Stock Information


Pan Global Resources Inc. announces letter of intent for acquisition of Balkans Exploration licenses.

July 30, 2010
Shares Issued and Outstanding: 9,514,000

VANCOUVER, BRITISH COLUMBIA – (July 30, 2010) – Pan Global Resources Inc. ("Company") (TSX Venture: PGZ) is pleased to announce that it has entered into a letter of intent dated July 29, 2010 with Lithium Li doo ("Lithium Li"), wherein the Company has been granted an option to earn an initial undivided 51% interest in exploration licenses for the Jadar West, Voljevo and Lopare mineral prospects (together the “Balkans Properties”), with further options to earn an undivided 65% or an undivided 80% interest in the exploration licenses, together with any property, title or concession rights earned by Lithium Li.
The acquisition is an arm's length transaction. Lithium Li is a Serbian corporation wholly owned by Mr. Petr Palkovsky.


Lithium-Li has submitted applications to the Ministry of Energy and Mining, Republic of Serbia, for the grant of exploration licenses to conduct mineral exploration work on the Jadar West and Valjevo concessions, located within 100 miles of Belgrade, Republic of Serbia. Lithium-Li has prepared and intends to submit an application to the Ministry of Energy and Mining, Republic of Bosnia, for the grant of exploration licenses to conduct mineral exploration work on the Lopare concession.

Transaction Highlights

Subject to execution of a definitive option agreement, and other conditions of closing, the Company has acquired an option to purchase a 51%, 65% or 80% interest in the Balkans Properties as follows:

a)    Cash Payments to Lithium-Li:

Subject to TSXV approval, the Company will make the following cash option payments to Lithium-Li:

Date                                              Amount                              Cumulative

Approval Date* (defined below)        $   75,000                                $   75,000
12 months after Approval Date          $ 150,000                                $ 225,000
24 months after Approval Date          $ 275,000                                $ 500,000

                                                                                           Total $ 500,000

b) Share Issuances to Lithium-Li:

Subject to TSXV approval, the Company will issue fully paid non-assessable shares to Lithium-Li as follows:

Date                                           # of Shares                                   Cumulative
Approval Date                                  375,000                                      375,000

Completion Date* (defined below)      250,000                                      625,000

12 months after Completion Date        250,000                                      875,000

24 months after Completion Date        250,000                                   1,125,000
                                                                                             Total 1,125,000

c) Milestone:

Phase of Program                           Milestone                                 % Interest Earned

Phase I                                            Completion Date                                   51%

Phase II                                            Pre-Feasibility Report                             65% (1)

Phase III                                           Feasibility Report                                   80%

(1) If at any time after completion of Phase I but before completion of Phase II the Company determines to discontinue funding having incurred aggregate Exploration Expenditures of less than $10,000,000, the initial 51% undivided interest earned by the Company shall be forfeited to Lithium-Li.

*Approval Date shall mean the later to occur of the following events:

1. Receipt of conditional acceptance of the transaction by the TSX Venture Exchange Inc.
2. Issuance by the Ministry of Energy of Mines of the Republic of Serbia or the Republic of Bosnia, as applicable, of one or more exploration licenses to enter upon and conduct mineral exploration work upon any of the Jadar West, Valjevo or Lopare concessions

*Completion Date shall mean the date of completion of the Phase I Work Program, which shall be agreed upon by Lithium-Li and the Company and, in any event, upon the expenditure by the Company of $3,000,000 in Exploration Expenditures.

Following the exercise of the option by the Company, the Company and Lithium Li will continue under a joint venture.

Completion of the transaction is subject to Exchange acceptance.



Mr. Robert Baxter, Director                        Telephone: (778) 928-1864 or
Pan Global Resources Inc.                                           51-1-9935-26473

The TSX Venture Exchange has not reviewed nor accepted responsibility for the adequacy or accuracy of the contents of this news release which has been prepared by management