Mr. Tim Moody reports

PAN GLOBAL INTERSECTS WIDE ZONE OF COPPER-STOCKWORK MINERALIZATION AT ZARCITA AND REPORTS DRILL RESULTS FROM MULTIPLE TARGETS

Pan Global Resources Inc. has released assay results for 21 drill holes targeting volcanogenic massive sulphide (VMS) copper and polymetallic mineralization at the 100-per-cent-owned Escacena project in the Iberian pyrite belt (IPB), southern Spain. The drill holes were all completed in 2022 and provide the first tests of the Zarcita, Hornitos, La Jarosa, Pilar and Bravo Norte targets. Pan Global's 2023 exploration program in Spain includes a 20,000-metre multitarget drill program with an estimated budget of $8.5-million.

"Pan Global is highly encouraged by the drill results with copper and/or zinc mineralization intersected in three of the five new targets tested in the Escacena project area," said Tim Moody, president and chief executive officer. "At Zarcita, the first four completed drill holes have all intersected copper mineralization within a 75-metre-thick pyrite-chalcopyrite stockwork associated with strong chlorite alteration, including bands of semi-massive to massive sulphide. The copper mineralization at Zarcita continues from surface to more than 400 m down dip and is open in all directions. The combination of stockwork mineralization together with strong chlorite alteration are excellent indicators of proximity to major VMS ore deposits in the IPB.

"In addition, copper-zinc mineralization intersected at the La Jarosa target is within a potential structural repetition of the same host rocks at the nearby Aznalcollar and Los Frailes VMS deposits, and promising near-surface VMS-associated zinc-lead mineralization was identified at the Hornitos target. The company maintains a strong cash position and is fully funded for another 20,000-metre drill program in 2023."

Drill results are summarized in the table entitled "Escacena project, drill results summary."

Highlights:

• At the Zarcita target, four kilometres to the north of La Romana, the first four drill holes (ZAD01 to ZAD04) intersected copper stockwork-style mineralization (pyrite and chalcopyrite) over approximately 75 metres true thickness, including narrow intervals of massive and semi-massive sulphide with high copper grades, and strong chlorite-alteration increasing down dip. The copper mineralization continues from surface to more than 400 m down dip and remains open in all directions. ZAD01 to ZAD04 were drilled on a single north-south cross section. Holes ZAD05 and ZAD06 drilled along strike approximately 50 m west and 50 m east, respectively, have also intersected visible copper mineralization, with assay results pending. The target extends along more than 2.5 km of strike and includes the historic Zarcita copper mine workings. The continuing drill program includes an additional 14 holes. Notable results include:
  • ZAD02: 58 m (35 m true thickness) at 0.2 per cent copper (Cu), including 22.5 m at 0.3 per cent Cu, including 0.6 m at 1.3 per cent Cu and 3.1 grams per tonne (g/t) silver (Ag);
  • ZAD03: 34 m at 0.2 per cent Cu, including 10.2 m at 0.3 per cent Cu, including 0.4 m at 2.8 per cent Cu, 2.9 g/t Ag and 0.2 g/t gold (Au);
  • ZAD04: 26.4 m (15 m true thickness) at 0.2 per cent Cu, including 5.35 m at 0.6 per cent Cu and 1.3 g/t Ag, including 1.05 m at 1.9 per cent Cu, four g/t Ag and 0.2 g/t Au (results pending for the upper part of the hole);
  • A downhole electromagnetic (DHEM) survey identified an untested conductive horizon immediately beneath the end of hole ZAD01 (end of hole depth 325 m), extending from approximately 200 m vertical depth and dipping moderately to the north.
• At the La Jarosa target, located four km northeast of La Romana, nine drill holes (LJD01 to LJD09) have been completed over approximately 1.5 km of strike, with each hole intersecting sulphide mineralization and VMS-style alteration. This includes hole LJD01 that intersected 18.65 m at 0.7 per cent Cu and one g/t Ag, including 9.5 m at 1.2 per cent Cu and 1.1 g/t Ag, and 0.4 m at 4.5 per cent Cu and 10.3 g/t Ag (reported previously: news release, March 8, 2022). Notable results include:
  • LJD03: 0.85 m at 1.4 per cent Cu and 1.6 g/t Ag, and 0.7 m at 1.5 per cent Cu and 1.6 g/t Ag;
  • LJD08: 16.25 m at 1.1 per cent lead-zinc (Pb-Zn) and 3.4 g/t Ag, and 0.5 m at 2.5 per cent Cu and six g/t Ag, and 0.75 m at 2.1 per cent Cu and five g/t Ag;
  • DHEM survey identified an untested off-hole conductor east of hole LJD08 from approximately 300 m to 480 m depth, implying a sizable target.
• Geological interpretation of the drill holes at the La Jarosa, Pilar and Bravo Norte targets indicates a potential structural repetition of the stratigraphy that hosts the nearby Aznalcollar and Los Frailes VMS deposits. The prospective stratigraphic horizon coincides with a mostly untested four-kilometre-plus east-west IP (induced polarization) anomaly trend. The copper and lead-zinc mineralization intersected in the drilling at La Jarosa is within the prospective horizon at the eastern end of the IP trend. The drill holes at Pilar and Bravo Norte drilled dense rhyodacitic volcanics/intrusives with minor sulphides/alteration in the footwall beneath the prospective/target stratigraphy.
• At the Hornitos target, located three km north of La Romana, the first two drill holes (HOD01 and HOD02) intersected a 60 m thick, north-dipping zone of breccia-hosted Pb-Zn mineralization (sphalerite and galena), silicification and chlorite alteration extending from near surface. The mineralization coincides with a 2.5 km east-west IP chargeability and gravity anomaly trend. Further drilling is planned, including testing the strongest parts of the gravity plus soil-zinc anomaly to the east. Holes PZD01 (Hornitos-Pozo) and PRD01 (Hornitos-Prado) drilled separate geophysics targets to the west of Hornitos and intersected no significant mineralization. Notable results include:
  • HOD01: 15.5 m at 1 per cent Pb-Zn, including five m at 2.3 per cent Pb-Zn;
  • HOD02: 17 m at 0.6 per cent Pb-Zn, including three m at 1 per cent Pb-Zn, three m at 1.2 per cent Pb-Zn and one m at 1.8 per cent Pb-Zn.
• Methodical approach to drilling the target-rich Escacena project continues to deliver positive results with drilling continuing at Zarcita, Romana Deep and Canada Honda. Additional targets for drilling in 2023 include extensions of La Romana, Bravo, Barbacena, Pozo and San Pablo.

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 was supervised at all times by company staff. Duplicate samples of one-fourth core were taken approximately every 30 samples and certified reference materials were 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 ICP (inductively coupled plasma) finish (method Au-ICP22) and multielement analysis was undertaken using a four-acid digest with ICP-AES (atomic emission spectroscopy) finish (method ME-ICP61). Over-grade 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. The project 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 mining anticipated to restart in late 2023. The Escacena project hosts the La Romana copper-tin discovery and a number of other prospective targets, including Zarcita, Hornitos, La Jarosa, Romana Deep, Pilar, Bravo, Barbacena and San Pablo.

About Pan Global Resources Inc.

Pan Global Resources is actively engaged in base and precious metal exploration in southern Spain, and is pursuing opportunities from exploration through to mine development. The company is committed to operating safely and with respect to the communities and environment where it operates.

Qualified person

James Royall, vice-president of 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.

We seek Safe Harbor.