Pan Global Extends Copper Mineralization with Step Out Drill Holes at the Escacena Project, Spain

• Copper zone widens to the West coincident with upper conductor anomaly and remains open in several directions
• Hole 8 confirms copper associated with a deeper conductor and potential multi-layered or stacked VMS deposit
• Highest tin grades reported up to 1.85% Sn (plus 2.6% Cu)

Vancouver, British Columbia--(Newsfile Corp. - May 28, 2020) - Pan Global Resources Inc. (TSXV: PGZ) (OTC: PGNRF) (the "Company") is very pleased to announce further positive drill results from the final 3 drill holes (LRD06, LRD07 and LRD08) from the recent drill program at the La Romana prospect in the Escacena Project, located in the Iberian Pyrite Belt, southern Spain. These three holes complete a 6-hole program aimed at extending the copper mineralization intersected in drill hole LRD-02, which returned 20.55m at 1.5% Cu equivalent (eq) including 7m at 3.43% Cu eq (See News Release of October 23, 2019).

Tim Moody, Pan Global President and CEO states: "These latest results continue to show a continuous zone of shallow copper mineralization extending in several directions and increasing in thickness towards the West. Hole LRD-06 returned the highest tin grades to-date with associated high copper, including up to 1.85% Sn and 2.6% Cu over 0.6 meters. Hole 8 is significant as it indicates there are now three copper mineralized horizons and confirming copper associated with a previously untested conductor plate anomaly that extends and becomes stronger to the East beneath hole LRD-01."

Selected highlights include:

• LRD-06 intersected 20m at 0.90% Cu eq (0.55% Cu, 0.087% Sn, 2.6 g/t Ag) from 83m down hole, including 10m at 1.37% Cu eq (0.81% Cu, 0.15% Sn, 3.6 g/t Ag) from 87m; and 1m at 1.68 g/t Au from 172m

• LRD-07 intersected 35.6m at 0.73% Cu eq (0.46% Cu, 0.056% Sn, 2.7 g/t Ag) from 40m down hole, including 11m at 1.19% Cu eq (0.78% Cu, 0.098% Sn, 4.3 g/t Ag) from 50m

• LRD-08 intersected 3m at 1.36% Cu eq (1.03% Cu, 0.012% Sn, 14.6 g/t Ag) from 14m down hole; and 9.5m at 0.90% Cu eq (0.58% Cu, 0.066% Sn, 3.7 g/t Ag) from 74m, including 4.4m at 1.41% Cu eq (0.95% Cu, 0.098% Sn, 5.6 g/t Ag) from 77.1m; and 11m at 0.72% Cu eq (0.36% Cu, 0.056% Sn, 3.8 g/t Ag) from 135m, including 3m at 1.16% Cu eq (0.63% Cu, 0.11% Pb, 0.21% Zn, 0.064% Sn, 7.6 g/t Ag) from 139m.

• The step out drill holes show that the thickness of the copper zone increases towards the West and remains open up dip, down dip and along strike coincident with a down-hole EM conductor anomaly (upper conductor).

• Hole LRD-08 provides the first confirmation of copper associated with a separate down hole EM conductor plate approximately 60 meters beneath the upper conductor.

• Hole LRD-08 also indicates a potential third copper horizon approximately 60 meters stratigraphically above the upper conductor.

Pan Global recently completed six drill holes (LRD-03 to LRD-08) for a total of approx. 890 meters targeting extensions of the volcanogenic massive sulphide (VMS) associated mineralization intersected last year in hole LRD-02 at the La Romana target. Down-hole EM was also completed in all holes except LRD-05. Results for holes LRD-03, LRD-04 and LRD-05 and the down-hole EM were reported on April 22, 2020. Results for drill holes LRD-06, LRD-07 and LRD-08 are reported here. Drill collar locations are shown in Figure 1. Summary geology sections are provided in Figures 2 and 3.

Figure 1 - La Romana Bouger gravity anomaly, drill hole and downhole EM conductors' location map

To view an enhanced version of this graphic, please visit:
https://orders.newsfilecorp.com/files/5190/56714_97987239e424b873_001full.jpg

Figure 2 - La Romana Summary Long Section

To view an enhanced version of this graphic, please visit:
https://orders.newsfilecorp.com/files/5190/56714_97987239e424b873_002full.jpg

Figure 3 - La Romana Summary cross section (LRD-05, LRD-02, LRD-06)

To view an enhanced version of this graphic, please visit:
https://orders.newsfilecorp.com/files/5190/56714_97987239e424b873_003full.jpg

Hole LRD-06 is located approximately 50 down-dip and North of hole LRD-02; hole LRD-07 is approximately 100 meters West from hole LRD-02; hole LRD-08 is approximately 200 meters East from LRD2. Each drill hole intersected copper mineralization, with results summarized in Table 1 below. Drill hole collar information is provided in Table 2. The drill holes were all inclined -55º towards the South and all reported intervals are approximately true widths.

Table 1 - Escacena Project, La Romana drill results summary
 

1 Copper Equivalent: Metal prices used: Copper US$ 5700 per tonne, Lead US$ 2100 per tonne, Zinc US$ 2320 per tonne, Silver US$ 17 per ounce, Gold US$1480 per ounce, Cobalt US$ 36000 per tonne and Tin US$ 17000 per tonne. No recoveries were applied.

Table 2 - Escacena Project, La Romana drill hole collar information
 

1 Coordinates are in ERTS89 datum UTM29N

The downhole EM shows two partially overlapping conductor plate anomalies, together extending East to West over 800m of strike. The upper conductor is in two parts over approximately 550 x 300 meters and dipping approximately 30º North. The conductor increases in intensity towards the West and is open in this direction.

Downhole EM in hole LRD-08 highlights a deeper, north-dipping conductor, approximately 450 x 300 meters and approximately 60 meters beneath the upper conductor. The lower conductor becomes larger and stronger to the East beneath hole LRD-01 and is open towards the East and down dip. Former Exxon drill hole PR5 intersected the lower conductor approximately 275m East of LRD-08 and returned 4.68m at 2.94% Cu (open in all directions and no other drill holes to the East). Historical Exxon IP and Mise-a-la-masse anomalies extend the target a further 1,000 meters to the East of hole PR5.

Drill hole LRD-06 confirmed copper continues down-dip from LRD-02 with 20m at 0.9% Cu eq from 83m down hole, including 10m at 1.37% Cu eq. This hole also has the highest tin grades intersected to-date at La Romana, including up to 1.85% Sn, 2.6% Cu and 10.7 g/t Ag over 0.6m. The hole also returned 1m at 1.68 g/t Au from 172m down hole, approximately 3m from the end of the hole, representing the highest gold value reported in all the drill holes at La Romana.

Drill hole LRD-07 is the western-most Pan Global drill hole at La Romana and confirms the copper mineralized zone continues and increases in thickness towards the West consistent with increasing intensity in the IP and downhole EM conductivity. This includes a 24m interval at 0.91% Cu eq within a broader interval of 35.6m at 0.73% Cu eq, and includes a higher-grade section of 11m at 1.2% Cu with individual assay values up to 1.88% Cu and 0.21% Sn.

Drill hole LRD-08 stepped 200m East of hole LRD-02 and is the first drill hole to intersect both the upper and lower downhole EM conductor plates. The hole intersected copper mineralization at three stratigraphic levels, each approximately 60m apart, and confirms copper in both the eastern and western limits of the upper and lower conductor plates respectively. The uppermost interval includes 3m at 1.36% Cu eq from 14m down hole and potentially correlates with the upper copper interval reported in hole LRD-01 (10.1m at 0.72% Cu eq from 73.9m, including 1.6m at 1.38% Cu eq and 3m at 1.53% Cu eq). The second interval coincides with weaker eastern limits of the upper conductor and returned 19.5m at 0.61% Cu eq from 74m down hole, including 9.5m at 0.9% Cu eq and a higher-grade interval of 4.4m at 1.41% Cu eq. The third interval coincides with the lower conductor plate and returned 11m at 0.72% Cu eq, including 3m at 1.16% Cu eq.

Each of the drill holes intersected similar style copper mineralization, including stock- work, semi-massive and locally massive style chalcopyrite-pyrite, with locally appreciable levels of tin and silver, and elevated zinc, lead, cobalt and gold associated with strong chlorite alteration. The drill hole geology indicates a shaley tuffite marker unit and an intense footwall alteration zone beneath the upper conductor and highest-grade copper mineralization.

Mr. Moody noted: "The drill results show the copper mineralization extends from hole LRD-02 coincident with an EM conductor and gravity anomaly. Only a small portion of each conductor plate has been tested with every hole intersecting copper mineralization, indicating excellent potential to significantly expand the area of copper mineralization. The La Romana target has an overall strike length of approximately 2 kilometers."

The company is now preparing a more expansive follow-up drill program and has several other large untested high priority targets in the project area.

QA/QC
Core size was HQ (63mm) and all samples were ½ core. Nominal sample size was 1m core length and ranged from 0.4 to 2m. Sample intervals were defined using geological contacts with the start and end of each sample physically marked on the core. Core boxes were transported by the Company vehicle to the ALS Global Seville facility for diamond blade core cutting and sampling, supervised at all times by Company staff. Duplicate samples of ¼ core were taken approximately every 30 samples and Certified Reference materials inserted every 25 samples in each batch.

All samples were crushed and split (method CRU-31, SPL22Y), and pulverized using (method PUL-31). Gold analysis was by 50gm Fire assay with ICP finish (method Au-ICP22) and multi element analysis was undertaken using a 4-acid digest with ICP AES finish (method ME-ICP61). Tin was analyzed in selected intervals using Lithium borate fusion and ICP MS finish (method ME-MS81). Over grade base metal results were assayed using a 4-acid digest ICP AES (method OG-62). Over grade tin was determined using Peroxide fusion with ICP finish (method Sn-ICP81x).

Qualified Person
Robert Baxter (FAusIMM), a Director of Pan Global Resources and a qualified person as defined by National Instrument 43-101, has reviewed the scientific and technical information that forms the basis for this news release. Mr. Baxter is not independent of the Company.

About Pan Global Resources
Pan Global Resources Inc. is actively engaged in base and precious metal exploration in 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 we operate.

On behalf of the Board of Directors
www.panglobalresources.com .

FOR FURTHER INFORMATION PLEASE CONTACT:
info@panglobalresources.com

Statements which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Risks and uncertainties include, but are not limited to, economic, competitive, governmental, environmental and technological factors that may affect the Company's operations, markets, products and prices. Readers should refer to the risk disclosures outlined in the Company's Management Discussion and Analysis of its audited financial statements filed with the British Columbia Securities Commission.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.