Pan Global's Ore Sorting Breakthrough Results Boosts Escacena Project Potential

• Pan Global Resources announces positive XRT ore sorting results for La Romana copper-tin mineralization at Escacena Project.
• The results imply potential for reduced costs and improved efficiency in ore processing.
• PGZ's La Romana deposit now extends 1.5km east-west over surface, and Escacena hosts several other promising prospects: Bravo, Barbacena, El Pozo, Romana Norte, etc.
• The company's ore sorting technology provided by TOMRA may increase options for processing at nearby facilities.
• Results complement excellent recoveries and concentrate grades from previous metallurgy tests.

Pan Global Resources Inc. (TSXV: PGZ) is a forward-thinking mining exploration company actively targeting copper-rich mineral deposits. With a strategic focus on the compelling supply-demand fundamentals of copper and its critical role in global electrification and energy transition, Pan Global has positioned itself at the forefront of the mining industry. The company's flagship Escacena Project, located in the prolific Iberian Pyrite Belt in southern Spain, showcases Pan Global's commitment to operating in tier-one jurisdictions with favorable permitting track records, excellent infrastructure, and strong support for copper as a Strategic Raw Material by the European Commission.

Breakthrough in Ore Sorting Technology

In a significant development announced by Pan Global Resources revealed positive results from its initial investigation of X-Ray Transmission (XRT) sensor technology for sorting and pre-concentration of copper and tin mineralization at the La Romana deposit within its 100% owned Escacena Project. This breakthrough has the potential to revolutionize the company's approach to ore processing and significantly enhance the project's economic viability.

The XRT technology, provided by TOMRA, a leading manufacturer of sensor-based sorting technologies for the global mining industry, has demonstrated its effectiveness in recognizing and separating materials based on their specific atomic density. For Pan Global, this translates into a high-performance classification of materials based on their composition, particularly beneficial for the copper and tin mineralization at La Romana.

Tim Moody, Pan Global's President & CEO, emphasized the significance of these results, stating:

"The positive result shows very promising potential for sorting and pre-concentration of the copper and tin mineralization at La Romana using TOMRA's XRT+EM technology. This widely used technology has potential to reduce costs through the removal of waste material prior to ore processing and help maximize the efficiency and recovery of valuable material downstream."

Economic Implications for Investors

For investors, the implications of this technological advancement are substantial. The ability to sort and pre-concentrate ore has the potential to:

1. Reduce processing costs by removing waste material early in the process
2. Improve mill feed grades, potentially increasing the value of the extracted resources
3. Enhance options for processing La Romana material at nearby mine facilities
4. Lower environmental impacts, aligning with increasing ESG concerns in the mining sector

These factors combined could improve project economics, potentially increasing Pan Global's Escacena Project's attractiveness to investors seeking exposure to the copper and tin markets.

The Escacena Project: Promising Strategic Location

Pan Global's Escacena Project comprises a large, contiguous 5,760-hectare land package in the east of the Iberian Pyrite Belt. The project's strategic location near operating and soon-to-be operating mines underscores its potential. Escacena is situated near the Rio Tinto mine and is adjacent to the former Aznalcóllar and Los Frailes mines, where construction is anticipated to start in 2024.

The project hosts several promising targets, including:

• La Romana copper-tin-silver discovery
• Cañada Honda copper-gold discovery
• Other prospective targets: Bravo, Barbacena, El Pozo, Romana Norte, San Pablo, Zarcita, Hornitos, La Jarosa, Romana Deep, and Cortijo

This diverse portfolio of targets within the Escacena Project exposes investors to multiple potential value drivers, mitigating risk through diversification while maintaining focus on a single, manageable project area.

La Romana Deposit: Expanding Horizons

In addition to the ore sorting breakthrough, Pan Global reported that drilling continues to test and delineate the western extent of the La Romana copper-tin-silver deposit. The deposit now extends 1.5km east-west over surface, indicating a potentially larger resource than previously estimated. This expansion could translate into a longer mine life or higher production rates, both of which would be positive factors for investors to consider.

Technical Details of the Ore Sorting Tests

The details provided about the ore sorting trials reflect Pan Global's commitment to thorough and transparent testing. The company sent samples from La Romana to the TOMRA Sorting Mining Test Centre in Wedel, Germany. Thirty individual rock fragments, including copper and tin mineralization as well as barren or low-grade material, were passed through TOMRA's COM Tertiary XRT equipment and electromagnetic (EM) sensor.

The results demonstrated a clear correlation between the mineralization and the XRT response, a key indicator of the applicability of the XRT+EM sorting technology at La Romana. This correlation is crucial for investors to understand, as it underpins the technology's potential effectiveness in real-world applications at the project site.

Next Steps & Future Outlook

Pan Global has outlined a clear path forward to capitalize on these promising initial results. The next steps include:

1. Conducting larger sample volume tests to investigate sorting efficiency
2. Assessing the economic benefits of incorporating ore sorting into the La Romana processing flowsheet
3. Continuing work on improving the processing flowsheet and basic engineering design
4. Developing preliminary cost estimates in preparation for an initial scoping study and Preliminary Economic Assessment (PEA)

These steps demonstrate Pan Global's methodical approach to project development, providing investors with a clear roadmap of near-term catalysts that could potentially drive value creation.

Sensor-based Ore Sorting in the Mining Industry

To fully appreciate the significance of Pan Global's announcement, it's important to understand the broader context of sensor-based ore sorting in the mining industry. This technology is increasingly being applied across the sector to increase productivity, reduce total cash costs, and optimize capital expenditure.

Key benefits of sensor-based sorting include:

• Reduced energy, water, and reagent consumption
• Decreased waste or tailings volumes
• Potential for lower cut-off grades and/or upgraded mining reserves
• Overall reduction in environmental impact

For investors, these benefits translate into potential cost savings, improved project economics, and enhanced environmental stewardship – all contributing to a more robust and sustainable investment proposition.

Market Dynamics: The Copper & Tin Outlook

While the press release focuses primarily on the technical aspects of the ore sorting breakthrough, investors should consider the broader market dynamics for copper and tin. Both metals play critical roles in the ongoing global electrification and energy transition trends.

Copper, in particular, is experiencing strong demand fundamentals due to its essential role in renewable energy infrastructure, electric vehicles, and energy-efficient technologies. The European Commission's designation of copper as a Strategic Raw Material further underscores its importance and potentially provides a supportive regulatory environment for projects like Escacena.

Tin, while often overlooked, is also crucial in electronics manufacturing and is facing supply constraints. The combination of copper and tin at La Romana potentially provides Pan Global with exposure to two metals with strong future demand prospects.

The Investment Case for Pan Global Resources

As Pan Global Resources continues to advance its Escacena Project, the recent announcement of positive ore sorting results marks a significant milestone. For investors considering Pan Global, several key factors emerge:

• Technological Edge: The successful application of XRT sorting technology could provide Pan Global with a competitive advantage, potentially leading to improved project economics and reduced environmental impact.
• Expanding Resource: The continued expansion of the La Romana deposit suggests potential for a larger resource, which could translate into a more valuable asset over time.
• Strategic Location: The Escacena Project's location in the Iberian Pyrite Belt, near existing mining operations, provides logistical advantages and potential synergies.
• Diverse Target Portfolio: Multiple prospective targets within the Escacena Project offer potential for further discoveries and resource growth.
• Strong Management: Pan Global's experienced team and commitment to responsible mining practices position the company well for future development challenges.
• Favorable Market Dynamics: The strong demand outlook for copper and tin, driven by global electrification and energy transition trends, provides a supportive backdrop for Pan Global's focus on these metals.
• Clear Development Path: The company has outlined a clear roadmap for advancing the Escacena Project, providing investors with visibility on potential near-term catalysts.

While all mining exploration investments carry inherent risks, Pan Global Resources presents a compelling case for investors seeking exposure to the copper and tin markets through a well-positioned junior mining company. The recent ore sorting breakthrough, combined with the ongoing expansion of the La Romana deposit, suggests that Pan Global is at an exciting juncture in its development.