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Canadian Palladium's Initial Metallurgical Testwork Program Demonstrates Potential for Favourable Recoveries and Concentrate Grades at East Bull Palladium Deposit

Vancouver, British Columbia--(Newsfile Corp. - February 22, 2023) - Canadian Palladium Resources Inc. (CSE: BULL) (OTCQB: DCNNF) (FSE: DCR1) (the "Company") is pleased to report that SGS Canada Inc. of Lakefield, Ontario (SGS) has completed initial metallurgical test work on the East Bull Palladium Deposit, located 90 km west of Sudbury, Ontario, with favourable outcomes for metal recovery and concentrate grades. The preliminary, scoping level, flotation test work indicates that a concentrate product could be produced at a copper recovery of ~90% and palladium recovery of ~74% with grades of 16.5% Cu, ~50 g/t Pd, ~14 g/t Pt and ~9 g/t Au. These recoveries and grades were achieved with a favourable low mass pull of only 0.8% of the initial sample weight. SGS has also identified opportunities to further improve recoveries with additional test work.

Mr. Wayne Tisdale, President and CEO, stated "Canadian Palladium is pleased with the successful outcome of metallurgical test work at the East Bull Project. The recoveries and concentrate grades are good and are achieved with a high concentration ratio that should be beneficial to project economics. We are now in a great position to move forward with a preliminary economic assessment (PEA) of this significant palladium resource. The upcoming financing will allow us to advance both our East Bull project as well as our extremely prospective property at Tisova on the Czech/German border".

The metallurgical study was performed on 40 kg drill core composites from each of the Valhalla and Garden Zones of the East Bull PGM project. The primary purpose of the metallurgical study was to characterize the sulphide mineralogy, and evaluate potential metal recoveries and concentrate quality for the East Bull Deposit. Testing included mineralogy, comminution, and flotation test work. The test samples from the Valhalla and Garden Zones had head grades of 0.58 g/t Pd, 0.17 g/t Pt, 0.15% Cu and 0.39 g/t Pd, 0.15 g/t Pt, 0.17% Cu respectively. Rougher flotation test work indicated that a grind size of 80% passing 35 μm was best for both samples. Comminution test work indicated that both samples were relatively hard and moderately abrasive relative the SGS database of Bond Ball Mill Work Index (BWI) values.


The mineralogical analysis was conducted with TIMA-X technology using an Automated Scanning Electron Microscope (ASEM) instrument. The mineralogical analysis identified chalcopyrite (CuFeS2), pyrrhotite (FeS), pyrite (FeS2), and pentlandite ((Fe,Ni)9S8) as the main sulphide minerals in both samples. A significant portion of these sulphides were found to be free. Platinum group minerals (PGM) include sperrylite (PtAs2), kotulskite (Pd(Te,Bi)) and isomertieite/mertieite (Pd11Sb2As2/Pd11(Sb,As)4 ). The samples also contain native gold (Au).

The preliminary scoping recoveries and concentrate grades reported are based on the 4th cleaner concentrate product that indicated copper recovery of ~90% and palladium recovery of ~74% in 0.8% mass pull, with grades of 16.5% Cu, ~50 g/t Pd, ~14 g/t Pt and ~9 g/t Au. These scoping tests were made with Aerofloat 3477 combined with PAX reagents. SGS reports that these recoveries should improve with recycling of middling streams and further locked cycle and continuous test work. The low mass pull is favourable for potential future concentrate smelter treatment charges.

In 2022, Canadian Palladium reported an updated Mineral Resource Estimate for the East Bull Deposit that includes total Indicated Resources of 16.5 million tonnes at a grade of 0.93 g/t PdEq for 492,100 ozs PdEq AND total Inferred Resources of 16.3 million tonnes at a grade of 0.99 g/t PdEq for 519,600 ozs PdEq. These totals include Pit-Constrained Mineral Resources at a C$15/t net smelter return (NSR) cut-off and Out-of-Pit Mineral Resources at a C$50/t NSR cut-off.

The palladium and associated rhodium, platinum, and gold mineralization is primarily hosted within a 45° north dipping vari-textured gabbro unit in disseminated copper-nickel sulphides near the basal contact of the East Bull Gabbro. Drill results have demonstrated the consistency of the disseminated precious metal-bearing sulphide mineralization that occurs near the basal contact of the East Bull Gabbro. Drilling has successfully focused on testing the strike and downdip extensions of this "contact-type" mineralization that is typically tens of metres thick for over 3 km strike length. The Company is also evaluating potential footwall mineralization related to feeder conduits for the East Bull Gabbro.

The Company also announces that it intends to complete a non-brokered private placement to raise up to $1,000,000 through the issuance of units at $0.05 (the "Offering"). Each unit will consist of one common share and one common share purchase warrant with an exercise price of $0.10 for a period of 12 months from the date of issue. The Company intends to use the gross proceeds from the Offering to further develop its mineral properties and for general working capital.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws.

Mr. Ryan Monteith, B.Eng., SGS Lakefield has reviewed the contents of this release as they pertain to the metallurgical studies. Mr. Garry Clark, P. Geo., Clark Exploration Consulting, is the "Qualified Person" as defined in NI 43-101, who has reviewed and approved the technical content in this press release.

Canadian Palladium Resources Inc.
Wayne Tisdale, President and CEO
T: (604) 639-4452

Reader Advisory

This news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to the proposed private placement, use of proceeds, and analytical results and exploration at the East Bull palladium property.

Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information. Forward-looking information is based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada and globally; industry conditions, including governmental regulation and environmental regulation; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; liabilities inherent in water disposal facility operations; competition for, among other things, skilled personnel and supplies; incorrect assessments of the value of acquisitions; geological, technical, processing and transportation problems; changes in tax laws and incentive programs; failure to realize the anticipated benefits of acquisitions and dispositions; and the other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive. The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.


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