Pan Global Resources - Visiting Copper Targets in Seville, Spain

• Pan Global Resources is primarily focused on copper exploration in Spain, with their flagship Escacena project containing the La Romana discovery.
• La Romana has over 180 drill holes completed and is close to having a defined resource, with environmental and metallurgical studies underway.
• The company has an experienced management team, including CEO Tim Moody who has over 40 years of mining industry experience.
• Pan Global is exploring multiple targets within their project area, including the recently announced Bravo target which shows promising early results.
• The company's projects are located in a pro-mining region with excellent infrastructure and proximity to major copper producers like First Quantum and Atalaya Mining.

Pan Global Resources (TSX-V: PGZ) is an exploration company primarily focused on copper in Spain's Iberian Pyrite Belt, a region with a rich mining history and home to some of the world's largest volcanic massive sulphide (VMS) deposits. The company's flagship Escacena project, which includes the promising La Romana discovery, is situated in a prime location surrounded by major copper producers and excellent infrastructure. With an experienced management team, encouraging exploration results, and a pipeline of promising targets, Pan Global Resources presents an intriguing opportunity for investors seeking exposure to the copper sector.

The company has recently commenced a maiden exploration program on the Bravo target, situated in the Escacena project. We visited the company's operation in Seville, Spain, to meet the team and see the work being done at Bravo and their other targets, all in a historic and pro-mining town.

Company Overview & Projects

Pan Global Resources has been active in Spain for approximately five years, with its primary focus on the Escacena project. The company's CEO, Tim Moody, brings over 40 years of mining industry experience to the table, including 24 years with Rio Tinto, where he served as the director of exploration and worked in business development.

Moody explains the company's rapid progress:

"We had extraordinary luck. The first drill holes and the first target were discovery holes, and we haven't looked back since then."

This early success at the La Romana target has driven the company's exploration efforts and led to significant advancements in understanding the potential of the Escacena project.

Interview with President & CEO, Tim Moody, in Seville, Spain

La Romana Discovery

The La Romana discovery is the most advanced target within the Escacena project. With over 180 drill holes completed, the deposit is approaching resource definition stage. The mineralization extends for approximately 1.5 kilometers along strike and remains open for expansion. Pan Global has initiated environmental baseline studies and completed advanced metallurgical work, indicating the company's commitment to advancing the project towards potential development.

Moody describes the deposit's favorable characteristics:

"It's a very simple geometry, very simple deposit at La Romana. It's not folded, it comes to surface, it's tabular. So it's an ideal geometry for an open pit."

This simplicity could translate to more straightforward and potentially cost-effective mining operations in the future.

The company is currently focused on delineation drilling at the western extension of La Romana, which could potentially add another 300-400 meters to the strike length, bringing it close to 2 kilometers. Pan Global aims to release a maiden resource estimate for La Romana, possibly followed by a Preliminary Economic Assessment (PEA), in the near future.

Cañada Honda & Bravo Targets

In addition to La Romana, Pan Global is advancing the Cañada Honda target, located approximately 4 kilometers away. With 16 holes completed, this second discovery demonstrates the company's ability to identify and explore multiple promising targets within its project area.

The company maintains a pipeline of other exploration targets, including the recently announced Bravo target. Initial results from Bravo are encouraging, with a coherent lead-zinc soil anomaly coinciding with a large gravity anomaly. This early-stage target exemplifies Pan Global's strategy of using multiple exploration techniques to identify and prioritize drilling targets.

The Bravo Target: A Promising New Exploration Frontier

The Bravo target represents one of Pan Global's most exciting new exploration opportunities within the Escacena project. Located just 1.5 kilometers east of the La Romana discovery and potentially along the same geological trend, Bravo exhibits characteristics that have piqued the interest of the company's technical team.

Moody explains the target's initial appeal:

"It's another big gravity anomaly. The only information we had on that target was from an early 1980s gravity survey, which there was a fairly coarse survey, you know, readings every 200 metres. But that was the same data we used to generate the La Romana target before we drilled it."

The significance of this historical data cannot be overstated, as it mirrors the information that led to the La Romana discovery. Moreover, the Bravo gravity anomaly appears to be larger and more prominent than La Romana's initial signature, measuring approximately two kilometers long and one kilometer north-south.

Recent Exploration Activities

Pan Global has recently initiated a comprehensive exploration program at Bravo, focusing on two key methods:

• Soil Geochemistry: The company is conducting an extensive soil sampling program across the target area. As of the latest update, they have completed over half of the planned survey and are considering expanding it based on encouraging results.
• Detailed Gravity Survey: To refine the historical gravity data, Pan Global is performing a much tighter grid gravity survey. This will provide higher resolution data, allowing for better delineation of the gravity response and more precise modeling of potential mineralization.

Preliminary Results & Implications

Early results from the soil geochemistry program have revealed a coherent lead-zinc anomaly coinciding with the gravity anomaly. This geochemical signature is particularly significant in the context of VMS (Volcanic Massive Sulphide) deposits, which often display metal zonation patterns.

Moody elaborates on the implications of these findings:

"These massive sulphide deposits are quite often zoned. You have a copper core and then you have a lead-zinc either peripheral to that or above. Or something they call polymetallic or they're copper, lead and zinc together."

The presence of lead and zinc in the soil samples could indicate the peripheral or upper portions of a VMS system, with the potential for a copper-rich core at depth or laterally. This pattern is consistent with other major deposits in the region, including the nearby Aznalcóllar and Aguas Teñidas mines.

Next Steps

Following the completion of the soil geochemistry and detailed gravity surveys, Pan Global plans to conduct additional ground geophysics, including Induced Polarization (IP) surveys. Moody explains the rationale: "Because these are full of sulphide, metal metals, you put a charge into the ground and it can light these up. And hopefully that will give us a better idea where to best position the drill rig."

The company aims to synthesize all this data to develop a three-dimensional model of the target, which will guide the placement of initial drill holes. Pan Global anticipates commencing drilling at Bravo before the end of the year, marking a significant step in testing this promising new target.

Strategic Significance of the Bravo Target

The Bravo target represents a key component of Pan Global's exploration strategy within the Escacena project. Its proximity to La Romana and similar geophysical characteristics suggest the potential for another significant discovery. If successful, Bravo could substantially increase the overall resource potential of the Escacena project, potentially transforming Pan Global from a single-discovery company to one with multiple advanced targets.

Moreover, the systematic approach to exploring Bravo demonstrates Pan Global's commitment to thorough, science-driven exploration. This methodology, which has already proven successful at La Romana, enhances the company's chances of making additional discoveries across its project portfolio.

As Pan Global advances its exploration at Bravo, investors should closely monitor the results. Positive findings from the ongoing surveys and, particularly, from the anticipated drilling campaign could serve as significant catalysts for the company's valuation and future prospects in the region.

Strategic Location & Infrastructure

The Escacena project benefits from its location in a pro-mining region with excellent infrastructure. The project area is surrounded by major copper producers, including:

• First Quantum Minerals' Las Cruces mine, one of the world's highest-grade open-pit copper mines, located approximately 12 kilometers away.
• Atalaya Mining's Rio Tinto mine, the world's largest VMS deposit, situated about 20-25 kilometers from Escacena.
• Grupo Mexico's Cobre Las Cruces project, which recently received environmental permits for a new underground mine development, located within 6 kilometers of La Romana.

This proximity to established operations not only validates the region's prospectivity but also presents potential strategic opportunities for Pan Global in terms of partnerships, infrastructure sharing, or potential acquisition interest from major producers.

Experienced Management & Technical Team

Pan Global Resources boasts a highly experienced management and technical team, with a strong local presence and deep roots in the Spanish mining industry. This blend of international expertise and local knowledge is a key strength for the company as it advances its projects in the Iberian Pyrite Belt.

The company's technical team includes three mining engineers, which is unusual for a junior exploration company. This composition reflects Pan Global's forward-thinking approach to project development. CEO Tim Moody elaborates on this strategy:

"As we move our discovery through the steps to eventually becoming a mine, I felt it was important to have someone with his [Juan Garcia Valledor, General Manager, Spain] depth of experience and reputation early on so that we can build the relationships with the administration."

Juan Garcia Valledor, the company's General Manager in Spain, brings a wealth of experience to the team. As a mining engineer with over 20 years of experience in the region, Juan has been involved in nearly all the major mining projects in the area. His background includes work on significant operations such as the Las Cruces project, the reopening of Aguas Teñidas, and the restart of Los Frailes after a dam failure.

Juan emphasizes the rich mining history of the region:

"We are in Aznalcóllar. Aznalcóllar is a village within the Iberian pyrite belt. We have a really long mining history...There is mining history since maybe 3,000 years."

Bárbara Gómez, another key member of the technical team, represents the third generation of mining engineers in her family. Her family's deep ties to the region exemplify the long-standing mining tradition in the area. Bárbara shares:

"This town is deeply related with mining. My great-grandfather was a mining engineer in that mine, Caridad, which was an underground mine that is north of the current open pits. So the history of the village is really, really linked with mining."

The company's commitment to local employment is evident in its hiring practices. As Bárbara notes, "More than 95% of our team lives within 50 kilometers from [the] Escacena project. And we ask our contractors to do so as well." This approach not only ensures a steady supply of skilled labor but also strengthens the company's ties to the local community and enhances its social license to operate.

Pan Global's team benefits from the rich mining ecosystem in the region. Juan elaborates on the operating environment:

"We have several operating mines here. First Quantum is at the eastern end of the Iberian Pyrite Belt. Then Grupo Mexico is just next to us, less than two kilometres from where we are now... Going to the west, we have Atalaya in Rio Tinto. We have Sandfire MATSA, which operates Sotiel, Magdalena and Aguas Teñidas."

The team's expertise extends beyond exploration and into project development. As Juan explains, "We are doing all the work around that, the metallurgy, the environmental work, etc. So we cover that first phase of the value chain of mining until the project will be ready to develop." This comprehensive approach positions Pan Global to potentially advance its discoveries towards production, should the economics prove favorable.

Moreover, the team's local knowledge and relationships are crucial in an industry where community support and regulatory understanding are as important as geological expertise. Juan highlights the supportive local environment:

"The local administration in the region in Andalusia is really very active in helping miners to develop projects. That's also a very positive point in our projects and in the area."

In summary, Pan Global's management and technical team combines deep local roots, extensive experience across the mining value chain, and a strategic approach to project development. This blend of expertise positions the company well to advance its exploration projects and potentially transition discoveries into development-stage assets in one of the world's most prolific VMS districts.

Exploration Approach & Recent Developments

Pan Global Resources employs a systematic and multi-faceted exploration approach, leveraging modern techniques alongside historical data to identify and prioritize targets within its project portfolio. The company's exploration strategy is led by Álvaro Merino, Vice President of Exploration, who brings over 25 years of international experience to the role.

Comprehensive Geological Understanding

Pan Global's exploration efforts are underpinned by a deep understanding of the regional geology. The company's technical team has developed a nuanced comprehension of the Iberian Pyrite Belt's complex stratigraphy and mineralization patterns. This geological insight is crucial in guiding the company's target generation process.

The team recognizes three main geological units in the region: an older sedimentary unit, a more recent and prolific volcanic unit that hosts most of the VMS deposits, and a younger tertiary cover. Pan Global's strategy focuses on exploring areas within the volcanic unit that are overlain by tertiary cover, particularly in the southern part of the Iberian Pyrite Belt. This approach is based on the hypothesis that these covered areas may conceal undiscovered deposits that were overlooked by historical mining activities.

Integrated Exploration Techniques

Pan Global utilizes a range of exploration techniques to maximize the chances of discovery. Their approach typically begins with geological mapping and soil geochemistry, followed by geophysical surveys such as gravity and Induced Polarization (IP). This multi-pronged approach allows the company to build a comprehensive understanding of potential mineralization before committing to expensive drilling programs.

At the Bravo target, for instance, the company has recently initiated a soil geochemistry program and a detailed gravity survey. These will be followed by IP surveys to further refine the target before drilling. This methodical approach has proven successful at La Romana and is being applied across the company's project portfolio.

Leveraging Historical Data

Pan Global's exploration strategy also incorporates historical data, recognizing the value of past mining activities in the region. The company's project areas contain several ancient mine workings, some dating back to Roman times. This historical context not only provides valuable geological insights but also highlights the rich mineral endowment of the region, reinforcing the potential for new discoveries.

Team-Based Approach

The company's exploration efforts are bolstered by a skilled and diverse technical team. Pan Global employs a group of geologists, each specializing in different aspects of exploration such as geophysics, geochemistry, and 3D modeling. This specialized yet integrated team structure allows the company to approach exploration challenges from multiple angles, fostering innovation and thorough analysis of exploration data.

Focus on Multiple Projects

While the Escacena project remains Pan Global's flagship, the company is actively advancing other projects in its portfolio. This includes the Carmenes project in northern Spain, demonstrating the company's commitment to building a diverse project pipeline. This approach allows Pan Global to potentially make multiple discoveries across its project portfolio, enhancing the overall value proposition for investors.

Ongoing Resource Definition

As Pan Global advances its discoveries, particularly at La Romana, the focus is shifting towards resource definition. The team is reprocessing and reinterpreting all available data to better understand the mineralization and geology. This meticulous approach to data analysis and interpretation is crucial as the company works towards establishing its maiden resource estimate at La Romana.

Pan Global's exploration approach combines cutting-edge techniques with historical insights, all guided by a team of experienced professionals. This comprehensive strategy has already yielded two discoveries and positions the company well for potential future success as it continues to explore its promising land package in the Iberian Pyrite Belt.

Market Conditions & Company Strategy

While acknowledging the challenging market conditions for junior explorers, Pan Global remains committed to advancing its projects. Moody emphasizes the importance of continued exploration:

"We're an exploration company, we're in the exploration business, so you want to give people reason to invest. And we try and do that with the drill rig."

The company has been drilling consistently for four years, demonstrating its commitment to creating value through exploration. While managing cash carefully in the current market environment, Pan Global aims to maintain momentum on its key projects and targets.

Future Outlook

Pan Global is positioning itself for significant milestones in the near to medium term. The upcoming resource estimate for La Romana will be a crucial catalyst, providing investors with a clearer understanding of the project's scale and potential economic value. The company's pipeline of exploration targets, including Cañada Honda and Bravo, offers multiple opportunities for value creation through new discoveries or resource expansion.

The Investment Thesis for Pan Global Resources

• Advancing copper projects in a tier-one jurisdiction with excellent infrastructure and proximity to major producers
• Experienced management team with a track record of discoveries and mine development
• La Romana discovery approaching resource definition stage, with potential for near-term catalysts (resource estimate, PEA)
• Pipeline of promising exploration targets, including Cañada Honda and Bravo, offering multiple opportunities for value creation
• Systematic exploration approach yielding consistent results and new target generation
• Strategic location could attract interest from major producers in the region
• Exposure to copper, a metal with strong long-term fundamentals due to its role in renewable energy and electrification

Pan Global Resources offers investors exposure to a promising copper exploration portfolio in Spain's prolific Iberian Pyrite Belt. The company's flagship La Romana discovery is approaching a resource definition stage, with potential for significant growth. Pan Global's experienced management team, systematic exploration approach, and pipeline of targets provide multiple avenues for value creation. The strategic location of its projects, surrounded by major producers and excellent infrastructure, enhances the company's prospects for long-term success. While investing in junior explorers carries inherent risks, Pan Global's progress to date and near-term catalysts make it an intriguing opportunity for investors seeking exposure to the copper sector.

Macro Thematic Analysis

The global transition towards renewable energy and electrification is driving increasing demand for copper, creating a favorable macro environment for companies like Pan Global Resources. Copper plays a crucial role in renewable energy systems, electric vehicles, and energy-efficient technologies, making it a critical metal for the green energy transition.

The International Energy Agency (IEA) projects that copper demand for clean energy technologies could increase by up to 600% by 2040. This surge in demand, coupled with the challenges of bringing new copper mines into production, has led many analysts to predict a significant supply deficit in the coming years.In this context, Pan Global's focus on advancing copper projects in a stable jurisdiction like Spain positions the company well to capitalize on these macro trends. The Iberian Pyrite Belt, where Pan Global's projects are located, has a long history of mining and is home to world-class VMS deposits. This geological setting, combined with excellent infrastructure and proximity to major producers, enhances the company's prospects for successful project development.

Moreover, the increasing emphasis on responsible sourcing of raw materials for the green energy transition favors projects in stable, well-regulated jurisdictions like Spain. This trend could potentially make Pan Global's projects more attractive to both investors and potential strategic partners or acquirers.

The best quote summarizing the opportunity comes from Tim Moody:

"We're in a pretty good neighbourhood, as you saw while driving here. Great infrastructure. So you're surrounded by giants."

This statement encapsulates the strategic advantages of Pan Global's project location, highlighting its proximity to major producers and excellent infrastructure – factors that could significantly enhance the company's ability to advance its discoveries towards production and create value for investors.