Pan Global Resources - Funded for Drilling Ahead of Maiden Resource

• Pan Global Resources is exploring for copper in Spain and has already made two discoveries at its flagship Escacena Project.
• The company completed a C$7.2M financing in late 2024, enabling aggressive 2025 exploration program.
• PGZ is focused on extending near-surface mineralization at Escacena Project as well as drilling five new targets to make new discoveries and increase resource scale.
• Pan Global has set a goal to delineate 50-100Mt copper resource at the Escacena Project to be size competitive with major producers in the region.
• The company is also conducting exploration and drilling at new northern Spain Cármenes Project with high-grade gold potential.

As the world transitions to a low-carbon future powered by renewable energy and electrification, one metal stands out as absolutely critical: copper. Copper's unmatched thermal and electrical conductivity properties make it an essential component in electric vehicles, charging infrastructure, solar panels, wind turbines, and the power grid. Demand for copper is projected to soar in the coming decades as the pace of electrification accelerates.

At the same time, global copper supply growth is constrained due to declining ore grades, lack of new discoveries, and long lead times in developing new mines. This supply-demand imbalance is expected to lead to a structural deficit in the copper market and much higher prices. For investors, copper represents a compelling opportunity to gain exposure to the energy transition megatrend while also providing inflation protection and portfolio diversification benefits.

The Energy Transition Will Be Copper-Intensive

A primary driver of copper demand in the coming years is the upgrading of aging distribution networks in developed economies as well as the continuing electrification globally, particularly in countries where population is growing. Making national energy grids more resilient and less dependent on single-source supply, individuals and utilities are expanding the range of energy sources used to generate electricity - and all of these require additions to the distribution network.

Each megawatt of installed solar and onshore wind capacity uses 5.4 and 3.9 tonnes of copper respectively. Overall, clean energy technologies require up to 12x more copper compared to traditional fossil fuel power generation. As governments enact more ambitious decarbonization policies and pledges, copper intensity in the economy will rise dramatically. Copper demand from the energy transition could grow nearly 600% by 2030.

Copper Supply Struggling to Keep Pace

While copper demand is set to surge, supply will be challenged to respond in kind. Globally, the average grade of mined copper ore has fallen 25% in Chile, the world's top producer, and 40% in second-placed Peru in the last decade. This increased the cost of every tonne of copper processed. Reserves are not being replenished fast enough, with greenfield discoveries falling 80% since 2010. The geological challenges are compounded by high upfront capex, long permitting and construction timelines, operational and geopolitical risks, and in some cases community opposition to new mines.

Industry experts estimate that over 200 new copper mines need to be built by 2035 to meet demand, a tall order given it takes 16 years on average to go from discovery to production. Even if all possible projects in the pipeline are developed, it still won't be sufficient. The looming copper supply gap will be very difficult to fill.

Entering a New Era of Elevated Copper Prices

The only cure for such a severe and sustained market deficit will be much higher prices to stimulate supply and ration demand. Over the next decade, Goldman Sachs sees copper prices averaging $15,000 per tonne, nearly 50% above current levels, and spiking as high as $20,000 in a scenario of faster adoption of green technologies.

Bank of America takes an even more bullish view, forecasting copper to hit $25,000 by 2027 as inventories are drawn down to critically low levels. While high prices will incentivize new production, the aforementioned structural supply constraints mean the market will likely remain undersupplied and prices elevated for the foreseeable future. The prospect of a new era of persistently high copper prices bodes well for producers, explorers, and investors in the sector.

Escacena Project: Flagship Asset in a World-Class VMS District

Pan Global Resources is a well-positioned copper exploration company poised to benefit from the robust outlook for the metal. With a portfolio of high-potential projects in Spain, a top jurisdiction, the company offers investors an attractive opportunity to gain exposure to the energy transition theme. Here are some key highlights:

• The flagship Escacena Project is located in the heart of the Iberian Pyrite Belt, home to some of the world's largest and highest grade VMS deposits
• Aggressive drilling underway to expand near-surface resource and test multiple new targets
• With two discoveries to date (La Romana and Cañada Honda) and more than a dozen targets to test, excellent potential to delineate an initial 50-100Mt resource at a scale to compete with other major mines in the region
• Maiden resource estimate on the La Romana deposit expected to establish a foundation to build upon and demonstrate value, for delivery in H2 2025
• La Romana remains open in several directions, providing substantial upside to grow the resource base with further drilling

As Tim Moody states:

"If we start to get to 50 million tons... the economics start to look much better. If we get to 100 million tons, then we're at a scale to compete with the other big producers."

Interview with President & CEO, Tim Moody

Pipeline of Earlier-Stage Growth Projects

• High-grade massive sulfide mineralization, gold-rich VMS, and copper stockwork identified at surface over 1.5km strike length at La Romana
• Cármenes Project: Hosts a large, untested copper-in-soil anomaly as well as gold in channel samples associated with a massive breccia body
• Initial drilling at Cármenes Project underway to determine if the extensive breccia body is mineralized

Pan Global Resources boasts a proven management team with a wealth of experience and a strong track record of discoveries and value creation in the exploration and mining sector. The team possesses robust technical expertise and has consistently demonstrated the ability to execute on corporate strategy and deliver results. The company maintains a strategic 100% ownership of a dominant land position within a top-tier mining district, solidifying its competitive advantage.

Furthermore, Pan Global's diversified asset base within Spain offers multiple pathways to expand its resource inventory. These factors combine to make the company an ideal and attractive takeout candidate for larger producers operating in the area that are actively seeking high-quality growth projects to acquire.

Well-Funded to Deliver on Upcoming Catalysts

• Completed oversubscribed C$7.2M financing in late 2024, ensuring the company is well-capitalized to advance its projects
• Three drills turning in 2025 program with 7,000m planned across high-priority targets in Escacena and Cármenes Projects
• Focused on delivering steady news flow and value-creating catalysts including expansion/discovery drilling and maiden resource estimate

Pan Global Resources offers a unique investment proposition - a well-funded junior with a portfolio of drill-ready copper and gold projects in a world-class district, at a time when copper market fundamentals are extremely compelling. With a proven team, aggressive exploration underway, and multiple opportunities to grow resources and make new discoveries, the company is an attractive way for investors to leverage the electrification and renewable energy boom.

Potential upcoming catalysts such as positive drill results, a maiden resource estimate at La Romana, and new discoveries could be significant re-rating events for the stock. As the company continues to systematically advance its projects and build value, it should be well-positioned for an eventual strategic takeover by a larger producer. Overall, Pan Global Resources appears to have the right metals, the right address, and the right team to deliver outsized returns in a strong copper market.

The Investment Thesis for Pan Global Resources

• Strategic position in the premier VMS belt. Pan Global's flagship Escacena Project is located in the world-class Iberian Pyrite Belt, home to some of the largest VMS deposits. This historically productive region is the right address for new copper discoveries.
• Diligently executing on exploration plans. The company raised C$7.2 million in late 2024, enabling it to launch an aggressive drill campaign in 2025 focused on:
  • expanding the mineralization zone at La Romana leading to a maiden resource in H2 2025
  • testing at least 5 new priority targets at Escacena and 2 new priority targets at Escacena and 2 new priority targets at Cármenes
• Potential for value-accretive resource growth. With three drill rigs turning and 7,000m planned, consistent news flow is expected throughout 2025. The upcoming maiden resource estimate will establish a foundation to build upon. Management is targeting a scale of 50-100Mt, which would be competitive with other major mines in the area.
• Multiple discovery opportunities. In addition to Escacena, Pan Global has assembled an attractive project pipeline including the massive copper, gold, nickel and cobalt breccia target at Cármenes Project in Northern SPain and the copper-silver-zinc-lead Águilas Project in Southern Spain. These provide shareholders with additional discovery optionality beyond the flagship.
• Well-funded to create value. With a strong balance sheet, proven team, and dominant land positions in a prolifically mineralized districts, Pan Global has all the key ingredients in place to create value through drilling.
• An ideal takeout candidate. The company's 100%-owned projects in a Tier-1 jurisdiction would be highly strategic to several nearby majors and mid-tiers looking to replenish reserves and add growth.

Macro Thematic Analysis: Copper Equities Poised to Outperform

Despite the strong fundamental outlook, copper stocks have lagged the broader market in recent years as general economic concerns took precedence. This has created an attractive entry point for long-term investors ahead of the widely expected upcycle.

When the deficit becomes too obvious to ignore and copper prices take off in earnest, equities will quickly re-rate higher. During the last major copper bull market in 2003-2008, the share prices of top mining companies like Freeport-McMoRan, Southern Copper, and First Quantum Minerals appreciated by 500-1000%. High-quality junior explorers did even better, as major miners flush with cash consolidated the sector.

Investors can gain exposure through individual equities, diversified base metal miners, copper royalty and streaming companies, and ETFs. Having some allocation to copper-focused equities will be important in the inflationary environment ahead.