Pan Global Resources Inc.
TSX VENTURE : PGZ

Pan Global Resources Inc.

October 10, 2012 09:00 ET

Pan Global Reports its Best Borate Intersect to Date in Serbia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 10, 2012) - Pan Global Resources Inc. (TSX VENTURE:PGZ) ("Pan Global" or the "Company") is pleased to announce that its Balkan exploration partner Lithium Li Holdings Inc. ('Lithium Li' ) has intersected 24m of borate mineralization in drill hole VBN-004 at the Valjevo license, with grades of up to 18.23% B2O3, 0.21% Li2O.

As with assays from the previous hole VBN-003, this intersection compares well to drill results from Rio Tinto's Jadar deposit which has an average grade of 12.9% B2O3 and 1.8% Li2O. VBN-004 was a 1km step out to the north of VBN-003 (reported in the news release of July 18, 2012) and continues to demonstrate the potential of this basin to host a significant body of borate mineralization.

Julian Bavin, President and CEO of Pan Global, stated, "The total of 24m of borate mineralisation grading up to 18.2%B2O3 intersected in hole VBN-004 confirms the large tonnage and economic potential of our new borate discovery in the Valjevo licence. We are extremely pleased to have followed up our good intersection in VBN-003 with this better intersection in VBN-004 To date the only borate mineral we have intersected in Valjevo is probertite, which is typically found on the periphery of these rare zones of borate mineralisation, and we remain very confident that further drilling will delineate the extent of mineralisation and zones of higher grade."

As reported on September 5, the Company has resumed its stratigraphic drilling program in the Valjevo licence (see Figures 1 http://www.panglobalresources.com/_resources/news/20121010/figure1.jpg and 2: http://www.panglobalresources.com/_resources/news/20121010/figure2.jpg). Assays have been returned for hole VBN-004 (eoh 525.5m), located on the Kolubara River plain 1.1km north of VBN-003. The hole encountered 67m total thickness of mineralization as probertite and pseudomorphs after probertite between 353m and 420m. The probertite zone is divided into two sub zones with assays summarized on Table 1. The upper zone from 364.7 to 377.4m (12.7m) returned an average of 7.46% B2O3 with a best 3m interval, or potential underground mining width, averaging 11.56% B2O3 between 369.2 and 372.2m. The highest grade interval of 18.23% B2O3 occurs from 370.6 to 372.2m (1.6m).

The lower sub zone is from 403.4 to 414.7m (11.3m) returned an average grade of 6.08% B2O3 with a best 3m interval 8.85% B2O3 between 407.4 and 410.7m width.

Upper sub zone From To Thickness Li2O % B2O3
364.70 365.80 1.10 0.19 9.21
365.80 366.70 0.90 0.23 2.35
366.70 368.10 1.40 0.24 8.15
368.10 369.20 1.10 0.25 6.47
369.20 370.60 1.40 0.26 4.89
370.60 372.20 1.60 0.21 18.23
372.20 373.50 1.30 0.21 5.38
373.50 375.00 1.50 0.21 9.21
375.00 376.20 1.20 0.18 5.25
376.20 377.40 1.20 0.2 5.51
Lower sub zone 403.40 404.90 1.50 0.19 5.96
404.90 406.40 1.50 0.12 8.34
406.40 407.70 1.30 0.13 2.83
407.70 409.20 1.50 0.14 13.4
409.20 410.70 1.50 0.08 4.31
410.70 411.70 1.00 0.13 0.92
411.70 413.20 1.50 0.11 8.49
413.20 414.70 1.50 0.08 4.42

Table 1: Assays from Hole VBN-004

Assays are awaited for VBN-005 (eoh 352m), located 1.1km northwest of VBN-004. VBN-006, located ~3km east of VBN-003, is underway.

Other work recently completed includes gravity data acquisition and interpretation on the Satornja, Jalovik and Petlovaca licenses. Gravity data acquisition is continuing on the Lopare license in Bosnia, where assay data for surface samples taken last month returned highly anomalous values; 7 samples returned >1,000 ppm B up to a high of 30,700 ppm (9.8% B2O3).

Assay results returned from sampling of the Gorobilje and Takovo licenses downgrade their potential and are slated to be returned to the Mining Ministry.

The technical information provided in this news release was reviewed and approved by Robert. W. Baxter (FAusIMM), a director of the Company and a qualified person for the purposes of National Instrument 43-101.

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