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Pancontinental GOLD Announces Closing of First Tranche of Private Placement of Units

Financings

December 5, 2017

PANCONTINENTAL GOLD ANNOUNCES CLOSING OF FIRST TRANCHE

OF PRIVATE PLACEMENT OF UNITS

Pancontinental Gold Corporation (TSX-V:PUC) (“Pancon Gold” or the “Company”) announces

that it has closed the first tranche of its previously announced non -brokered private placement

through the issuance of 3,000,000 units (“Units”) at a price of $0.05 per Unit for gross proceeds

of $150,000 (the “Offering”). Each Unit is comprised of one common share (“Common Share”)

of the Company and one Common Share purchase warrant (“ Warrant”). Each Warrant entitles

the holder thereof to purchase one Common Share at an exerc ise price of $0.07 for twenty -four

(24) months from the date of issuance, provided that the expiry date can be accelerated in the event

the Common Shares trade at $0.15 or more for at least twenty (20) consecutive trading days

following the expiry of the s tatutory four month and one day resale restriction. Proceeds of the

Offering will be used to explore and advance its 100% owned Jefferson Gold Project and for

working capital purposes.

Closing of the Offering is subject to receipt of all necessary corporat e and regulatory approvals,

including the approval of TSX Venture Exchange. All securities issued in connection with the

Offering will be subject to a hold period of four months plus a day from the date of issuance and

the resale rules of applicable securities legislation.

This press release does not constitute an offer to sell or a solicitation of an offer to buy nor shall

there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale

would be unlawful. The securities have not been and will not be registered under the United States

Securities Act of 1933, as amended (the “U.S. Securities Act”), or the securities laws of any state

of the United States and may not be offered or sold within the United States (as defined in

Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and

applicable state securities laws or pursuant to an exemption from such registration requirements.

About Pancontinental Gold Corporation

Pancontinental Gold Corporation ( www.pancongold.com) is a Canadian -based mining company

focused on the exploration and development of the Jefferson Gold Project, located in Chesterfield

County, South Carolina, USA, and on acquiring additional prospective properties. The Company’s

shares are listed on the TSX Venture Exchange, trading under the symbol PUC. The Company

also retains a 1% gross overriding royalty on future production from a rare earth element property

in Australia.

365 Bay St, Suite 400

Toronto, Ontario

M5H 2V1

ON BEHALF OF THE BOARD OF DIRECTORS

Layton Croft

For further information, please contact:

Layton Croft

President and CEO

Tel: 1-416-293-8437 or 1-980-498-7688

Email: [email protected]

For additional information please visit our web site: www.pancongold.com, and our Twitter

feed: @PanconGold.

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.

Cautionary Language and Forward Looking Statements

This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information is characterized

by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events

or conditions “may” or “will” occur. Forward -looking information involves risks, uncertainties and other factors that could cause actual events,

results, and opportunities to differ materially from those expressed or implied by such forward-looking information. Factors that could cause actual

results to differ materially from such forward-looking information include, but are not limited to, changes in the state of equity and debt markets,

fluctuations in commodity prices, delays in obtaining required regulatory or governmental approvals, and other risks involved in the mineral

exploration and development industry, including those risks set out in the Company’s management’s discussion and analysis as filed under the

Company’s profile at www.sedar.com. Forward-looking information in this news release is based on the opinions and assumptions of management

considered reasonable as of the date hereof, including that all necessary governmental and regulatory approvals will be recei ved as and when

expected. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release

are reasonable, undue reliance should not be placed on such information. The Company disclaims any intention or obligation to update or revise

any forward-looking information, other than as required by applicable securities laws.