IKN

Vancouver, British Columbia–(Newsfile Corp. – January 24, 2020) –
Canadian Palladium Resources Inc. (CSE: BULL) (OTCQB: DCNNF) (“Canadian Palladium” or the “Company”), has been asked by the OTC Markets Group Inc. (the “OTC”) to comment on recent marketing activity pertaining to trading of the Company’s common shares on the OTCQB market.

On January 9, 2020, the Company engaged GRA Enterprises LLC (“GRA”) to distribute promotional material over GRA’s National Inflation Association (“NIA”)
media distribution channels. These promotional materials were to focus
on the palladium market in general, the Company’s East Bull Palladium
Project in particular, and the Company’s potential to become a future
producer of palladium.

On January 14, 2020, NIA began to
distribute a promotional email to its subscriber list referring to
recent gains in the market for palladium and making promotional
statements about the Company, the East Bull Palladium Project and NIA’s
expectation that precious metals investors would quickly discover that
the Company was the best way to capitalize on rapidly rising palladium
futures (hereafter, the “NIA Release”). After inquiry, the
Company has determined that none of its officers, directors or control
persons were involved in drafting the NIA Release, nor did any of them
have any editorial control over its content. Although members of
management were interviewed by GRA over the telephone on January 9,
2020, management only became aware of the content on January 15, 2020,
when the NIA Release was disseminated. The Company acknowledges that
the NIA Release was overly promotional and misleading and it has
instructed GRA to end the campaign immediately.

On January 22,
2020, the OTC provided the Company with a copy of the NIA email and
asked that the Company issue this press release commenting on the
Company’s promotional efforts in general, the NIA Release in particular,
and recent trading activity in the Company’s common stock.

The
Company’s share price and trading volume have increased since the
beginning of the year. The Company believes that this is an
industry-wide trend due primarily to recent news about the use of
palladium in catalytic converters in motor vehicles and substantial
increases in the price of that commodity during December 2019 and
January 2020, and the Company is unable to determine whether the NIA
Release has had any material impact on the trading of the Company’s
common shares. The Company notes, however, that other junior resource
companies focused on palladium have experienced similar trading activity
over this same period; the Company notes that it publicly announced
that it had changed its name from 21C Metals to Canadian Palladium
Resources Inc. on January 15, 2020.

After inquiry, the Company has
determined that none of its management, directors and control persons
has sold or purchased any of the Company’s securities within the past 90
days. The Company has issued securities at a discount to the market
price twice in the last twelve months – once in the first tranche of a
private placement of units completed May 3, 2019 and again when it
closed the second tranche of that financing on June 3, 2019. In this
financing, the Company issued an aggregate of 15,719,122 units
consisting of one common share and one common share purchase warrant at a
price of C$0.18 per unit.

Over the last twelve months, the
Company has engaged the following marketing consultants to provide it
with investor relations, public relations services, marketing or other
related services: Market IQ Media Group, Inc., GRA Enterprises LLC, Axe
Communications Inc., Market One Media Group Inc., Venture Financial
Group d/b/a Venture Ad Network Ltd., Struthers Consulting and Market
Report, Energy and Gold Publishing Ltd., 321Gold Ltd., Aktiencheck de.
AG, Globe Newswire and the News File Corp.

About Canadian Palladium Resources Inc.