Pancon Reports Results and Analysis for All Six Sonic Drill Holes in Reclaimed Backfill Waste Material at Brewer

Toronto, August 11, 2021 - Pancontinental Resources Corp. (TSXV: PUC) (OTCQB: PUCCF) ("Pancon" or the "Company") reports results for an additional four sonic drill holes (B21S-003 to B21S-006) and provides analysis for all six sonic drill holes in the reclaimed backfill waste material as part of the Company's fully funded maiden drill program at its flagship Brewer Gold & Copper Project in South Carolina. The six vertical sonic holes correspond with the top 44-81 meters (m) of diamond drill holes 4, 5, 8, 9, 10 and 13 (for more context see Figure 1 and news releases of June 8, 2021 and July 26, 2021).

Highlights:

• Average 0.35 g/t gold from 488 samples in all six sonic holes covering 348.8 m across all five backfill layers (see Table 1)
• Average 0.30 g/t gold from 186 samples collected within the upper heap leach pad backfill layer, the average estimated thickness of which is 17.6 m (see Table 2 and Figure 2)
• Average 0.57 g/t gold from 76 samples collected within the waste rock backfill layer, the average estimated thickness of which is 14.6 m (see Table 2 and Figure 2)
• Average 0.26 g/t gold from 195 samples collected within the lower heap leach pad backfill layer, the average estimated thickness of which is 20.4 m (see Table 2 and Figure 2)
• Average 0.90 g/t gold from 22 samples collected from the pit floor-bedrock interface (see Table 2 and Figure 2)

Pancon President and CEO Layton Croft stated, "These six sonic hole results show strong consistency in gold values - averaging 0.35 g/t gold - in the estimated 6.7 million cubic yards of material from the former heap leach pads and waste rock piles reclaimed as backfill into the former mined pits at Brewer. This data corroborates our expectations as the historic Mine Closure Report (see here) contains clear documentation that the reclamation work was well engineered in homogeneous layers of material type, thus achieving consistency throughout the backfill (as shown in Figure 2, Figure 3 and Table 3). As a result, we believe it is possible to extrapolate the information obtained from our sonic drill program across the reclaimed pit. Pancon is working closely with our Brewer Project partner Environmental Risk Transfer (ERT) to conduct metallurgical test work on the backfill waste material. This analysis will help Pancon and ERT better understand the potential synergies of monetizing the waste while concurrently de-risking Brewer from an environmental perspective, which is ERT's role on the Project."

ERT Managing Director George von Stamwitz stated, "The same way Pancon is conducting exploration at Brewer, ERT is taking a data-driven, systematic approach to environmental due diligence. This means, in part, better understanding the potential of remediating historic waste material rather than capping and perpetual water treatment. We believe that removing the waste tailings at the site may have a material effect on the acid rock drainage at Brewer. We are hoping for a solution that results in waste reduction and not just waste management, thereby providing a greener remedial outcome for all Brewer stakeholders."

Table 1*: Average of All Samples Per Hole for Sonic Holes 1-6

*See Quality Assurance and Quality Control Statement below regarding assaying techniques and calculation methodology for grades and intervals

Click here for complete Certificates of Analysis for All Phase 1 & 2 Drill Results to Date

Table 2*: Average of All Sonic Samples with Respect to Backfill Material Type

Figure 1: Sonic Hole Locations

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Figure 2: Sonic Hole Downhole Logs

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Figure 3: Historic Cross Section of Waste Backfill Schematic of Former Brewer Gold Mine

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Table 3*: Average of All Sonic Samples with Respect to Backfill Material Type Per Hole

*See Quality Assurance and Quality Control Statement below regarding assaying techniques and calculation methodology for grades and intervals

Phase 2 Drilling Update

Pancon's Phase 2 diamond drill program follows the success of Phase 1 drilling, as reported in the Company's April 27, 2021 news release. To date, Pancon has completed a total of 15 diamond drill holes at the Brewer Gold & Copper Project with another 3 diamond drill holes to be completed before the end of Phase 2. The Company expects results from Holes 11 and 12 in August, and results from Holes 13-18 in September-October. Pancon plans to report in September results and analysis for the 104 rotary air blast (RAB) drill holes drilled in the latter half of June.

Jefferson Gold Project Update

The Company is expanding the size of its 100%-owned Jefferson Gold Project, which nearly completely surrounds the Brewer Gold & Copper Project (see Figure 3). On August 1, the Company commenced a new lease agreement for 383 acres of land, making the total size of the Jefferson Gold Project 1,962 acres.

Figure 4: Updated Jefferson Gold Project Property Map (in blue)

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Quality Assurance and Quality Control Statement, Notes and Assumptions

Phase 1 sonic drilling, consisting of B20S-001 and B20S-002, collected samples from a 7" diameter sonic drill hole. Drill intervals were typically 10 feet in length and multiple samples were collected from each interval. Samples were bagged by the drill contractors and tagged with a unique sample number and recorded by Pancon personnel. Each sample was shipped to Minerals Processing Corporation's (MPC) ISO/IEC 17025 Certified sample preparation and assay laboratory in Carney, Michigan where it was dried, crushed and a one kilogram split was pulverized to >80% passing -200 mesh. Gold was analyzed by fire assay (30 g) with an AA (atomic absorption) finish with a detection limit of 0.025 g/t gold. Samples containing greater than 3.0 g/t gold were analyzed by fire assay with a gravimetric finish. Multielement analyses, including base metals and rare earth elements, were analyzed at ALS with ICP-MS (inductively coupled argon plasma mass spectrometry).

Phase 2 sonic drilling, consisting of B21S-003 through B21S-006, collected samples from a 6" diameter sonic drill hole. Drill intervals were typically 10 feet in length and multiple samples were collected from each interval. Samples were bagged by the drill contractors and tagged with a unique sample number and recorded by Pancon personnel. Each sample was shipped to SGS Labs in Ontario, Canada, where it was dried, crushed and a one kilogram split was pulverized to >80% passing -200 mesh. Gold was analyzed by fire assay (30 g) with an AAS (atomic absorption) finish, with a lower detection limit of 0.005 g/t gold. Samples containing greater than 10.0 g/t gold were analyzed by fire assay with a gravimetric finish. Multielement analyses, including base metals and rare earth elements, were analyzed with ICP-MS/ICP-AES (inductively coupled argon plasma mass spectrometry/atomic emission spectroscopy).

All gold averages reported in this release are arithmetic averages. Estimated sample intervals and average thicknesses were calculated based on the weight of each sample and its contribution to the total weight of the drilled interval and are considered best estimates. Sample recovery is variable and is a function of the drilling method and the type of backfill material encountered; sample recovery was generally lower in the waste rock layer. Pancon adheres to strict sampling and QA/QC protocols and assay integrity is monitored internally with a quality control program including the insertion of standards, blanks, and duplicates in the sample stream on a regular basis.

Qualified Person

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements as set out in NI 43-101 and reviewed and approved by Tom Quigley, MSc, CPG-11962, a Qualified Person as defined by NI 43-101.

About Pancon

Pancon is a Canadian junior mining company focused on exploring the prolific and underexplored Carolina Slate Belt in Chesterfield County, South Carolina, USA. In January 2020, Pancon won the exclusive right to explore the former Brewer Gold Mine property. The Brewer Gold & Copper Project, on the gold-rich Carolina Slate Belt in South Carolina, is where the former shallow Brewer Gold Mine produced 178,000 ounces of oxide gold between 1987-1995 from open pits that extended to 65-meter depths, where copper and gold-rich sulphides were exposed but could not be processed by the oxide heap leach processing facility (Zwaschka, M. and Scheetz J.W., 1995, Detailed Mine Geology of the Brewer Gold Mine, Jefferson, South Carolina, Society of Economic Geologists). Until Pancon, Brewer hadn't been explored since 1997, and most of the tools used previously to explore the property have since been updated with more advanced technologies. Brewer is a high sulphidation system driven by a sub-volcanic intrusive and possibly connected to a large copper-gold porphyry system at depth, as indicated by: widely known prospective geology, including diatreme breccias; associated high sulphidation alteration; gold and copper mineralization; and geophysics (Schmidt, R.G., 1978, The Potential for Porphyry Copper-Molybdenum Deposits in the Eastern United States, U.S. Geological Survey). Pancon's 100%-owned, 1,500-acre Jefferson Gold Project nearly completely surrounds the 1,000-acre former Brewer Gold Mine property, and both Jefferson and Brewer are located 12 kilometers northeast along trend from the producing Haile Gold Mine, which produced 137,413 ounces of gold in 2020 (https://oceanagold.com/operation/haile/).

For further information, please contact:
Layton Croft, President & CEO or Jeanny So, Manager, External Relations
E: info@panconresources.com
T: +1.647.202.0994

For additional information please visit our new website at http://www.panconresources.com/ and our Twitter feed: @PanconResources.

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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 received 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.

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