EXPLORING FOR GOLD & BATTERY METALS TO POWER A CLEAN ENERGY ECONOMY

July 2019PUC Monthly Report

Gold & Battery Metals Insights• Month over month commodity prices• Year to date commodity prices

Industry News • Gold bulls back in business; prices power

to 3.5 month high• US, Canada and Australia team up to

mitigate metal shortages caused by shift towards clean technology

• Pala Investments offers $501M for Cobalt 27

• First Cobalt urges fellow eCobalt share-holders to vote against value-destroying Jervois transaction

• eCobalt urges sharehlders to vote in favour of Jervois Mining merger

• Glencore to support First Cobalt’s refin-ery in Ontario

• Pancon commences exploration at the St. Laurent Ni-Cu-Co Project

Supply & Demand News• The booming battery market brings

significant opportunities to mineral-rich Finland

• Base metals in tight range amid demand worries

• A detour for nickel• Gold’s latest rally hints to a reeturn to

record price levels• Nicke prices under pressure from vanish-

ing deficits• Failling cobalt prices add fresh challeng-

es to DRC’s economy • The stakes for critical minerals just got

critically higher as Trump and Trudeau agree to develop a collaborative plan

• Why Goldman thinks nickel is trading like a biotech start-up

• The pros and cons of gold

Electric Vehicle News• UK electric cars will require twice the

world’s cobalt supply • Invest in EV now or regret later• Tesla is likely looking to take on battery

problem itself• Dream or nightmate? WHy India should

postpone its EV plans for 10 years

+++ lots more news inside

Gold (Au)

Nickel (Ni)

Copper (Cu)

Cobalt (Co)

May 31, 2019 $1,306.00 $12,035.00 $5,780.00 $33,000.00

June 30, 2019 $1,410.07 $12,660.00 $5,970.00 $25,500.00

Change (+/-) $104.07 $625.00 $190.00 $7,500.00Source: The London Metal Exchange* Gold price per ounce

COMMODITY PRICES (in US$ per tonne)INCLUDED IN THIS REPORT

PANCON COMMENCES EXPLORATION AT THE ST. LAURENT NI-CU-CO PROJECT

TSX VENTURE: PUC

Pancon’s exploration field work is underway on the newly acquired nickel-copper-cobalt St. Laurent Project, located in St. Laurent Township, Northern Ontario, 160 kilometres northeast of Timmins, 50 kilometres south of Detour Lake Mine and 20 kilometres south-west of the Casa Berardi Mine.

According to Pancon President and CEO Layton Croft, “A recently completed geological compilation and a re-interpretation of past work indicates the presence of an intrusive gabbro body containing widespread anomalous Ni-Cu-Co mineralization. Mineralization consists of disseminations, blebs and stringers, which represent a body up to 80 metres thick. Historic diamond drilling was limited along 205 metres of strike extent, with the deepest hole at a 160 metre vertical depth. It appears from our ongoing interpretation that several of the previous drill holes were terminated while still in the mineralized gab-bro body. An unexplained robust airborne electromagnetic (EM) conductor, 600 metres in length, is coincident with the mineralized body. Our ongoing evaluation indicates these important exploration features together represent a classic Ni-Cu-Co massive sulphide target.”

The first phase of historic diamond drilling was completed in 1965-1966, when 7 holes

CONTINUE ON PAGE 4

Copyright ©2019 Pancontinental Resources Corporation. All rights reserved. Page 2

PUC Monthly Report - July 2019

Pancontinental Resources Corporation (“Pancon” or the “Company”) (TSXV: PUC) is a Canadian-based exploration company focused on exploring and developing its strategic gold & energy metals projects in low-risk, proven mining districts with excellent infrastructure.

The Company’s current focus is on pro-spective Gold & Nickel-Copper-Cobalt properties in low-risk areas in proximity to producing or former mines.

Looking to help address the growing demand for clean energy metals, Pancon holds five nickel-copper-cobalt projects in Northern Ontario and one gold project in the Carolina Gold Belt:• The Montcalm, Nova, Gambler and

Strachan projects are adjacent to and near the former Montcalm Ni-Cu-Co Mine located 65 km northwest of Timmins, ON, Canada

• The St. Laurent Project has an advanced Ni-Cu-Co-Au-Pt-Pd target and is located 50 km south of Detour Lake Mine and 20 km southwest of Casa Berardi Mine in northern Ontario, Canada

• The Jefferson Gold Project is situated near the producing Haile Gold Mine and adjacent to the former Brewer Gold Mine on the Carolina Gold Belt in South Carolina, USA.

PANCON RESOURCES (TSXV: PUC)

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It includes news that affects the market as well as companies that are exploring, developing and producing essential minerals and materials that will lead a clean energy revolution.

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LME Nickel(Jan 1 to June 28, 2019)

LME Nickel (May 28 to June 28 2019)

LME Gold (Jan 1 to June 28, 2019)

LME Gold(May 28 to June 28, 2019)

LME Copper (Jan 1 to June 28, 2019)

LME Copper (May 28 to June 28 2019)

LME Cobalt(Jan 1 to June 28, 2019)

LME Cobalt (May 28 to June 28 2019)

YEAR TO DATE COMMODITY CHARTS

MONTH OVER MONTHCOMMODITY CHARTS

Copyright ©2019 Pancontinental Resources Corporation. All rights reserved. Page 3

PUC Monthly Report - July 2019

The Montcalm Project (3,780 hectares) is located within the prospective Montcalm Gabbro Complex, 65 km northwest of Timmins, Ontario.

The project is contiguous to and surrounds the western, northwestern and southwest-ern portion of the former Montcalm Mine, currently owned by Glencore plc.

The former Montcalm Mine was discov-ered and developed based on a single airborne electromagnetic anomaly identified in 1970s and previously mined 3,931,610 tonnes of ore grading 1.25% nickel, 0.67% copper and 0.051% cobalt, producing in excess of 4 million pounds of cobalt (Ontario Geological Survey, Atkin-son, 2011).

St. Laurent Project (4,170 hectares) is located in St. Laurent Township, 160 km northeast of Timmins, 50 km south of Detour Lake Mine and 20 km southwest of Casa Berardi Mine.

Past shallow drilling at the St. Laurent Project identified disseminated multi-element sulphide mineralization across notable widths trending towards a large gabbro-hosted magnetic feature.

The Ni-Cu-Co-Au-Pt-Pd zone is open along strike and at depth. This mineralized zone, importantly, is coincident with a strong 600-metre long EM anomaly.

The Nova Project (2,080 hectares) is located in the Montcalm Greenstone Belt,19 km southwest of Glencore’s former Montcalm Mine.

The Strachan Project (2,280 hectares) is lo-cated 15 km south of the former Montcalm Mine, in the Strachan Gabbro Complex.

The Gambler Project (7,630 hectares) is a camp-size project situated in the Mont-calm Gabbro Complex surrounding the Montcalm Project and adjacent to the former Montcalm Mine.

MONTCALM NI-CU-CO PROJECT

GAMBLER NI-CU-CO PROJECT

STRACHAN NI-CU-CO PROJECT

ST. LAURENT NI-CU-CO-PGE PROJECT

NOVA CU-CO-AU PROJECT

SOUTH CAROLINA PROJECT

The Jefferson Gold Project is located in Chesterfield County, South Carolina, on one of the most significant gold trends in the United States: the Carolina Gold Belt.

The Jefferson Gold Project is adjacent to the former Brewer gold mine (which produced 178,000 oz Au from 1985-1991), and 15 km up trend from OceanaGold’s producing Haile gold mine.

The former Ridgeway gold mine, located 50 miles along trend southwest of the Jef-ferson Gold Project, was a 15,000-tonnes per day open pit operated by Kennecott Minerals from 1988-1999.

The Haile gold mine, first discovered in 1827, is today a new open pit operation with a multi-million ounce resource that commissioned in December 2016. Haile is owned and operated by OceanaGold (TSX: OCG), which reports ongoing exploration and the potential for an expansion phase to an underground mine at Haile.

Pathway conduits of mineralization discov-ered at Jefferson mimic the same initial exploration successes at Haile.

JEFFERSON GOLD PROJECT

NORTHERN ONTARIO PROJECTS

Copyright ©2019 Pancontinental Resources Corporation. All rights reserved. Page 4

PUC Monthly Report - July 2019

CONTINUED ON PAGE 5

SUPPLY & DEMAND NEWS

The booming battery market brings signifi-cant opportunities to mineral-rich FindlandJune 5, 2019

Base metals in tight range amid demand worriesJune 5, 2019

A detour for nickelJune 7, 2019

Gold’s latest rally hints to a return to record price levelsJune 7, 2019

Nickel prices under pressure from vanish-ing deficitsJune 12, 2019

Increased demand for batteries strength-ens worldwide nickel demandJune 13, 2019

Evergrande invests 23 billion in EV produc-tionJune 14, 2019

Falling cobalt prices add fresh challenges to DRC’s economy June 24, 2019

INDUSTRY NEWS

Gold bulls back in business; prices power to 3.5 month highJune 5, 2019 US, Canada and Australia team up to mitigate metal shortages caused by shift towards clean technology June 12, 2019

Pala Investments offers $501M for Cobalt 27June 18, 2019

First Cobalt urges fellow eCobalt share-holders to vote against value-destroying Jervois transaction June 25, 2019

Glencore to support First Cobalt’s refinery in Ontario June 25, 2019

eCobalt urges shareholders to vote in favour of Jervois Mining Merger June 27, 2019

Pancon commences exploration at the St. Laurent Ni-Cu-Co ProjectJuly 2, 2019

PANCON COMMENCES EXPLORATION AT THE ST. LAURENT NI-CU-CO PROJECT (CONT’D)

totalling 1,081 metres were completed. Pancon has located a sufficient number of the drill casings in the field in order to re-establish and incorporate this work into the current interpretation. Drill logs from the 7 holes were preserved and incorporated, although assay results were not preserved. A single drill section from an accompanying historical assessment report indicates the following intersections from the drill program

DDH Ni% Cu% Width

PA-1 0.78 0.23 2.7

PA-5 0.37 0.33 19.2

A-7 0.23 0.16 26.5

The potential quantity and grade is conceptual in nature and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the target being delineated as a mineral resource.

Source: MNDM Assessment Report KL-0162 and KL-1062 Geological Report on Asarco Claims, March 1971.

The historic drill logs record sulphide mineralization in all 7 holes, ranging from trace to higher concentrations of up to 70% over several cm intervals. The extent of sampling in 7 seven holes is not indicated, but the sulphide descriptions and visual estimates in the logs provide supportive indication of a wide mineralized zone. Evidence of a second phase of drilling (6 holes) by the same previous operator is indicated in a drill plan map from the assessment report. Casings from this phase of work were also located in the field, however drill logs were not preserved and assay results were not preserved. In 2008, a 3-hole, 604-metre diamond drill program was completed. Drill logs and assay results were preserved from this phase of exploration, and they support the presence of a wide zone of low-grade Ni-Cu-Co sulphide mineralization. Pancon has located and re-logged the complete drill core from this program. The core logging, in conjunction with magnetic susceptibility measurements and specific gravity measurements, forms the basis of Pancon’s current geological interpretation. The broad zone of sulphide mineralization is hosted in a fine-grained intrusive gabbro body that shows distinct intrusive breccia textures (see Figure 1). The drill holes intersected disseminated and blebby sulphides

Figure 1: SL 08-01 - Gabbro Breccia

Copyright ©2019 Pancontinental Resources Corporation. All rights reserved. Page 5

PUC Monthly Report - July 2019

PANCON COMMENCES EXPLORATION AT THE ST. LAURENT NI-CU-CO PROJECT (CONT’D)

Figure 2: SL 08-02 - Sulphide Stringers

and scattered narrow sections of sulphide stringers (see Figure 2), but did not explain the strong EM conductor.

Two of the holes are interpreted to have ended in the mineralized body. The Ni-Cu min-eralization is associated with relatively low sulphur assay data, which is consistent with the observed mineralization. Projected to massive sulphides of approximately 35% sulphur, St. Laurent’s Ni grade could potentially be 4.8% and the Co grade could potentially be 0.2%. Calculating Ni and Co tenor to 100% sulphide is a common practice in Ni-Cu-Co exploration to determine potential economic possibilities of nickel sulphide mineraliza-tion.

These characteristics provide a number of similarities to the Ni-Cu-Co deposit mined at the former Montcalm Mine, owned by Glencore. Pancon has built up its exploration knowledge of the Montcalm deposit from its recent and ongoing exploration work on its Montcalm Ni-Cu-Co Project, which surrounds the former Montcalm Mine.

DDH From (m)

To (m) Width (m)

Ni% Cu% Co (ppm)

Au-Pt-Pd (ppb)

SL-08-01 57.4 64.5 7.1 0.14 0.22 95 104

SL-08-01 71.9 82.4 10.5 0.14 0.15 92 78

SL-08-01 93.9 112.4 18.5 0.18 0.12 143 60

SL-08-01 120.3 124.4 4.1 0.25 0.10 174 59

SL-08-02 65.2 81.1 15.9 0.27 0.23 149 85

SL-08-02 85.4 90.9 5.5 0.51 0.31 290 70

SL-08-02 94.2 104.2 10.0 0.34 0.34 191 145

SL-08-03 157.1 187.1 30.0 0.25 0.20 145 92

The potential quantity and grade is conceptual in nature and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the target being delineated as a mineral resource.

Source: Ministry of Northern Development and Mines assessment report 20006295.

ELECTRIC VEHICLE NEWS

TTC marks environmental milestone as first electric bus enters serviceJune 3, 2019

UK electric cars will require twice the world’s cobalt supply June 5, 2019

GM is planning electric vehicles that won’t give buyers sticker shockJune 5, 2019

BMW and Jaguar Land Rover team up on electric vehiclesJune 5, 2019

Businesses drive demand for electric vehi-cles in Quebec’s largest city June 5, 2019

Monthly Plug-In EV Sales Scorecard for May 2019June 6, 2019

Invest in EV now or regret laterJune 6, 2019

Sweden’s Electric Car boom is under threat from power crunchJune 12, 2019

Tesla is likely looking to take on battery problem itselfJune 13, 2019

Dream or nightmare? Why India should postpone its electric vehicle plans for ten yearsJune 13, 2019

SUPPLY & DEMAND NEWS (CONT’D)

Cobalt Miners news from the month of June 2019 June 25, 2019

The stakes for critical minerals just got crit-ically higher as Trump and Trudeau agree to develop a collaborative plan June 26, 2019

Why Goldman thinks nickel is trading like a biotech start-up June 26, 2019

The pros and cons of goldJune 27, 2019

CONTINUED ON PAGE 6

Copyright ©2019 Pancontinental Resources Corporation. All rights reserved. Page 6

PUC Monthly Report - July 2019

ST. LAURENT NI-CU-CO PROJECT WHITE BOARD

The white board below was prepared to highlight the key exploration features of St. Laurent and the reasons why Pancon team is excited about this newest project.

The picture below will redirect you to an interactive document. Click on each picture to zoom in to the image and get more informa-tion of each highlight.

About the St. Laurent Project:

• Pancon acquired the St. Laurent Project earlier this year (see News Release dated March 15, 2019) which covers 4,170 hectares and is located in St. Laurent Township, Northern Ontario, 160 kilometres northeast of Timmins, 50 kilometres south of De-tour Lake Mine and 20 kilometres southwest of the Casa Berardi Mine.

• Past shallow drilling at the St. Laurent Project identified disseminated multi-element sulphide mineralization across notable widths trending towards a large gabbro-host-ed magnetic feature.

• The Ni-Cu-Co-Au-Pt-Pd zone is open along strike and at depth. This mineralized zone is coincident with a strong 600-metre long EM anomaly.

• Drilling to date has not yet intersected massive sulphides, and the EM anomaly has not yet been explained. The disseminated sulphide halo provides an important vec-tor to guide our upcoming exploration work.

In a separate matter, Pancon has renewed its Investor Relations consulting agreement with Jeanny So Consulting (the “Consultant”) for another 12-month term, wherein the Company will pay the Consultant a fee of $5,000 per month. In addition, the Consultant shall be granted 250,000 options to purchase common shares at $0.08 per share. The op-tions will vest in installments of 62,500 options per quarter and will have a term of 5 years, subject to acceptance of the TSX Venture Exchange. •

PANCON COMMENCES EXPLORATION AT THE ST. LAURENT NI-CU-CO PROJECT (CONT’D)

ELECTRIC VEHICLE NEWS (CONT’D)

VW is closing in on Ford Deal on Electric, Autonomous carsJune 13, 2019

Will Tesla make own batteries with Maxwell tech? June 13, 2019

Fiat Chrysler signs EV charge point deals with Enel, Engie June 14, 2019

PSA to assemble batteries for hybrid, elec-tric cars in SlovakiaJune 14, 2019

Lithium intervention needed for EV take-overJune 26, 2019

The latest trends in lithium-ion batteriesJune 27, 2019

EV growth stifled by battery shortageJune 28, 2019

Copyright ©2019 Pancontinental Resources Corporation. All rights reserved. Page 7

PUC Monthly Report - July 2019

Layton Croft, President & CEO: More than 25 years of leadership and management experience in North America, Asia, Europe, Africa and Latin America, including executive and strategic advisory roles with Ivanhoe Mines, Rio Tinto, Peabody Energy and Duke Energy. Director of Erdene Resource Development (TSX: ERD) since 2015.

Todd Keast, P.Geo, QP - Northern Ontario Project Manager: Exploration and project geologist with nearly 30 years of experience in a diverse field of commodities. With an active approach to exploration, has advanced projects from grassroots target generation and evaluation through to deposit discovery, delineation, environmental permitting and PEA.

Kevin Filo, P.Geo., QP - Northern Ontario Project Advisor: Exploration geologist, mining geologist and project generator with nearly 40 years of experience, including 30 years in the Abitibi Greenstone Belt region, Ontario. Former VP Exploration for acqui-sition team which acquired the Detour Gold Mine from Placer Dome, now one of the largest gold mines in Canada.

Margaret Venable, PHD, CPG, QP - South Carolina Project Coordinator and Senior Geologist: Specializing in property evaluation and three dimensional analyses and inte-gration of data sets in order to enhance understanding of mineralization and plan future work, Margaret has 35+ years of experience, from early exploration to mine feasibility. Originally from North Carolina, she has been studying the geology and geophysics of the Brewer-Jefferson area since 2016.

Richard “Criss” Capps, PhD, CPG, QP - South Carolina Project Consultant and Se-nior Geologist: 40+ years of experience in minerals exploration and economic geology. Mr. Capps was part of the team that discovered six gold deposits that became the Castle Mountain Gold Mine in California. Originally from North Carolina, Mr. Capps has been working in the Brewer-Jefferson area since 2016.

Christopher Cherrywell, CPG, QP - South Carolina Principal Geological Advisor: 40+ years of experience, from early exploration to mine feasibility and spent over a decade on the Carolina Gold Belt, including working at Brewer, Haile and Barite Hill in South Carolina. Chris was the lead geologist responsible for discovering the Brewer Gold Mine in 1983-84 and provided project development engineering solutions to support project economics and local socio-economic benefits to the mine.

Mark McMurdie, CFO: Chartered Professional Accountant with more than 30 years of senior leadership experience in public and private companies. Currently serving as CFO for Roscan Minerals (TSX-V: ROS), as well as Director of Finance for franchisor H&S Mas-sage Spa Canada.

Jeanny So, External Relations Manager: More than 20 years of investor relations, public relations, corporate affairs, corporate development and communications experi-ence in the natural resource sector. She also serves as a consultant to Purepoint Uranium Group (TSXV: PTU) and is a member of Prospector and Developers Association of Canada (PDAC) and Women In Mining.

BOARD OF DIRECTORS

Donald Whalen (Chairman)Layton Croft

Rick Mark David MosherDavid Petroff

David Mosher (Chairman) Todd Keast, P. Geo., QPKevin Filo, P.Geo., QP

CAPITAL STRUCTURE

Shares Outstanding 165,479,290

Share Price (June 30, 2019) $0.04

52 Week Range $0.09 / $0.02

100-Day Avg Volume 192,501

Options 13,600,000

Warrants 25,128,218

Fully Diluted 204,207,508

Insider Ownership 35%

Cash Position (May 31 2019)

$550,000

MANAGEMENT TEAM

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 Person: The 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 Todd Keast, PGeo, a Qualified Person as defined by NI 43-101, a member of Pancon's Technical Advisory Committee and Pancon's Project Manager. Cer-tain technical information within this newsletter 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.

NORTHERN ONTARIO TECHNICAL ADVISORY

COMMITTEE

David Mosher (Chairman) Christopher Cherrywell, CPG, QPMargaret Venable, PhD, CPG, QP

Richard “Criss” Capps, PhD, CPG, QP

SOUTH CAROLINA TECHNICAL ADVISORY

COMMITTEE

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