Carolina GoldCarolina Gold

The former Brewer Gold Mine Property in South Carolina The former Brewer Gold Mine Property in South Carolina is the best gold-copper target in the eastern USAis the best gold-copper target in the eastern USA

THE THE PUCPUC REPORTREPORT

Copyright ©2021 Pancontinental Resources Corporation. All rights reserved.February 2021

Greetings from the Carolinas!

INSIDE THE PUC REPORTGold & Copper Insights• Month over month & year to date commodity prices and charts

Industry News• Russia for first time holds more gold than US dollars in $583 billion

reserves

• Gold-backed ETFs end record 2020 with second month of outflows

• China’s 2020 copper imports hit record high

• Gold investment demand remains well supported in 2021

• Robert Friedland opens Remote Roundup: ‘In our world, the geologists

are the gods’

• Ivanhoe’s Friedland taking ‘hard look’ at US projects

• Eldorado to buy QMX Gold for $105 million

• Moody’s sees lower rates for several years to support gold price

• MMG CEO sees short term upside momentum for copper

• Closing the gold window opened the door to Modern Monetary Theory

(MMT)

• China covid-19 outbreak halts copper price rally

• Just “do the right thing” Ross Beaty says at Remote Roundup

+++ MORE INSIDE!

February 1, 2021

Dear Pancon Shareholders and Followers:

January was a busy and productive month for our Company. We complet-ed Phase 1 of our fully funded 10,000-meter drill program with a total of 7 holes, all of which look interesting. We are excited to receive and report the assay and multielement geochemistry results from Phase 1, and then to commence Phase 2.

As noted in our January 28 news release (see page 3 of this newsletter and the Pancon web site), our team is especially encouraged by the lithologies from our holes 4 and 5, which are typical of mineralized zones in Brewer’s historic drill core from beneath the former mine. Some of those historic zones ran more than 7 grams per tonne gold.

We are confident that our Phase 1 drill results will achieve two objectives:1. prove the concept that the former Brewer Gold Mine property has a

lot more gold, plus copper, to be discovered; and 2. provide Pancon with an unprecedented quantity and quality of new in-

formation that will increase probabilities for success in our upcoming Phase 2 drilling, and beyond.

In February we will expedite sample prep, assay and multielement geo-chemistry work for all 7 diamond drill holes plus the 2 sonic drill holes (which formed the top 55-65 meters of holes 4 and 5: vertical holes drilled through and below the reclaimed main former mined pit). We will also compile all new data and update our working database and conceptual model. We will also finalize our Phase 2 drilling plan.

Thank you for your interest and trust in Pancon!

Sincerely

Layton

Gold (Au)

Copper (Cu) PUC.V

December 31, 2020 $1,894.00 $7,674.50 $0.10

January 31, 2021 $1,848.70 $7,877.00 $0.13

MoM $ Change (+/-) -$45.30

+$202.50 $0.03 MoM (%) +6.49% +2.6% +30.0%

YTD (%) +24.16% +25.57% +36.8%

Gold & Copper Source: The London Metal Exchange* Gold price per ounce/copper price per tonne; priced in US dollars.

PUC.V Source: TSX Venture Exchange * Priced in Canadian dollars

February 2021February 2021

Don’t forget to follow Pancon Resources YouTube Channel for new content or simply visit:

www.panconresources/investors/videos/.

TSXV: PUC/ OTCQB: PUCCFFebruary 2021

Page 2Copyright ©2021 Pancontinental Resources Corporation. All rights reserved.

GOLD CHART

YEAR TO DATE

Price as of Jan 4, 2021: $1,942.00/oz

MONTH OVER MONTH

Price as of January 31, 2021: $1,848.70/oz

COPPER CHART

YEAR TO DATE

Price as of Jan 4, 2021: $7,918.50/t

MONTH OVER MONTH

Price as of January 31, 2021: $7,877.00/t

Pancon (TSXV: PUC/ OTCQB: PUCCF) 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.

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 146,100 ounces of gold in 2019.

Between 1987-1995, Brewer produced 178,000 ounces of oxide gold from open pits that extended to 50-meter depths, where copper and gold-rich sulphides were exposed but could not be processed by the oxide heap leach processing facility.

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 is fully funded for up to 10,000 meters drilling program at Brewer. Phase 1 drilling is now completed for a total of 2,692 meters in seven holes, two of which included both sonic and diamond drilling. Results are pending.

ABOUT PANCON

LATEST VIDEO UPDATE

Don’t forget to follow Pancon Resources YouTube Channel for new content or simply visit:

www.panconresources/investors/videos/.

7th and Final Hole of Phase 1 Diamond Drilling at Brewer

Pancon completed Phase 1 of Diamond Drilling Program for a total of 2,692 meters in seven holes. To view the 2:31minute video, click on the image below:

TSXV: PUC/ OTCQB: PUCCFFebruary 2021

Page 3Copyright ©2021 Pancontinental Resources Corporation. All rights reserved.

PANCON COMPLETES PHASE 1 DRILLING AT FLAGSHIP BREWER GOLD PROJECT

Pancontinental Resources Corporation (TSXV: PUC; OTCQB: PUCCF) (“Pancon” or the “Company”) has completed Phase 1 of a fully funded 10,000-meter diamond drill program at its flagship Brewer Gold Project. The Brewer Project covers nearly 1,000 acres on the gold-rich, underexplored Carolina Slate Belt in Chesterfield County, South Carolina, and is where a former mine produced 178,000 ounces of oxide gold between 1987-1995. Phase 1 drilling commenced on November 3, 2020 (see November 5, 2020 news release).

Highlights: • 2,692 meters were drilled in seven holes, two of which included both sonic and diamond drilling.• Holes 4 and 5 intersected lithologies typical of highly mineralized zones in the historic mine and core (see corporate presentation

slide 20).• Gold assay and multielement geochemistry results for copper and other elements are pending.

Layton Croft, Pancon President and CEO, stated: “While we await assay and multielement geochemistry results, we are super excited by what we see from Phase 1 drilling. Our team possesses an unmatched level of combined experience drilling at and near Brew-er, and during Phase 1 the team identified an abundance of highly altered silicification and brecciation in all seven holes. We see a lot of pyrite as well as some enargite and other copper minerals. We see textures that suggest skarn-like minerology, something corroborated by more than 1,000 x-ray diffraction (XRD) analyses on both historic Brewer core as well as on RAB drill samples from August-September 2020.”

Croft continued: “In Pancon core holes 4 and 5, we see lithologies typical of mineralized zones in historic drill core from beneath the former mine. Some of these historic zones ran more than 7 grams per tonne gold. In all, we believe Phase 1 drill results will achieve two objectives: i) prove the concept that the former Brewer Gold Mine property has a lot more gold, plus copper, to be discovered; and ii) provide an unprecedented quantity and quality of new information that will increase probabilities for success in upcoming Phase 2 drilling, and beyond.”

The Pancon team is very encouraged by twinning and extending the historic mineralized lithology in both depth and length (see Photo 1 and Photo 2 below for more details). The Company cautions that the mineralization at the former Brewer Gold Mine is not necessarily indicative of the mineralization that may be identified by the Company’s ongoing and upcoming exploration work.

In Phase 1, Pancon drilled a total 2,691.95 meters from seven diamond drill holes and two sonic drill holes. The two sonic drill holes were vertical holes through reclaimed waste rock and high-sulphide refractory ore from the former mine. These two holes continued vertically beneath the former mine in diamond drill holes. The first six holes tested either geophysical anomalies and/or targets associated with historic diamond drill holes or recent rotary air blast (RAB) drill holes (see July 28, 2020 news release on geophysical results and No-vember 16, 2020 news release on RAB drill results). The seventh hole stepped out to the northwest of the former mine in an area known to be rich in topaz, which has historical correlation to gold found and mined at Brewer (see Figure 1 below for a map showing both Pancon’s Phase 1 drill holes and the 90 RAB holes and their associated gold results).

Pancon is waiting to receive Phase 1 assay and multielement geochemistry results for gold, copper and other elements, including rare earths elements, of which elevated levels were found in samples of sludge concentrated and sequestered from metal-rich acid mine waters routinely covered as part of the government’s environmental mitigation plan (see November 16, 2020 news release). It is believed that the unusually lengthy wait times for assay and multielement geochemistry results are due to both an overall increase in exploration drilling all over North America and thus exceptionally high demand on labs, as well as labor and logistical challenges related to the Covid-19 pandemic.

Once Phase 1 results are received, Pancon will update its database and conceptual model to design the Phase 2 drill program. Sonic drilling, in addition to diamond drilling, may be used again during Phase 2 in order to effectively drill through the 55-65 meters of loose, unconsolidated material reclaimed in the former mined pit. This backfilled material contains waste rock and high-sulphide refractory ore from the previous mining operation, which used cyanide to heap leach the oxide ore. Pancon’s 2020 RAB drill program demonstrated that the top layer of this backfill, down to 10-15 meters, contains attractive gold values, with two of the seven RAB holes in the backfill containing samples running more than 1 g/t Au.

As per Figure 1, the seven holes in Phase 1 were plotted coincident with the two parallel north-south traverses from Pancon’s first and fourth lines of resistivity/IP geophysical surveys conducted in June-July 2020, and similar to how the majority of Pancon’s 90 shallow RAB holes were plotted.

January 28, 2021

CONTINUED ON PG 4

TSXV: PUC/ OTCQB: PUCCFFebruary 2021

Page 4Copyright ©2021 Pancontinental Resources Corporation. All rights reserved.

PANCON COMPLETES PHASE 1 DRILLING AT FLAGSHIP BREWER GOLD PROJECT (CONT’D)

Figure 1: Phase 1 diamond drill holes with 2020 RAB drill holes and RAB gold results

Drill Hole Location Orientation Lengh (meters)

BC20C-001 southwest of the former mine 65-degree angle, due south azimuth

341.5

B20C-002 north of the former mine 45-degree angle, due south azimuth

314.7

B20C-003 west of the former mine 65-degree angle, due south azimuth

503.5

Sonic Hole 1 vertically in the central area of the former mine vertical 55.49

B20C-004 continued down from sonic hole 1 vertical 543.96 meters, for a total hole depth of 599.45 meters

Sonic Hole 2 vertically 100 meters due north of sonic hole 1 and diamond hole 4

vertical 65.85

B21C-005 continued down from sonic hole 2 vertical 200.15 meters, for a total hole depth of 266 meters

B21C-006 250 meters from the southern wall of the main historic mined pit

65-degree angle, due south azimuth

286.8

B21C-007 500 meters northwest of the northwest trend historic mined pit

65-degree angle, due south azimuth

380

Table 1: Phase 1 Drill Holes

CONTINUED ON PG 5

TSXV: PUC/ OTCQB: PUCCFFebruary 2021

Page 5Copyright ©2021 Pancontinental Resources Corporation. All rights reserved.

PANCON COMPLETES PHASE 1 DRILLING AT FLAGSHIP BREWER GOLD PROJECT (CONT’D)

Photo 1 below shows wet, cut drill core from historic diamond drill hole B97-4, a hole drilled by Placer Dome in 1997. Hole B97-4 was collared north of the former mine, at a 45-degree angle, due south azimuth. Photo 1 is of core from approximately 193 meters (633 feet) down the hole, or about 150 meters vertical depth. Historic assay results for hole B97-4 show 1.2 g/t Au over 61 meters, between 190.2 and 251.2 meters down the hole, and including 3.1 meters of 7.6 g/t Au at between 242-245.1 meters down the hole.

Photo 1: Historic core photo (cut core) from diamond drill hole B97-4 (labeled in feet)

Photo 2 below shows wet, uncut drill core from Pancon’s vertical diamond drill hole B21C-005. Photo 2 is of core from approximately 152 meters vertical depth down the hole, simi-lar to the vertical depth location of the core in Photo 1 above. The lithological similarities are evident and encouraging.

Photo 2: New Pancon core photo (uncut core) from diamond drill hole B20C-005 (labeled in meters)

Qualified PersonThe 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 Richard “Criss” Capps, PhD, RPG, SME REG GEO, a Qualified Person as defined by NI 43-101. •

INDUSTRY NEWS

Russia for first time holds more gold than US dollars in $583 billion reservesJanuary 13, 2021

Gold-backed ETFs end record 2020 with second month of outflowsJanuary 13, 2021

China’s 2020 copper imports hit record highJanuary 14, 2021

Gold investment demand remains well supported in 2021 – reportJanuary 15, 2021

Robert Friedland opens Remote Roundup: ‘In our world, the geologists are the gods’January 18, 2021

Ivanhoe’s Friedland taking ‘hard look’ at US projectsJanuary 18, 2021

Eldorado to buy QMX Gold for $105 millionJanuary 21, 2021

Moody’s sees lower rates for several years to support gold priceJanuary 21, 2021

Remote Roundup looks at commodities and financial marketsJanuary 21, 2021

MMG CEO sees short term upside mo-mentum for copperJanuary 22, 2021

Responsible Mining Foundation con-cerned about thousands of abandoned, at-risk tailings facilities worldwideJanuary 22, 2021

Closing the gold window opened the door to Modern Monetary Theory (MMT)January 24, 2021

China covid-19 outbreak halts copper price rallyJanuary 24, 2021

Just “do the right thing” Ross Beaty says at Remote RoundupJanuary 25, 2021

TSXV: PUC/ OTCQB: PUCCFFebruary 2021

Page 6Copyright ©2021 Pancontinental Resources Corporation. All rights reserved.

CAPITAL STRUCTURE (As of 01/31/2021)

TSX Venture PUC

OTCQB PUCCF

Market Capitalization $24.3 mm

Share Price $0.13

52-Week Range $0.14 - $0.02

Shares Outstanding 242.7 mm

Warrants 65.0 mm

Options 21.5 mm

Management & Directors* ~14%

Institutions* ~9%

High Net Worth Individuals* ~ 32%

* Does not include warrants/options

CONTACT INFORMATION

Website: www.panconresources.com

E: info@panconresources.com

Twitter: @PanconResources

LinkedIn: @Pancon-Resources

Tel: +1.647.202.0994 /+1.980.498.7688

CAROLINA GOLD TEAM

Layton CroftPresident & CEO - Project Director

Executive with 18 years in the global mineral exploration and mining industry. Held executive and advisory roles with Ivanhoe Mines, Rio Tinto, Peabody Energy and Duke Energy. Pancon CEO since 2017. Erdene Resource Development (TSX: ERD) director since 2015 and chairman of the board since 2019. Based in Charlotte, NC.

Chris Cherrywell, CPGTechnical Advisor

Discovered the Brewer gold deposit in 1983. More than 10 years of exploration and project development experience on the Carolina Gold Belt, including at Haile and Barite Hill. 40 years of global explora-tion and development experience.

Criss Capps, PhD, CPG, QPSenior Advisor

Co-discovered the high-grade Buzzard gold project next to Brewer in 1997. More than 25 years of exploration experience in the Brewer-Haile area, and 40 years total across North America. Co-discovered 6 gold deposits that became the Castle Mountain Gold Mine in California.

Laurence (Laurie) Curtis Strategic Advisor

Founded the company that discovered and developed the world class Tujuh Bukit gold-copper district in Indonesia, which has many similarities to Brewer. 45 years of global exploration and executive leader-ship experience.

Disclaimer All information provided in this newsletter is based upon sources that Pancontinental Resources Corporation (“Pancon”) believes to be reliable. Pancon does

not guarantee their accuracy or completeness. Any and all statements as of the date of this newsletter are subject to change without notice. All information

provided on this newsletter must be understood as information presented for discussion only and not investment advice. Pancon advises all readers and

subscribers to seek advice from a registered professional securities representative before deciding to trade in stocks featured on this newsletter or any stocks

for that matter. All statements and expressions of the companies featured are not meant to be a solicitation or recommendation to buy, sell, or hold securities.

Pancon expressly disclaims any obligation to update or revise any such forward-looking statements.

Qualified PersonThe technical information in this newsletter has been prepared in accordance with Canadian regulatory requirements as set out in NI 43-101 and reviewed and

approved by Richard “Criss” Capps, PhD, RPG, SME REG. GEO, a Qualified Person as defined by NI 43-101. Certain technical information within this newslet-

ter is historical in nature and pre-dates NI 43-101 standards, this information is believed to be reliable however the Company has not verified this material.

David MosherTechnical Advisor

Led exploration, development and produc-tion at multiple gold projects and mines in Canada, West Africa and Russia. 40 years of global exploration and mining executive leadership experience.

STOCK PERFORMANCE YEAR TO DATE (as of January 31, 2021)

Opening Price on of Jan 4, 2021: $0.095 Price as of January 31, 2021: $0.13

MoM: +30% YTD: +36.8%

Patrick Quigley, MSExploration Manager

Ten years of professional experience as consulting and project geologist in the US and Latin America, including on a high-sul-phidation epithermal gold project similar to Brewer.

Jen SpohnProject Data & Administration Manager

Provided project support to gold explo-ration programs near Brewer since 2011. A geologist with 20 years of project data management and GIS/AutoCAD experi-ence for various engineering, environmen-tal and mining sector projects.

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