Mr. Alec Pismiris reports

PACTON ENTERS INTO DEFINITIVE AGREEMENT ON THE DRUMMOND EAST PTY LTD GRANTED EXPLORATION LICENSES

Pacton Gold Inc., further to the binding letter of intent signed earlier this year (please see news release dated May 22, 2018), has finalized and entered into a share sale agreement to acquire 100 per cent of the shares in Drummond East Pty. Ltd. from Impact Minerals Ltd., which holds seven granted tenement licences in the Pilbara comprising of a total of 1,126 square kilometres.

Agreement terms

Under the terms of the agreement, the company will purchase a 100-per-cent ownership interest in Drummond East by paying Impact Minerals $325,000 and issuing to Impact Minerals 2,125,000 common shares of Pacton. Impact Minerals will be entitled to receive a discovery bonus of $500,000 if Pacton publishes measured, indicated or inferred gold resources of over 250,000 ounces on the property.

Pacton and Impact Minerals will enter into a minerals royalty deed, whereby Impact Minerals will receive to a 2-per-cent net smelter return royalty in respect of the property. Pacton shall retain an exclusive and unlimited right to purchase 50 per cent of the net smelter royalty back from Impact Minerals for $500,000.

The agreement is subject to TSX Venture Exchange acceptance.

About Pacton Gold Inc.

Pacton Gold is a well-financed Canadian junior with key strategic partners focused on the exploration and development of conglomerate-hosted gold properties located in the district-scale Pilbara gold rush in Western Australia. The company recently raised approximately $5.5-million, currently controls the third-largest conglomerate-hosted gold property portfolio totalling in excess of 2,500 square kilometres and continues to aggressively review additional accretive acquisitions.