Mr. Layton Croft reports

PANCON PROVIDES EXPLORATION UPDATE ON MONTCALM PROJECT

Pancontinental Resources Corp. is providing an update on exploration activities at the company's early-stage nickel-cobalt-copper Montcalm project, 65 kilometres northwest of Timmins, Ont. The Montcalm project covers 3,780 hectares and is adjacent to Glencore's former Montcalm mine.

"We are encouraged by initial and ongoing results of our carefully designed geophysical program to identify the best possible drill targets at the Montcalm project," said Layton Croft, Pancon president and chief executive officer. "Our preliminary analysis of VTEM and gravity data corroborate our value creation thesis that the former Montcalm mine is potentially just one of many prospective nickel-cobalt-copper areas within the larger Montcalm gabbro complex. Pancon has strategically secured most all available exploration land within this gabbro complex outside of Glencore's property. At Montcalm, we will continue taking a studious approach to gathering and integrating all relevant data using the latest technology and the best analysts. This will maximize our probability of drilling success."

Highlights

• State-of-the-art virtual time domain electromagnetic (VTEM) and gravity airborne geophysical surveys have been flown over approximately 80 per cent of the project area.
• Pancon has identified 25 priority geophysical targets which warrant follow-up as a result of initial VTEM analysis, in addition to analysis of historic University of Toronto electromagnetic (UTEM) survey results.
• As part of the follow-up, Pancon plans to conduct a ground pulse electromagnetic (PEM) survey in mid-December, after the ground freezes over historic UTEM targets for target confirmation and acquisition of EM profiles to determine positioning of drill holes.
• The company expects a final VTEM assessment report in the coming weeks; these data will be integrated with the preliminary gravity data to further prioritize the VTEM and historical ground UTEM targets.
• By the end of 2018, Pancon expects to have a strategic drilling plan for the most prospective targets with a diamond drill program of 5,000 to 10,000 metres for the 2018 to 2019 winter season.
• Productive first nation consultations and local government engagement have commenced in order to secure community support and all necessary permits well in advance of drilling season, which is January to April.

About the Montcalm project

The Montcalm project (3,780 hectares) is located within the prospective Montcalm gabbro complex in the Montcalm greenstone belt, 65 kilometres northwest of Timmins, Ont. The project is contiguous to and surrounds the western, northwestern and southwestern portion of the former Montcalm mine, which was discovered and developed based on a single airborne electromagnetic anomaly identified in the 1970s and previously mined 3,931,610 tonnes of ore grading 1.25 per cent nickel (Ni), 0.67 per cent copper (Cu) and 0.051 per cent cobalt (Co), producing in excess of four million pounds of Co (Ontario Geological Survey, Atkinson, 2011). The company cautions that the mineralization on this adjacent property is not necessarily indicative of the mineralization that may be identified on the company's property.

In January, 2018, Pancon acquired an option to earn a 100-per-cent interest in the Montcalm project, as well as in the nearby Nova project, as detailed in its Jan. 10, 2018, news release.

Qualified person

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101 and reviewed and approved by J. Kevin Filo, PGeo, a qualified person as defined by NI 43-101, a member of Pancon's technical advisory committee, and Pancon's project manager for the Montcalm West project. Certain technical information within this news release is historical in nature and predates NI 43-101 standards; this information is believed to be reliable however the company has not verified this material.

About Pancontinental Resources Corp.

Pancontinental Resources is a Canadian-based mining company focused on four nickel-cobalt-copper projects in Ontario and three early-stage projects near Timmins: Montcalm project, Gambler project and Nova project; and the advanced stage McBride project near Bancroft. Pancon's mission is to generate value through responsible exploration, focusing on prospective assets in proximity to producing or former mines areas and/or with existing resources. The company also holds a 100-per-cent interest in the Jefferson gold project in South Carolina.

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