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Pan Global Resources Inc. Completes Brokered Financing Dec 10 2010

December 10, 2010
Shares Issued and Outstanding: 16,513,991
TSXV: PGZ

VANCOUVER, BRITISH COLUMBIA – (December 10, 2010) – Pan Global Resources Inc. (the "Company") (TSX Venture Exchange: PGZ) today announced that it has completed the previously announced brokered private placement (the “Offering”) with Raymond James Ltd. (the “Agent”) and issued an aggregate of 6,999,991 units at a price of $0.30 per unit for gross proceeds of $2,099,997.30. Each Unit consists of one common share and one-half (1/2) of one share purchase warrant, with each whole warrant entitling the holder to purchase one additional common share at a price of $0.45 for two years from closing of the Offering. The expiry date of the warrants may be accelerated by the Company if the shares of the Company trade at $0.50 or greater for seven consecutive trading days.

All securities issued with respect to the Offering are subject to a hold period expiring April 11, 2011. The Offering is subject to the final approval of the TSX Venture Exchange.

As consideration for acting as Agent, Raymond James Ltd. received a commission in cash of 7.5% of the total proceeds raised in the Offering and agent’s warrants (“Agent’s Warrants”) equal to 7.5% of the number of Units issued pursuant to the Offering. Each Agent’s Warrant will be exercisable to acquire one common share for a period of two years from closing of the Offering at $0.30 per share. In addition, the Agent received a corporate finance fee of $15,000.

The net proceeds of the private placement will be expended upon exploration of properties optioned from LithiumLi Balkan doo in Serbia and Croatia, assuming completion of the definitive agreement with LithiumLi Balkan doo. Otherwise the proceeds shall be used for general working capital and the acquisition and exploration of other lithium properties.

The Company further announced that it has granted an aggregate of 201,000 incentive stock options to directors, officers and consultants of the Company with an exercise price $0.32 for a term of five years.

 

FOR FURTHER INFORMATION PLEASE CONTACT:

Mr. Robert Baxter, Director                     Telephone: 51-1-9935-26473
Pan Global Resources Inc.                        Email: bbaxter@panglobalresources.com


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

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