PGZ.V · 2023-06-01 12:00:00

Pan Global Intersects High GOLD Grades and Copper Mineralization Near Surface at Cañada Honda Target IN the Escacena Project, Spain

Exploration Programs

PAN GLOBAL INTERSECTS HIGH GOLD GRADES AND COPPER

MINERALIZATION NEAR SURFACE AT CAÑADA HONDA TARGET IN THE

ESCACENA PROJECT, SPAIN

TSXV: PGZ OTCQB: PGZFF

13m

at 0.5% Cu, 0.8g/t Au & 2.7g/t Ag, including

6.2m

at 0.9% Cu, 1.5g/t Au, 3.8g/t Ag

, and

at 0.5% Cu, 2.7g/t Au, 4.5g/t Ag

at the edge of a

downhole EM conductor and a large gravity anomaly at Cañada Honda

Exploration accelerating at the Romana West target with drilling expected to commence in June

VANCOUVER, BC

June 1, 2023

/CNW/ - Pan Global Resources Inc. ("Pan Global" or the "Company") (TSXV: PGZ) (OTCQB: PGZFF) is pleased to announce

positive assay results for two new diamond drill holes at the Cañada Honda target at the Company's 100%-owned Escacena Project in the Iberian Pyrite Belt,

southern

Spain

. Cañada 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 Cañada 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 Cañada 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 & CEO.

"Excellent progress is also being made at the Romana West target with two teams collecting gravity data, IP surveying, geochemical sampling and mapping

underway concurrently, and drilling anticipated to commence in approximately two weeks," Mr. Moody added.

Cañada Honda is now a high-priority target due to subsequent down hole electromagnetic (DHEM) surveys in both drill holes that show a large approximately

190m

100m

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.

Drill results for Cañada Honda holes CHD03 and CHD04 are summarized in Table 1 and drill hole collar details are presented in Table 2 below. Drill hole locations

are shown in Figure 1.

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% Cu over

0.6m

, and up to 5.2g/t Au over

intervals

Potential for scale is indicated by the proximity to a large untested gravity anomaly and adjacent DHEM conductor anomaly

CHD04 intersected:

at 3.2g/t Au and 2.3g/t Ag from

85m

at 1.1g/t Au and 1.7g/t Ag from

94m

, including

at 5.1g/t Au and 1.6g/t Ag

at 0.3% Cu, 1.1g/t Au and 1.0g/t Ag from

107m

13m

at 0.5% Cu, 0.8g/t Au and 2.7g/t Ag from

167m

, including

6.2m

at 0.9% Cu, 1.5g/t Au and 3.8g/t Ag

at 0.5% Cu, 2.7g/t Au and 4.5g/t Ag

0.6m

at 5.3% Cu, 0.5g/t Au and 10.8g/t Ag

CHD03 intersected:

at 1.4g/t Au from

58m

at 1.0 g/t Au from

66m

14m

at 0.4% Cu, 0.3g/t Au and 2.1g/t Ag from

141m

, including

at 0.9% Cu, 0.6g/t Au and 4.2g/t Ag

at 1.4% Cu, 0.8g/t Au and 6.6g/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

Downhole EM results indicate the strongest copper-gold mineralization in drill hole CHD04 coincides with the edge of a large untested

190m

100m

DHEM

conductor plate anomaly, and potential indicator of more significant sulphide mineralization to the East and down-dip.

The Cañada Honda target is characterized by a large gravity anomaly (up to 1 mGal) that extends approximately two kilometers 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). See Figure 3 below.

Figure 1 – Cañada Honda gravity anomaly map (gravity inversion models on Bouger gravity grid) with drill hole locations, untested DHEM conductor and cross

section location A-A’ in Figure 2. (CNW Group/Pan Global Resources Inc.)

Cañada Honda

Drill holes CHD03 and CHD04 tested approximately

150m

and

210m

, respectively, down-dip of a historic mine tunnel where previous channel sampling by Pan

Global returned

26m

at 0.42g/t Au and individual assay values up to 2.9g/t Au, 27.5g/t Ag, 0.2% Cu and 0.4% Co. Hole CHD02, located

475m

to the west of

holes CHD03 and CHD04, intersected

11m

at 0.6% Cu, 0.12g/t Au and 3.2g/t Ag (abandoned before reaching target due to hole collapse).

New processing and interpretation of the gravity data over the Cañada Honda target shows 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 IP anomalies down-dip from

CHD-04 and a DHEM conductor anomaly east of CHD04.

Figure 2 – Plan view (top) and cross section showing drill holes CHD03 and CHD04 with a DHEM conductor and high density/gravity anomaly down-dip and to the

east of CHD04, with potential for stronger sulphide mineralization down-dip (see Figure 3). (CNW Group/Pan Global Resources Inc.)

Figure 3 – Geology cross section showing the older PQ shales and quartzite unit thrust over the volcanics with the upper gold zone within a zone of fracturing and

veining and lower copper-gold zone at the contact with the underlying volcanics. (CNW Group/Pan Global Resources Inc.)

Figure 4 – Massive sulphide (chalcopyrite and pyrite) mineralization in drill core from hole CHD04, including 0.6m at 5.3% Cu, 0.5g/t Au, 10.8g/t Ag from 171.6m

(left) and 0.5m at 1.0% Cu, 1.4g/t Au, 7.0g/t Ag (right) (CNW Group/Pan Global Resources Inc.)

Table 1

–Cañada Honda drill results summary (all intersections are >90% to 100% of true thickness)

Hole

From

Int

ppm

g/t

CHD 03

58.0

74.0

<0.1

0.6

0.7

58.0

60.0

0.1

182

0.3

1.4

66.0

74.0

<0.1

1.0

66.0

68.0

<0.1

579

0.7

2.5

141.0

155.0

0.4

113

182

2.1

0.3

149.0

155.0

0.9

144

235

4.2

0.6

151.0

154.0

1.4

160

342

6.6

0.8

CHD 04

85.0

99.0

<0.1

139

0.9

0.6

85.0

86.0

<0.1

2.3

3.2

94.0

99.0

<0.1

374

1.7

1.1

94.0

95.0

<0.1

1.6

5.1

107.0

108.0

0.3

110

102

1.0

1.1

167.0

180.0

0.5

229

2.4

0.8

170.0

180.0

0.6

275

2.7

1.0

171.6

179.0

7.4

0.8

359

3.3

1.3

171.6

177.8

6.2

0.9

421

3.8

1.5

171.6

172.2

0.6

5.3

121

320

10.8

0.5

174.0

179.0

0.5

427

4.5

2.7

175.0

177.8

2.8

0.5

778

4.2

3.0

Table 2

– Cañada Honda drill hole collar information

Hole ID

Easting

Northing

Azimuth (º)

Dip (º)

Depth (m)

CHD03

737232

4156321

180

-50

347.2

CHD04

737250

4156340

180

-72

479.3

Coordinates are in ERTS89 datum UTM29N

Drilling is ongoing 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.

QA/QC Procedures

Core size was HQ (63mm) and all samples were ½ core. Nominal sample size was

core length and ranged from

0.4m

. 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 ¼ 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

Sevilla, 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 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). Over grade base metal results were assayed using a 4-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% 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 Aznalcóllar 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, Cañada Honda,

Bravo, Barbacena, El Pozo, and San Pablo.

About Pan Global Resources

Pan Global Resources Inc. 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-one 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 our partnered communities.

Qualified Persons

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.

On behalf of the Board of Directors

Forward-looking statements

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. The

Company believes that the expectations reflected in the forward-looking information included in this news release are reasonable but no assurance can be given

that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon. 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.

The forward-looking information contained in this news release is based on information available to the Company as of the date of this news release. Except as

required under applicable securities legislation, the Company does not intend, and does not assume any obligation, to update this forward-looking information.

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.

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SOURCE

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For further information:

Jason Mercier, VP Investor Relations and Communications, [email protected], +1 778 372-7101,

www.panglobalresources.com

CO: Pan Global Resources Inc.

CNW 07:30e 01-JUN-23

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