Mr. Tim Moody reports

PAN GLOBAL INTERSECTS HIGH GOLD GRADES AND COPPER MINERALIZATION NEAR SURFACE AT CANADA HONDA TARGET IN THE ESCACENA PROJECT, SPAIN

Pan Global Resources Inc. has released positive assay results for two new diamond drill holes at the Canada Honda target at the company's 100-per-cent-owned Escacena project in the Iberian pyrite belt, southern Spain. Canada Honda is one of more than 14 gravity anomalies in the Escacena project, which includes the copper-tin-silver discovery at the La Romana target.

"The new drill hole assay results have significantly enhanced the potential for a new copper-gold discovery at the Canada Honda target. The results indicate an upper gold zone and deeper zone of copper-gold mineralization at the edge of a large untested DHEM conductor anomaly. The DHEM conductor and adjacent gravity anomaly expands the size potential at Canada Honda. These are exciting results, including the highest gold grades that we have encountered at the Escacena project, and further highlights the prospectivity of this land package and the many other targets not yet tested," said Tim Moody, Pan Global's president and chief executive officer.

"Excellent progress is also being made at the Romana West target with two teams collecting gravity data, IP surveying, geochemical sampling and mapping under way concurrently, and drilling anticipated to commence in approximately two weeks," Mr. Moody added.

Canada Honda is now a high-priority target due to subsequent down-hole electromagnetic (DHEM) surveys in both drill holes that show a large approximately 190-metre-by-100-metre untested conductor anomaly with potential for stronger sulphide mineralization to the east and down dip. Drilling has commenced on the first of three follow-up drill holes based on this new information.

Highlights:

• Holes CHD03 and CHD04, drilled on the same section, show a vector down dip with increasing gold and copper within a continuous zone of massive sulphides and sulphide-stockwork mineralization, wide open at depth and along strike.
• Grades up to 5.3 per cent Cu over 0.6 m, and up to 5.2 grams per tonne Au over one m intervals.
• Potential for scale is indicated by the proximity to a large untested gravity anomaly and adjacent DHEM conductor anomaly.
• CHD04 intersected:
  • One m at 3.2 g/t Au and 2.3 g/t Ag from 85 m;
  • Five m at 1.1 g/t Au and 1.7 g/t Ag from 94 m, including:
    • One m at 5.1 g/t Au and 1.6 g/t Ag;
    • One m at 0.3 per cent Cu, 1.1 g/t Au and one g/t Ag from 107 m.
  • 13 m at 0.5 per cent Cu, 0.8 g/t Au and 2.7 g/t Ag from 167 m, including:
    • 6.2 m at 0.9 per cent Cu, 1.5 g/t Au and 3.8 g/t Ag;
    • Five m at 0.5 per cent Cu, 2.7 g/t Au and 4.5 g/t Ag;
    • 0.6 m at 5.3 per cent Cu, 0.5 g/t Au and 10.8 g/t Ag.
• CHD03 intersected:
  • Two m at 1.4 g/t Au from 58 m;
  • Eight m at one g/t Au from 66 m;
  • 14 m at 0.4 per cent Cu, 0.3 g/t Au and 2.1 g/t Ag from 141 m, including:
    • Six m at 0.9 per cent Cu, 0.6 g/t Au and 4.2 g/t Ag;
    • Three m at 1.4 per cent Cu, 0.8 g/t Au and 6.6 g/t Ag.
• These are the highest gold grades detected in the Escacena project area to date, and a potentially significant addition to the copper equivalent grade.
• Down-hole EM results indicate the strongest copper-gold mineralization in drill hole CHD04 coincides with the edge of a large untested 190 m by 100 m DHEM conductor plate anomaly, and potential indicator of more significant sulphide mineralization to the east and down dip.

The Canada Honda target is characterized by a large gravity anomaly (up to one milligal) that extends approximately two kilometres east-west. The new drill results confirm the target concept for sulphide mineralization within the prospective volcanic sequence (VS) concealed beneath, and potentially within the overthrust rocks of the older shales and quartzites (PQ).

Canada Honda

Drill holes CHD03 and CHD04 tested approximately 150 m and 210 m, respectively, down dip of a historic mine tunnel where previous channel sampling by Pan Global returned 26 m at 0.42 g/t Au and individual assay values up to 2.9 g/t Au, 27.5 g/t Ag, 0.2 per cent Cu and 0.4 per cent Con(cobalt). Hole CHD02, located 475 m to the west of holes CHD03 and CHD04, intersected 11 m at 0.6 per cent Cu, 0.12 g/t Au and 3.2 g/t Ag (abandoned before reaching target due to hole collapse).

New processing and interpretation of the gravity data over the Canada Honda target show drill holes CHD03 and CHD04 are on the edge of a large gravity inversion model anomaly. Based on the encouraging initial drill results, three additional follow-up holes are planned to test gravity and induced polarization anomalies down dip from CHD-04 and a DHEM conductor anomaly east of CHD04.

Drilling is continuing in the Escacena project at the La Romana and Zarcita targets. Results are pending for approximately 20 drill holes at La Romana and Zarcita with results to be reported on completion of the final few drill holes at each target. The maiden drill campaign at La Romana West is scheduled to commence in June. Negotiations are also in progress with landowners for access to the untested potential eastern extensions to the La Romana mineralization and Bravo target.

Quality assurance/quality control procedures

Core size was HQ (63 millimetres) and all samples were one-half core. Nominal sample size was one m core length and ranged from 0.4 m to two m. Sample intervals were defined using geological contacts with the start and end of each sample physically marked on the core. Diamond blade core cutting and sampling were supervised at all times by company staff. Duplicate samples of one-fourth core were taken approximately every 30 samples and certified reference materials inserted every 25 samples in each batch.

Samples were delivered to ALS laboratory in Seville, Spain, and assayed at the ALS laboratory in Ireland. All samples were crushed and split (method CRU-31, SPL22Y), and pulverized using method PUL-31. Gold analysis was by 50-gram fire assay with inductively coupled plasma finish (method Au-ICP22) and multielement analysis was undertaken using a four-acid digest with inductively coupled plasma atomic emission spectroscopy finish (method ME-ICP61). Overgrade base metal results were assayed using a four-acid digest ICP-AES (method OG-62).

About the Escacena project

The Escacena project comprises a large, contiguous, 5,760-hectare land package controlled 100 per cent by Pan Global in the east of the Iberian pyrite belt. Escacena is located near operating mines at Las Cruces and Riotinto and is immediately adjacent to the former Aznalcollar and Los Frailes mines where Minera Los Frailes/Grupo Mexico is in the final permitting stage with construction anticipated to start in 2023. The Escacena project hosts the La Romana copper-tin-silver discovery and a number of other prospective targets, including Zarcita, Hornitos, La Jarosa, Romana Deep, Romana North, Romana West, Canada Honda, Bravo, Barbacena, El Pozo and San Pablo.

About Pan Global Resources Inc.

Pan Global Resources is actively targeting copper-rich mineral deposits, given copper's compelling supply-demand fundamentals and outlook for strong long-term prices as a critical metal for global electrification and energy transition. The company's flagship Escacena project is located in the prolific Iberian pyrite belt in southern Spain, where infrastructure, mining and professional expertise, and support for copper as a strategic raw material by the European Commission collectively define a Tier 1 jurisdiction for mining investment. The Pan Global team comprises proven talent in exploration, development and mine operations -- all of which are committed to operating safely and with utmost respect for the environment and Pan Global's partnered communities.

Qualified person

James Royall, vice-president, exploration, for Pan Global Resources and a qualified person as defined by National Instrument 43-101, has reviewed the scientific and technical information for this news release. Mr. Royall is not independent of the company.

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