Palamina Corp. has signed a contract with Energold drilling Peru S.A.C. to carry out a diamond drill program at its flagship Usicayos Gold Project. Drilling is expected to commence in late July. No drill holes have ever been completed at Usicayos. The drill program at Usicayos will consist of 2,600 metres of drilling with the objective of testing multiple mineralized gold structures defined at surface in the Veta Zone. To date surface sampling has defined an 800 m by 200 m area with values from chip sampling returning values up to 620 g/t Au and channel sampling up to 123 g/t over 1m. Drill holes will test to a maximum vertical depth of 400 metres. At Usicayos geological mapping, surface and channel sampling has resulted in the discovery of a 2.4 km by 500 m anomalous gold trend made up of the Veta, Cayos & Veta NE Zones. These zones are located on the southwest flank of a later intrusion into the Ananea formation. Four sites with visible gold hosted in shale horizons have now been discovered by prospecting where no historic mining has taken place. Selective sampling has returned up to 620 g/t Au (19.9 oz/t Au) gold in the Veta Zone from an outcropping quartz vein; continuous channel sampling has returned up to 30.5 g/t Au over 3 m in the Cayos Zone; and continuous channel sampling has returned up to 90.3 g/t Au over 1.3 m in the Veta NE Zone. These results, along with heliborne geophysical survey work and a comprehensive structural study completed have played an important role in defining the Veta, Cayos & Veta NE Zones as priority drill targets. Palamina drill core samples will be collected and logged in the field by Palamina staff and subsequently transported to Palamina's base of operations in Juliaca for cutting. One half of sawn core from sample intervals will be collected and transported by Palamina personnel to the Certimin S. A laboratory in Juliaca, Peru. Samples are processed by Certimin S. A in Juliaca and prepared sample splits are transported for assay to the CERTIMIN SA Laboratory in Lima, Peru. Samples are assayed for gold using a 50-gram fire assay charge with an AA finish. Samples are also analysed using a multi-element ICP-OES package. Prior to delivery of field exploration samples to the laboratory, Palamina staff insert coarse blank samples, field duplicates and certified gold analytical standards into the sample stream to provide controls over the quality of sampling and analytical procedures. No standards are inserted for the multi-element suite. All samples are returned to the Company and stored at a secure facility in Juliaca.