Mr. Paul Gill reports

PAMPA METALS PARTNERS WITH VERAI DISCOVERIES TO EXPLORE FOR COPPER & GOLD ON EIGHT NEW PROJECTS IN CHILE AS COPPER & GOLD PRICES NEAR HISTORIC LEVELS

Pampa Metals Corp. has signed definitive documentation with VerAI Discoveries Inc., a Boston-based private corporation, allowing Pampa Metals to evaluate and explore a series of copper and precious metals targets that have been generated by VerAI using proprietary artificial intelligence (AI) methodologies. The targets are distributed within eight property blocks, wholly owned by VerAI, totalling about 18,700 hectares located in parts of central northern Chile. The eight property blocks all lie within similar geographic and geologic areas to Pampa Metals' wholly owned portfolio of projects that totals an additional 62,000 hectares.

Paul Gill, chief executive officer of Pampa Metals, commented: "This is an exceptional opportunity for Pampa Metals to leverage cutting-edge technologies in the exploration for porphyry copper, iron-oxide-copper-gold (IOCG) and other related mineral deposit types in a highly prospective part of northern Chile. The agreement with VerAI not only gives the company access to the predictive results of the latest in AI technology applied to mineral exploration, but VerAI's property portfolio is highly complementary to that of Pampa Metals. The company has manageable commitments that will allow it to evaluate VerAI's portfolio, and potentially add quality projects for more detailed exploration to complement its already highly prospective portfolio. We look forward to working with VerAI's experienced team and seeing the results of the exploration work on the ground."

About the agreement

VerAI has used proprietary AI technology and high-resolution geophysics data to generate a series of exploration targets distributed between eight property blocks, which total about 18,700 hectares.

The agreement includes the following key aspects and commitments:

• Pampa Metals has an exclusive option over 12 months to define one or more designated projects (DPs) from the eight property blocks owned by VerAI;
  • Pampa Metals must spend $500,000 (U.S.) in total in exploration activities over the 12 months;
  • Five of the eight projects must be designated or returned to VerAI within six months;
  • The remaining three projects must be designated or returned to VerAI over the remaining six months;
• Pampa Metals must spend a minimum of $1-million (U.S.) on each DP over the following two years for the company to earn 51 per cent in each DP selected;
  • If Pampa Metals fails to spend $1-million (U.S.) on any DP, the project will be returned to VerAI;
• If Pampa Metals earns 51 per cent on any DP, a joint venture company will be established for the JV project, which will be governed by a shareholders agreement, whose outline terms have already been agreed;
  • At 51 per cent on any DP, Pampa can opt to earn a further 24 per cent (to 75 per cent) by completing a Canadian National Instrument 43-101-compliant preliminary economic assessment (PEA) on the DP over the next two years;
  • Should Pampa Metals decide not to proceed toward completion of a PEA, VerAI will take over management of the project and both parties will be liable for their respective pro rata expenditures on the project (51/49), with standard dilution clauses applicable;
• If Pampa Metals earns 75 per cent of a DP by completing a PEA, both parties will then be liable for their respective pro rata contributions for the continuing development of the project (75/25).

VerAI methodology

VerAI has utilized high-resolution geophysics data as the principal data source to generate its targets. The data cover an area of approximately 170 kilometres north-south by 60 km east-west, mostly located over the Paleocene (or Central) mineral belt in northern Chile, but also partially encompassing portions of the Coastal mineral belt. The study block extends from just south of the multimillion- ounce El Penon gold-silver mining district (Yamana Gold) in the north, to the Franke copper mine (KGHM) in the south, and includes several historic mines and exploration projects, as well as the operating Guanaco and Amancaya mines (Austral Gold).

The AI targeting process is multifaceted and iterative, improving the confidence that targets generated are reduced to the very best matches to be staked and claimed in northern Chile.

The targets are mostly obscured by postmineral, gravel-filled basins, or pampas, where the underlying geology of interest is largely not visible or available for geologic mapping, resulting in targets that have eluded previous exploration campaigns.

Initial exploration program

Pampa Metals will immediately commence carrying out field inspections of the eight property blocks, including geological mapping of all available outcrops, including those located around the immediate periphery of the properties. Small-scale geophysical surveys will be considered to test for hydrothermal systems beneath postmineral cover, together with the possible use of shallow, reconnaissance, reverse circulation drilling. VerAI will support Pampa Metals' activities by continuously revising and refining the AI models as new data are gathered and recorded.

About Pampa Metals Corp.

Pampa Metals is a Canadian company listed on the Canadian Stock Exchange as well as the Frankfurt and OTC 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 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. The agreement with VerAI gives Pampa Metals access to a further 18,700 hectares of highly prospective terrain in the core of the highly productive mineral belts of northern Chile.