Markets, are acting as a finder in connection with the Offering, while Sprott Capital Partners LP and Echelon Capital Markets are acting as financial advisors.

The Company will use an amount equal to the gross proceeds received by the Company from the sale of the Flow-Through Shares to incur eligible "Canadian exploration expenses" that qualify as "flow-through mining expenditures" as both terms are defined in the Income Tax Act (Canada) (the "Qualifying Expenditures") on or before December 31, 2022 (or such other period as may be permissible under applicable tax legislation), and to renounce all the Qualifying Expenditures in favour of the subscribers of the Flow-Through Shares effective on or before December 31, 2021. If the Qualifying Expenditures are reduced by the Canada Revenue Agency, the Company will indemnify each subscriber of Flow-Through Shares for any additional taxes payable by such subscriber as a result of the Company's failure to renounce the Qualifying Expenditures.

Finders' fees will be payable in cash and common share warrants issuable in connection with the Offering, subject to, and in accordance with, the policies of the TSX Venture Exchange. All Flow-Through Shares issued pursuant to the Offering and any common shares issuable from any common share warrants will be subject to a hold period of four months and one day in accordance with applicable securities laws.

Closing of the Offering is subject to certain customary conditions including, but not limited to, the receipt of all required regulatory approvals, including the approval of the TSX Venture Exchange. Closing of the Offering is expected to occur on or about December 16, 2021.

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