Pan Global Resources Expands Copper-Tin Discovery at Escacena Project

About Pan Global Resources

Pan Global Resources Inc. is a Canadian mining company focused on the exploration and development of base and precious metal projects in Europe. The company's flagship asset is the Escacena Project, located in the Iberian Pyrite Belt in southern Spain.

Pan Global's management team has extensive experience in exploration, development and mining operations. The company is targeting copper deposits given the positive supply-demand fundamentals for copper driven by increased electrification and energy transition. The Escacena Project provides exposure to copper and tin mineralization as well as upside from nearby development projects.

Highlights from Latest Drill Results

Pan Global recently announced results from the first six drill holes at the Romana West target, which is an extension of the La Romana copper-tin-silver discovery at Escacena. Drilling extended mineralization 150m west from the La Romana zone, bringing the total strike length to 1.35km. The zone remains open to the west and at depth. Copper and tin grades are increasing to the west, with some of the highest tin values reported on the project. Tin pricing is currently 3-4 times that of copper. There is shallow depth to mineralization with good continuity. This is ideal geometry for open pit mining.

Highlights include:

• 17m at 0.65% CuEq (0.4% Cu, 0.13% Sn) from 50m in LRD162
• 14.5m at 0.75% CuEq (0.36% Cu, 0.15% Sn) from 7.5m in LRD166
• 16m at 0.70% CuEq (0.52% Cu, 0.06% Sn) from 37m in LRD164
• Mineralization starts immediately below thin post-mineral cover sediments.
• Results pending from six additional completed drill holes that intersected visual copper and tin mineralization.

CEO Comments on Latest Results

Pan Global President & CEO Tim Moody provided insight into the results and the implications for the project. He stated the Romana West drill program has been highly successful in extending mineralization along strike and confirming continuity. The results show potential for the grade profile to improve to the west. Near surface mineralization with good continuity enhances potential economics. Tin is a valuable commodity for clean energy applications and is trading near all-time highs. Recoveries have been good in test work. The ongoing 25 hole program will test another 350m of strike length. Remaining results are expected over coming weeks. The 1.35km long zone is still open and step out drilling is continuing to the west.

Details on the Escacena Project

The Escacena Project covers a 5,760 hectare land package that is 100% controlled by Pan Global in southern Spain. It is located in the prolific Iberian Pyrite Belt, which is an established mining district with supportive infrastructure. Escacena contains the large scale La Romana copper-tin-silver discovery as well as numerous additional exploration targets. It is adjacent to advanced projects, Aznalcollar and Los Frailles, with mine development anticipated to start in 2023. The geological setting is analogous to other world-class VMS districts. There is year-round access for drilling and exploration work. Pan Global is well funded to continue aggressive exploration programs.

Geology and Mineralization

The copper-tin-silver mineralization at La Romana is hosted in subsurface horizons referred to as Zone B and Zone C. The key geological observations are that sulphide mineralization starts immediately below a thin post-mineral sedimentary cover sequence. Two zones of tabular, stratabound massive sulphide mineralization have been defined over 1.35km of strike. The dominant minerals are chalcopyrite (copper), cassiterite (tin) and pyrite (iron), with supergene enrichment noted close to surface. Mineralization remains open down-dip below 250m depth from surface as well as along strike to the west. A strong gravity anomaly supports further depth potential. The gentle dip of the horizons provides amenable geometry for open pit mining.

Ongoing Exploration Program

Pan Global has an active exploration program underway at Escacena focused on expanding La Romana and testing additional targets. A 25 hole, 5,000m drill program is in progress at Romana West to test 350m of additional strike length. So far, 12 holes have been completed with additional assays pending. Surface access for Romana West was recently granted allowing the start of drilling. Exploration is continuing across the broader land package including mapping, sampling, geophysics, and target development. Pan Global is well funded following a recent financing to continue aggressive programs.

Longer Term Potential at Escacena

While the current exploration program is focused on expanding the La Romana discovery, Escacena offers significant longer term upside potential. Less than 5% of the large 5,760ha property has been drill tested, leaving multiple untested targets. Several surface copper and gold anomalies are yet to be drilled. There is an opportunity for additional massive sulphide discoveries along the key geological horizons. La Romana is open down-dip and could continue at depth, as evidenced by a strong gravity anomaly. The successful definition of significant mineral resources at La Romana could support future mine development studies.

Strong Macro Backdrop for Copper

The Escacena Project provides Pan Global exposure to copper at a time of compelling supply-demand fundamentals for the metal. Copper demand is projected to double by 2035 driven by exponential growth in EVs, wind, solar, transmission lines and overall electrification. A chronic undersupply is expected to cause multi-year deficits with little new production in the pipeline. Declining average grades and ore quality at many mines will make it harder to expand output. The best copper assets are becoming harder to find and develop. Stockpiles have been drawn down sharply and there are very limited uncommitted inventories. Current pricing remains well below incentive levels to spur meaningful new supply. Securing copper resources and low-cost production during the early stages of a prolonged deficit cycle offers significant upside exposure.

Investment Thesis for Pan Global

For investors, Pan Global Resources provides an attractive investment opportunity based on the following drivers:

• Large and growing copper-tin discovery at La Romana with over 1.3km of strike length defined and open.
• Aggressive drill program underway to continue expanding La Romana. Additional targets to be tested across the property.
• Excellent jurisdiction in Spain with nearby mines being developed.
• Experienced leadership team with track record of success.
• Tin represents a valuable secondary metal with strong demand dynamics and limited new sources.
• The Escacena Project provides copper exposure aligned with compelling sector fundamentals.
• Significant exploration upside on the large property beyond the current La Romana discovery.
• Strong balance sheet to fund ongoing exploration and development studies.

As Pan Global continues advancing and expanding the La Romana discovery, investors can expect a steady stream of exploration updates. The company offers torque to higher copper prices during a period of strong demand growth and looming production shortfalls. For risk tolerant investors, Pan Global provides an attractive copper focused vehicle with significant resource expansion and discovery potential.

Conclusion

With copper demand set for exponential growth from electrification and energy transition trends, exposure to new copper discoveries and resources has strong appeal. Pan Global Resources provides this through its Escacena Project in Spain's prolific mining district. The large and growing La Romana zone shows the potential for significant near surface copper and tin mineralization that could support open pit development. Investors interested in leveraging copper's compelling fundamentals and supply deficits should take a closer look at the exploration upside being demonstrated at Escacena. As Pan Global continues delivering positive drill results, the company offers increasing leverage to higher copper prices, expanding resources and mineral wealth creation.