Pan Global Resources' Los Frailes Mine for Development and Significant New Gold Discovery

• Pan Global Resources received validation of its strategic positioning as the Government of Andalucia approved Grupo México's adjacent Los Frailes mine exploitation permit, confirming the region's status as a Tier-1 mining jurisdiction.
• The company achieved a significant gold discovery at its Cármenes Project in northern Spain, intersecting 1.08 g/t gold over 46 meters from near surface in its first-ever drillhole at the Providencia target.
• Pan Global's flagship Escacena Project benefits from proximity to the planned Los Frailes mine, which will have a 20-year mine life and produce zinc, lead, and copper concentrates with significant regional investment and infrastructure upgrades.
• The La Romana copper-tin-silver deposit at Escacena remains open for expansion with favorable metallurgy and characteristics supporting potential open pit development within the established mining district.
• Ongoing drilling programs across both Spanish projects demonstrate Pan Global's systematic approach to advancing multiple high-potential targets in proven mining jurisdictions with excellent infrastructure and permitting environments.

Pan Global Resources (TSXV:PGZ) is a Vancouver-based exploration company actively pursuing copper-rich mineral deposits alongside gold and other metals across two strategic Spanish projects. The company operates within established mining jurisdictions that offer favorable permitting environments, excellent infrastructure, and strong institutional support for mineral development. Pan Global's experienced team combines proven expertise in exploration, discovery, development, and mine operations while maintaining commitments to environmental stewardship and community partnerships through United Nations Global Compact principles.

Adjacent Mine Approval

The approval of Grupo México's Los Frailes mine development provides significant strategic validation for Pan Global's positioning in southern Spain's Iberian Pyrite Belt. The Government of Andalucia's approval of the restoration plan and exploitation permit for the underground mine directly adjacent to Pan Global's Escacena Project reinforces the region's mining-friendly regulatory environment.

Grupo México, the fourth-largest copper producer globally by volume, owns 97.31% of Minera Los Frailes, with the remaining 2.69% held by Magtel. The approved zinc, copper, lead, and silver mining project represents substantial regional investment and employment generation, creating favorable conditions for neighboring operations.

In the company news release, President and CEO Tim Moody expressed the importance of this approval,

"This milestone for our neighbors at Minera Los Frailes highlights the strength of the permitting environment in Andalucia and underscores the strategic location of our 100%-owned Escacena Project. With our La Romana copper discovery located just west of the planned Los Frailes mine, Pan Global is uniquely positioned to benefit from increased regional investment, infrastructure upgrades, and other synergies."

The Los Frailes development timeline extends over 20 years, providing long-term regional stability and infrastructure support. The plant will produce zinc, lead, and copper concentrates, establishing a comprehensive mineral processing framework that could benefit Pan Global's future development plans.

Breakthrough Gold Discovery at Cármenes

Pan Global's maiden drilling campaign at the Cármenes Project in northern Spain has yielded exceptional results, confirming the potential for significant new gold discoveries. The first completed drillhole at the Providencia target intersected 46.0 meters at 1.08 g/t gold from 24.0 meters down-hole, including a high-grade interval of 4.0 meters at 6.27 g/t gold with 0.25 g/t platinum and palladium from 66.0 meters.

This discovery represents previously unknown near-surface gold mineralization in an area with no historical gold extraction records. The Providencia target had no previous drilling and no past reports of gold mineralization, making this initial result particularly significant for future exploration potential.

"The first drill results at the Providencia target represent an exceptional start to Pan Global's maiden drill program at Cármenes, confirming discovery of previously unknown near-surface gold mineralization over a wide interval," explained Moody. "The results expand the breccia-hosted mineralization south of the historical high-grade copper, cobalt and nickel mine workings at Providencia and is wide open."

The gold mineralization occurs within strongly dolomitized and altered limestones characterized by multi-stage hydrothermal breccia with favorable metallurgical characteristics, including very low contents of deleterious elements such as arsenic or antimony. This geological setting suggests potential for additional discoveries within the broader target area.

Technical Details & Expansion Potential

The Providencia target encompasses a large surface area extending more than 250 meters by 150 meters, characterized by coincident strong dolomite alteration, breccia, and strongly anomalous copper, gold, nickel, cobalt, and lead geochemistry in soils, trench, and channel sample assays. Historical underground mine workings extracted copper, cobalt, and nickel ore from within a "pipe-like" hydrothermal breccia to 110 meters depth before operations ceased in the early 1930s.

The current six-hole drill program targets expansion of breccia-hosted mineralization associated with historical workings. Three step-out holes up to 120 meters east of the Providencia mine workings test beneath recently reported highly anomalous results, including 3.11 g/t gold over 37 meters and 1.74 g/t gold over 20 meters from trench and channel sampling.

"Multiple targets have been identified from soil geochemistry and mapping in the immediate area around Providencia, including the large untested Profunda target located 1km to the south," noted Moody. "This further highlights the potential for additional discoveries in the Cármenes Project."

The ongoing program includes interpretation of recently completed helicopter electromagnetic, magnetic, and radiometric surveys to fast-track identification and prioritization of additional potential drill targets across the 5,653-hectare project area.

La Romana Development at Escacena

While the Cármenes discovery generates excitement, Pan Global continues advancing its flagship La Romana copper-tin-silver deposit at the Escacena Project. The near-surface deposit exhibits outstanding metallurgy and characteristics favorable to potential open pit development, supporting the company's strategy for a significant, low-cost, and sustainable copper project within the established Tier-1 mining district.

The deposit remains open for expansion in several areas, with significant upside represented by numerous other targets throughout the Escacena Project area. A multi-target drill program continues as drilling resumes at the high-priority Bravo target following a brief pause for local wheat harvest. The next round of step-out drillholes targets higher-grade extensions of mineralization at La Romana.

The strategic proximity to the approved Los Frailes mine development creates synergistic opportunities for Pan Global's Escacena operations. Shared infrastructure, regional expertise, and established supply chains could significantly benefit future development economics and operational efficiency.

Conclusion for Investors

Pan Global Resources presents investors with a compelling combination of strategic positioning, technical success, and favorable operating environment across its Spanish portfolio. The validation provided by Grupo México's adjacent mine approval confirms the quality of Pan Global's asset base and the supportive regulatory framework. Simultaneously, the breakthrough gold discovery at Cármenes demonstrates the company's technical capabilities and the untapped potential within its project portfolio.

Market Context

Copper serves as a critical component for global electrification and energy transition initiatives, while gold continues attracting record prices amid economic uncertainty.

The company's strategic focus on established mining jurisdictions in Spain provides significant advantages over exploration activities in higher-risk regions. The Iberian Pyrite Belt's favorable permitting track record, excellent infrastructure, mining expertise, and European Commission support for copper as a Strategic Raw Material collectively define a tier-one, low-risk jurisdiction for mining investment.

Both Spanish projects benefit from areas with long mining histories and excellent infrastructure, reducing typical exploration and development risks associated with greenfield projects in remote locations. The Pan Global team's proven talent across exploration, discovery, development, and mine operations provides additional confidence in successful project advancement.

Pan Global's recent developments occur within favorable market conditions for copper and gold, with both metals experiencing strong demand fundamentals.

The proximity benefits from the 20-year Los Frailes mine development, combined with ongoing expansion potential at La Romana and new discovery opportunities at Cármenes, position Pan Global for sustained value creation. Operating within established Tier-1 mining jurisdictions with excellent infrastructure and supportive regulatory environments significantly reduces typical exploration and development risks while maintaining substantial upside potential through systematic exploration programs across multiple high-quality targets.