Pan Global Resources Announces $2 Million Financing to Advance Flagship Escacena Copper Project

About Pan Global Resources

Pan Global Resources Inc. is a Canada-based mining company focused on the exploration and development of base and precious metal projects in southern Spain. The company's flagship asset is the Escacena Project, a large 5,760-hectare land package located in the prolific Iberian Pyrite Belt near operating mines such as Las Cruces and Riotinto.

Pan Global is led by an experienced management team with proven expertise in mineral exploration, project development and mining operations. The company is committed to sustainable and ethical exploration practices, operating safely and with respect for local communities and the environment.

Pan Global began trading on the TSX Venture Exchange in 2018 after acquiring the early-stage Escacena Project. Since then, the company has made significant progress in exploring and advancing the project, most notably with the discovery of the La Romana copper-tin-silver mineralization.

Financing Details

Pan Global recently announced a non-brokered private placement of up to 10 million units at a price of $0.20 per unit to raise gross proceeds of up to $2 million.

Each unit will consist of one common share and one share purchase warrant. Each warrant will entitle the holder to acquire one additional common share at $0.30 for three years from the closing date.

The financing is expected to close on or around October 31, 2023. Finders' fees of up to 6% may be paid on a portion of the placement in accordance with TSX Venture Exchange policies. The common shares issued under the financing will be subject to a four month hold period.

Use of Proceeds

According to the announcement, proceeds from the financing will be used to fund an expanded drill program at Pan Global's properties and targets within the Escacena Project.

This includes further definition drilling at the La Romana copper-tin-silver discovery, which has increased to 1.35km of strike length, as well as testing high priority targets such as the Cañada Honda copper-gold discovery.

Funds will also be used to follow up on new geophysical gravity anomalies identified elsewhere on the property, including the Barbacena and Romana Norte targets.

Additionally, proceeds will provide general working capital for the company.

Escacena Project Overview

The Escacena Project is located in the eastern part of the prolific Iberian Pyrite Belt, one of the richest mineral belts in the world. The project covers a very large contiguous land package of 5,760 hectares that is 100% controlled by Pan Global.

The region has well-established mining infrastructure, expertise and support from the European Commission, which has designated copper as a Strategic Raw Material critical for the transition to renewable energy and electrification.

Exploration by Pan Global since acquiring Escacena in 2018 has identified widespread copper and gold mineralization across a 10-kilometer trend. Priority drill targets include La Romana, Cañada Honda, Bravo, Barbacena, Romana Norte, and other gravity anomalies.

La Romana Discovery

The most advanced prospect at Escacena is the La Romana copper-tin-silver discovery, located at the southern end of a 1.3-kilometer wide structural corridor. Diamond drilling to date has outlined a tabular copper-tin-silver mineralized zone up to 90 meters thick, dipping about 25-35 degrees to the northeast.

Mineralization at La Romana has been traced over 1.35 kilometers of strike length and remains open down dip and to the west towards the new Romana West target where surface sampling has identified additional copper mineralization.

Recent drill results at La Romana include 90.75 meters grading 0.6% copper, 0.2% tin and 5.3 g/t silver, confirming that the deposit is rapidly growing in scale.

Metallurgical tests by Pan Global have yielded exceptional recoveries of 86% for copper and 89% for tin using conventional processing methods. These recoveries are well above average for the Iberian Pyrite Belt district.

Cañada Honda Target

At the Cañada Honda target, located about 1 kilometer northeast of La Romana, recent drilling by Pan Global intersected copper-gold mineralization including 15.8 meters grading 1.0% copper and 0.25 g/t gold. This new discovery demonstrates the potential for additional near-surface copper and gold resources elsewhere on the Escacena property.

Upcoming Catalysts

According to Pan Global's management, key catalysts at Escacena over the next 6 to 12 months will include:

• Drill results from the remaining 350 meters of the current program at La Romana
• Additional tin metallurgy results, which are anticipated to show high recoveries based on initial test work
• Further delineation of the Romana West target through surface sampling and geophysics
• Preparation of a maiden mineral resource estimate for the La Romana deposit
• Advancement of other earlier stage prospects through mapping, sampling and drill testing
• Baseline environmental and technical studies to support a future Preliminary Economic Assessment

Conclusion

Pan Global Resources provides investors with exposure to an exciting, large-scale copper exploration and development project located in a premier mining jurisdiction.

Through disciplined and focused exploration, the company has successfully delineated a significant new copper-tin discovery at La Romana with district-scale potential, as demonstrated by recent drill results and metallurgy.

This financing will provide Pan Global with funding to aggressively advance La Romana towards an initial resource estimate while also testing high-priority targets elsewhere on the property.

As results continue to demonstrate the scale potential at Escacena, Pan Global shares could benefit from significant re-rating as the project advances up the value curve towards preliminary economic studies.

The current share price around $0.15 provides an attractive entry point, especially considering the company is fully funded for the next stage of exploration and resource definition drilling. With copper demand and prices expected to remain strong on secular electrification and decarbonization trends, Pan Global offers leverage to an essential technology metal through a promising emerging project in Spain.