Pan Global Resources Inc. Announces Letter of Intent for Acquisition of Balkans Exploration Licenses

   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.

Background

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(i) (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(i) (defined below)               250,000           625,000
  12 months after Completion Date                  250,000           875,000
  24 months after Completion Date                  250,000          1,125,00
                                                                    --------

                                                     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.

(i) 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

(i) 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.

Shares Issued and Outstanding: 9,514,000

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.

Contacts: Pan Global Resources Inc. Mr. Robert Baxter Director [phone] or 51-1-9935-26473