New Exploration Results FOR the Aguilas Project, Spain, Including up to 8.9% Pb and 37.9 G/T AG IN New Soil Sampling ON the Zumajo Trend

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January 22, 2018

Shares Issued and Outstanding: 79,355,387

TSXV: PGZ

NEW EXPLORATION RESULTS FOR THE AGUILAS PROJECT, SPAIN,

INCLUDING UP TO 8.9% Pb AND 37.9 g/t Ag IN NEW SOIL SAMPLING ON THE

ZUMAJO TREND

VANCOUVER, BRITISH COLUMBIA – (January 22, 2018) – Pan Global Resources

Inc. (“Pan Global” or the "Company") (TSX Venture Exchange: PGZ) herein provides

new results from on-going field work on the Aguilas Copper Project in Spain.

Highlights:

 Large mineral rights position with multiple targets , I ron Oxide Copper Gold

(IOCG) and Pb-Zn-Ag breccia, vein and stockwork styles of mineralisation.

 Assay results received for more than 600 new soil samples, including the first

sampling on the Zumajo Pb-Zn-Ag Trend and additional sampling on the

Torrubia Cu Trend.

 The Torrubia - Torrechuela soil Cu anomaly was extended to 3.1 x 0.32 km

and in-fill sampling completed on the 0.6 x 0.32 km Aguilas Cu anomaly. The

targets include up to 0.69 % Cu in soils and up to 28% Cu, 33% Fe, 1.7g/t Au,

17.5g/t Ag and 0.13% Co in rock samples.

 New targets identified on the Zumajo Trend with up to 8.9 % Pb, 0.97 % Zn,

37.9 g/t Ag and 672 ppm Cu in soils . This includes a 1.8 x 0.3 km Pb -Zn-Ag

soil anomaly extending from the former San Juan and San Rafael mines and

separate Pb-Ag ± Zn soil anomalies along-strike from the San Luis and San

Cayetano mine workings. The highest Pb, Zn and Ag soil values are

attributed mainly to dispersion from the historical mine workings and potential

extensions of the mineralisation. Samples from the mine dumps include up to

>20 % Pb (above upper detection), 20.7 % Zn, 235 g/t Ag and 12.75 % Cu.

 IP and AMT survey is due to commence in February.

 Reconnaissance sampling is underway along extensions of the Zumajo Trend

and other structures in the Project area.

Background

The company manages the Aguilas Project through an agreement to acquire 100%

interest in Minera Aguila SLU and the Las Aguilas mineral rights, together referred to

as the “Aguilas Project”. The Aguilas Project, including granted mineral rights and

new applications, covers approximately 1 4,949 hectares over the Pedroches

Batholith, in Andalucia, southern Spain (Figure 1). The Company also has a Letter

of Intent, providing exclusive rights to acquire the Escacena mineral rights in the

Iberian Pyrite Belt, in southern Spain. Work on the Escacena Project is pending

granting of the mineral rights.

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Torrubia Cu Trend – New soil sample results

Assay results were received for approximately 280 additional soil samples on the

Torrubia Cu Trend, extending and in -filling the previous sampling. Samples were

collected every 20 m on lines spaced 100 m apart. The results highlight two large

untested Cu (± Fe, Co, Ag, Au) anomalies, including the Torrubia-Torrechuela target

and Cerro Aguilas target (Figure 2) . Small ancient mine workings occur along the

Trend. The style of mineralisation, alteration and metal association is typical of

hematite-dominant Iron Oxide Copper Gold type deposits.

The latest soil results have extended the Torrubia -Torrechela soil Cu anomaly a

further 300 m to the North. The soil anomaly is now 3.1 x 0.32 km with values from

>40 ppm (approximately 4 x background) to 0.68 % Cu . Previously reported rock

sampling from the same area include s numerous samples with >1% Cu , and up to

28 % Cu, 17.5 g/t Ag, 1.7 g/t Au and 0.12 % Co. The new results show sporadic

anomalous Cu in soil in an area of low relief to the East of the Torrubia -Torrechuela

target, further suggesting additional potential on adjacent structures.

The new results confirm continuity of the Cerro Aguila Cu anomaly and shows the

target is open to the North . Soil sample values range from >40 ppm to 1470 ppm

Cu. Previously reported rock sample results in the area include several samples with

>1% Cu and up to 11.7% Cu, 0.13% Co and 4.3 g/t Ag.

Zumajo Trend – New soil sample results

The first soil sampling results over the Zumajo Trend highlights several strong Pb -

Zn-Ag anomalies (Figure 3). A total of 344 samples were collected every 20 m on

lines spaced 100 m to 800 m apart. The Zumajo Trend comprises numerous small

historical mine workings and shafts along a 20 km west-north-west trending series of

linear structures and splays. This includes polymetallic (Pb, Zn, Ag ± Cu, barite and

fluorite) vein, breccia and stock work style mineralisation. Historical records indicate

the structures hosting the mineralisation are up to 18 m wide.

The new results highlight a 1.8 x 0.3 km Pb -Zn-Ag soil anomaly extending from the

historical San Juan and San Rafael mines. Separate anomalies extend for up to 0.7

km and 0.4 km respectively, extending from the San Luis and San Cayetano mines.

The soil results include numerous samples with > 1 % Pb , and maximum values of

8.9 % Pb, 0.97 % Zn, 37.9 g/t Ag and 672 ppm Cu . Many of the highest values are

attributed to contamination/dispersion from the historical mining as well as indicating

potential extensions of the mineralisation along strike fro m the mines . Previously

reported r ock grab samples from the mine dumps include values up to >20 % Pb

(above upper detection), 20.7 % Zn, 235 g/t Ag and 12.75 % Cu.

The Zumajo Trend is largely untested since mining ceased in the mid -1950’s. The

only drilling was in the 1970’s over a 600m section of the Zumajo structure near the

San Luis mine with reported intervals up to 10 m with Pb and Cu minera lisation (no

assays were reported).

On-going exploration

 Reconnaissance prospecting on extensions of the Zumajo Trend and other

structures/targets in the region identified from a recent detailed geology

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interpretation.

 Approximately 10-15 line-kilometres of Induce Polarity (IP) and Magneto

Tellurics (AMT) is planned for February over Cu and Pb-Zn-Ag targets.

 Drilling anticipated to commence in the second quarter, 2018.

Analytical methods and Quality Control

All samples were submitted to ALS Laboratories in Seville, Spain. Rock samples

were crushed , split and pulverized and then analyzed with a 36 element Mass

spectrometry and ICP-AES analysis following a 4-acid digestion. Au was determined

by 30g Fire Assay with ICP -AES finish. Rocks returning above detection for Cu, Pb

and Zn were re-assayed using an ore grade analysis by conventional ICP -AES with

a 4-acid digestion . All soil samples were dried and sieved to -180um in the

laboratory and subject t o aqua regia and/or 4-acid digest and assayed by Super

Trace ICP for a large multi-element suite ( up to 53 elements, including Au) and a

selection of samples assayed for comparison by 30g Fire Assay with ICP-AES finish

for gold. Quality Control procedures included review of ALS duplicates and checks,

field duplicates, non -sequential sample numbering and results compared for a large

selection of samples using aqua regia digestion versus mixed acid digestion, and

Fire Assay versus ICP for Au. All samples we re collected and transported under

close supervision by experienced Geologists.

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 oppor tunities from exploration through to mine

development.

On behalf of the Board of Directors

www.panglobalresources.com.

FOR FURTHER INFORMATION PLEASE CONTACT:


MICHELLE BORROMEO


Investor Relations


E-mail: [email protected] 


Phone: +1 604-715-6845

TIM MOODY

President & CEO

E-mail: [email protected]

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 mate rially from those in such forward -looking statements. Risks and

uncertainties include, but are not limited to, economic, competitive, governmental,

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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.

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PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX

VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR

ACCURACY OF THIS RELEASE.

Figure 1 – Aguilas Project Location

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Figure 2 – Torrubia Trend Cu anomalies

Figure 3 – Zumajo Trend Pb-Zn-Ag anomalies