Mr. Nav Dhaliwal reports

PACTON TO ACQUIRE HIGH-GRADE, DISTRICT-SCALE COPPER PROJECT IN LABRADOR, CANADA

Pacton Gold Inc. has entered into a purchase agreement dated Oct. 18, 2022, with Chesterfield Resources PLC and its wholly owned subsidiary Chesterfield (Canada) Inc. (together, the vendor), as well as a transition services agreement dated Oct. 18, 2022, pursuant to which Pacton has agreed to acquire a 100-per-cent interest in the Adeline high-grade copper project in Labrador, Canada. Robust early-stage exploration has located over 250 copper occurrences, with assays ranging as high as 26.9 per cent copper (Cu). Subsequent data analysis has generated multiple high-priority, drill-ready targets and, led by its highly experienced exploration team, subject to closing the acquisition, Pacton plans to commence drilling in Q1 2023. The acquisition of the Adeline project represents a fundamental transaction, as that term is defined in the policies of the TSX Venture Exchange, for Pacton.

Adeline project highlights:

• District-scale in safe, stable jurisdiction:
  • The 297-square-kilometre Adeline project is prospective for sediment-hosted copper mineralization, which is notable for its high grade and lateral continuity. The district-scale project hosts more than 250 known copper occurrences -- part of the well-mineralized Adeline Island formation. The property is located in Labrador, Canada -- highly ranked by the Fraser Institute for its investment attractiveness.
• Recent sampling confirms high-grade copper in drill-ready locations:
  • Mapping and sampling undertaken by Chesterfield Resources in 2021 have confirmed the presence of high-grade copper mineralization at multiple key prospect areas -- see the table entitled "Highlights of historic sampling results at the Adeline project."
• Robust databank:
  • Historical mapping, sampling and geophysical data has been compiled into a modern, robust databank, which will facilitate the identification of further, high-priority drill target areas, as well as underexplored portions of the project.

Nav Dhaliwal, interim president and chief executive officer for Pacton, commented: "We are thrilled to be acquiring the Adeline high-grade copper project. This is an ideal property for our technical team. Adeline has proven, high-grade copper showings which have been analyzed and prioritized to generate drill-ready targets, and we also have a large databank ready for additional target generation. Essentially, we are taking on a district-scale copper project that is primed for rapid exploration."

Terms of the acquisition

As consideration for the acquisition of the Adeline project, the company will, under the terms of the purchase agreement, pay a total of $1.25-million in stages over a one-year period ($50,000 paid to date) and issue approximately 54,482,310 common shares to the vendor, such that the vendor will hold approximately 19.99 per cent of the total issued and outstanding shares of the company on completion of the transaction. Chesterfield will have the right to nominate one board member to Pacton's board of directors provided it holds not less than 10 per cent of Pacton's issued and outstanding shares. The Adeline project is subject to an underlying 1.6-per-cent gross smelter returns royalty. Under the terms of the transition agreement, Pacton will pay an additional $300,000 in stages over a one-year period in consideration of Chesterfield assisting with the orderly transition of the Adeline project to Pacton. This will include assisting Pacton with preparation and filing of an independent National Instrument 43-101 technical report on the Adeline project, completing all mineral claims transfers, introducing Pacton to service providers and dealing with the royalty holders.

The acquisition of the Adeline property is subject to several conditions precedent, including the completion of an equity financing by Pacton to finance exploration and development of the Adeline project, and approval to the acquisition by the TSX-V.

About Pacton Gold Inc.

Pacton Gold is a Canadian exploration company with key strategic partners focused on the exploration and development of high-grade mineral resource properties in Ontario, Canada. The company also owns a strategic portfolio of prospective projects in Western Australia.

The technical content of this news release has been reviewed and approved by Dale Ginn, PGeo, executive chairman and a director, and Karly Oliver, PGeo, vice-president of exploration and a director of the company, who are both qualified persons pursuant to National Instrument 43-101.

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