PGZ.V · 2023-01-17 12:00:00

Pan Global Intersects Wide Zone of Copper-Stockwork Mineralization at Zarcita and Reports Drill Results from Multiple Targets

Drill Results

PAN GLOBAL INTERSECTS WIDE ZONE OF COPPER-STOCKWORK

MINERALIZATION AT ZARCITA AND REPORTS DRILL RESULTS FROM

MULTIPLE TARGETS

TSXV: PGZ OTC: PGNRF

Zarcita: First four drill holes intersect a

75m

thick copper-stockwork zone, including massive sulphide intervals with grades up to 2.8% Cu; a

further 16 holes planned

La Jarosa:

16.5m

at 1.1% Pb+Zn,

0.5m

at 2.5% Cu and

0.75m

at 2.1% Cu; untested conductor identified

Hornitos:

15.5m

at 1.0% Pb+Zn, including

at 2.3% Pb+Zn

20,000m

multi-target 2023 drill program underway with three rigs active at La Romana,

Romana Deep

and Zarcita targets

VANCOUVER, BC

Jan. 17, 2023

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

assay results for 21 drill holes targeting volcanogenic massive sulphide (VMS) copper and polymetallic mineralization at the 100%-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

20,000m

multi-target drill program with an estimated budget of CAD

$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 CEO. "At Zarcita, the first four completed drill holes have all intersected copper mineralization within a 75-meter-

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

400m

downdip 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

Aznalcóllar 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-meter drill program in 2023."

Drill results are summarized in Table 1 and drill hole collar details are presented in Table 2 below. Target locations are shown in Figure 1.

At the

Zarcita

target

4km to the north of La Romana, the first four drill holes (ZAD01 to ZAD04) intersected copper stockwork-style mineralization (pyrite

and chalcopyrite) over approximately

75m

true thickness, including narrow intervals of massive and semi-massive sulphide with high copper grades and

strong chlorite-alteration increasing downdip. The copper mineralization continues from surface to more than

400m

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

50m

west and

50m

east respectively, have also intersected visible copper mineralization with assay results pending. The target extends along more than 2.5km of strike and

includes the historic Zarcita copper mine workings. The ongoing drill program includes an additional 14 holes.

See Figures

2 and 3 below. Notable results

include:

58m

(

35m

true thickness)

at 0.2% Cu including

22.5m

at 0.3% Cu, including

0.6m

at 1.3% Cu, 3.1g/t Ag

in ZAD02

34m

at 0.2% Cu including

10.2m

at 0.3% Cu, including

0.4m

at 2.8% Cu, 2.9g/t Ag, 0.2g/t Au

in ZAD03

26.4m

(

15m

true thickness)

at 0.2% Cu including

5.35m

at 0.6% Cu, 1.3g/t Ag, including

1.05m

at 1.9% Cu, 4g/t Ag, 0.2g/t Au

in ZAD04 (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

325m

) extending from approx.

200m

vertical depth and dipping moderately to the North.

At the

La Jarosa

target, located 4km northeast of La Romana, nine drill holes (LJD01 to LJD09) have been completed over approximately 1.5km of strike

with each hole intersecting sulphide mineralization and VMS-style alteration. This includes hole LJD01 that intersected

18.65m

at 0.7% Cu, 1g/t Ag, including

9.5m

at 1.2% Cu, 1.1g/t Ag and

0.4m

at 4.5% Cu, 10.3g/t Ag (reported previously: News Release,

March 8, 2022

). See Figure 4 below. Notable results

include:

0.85m

at 1.4% Cu, 1.6g/t Ag

and

0.7m

at 1.5% Cu, 1.6g/t Ag

in LJD03

16.25m

at 1.1% Pb+Zn, 3.4g/t Ag

and

0.5m

at 2.5% Cu, 6g/t Ag

and

0.75m

at 2.1% Cu, 5g/t Ag

in LJD08

DHEM survey identified an

untested off-hole conductor east of hole LJD08

from approx.

300m

480m

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 Aznalcóllar and Los Frailes VMS deposits. The prospective stratigraphic horizon coincides with a mostly untested 4km-plus east-west IP

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 3km north of La Romana, the first two drill holes (HOD01 and HOD02) intersected a

60m

-thick, north-dipping zone of breccia-

hosted Zn+Pb mineralization (sphalerite and galena), silicification and chlorite alteration extending from near-surface. The mineralization coincides with a

2.5km 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. See Figure 5 below. Notable results include:

15.5m

at 1% Zn+Pb, including

at 2.3% Zn+Pb

in HOD01

17m

@ 0.6% Pb+Zn, including

at 1.0%, Zn+Pb,

at 1.2% Pb+Zn and

at 1.8% Pb+Zn

in HOD02

Methodical approach to drilling the target-rich Escacena Project continues to deliver positive results with drilling on-going at Zarcita,

Romana Deep

and

Cañada Honda. Additional targets for drilling in 2023 include extensions of La Romana, Bravo, Barbacena, Pozo and San Pablo.

Figure 1 – Escacena Project gravity targets and new drill hole locations (CNW Group/Pan Global Resources Inc.)

Figure 2 – Zarcita Target map showing drill hole locations and coincident soil-copper, gravity and IP anomalies extending over >2.5km east-west (CNW

Group/Pan Global Resources Inc.)

Figure 3 – Zarcita Drill Section for holes ZAD01, 02, 03 and 04 indicating a 75m thick, north-dipping sulphide stockwork from surface to >400m down dip (CNW

Group/Pan Global Resources Inc.)

Figure 4 – La Jarosa, Pilar, Bravo Norte Targets, target horizon, IP anomaly trend and drill hole locations (Aznalcóllar open pit 2km northeast of La Jarosa) (CNW

Group/Pan Global Resources Inc.)

Figure 5 – The Hornitos Target area Pb Zn Soil geochemistry, IP and gravity anomalies and drillhole locations (CNW Group/Pan Global Resources Inc.)

Table 1- Escacena Project, drill results summary

Zarcita

HOLE

From

Interval

True thickness

(m)

( %)

(g/t)

(ppm)

(m)

ZAD01

33.00

45.00

12.00

0.14

0.3

0.02

457

n/c

ZAD02

89.00

147.50

58.50

0.16

0.5

0.03

240

inc

125.00

147.50

22.50

0.28

0.7

0.04

271

inc

137.00

143.60

6.60

0.42

0.9

0.04

405

inc

143.00

143.60

0.60

1.32

3.1

0.06

1235

0.4

ZAD03

132.00

166.00

34.00

0.17

0.5

0.02

178

n/c

inc

134.00

137.40

3.40

0.23

0.7

0.01

227

n/c

inc

154.00

164.20

10.20

0.31

0.8

0.04

199

n/c

inc

163.80

164.20

0.40

2.80

2.9

0.21

112

143

n/c

ZAD04

273.00

299.35

26.35

0.18

0.5

0.06

474

inc

294.00

299.35

5.35

0.59

1.3

0.08

963

3.5

inc

298.30

299.35

1.05

1.86

4.0

0.20

2570

0.75

La Jarosa

HOLE

From

Interval

PbZn

(m)

( %)

(g/t)

(ppm)

( %)

LJD02

228.20

237.30

9.10

0.11

0.3

<0.01

140

<0.1

inc

237.05

237.30

0.25

1.00

1.0

<0.01

170

<0.1

LJD03

81.90

92.00

10.10

0.01

3.2

<0.01

5770

3750

1.0

and

434.20

437.70

3.50

0.80

0.9

<0.01

790

0.1

inc

435.20

436.05

0.85

1.42

1.6

<0.01

100

3020

0.3

inc

437.00

437.70

0.70

1.50

1.6

<0.01

100

<0. 1

LJD04

67.80

83.00

15.20

<0.01

0.4

<0.01

670

2220

0.3

LJD05

65.70

79.20

13.50

0.16

0.3

<0.01

<0. 1

and

107.00

112.00

5.00

0.15

2.0

0.02

610

4400

0.5

inc

107.00

108.00

1.00

0.34

6.1

0.07

2020

16500

1.9

and

117.00

132.00

15.00

0.11

0.4

<0.01

170

<0.1

LJD06

Hole abandoned

LJD07

238.00

246.00

8.00

<0.01

1.1

0.02

880

3390

0.4

inc

240.00

241.00

1.00

0.01

1.7

0.06

1060

9870

1.1

LJD08

367.75

384.00

16.25

0.13

3.4

0.01

3917

9330

1.1

inc

367.75

375.00

7.25

0.22

0.6

<0.01

<0.1

inc

368.20

368.70

0.50

2.53

6.0

0.03

<0.1

and

393.00

397.55

4.55

0.44

1.1

<0.01

130

<0.1

inc

394.00

394.75

0.75

2.06

5.0

<0.01

104

<0.1

LJD09

327.00

331.00

4.00

0.01

1.2

0.06

1091

3058

0.4

Hornitos

HOLE

From

Interval

Pb+Zn

(m)

( %)

(g/t)

(ppm)

( %)

HOD01

61.00

71.30

10.30

<0.01

0.5

<0.01

960

3500

0.4

and

99.00

114.55

15.55

<0.01

0.8

<0.01

1300

8400

1.0

inc

99.00

104.00

5.00

<0.01

1.4

<0.01

2100

21000

2.3

HOD02

82.00

97.00

15.00

<0.01

0.4

<0.01

1036

1856

0.3

and

115.00

149.00

34.00

<0.01

0.5

<0.01

1065

2855

0.4

inc

115.00

132.00

17.00

<0.01

0.6

<0.01

1513

4650

0.6

inc

116.00

119.00

3.00

<0.01

0.7

<0.01

1586

8817

1.0

inc

129.00

132.00

3.00

<0.01

1.0

<0.01

2595

9460

1.2

inc

129.00

130.00

1.00

<0.01

1.0

<0.01

2300

15500

1.8

PRD01

No significant results

PZD01

No significant results

Pilar and Bravo Norte

HOLE

From

Interval

Pb+Zn

(m)

( %)

(g/t)

(ppm)

( %)

EPD01

No significant results

EPD02

No significant results

EPD03

83.00

88.00

5.00

0.00

0.6

0.00

1127

2247

0.3

EPD04

No significant results

BND01

No significant results

Drilled interval (most holes are near true thickness)

Not calculated

(most holes are near true thickness)

Table 2 – Escacena Project, drill hole collar information (Total

7,605.1m

)

HOLE

Easting

Northing

Azimuth

Dip

EOH (m)

Target

ZAD01

738370

4156940

180

-65

325

Zarcita

ZAD02

738369

4156937

-70

203.1

Zarcita

ZAD03

738352

4157082

180

-52

242.1

Zarcita

ZAD04

738351

4157082

-80

371.4

Zarcita

HOD01

736391

4155510

180

-50

239.2

Hornitos

HOD02

736391

4155511

180

-85

217.3

Hornitos

PRD01

735832

4155013

180

-60

314.3

Hornitos-El Prado

PZD01

735546

4155669

180

-60

224.4

Hornitos-Pozo

LJD02

740648

4154536

180

-67

405.2

La Jarosa

LJD03

740583

4154639

180

-76

470.2

La Jarosa

LJD04

740528

4154643

180

-65

461.8

La Jarosa

LJD05

740545

4154360

180

-65

353.1

La Jarosa

LJD06

740773

4154640

180

-65

304.2

La Jarosa

LJD07

741492

4154262

180

-60

350.3

La Jarosa

LJD08

740778

4154639

180

-65

491.6

La Jarosa

LJD09

741439

4154449

180

-60

447.1

La Jarosa

BND01

739471

4154118

180

-77

439.5

Bravo Norte

EPD01

740977

4153563

-90

465.4

Pilar

EPD02

740660

4153962

180

-60

434.3

Pilar

EPD03

740773

4153914

180

-60

401.4

Pilar

EPD04

741229

4153013

180

-80

444.2

Pilar

Coordinates are in ERTZ89 datum UTM29N

QA/QC Procedures

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

core length and ranged from 0.4 to

. 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

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 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. The

project 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 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

Pan Global Resources Inc. 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 we operate.

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

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

Pan Global Resources Inc.

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For further information:

Please contact: [email protected], +44 7766 253145; Jason Mercier, VP Investor Relations and Communications,

[email protected], +1 778 372-7101, www.panglobalresources.com

CO: Pan Global Resources Inc.

CNW 07:00e 17-JAN-23

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