Mr. Tim Moody reports

PAN GLOBAL COMMENCES PHASE 2 DRILLING AT CANADA HONDA DEPOSIT: PROVIDES ESCACENA PROJECT UPDATE, SPAIN

Pan Global Resources Inc. has provided an exploration update from its 100-per-cent-owned Escacena project in the Iberian pyrite belt of southern Spain, including expansion of the project area, a helicopter geophysics survey at Escacena South, commencement of phase 2 drilling at the Canada Honda copper-gold deposit, encouraging results from recently completed geophysical and geochemistry surveys, and continued advancement of exploration targets across the project.

"Escacena continues to grow as a district-scale copper exploration project, with a significantly expanded land position, more than 15 priority targets and a fully funded 20,000-metre drill program planned over the next 12 to 18 months to systematically test the company's growing pipeline of targets," said Tim Moody, president and chief executive officer of Pan Global Resources.

"A new phase of drilling has commenced at Canada Honda, where previous drilling intersected significant copper-gold mineralization on only a small portion of a three-kilometre-long target. Recent geophysical and geochemical surveys have generated additional drill targets and continue to highlight the potential for new discoveries across the broader Escacena project."

Escacena project expansion and new exploration programs

Three new mineral rights applications (total 2,853 hectares) have been submitted adjacent to the company's highly prospective Escacena South area. Together with the recently awarded Escacena South area, the applications expand the Escacena project area to approximately 16,745 hectares.

A helicopter electromagnetic (EM) and magnetic survey is scheduled to commence in July across much of the Escacena South area to accelerate target prioritization and assist in identifying concealed sulphide mineralization.

Exploration permitting continues to advance across Escacena South. The Trinidad and Carmen targets, where historical mine workings and surface massive sulphide occurrences coincide with prominent gravity anomalies, have been identified as priority drill targets once final permits are received.

Phase 2 drilling commences at Canada Honda

A new phase of drilling has commenced at the Canada Honda deposit, comprising an initial eight drill holes totalling approximately 2,500 metres. The program is designed to test extensions to known copper and gold mineralization, and newly identified geophysical and geochemical anomalies.

Canada Honda is associated with a three-kilometre-long coincident gravity and helicopter electro magnetic (HEM) resistivity-low anomaly located four kilometres north of the company's La Romana copper-tin-silver deposit. Previous drilling comprised 16 widely spaced drill holes, focused primarily on the eastern portion of the target, leaving most of the target untested.

Previous drilling intersected significant copper and gold mineralization in multiple holes (Jan. 30, 2024, news release, and Sept. 8, 2023, news release), including:

• 20.0 metres (m) grading 0.5 per cent copper (Cu) and 0.8 gram per tonne (g/t) gold (Au), including 5.1 m grading 1.3 per cent Cu and 0.5 g/t Au (CHD05);
• 20.0 m grading 1.1 g/t Au (CHD09);
• 5.6 m grading 1.15 per cent Cu (CHD10).

Subsequent drilling demonstrated continuity of mineralization from surface to at least 600 metres downdip, and mineralization remains open at depth and along strike.

Assay results from the current drill programs will be released as they become available.

Geophysical and geochemical surveys generate new drill targets

Recent high-resolution SQUID (superconducting quantum interference device) IP (induced polarization) and AMT (audio magnetotelluric) surveys completed over a portion of Canada Honda have identified several new drill targets adjacent to the modelled gravity anomaly. These surveys provide an opportunity to detect mineralization at greater depths compared with conventional IP.

Coincident chargeability-high and resistivity-low anomalies are interpreted to represent favourable zones for sulphide mineralization and support the potential for a more extensive mineralized corridor as well as provide additional targets for the current drill program.

Additional SQUID IP and AMT survey coverage is planned across the remainder of the three-kilometre-long anomaly to further refine drill targeting.

Expanded soil geochemistry has also identified multiple untested gold anomalies associated with known mineralization and fault corridors extending across the broader Canada Honda and El Pozo trend. Follow-up exploration is under way.

Results from recent drilling at El Pozo, including a narrow high-grade polymetallic interval (table 1) and multiple sulphide-bearing intervals associated with strong chlorite-sericite alteration, support the increasing prospectivity of this corridor and a large untested gravity anomaly north of the current drill area.

Next steps:

• Continuing phase 2 drilling at Canada Honda;
• Follow-up testing of newly identified geophysical and geochemical targets;
• Completion of the helicopter EM and magnetic survey at Escacena South;
• Advancement of permitting of Escacena South for initial drill testing at the Trinidad and Carmen targets;
• Continued evaluation of additional priority targets across the expanded Escacena project area.

About the Escacena project, southern Spain

The Escacena project, recently added Escacena South area and new application areas together comprise a mineral rights land package covering more than 16,745 hectares controlled 100 per cent by Pan Global in the east of the Iberian pyrite belt, Europe's second-largest copper-producing region. Escacena is located near the operating mine at Riotinto (Atalaya) and is immediately adjacent to the former Aznalcollar and Los Frailes mines where Minera Los Frailes (Grupo Mexico) is commencing a new underground mine development beneath the former Los Frailes open-pit mine. The Escacena project includes mineral resource estimates at the La Romana copper-tin-silver and Canada Honda copper-gold deposits and hosts 15 other prospective targets for follow-up.

About Pan Global Resources Inc.

Pan Global Resources is actively exploring for copper-rich mineral deposits along with gold and other metals. Copper has compelling supply-demand fundamentals and outlook for strong long-term prices as a critical metal for global electrification and energy transition. Gold is also attracting record prices.

The company's flagship Escacena project, hosting La Romana and Canada Honda copper-tin-gold mineral resources, is in the prolific Iberian pyrite belt in southern Spain, where a favourable permitting record, excellent infrastructure, mining and professional expertise, and support for copper as a strategic raw material by the European Commission collectively define a Tier 1 low-risk jurisdiction for mining investment. The company's second project, at Carmenes in northern Spain, is an area with a long mining history and excellent infrastructure. The Pan Global team comprises proven talent in exploration, discovery, development and mining operations. Pan Global Resources is committed to operating safely and with utmost respect for the environment and its partnered communities. The company is a member, and operates under the principles, of the United Nations Global Compact.

Qualified persons

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

Sampling, QA/QC (quality assurance/quality control) and analytical procedures

Core size was HQ (63 millmetres (mm)) and all samples were one-half core. Nominal sample size was one m core length and ranged from 0.5 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 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 certified and accredited 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, platinum and palladium analysis was by 50-gram (g) fire assay with ICP (inductively coupled plasma) finish (method Au-ICP-24) and multielement analysis was undertaken using a four-acid digest with ICP-AES (inductively coupled plasma atomic emission spectroscopy) finish (method ME-ICP-61). Overgrade base metal results were assayed using a four-acid digest ICP-AES (method OG-62).

The soil geochemistry survey includes samples collected from the top 20 centimetres (cm) from surface (unsieved, weighing approximately one kilogram (kg)) on a 100 m by 40 m grid across the target areas. Samples were submitted to ALS laboratory in Seville for preparation by method PREP-41. Samples are sieved through a 180-micron mesh screen to remove a large portion of the quartz sand and sent to ALS in Ireland for geochemical analysis using Au-ICP22 (Au; 50 g fire assay). More than 2 per cent of the samples submitted to the laboratory include blanks, certified reference standards and field duplicates to ensure the compliance with QA/QC protocols of Pan Global Resources. ALS also undertakes its own internal QA/QC analysis to ensure proper sample preparation and equipment calibration.

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