Pan Global Resources Announces Closing of Non-Brokered Financing

Vancouver, British Columbia--(Newsfile Corp. - July 20, 2020) -  Pan Global Resources Inc.  (TSXV: PGZ) (OTC: PGNRF) ("Pan Global" or the "Company") today announced it has completed its previously announced non-brokered private placement by the issuance of 22,753,997 units (the "Units") at a price of $0.18 per Unit for aggregate gross proceeds of $4,095,719.38 (the "Offering"). Each Unit is comprised of one (1) common share and one half (1/2) of one common share purchase warrant, with each whole warrant entitling the holder to purchase one additional common share at a price of $0.28 for two years from closing of the Offering. The expiry date of the warrants may be accelerated by the Company if the common shares of the Company achieve a volume weighted average trading price greater than $0.32 for twenty (20) consecutive trading days.

The Company announced a financing of 11,500,000 Units for aggregate gross proceeds of $2.07 million on June 2, 2020. Due to strong demand, the financing was increased from 11,500,000 to 16,666,666 Units on July 13, 2020, and further increased to 20,850,000 units on July 15, 2020. The financing was over-subscribed, and the Company was not able to accommodate all investors asking to participate.

Tim Moody, Pan Global President and CEO, said: "We are pleased with the overwhelming support for this financing. Pan Global is now well placed to proceed to the next step of exploration at the Company's Spanish projects. Preparations are now well underway to re-commence drilling at the Escacena project."

Finders' fees in the aggregate of $91,889.99 and 509,000 finders' warrants were paid on a portion of the Offering. Each finder's warrant entitles the holder to purchase one additional common share at a price of $0.28 for two years (subject to acceleration) from closing of the Offering.

The Units, common shares, share purchase warrants, finders' warrants and shares issued upon exercise of the share purchase warrants and / or the finders' warrants are subject to a four month hold period, expiring November 20, 2020.

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 has 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/60023