The Acquiror acquired direct and indirect ownership of an aggregate 15,500 Shares of the Company, at a price of $0.19 per Share (the "Transactions"), which when added to the securities previously held by the Acquiror increased the Acquiror's overall percentage holdings in the Company representing approximately 8.35% of the outstanding Shares of Palamina on an undiluted basis and 10.02% on a partially diluted basis.

Following the Transactions, the Acquiror completed a series of acquisitions resulting in the Acquiror having current beneficial ownership or exercising control or direction over, directly and indirectly: (a) 3,356,202 Shares; (b) 650,000 Options and (c) 266,667 Warrants, representing approximately representing approximately 9.24% of the outstanding Shares of Palamina on an undiluted basis and 11.48% on a partially diluted basis.

The Shares were purchased for investment purposes. The Acquiror has a long-term view of the investment and may acquire additional Shares of the Company either on the open market or through private acquisitions or sell the Shares on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.

This news release is being issued as required by National Instrument 62-104 - Take-Over Bids and Issuer Bids and relates to the Company, whose head office is located at 145 King Street West, Suite 2870, Toronto, Ontario, M5H 1J8, and to the Acquiror. A copy of the Early Warning Report can be obtained at www.sedar.com under the Company's company profile, or by contacting Andrew Thomson at 145 King Street West, Suite 2870, Toronto, Ontario, M5H 1J8, telephone: (416) 204-7536.

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