Canadian Palladium Extends Garden Zone on Strike with 2.38 g/t Palladium Equivalent Over 6 meters and Intersects New Zone of Palladium Mineralization Interpreted as a Feeder Dyke

Vancouver, British Columbia--(Newsfile Corp. - May 5, 2021) - Canadian Palladium Resources Inc. (CSE: BULL) (OTCQB: DCNNF) (FSE: DCR1) (the "Company") is pleased to provide new assay results for drill holes EB-21-51, EB-21-52, and EB-21-53 at the East Bull Palladium Deposit, located 90 kilometres west of Sudbury, Ontario. These drill holes extend the main Garden/Valhalla Zone palladium mineralization 250 m along strike to the west and intersected a new zone of mineralized inclusion-bearing gabbro located 50 m below the Garden Zone that is interpreted as a feeder dyke or magma conduit for the East Bull Intrusion.

Highlights of the current drill results are:

• Hole EB-21-52 intersected both the Garden Zone and a new mineralized inclusion-bearing gabbro that assayed 1.41 g/t Pd Eq over 7 m from 223.0 to 230.0 m, however, the hole terminated in mineralized gabbro. The Company plans to extend this hole to determine the full extent of the new zone that is interpreted as a feeder dyke;
  
  
• Hole EB-21-53 intersected 2.38 g/t Pd Eq over 6.0 m from 173.0 to 179.0 m. This interval is in the Garden Zone where mineralization is hosted in vari-textured gabbro that has shown consistent mineralization for over 2.5 km strike length.

Wayne Tisdale, Canadian Palladium's CEO, commented, "The discovery of a deeper zone below the main Valhalla/Garden Zone mineralization presents exciting new potential for the East Bull Project. The Company's geologists consider that the new zone may be a mineralized feeder dyke or magma conduit that is a potentially favourable structure for localizing high-grade mineralization. We look forward to getting back on this new target as soon as site conditions permit access after spring breakup."

Mineralized intervals from holes EB-21-51, EB-21-52 and EB-21-53 are reported in Table 1. Appendix 1 provides details of hole locations and orientations. Figure 1 shows the locations of the drill holes.

Table 1: Diamond Drill Hole Results EB-21-51, 52, & 53

1. Individual demarked samples were sawn in half, bagged, sealed and transported by courier to the laboratory. Duplicates, blanks and standards were introduced to the sample stream on site. Samples were sent to AGAT Laboratories, Mississauga, Ontario. Each sample was analysed using the AGAT Laboratories codes 202555, Fire Assay-ICP (50g); 201070, 4 Acid Digest / ICP-OES Finish.
   
   
2. Reported widths are drilled widths, with true widths estimated to be 90 per cent of drilled widths for minus-60-degree-holes to approximately 85 per cent of drilled width for minus-70-degree holes.
   
   
3. Pd-Eq grade based on parameters in the May 23, 2019, NI 43-101 Resource Estimate and Technical Report. Metal prices are based on 24-month trailing averages at January 31, 2018. In US$ these prices are: Pd - $767/oz; Pt - $973/oz; Rh - $1,000/oz; Au - $1.262/oz; Cu - $2.53/lb; Ni - $4.62/lb; Co - $20/lb.

The Company's protocol is to analyze Rh after initially assaying for palladium, platinum and gold. Once Rh results are received, the Rh concentrations will be reported and Rh will be included as a component of 3PGM (palladium+platinum+rhodium) and included in calculations of palladium equivalent (Pd-Eq).

The Company is currently drilling and assay results from holes EB-21-54 to EB-21-57 are in progress. The Valhalla/Garden Zone Palladium mineralization is hosted within a 45° north dipping vari-textured gabbro unit near the basal contact of the East Bull Gabbro. Drilling has successfully focused on testing the on strike and downdip extension of this "contact-type" mineralization. Such mineralization structures are typically tens of metres thick.

Mr. Garry Clark, P. Geo., of 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) 639-4472

Figure 1. Drill intersections reported in this release relative to Garden and Valhalla Zones of the East Bull Palladium Deposit. Base map is airborne total field magnetic survey.

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/6337/82917_24e69e32d4d6fbd7_002full.jpg

Appendix 1. Drill Hole Location information

Drill collar coordinates are in NAD83 UTM 17N

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 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.

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