COMMODITY PRICES (in US$ per tonne)

Nickel (Ni)

Cobalt (Co)

Copper (Cu)

Gold (Au)

August 31, 2018 $12,990.00 $64,000.00 $6,018.00 $1,200.80

September 30, 2018 $12,615.00 $61,500.00 $6,221.50 $1,184.00

Change (+ -) -$375.00 -$2,500.00 +$203.50 -$16.00

INSIDE THIS REPORT

CANADA & THE GREEN ECONOMY REVOLUTION

How Canada's mining sector impacts the economy

Canada is primed to respond to growing global demand for commodities required in clean energy technologies.

Canada is a key global producer of copper, nickel and cobalt, and hosts advanced mineral projects for rare earth elements, lithium and graphite. These commodities are crucial in the production of solar cells, high-density batteries and wind turbines.

In 2017, the minerals sector directly and indirectly contributed $97 billion or 5% to Cana-da’s total nominal GDP.

The minerals sector directly and indirectly accounted for 634,000 jobs throughout the country in urban, rural and remote regions in 2017.

The minerals industry is an important emplayer of Indigenous peoples, providing jobs to over 16,500 individuals in 2017.

Source: Natural Resources Canada

Battery metals stock performance• MoM and YTD exploration, developer and

producer charts

Exploration News • Pancon hosts McBride community infor-

mation session• Pancon confirms cobalt and polymetallic

targets at Nova Project• Pancon completes initial VTEM and gravi-

ty at Montcalm property

Ethical Sourcing News• Open letter to anyone who uses smart-

phone, electric car or flies a plane• We need double the cobalt to meet EV

demand, but will ehtical supply keep up? • Photographing Congo's cobalt empire

Electric Vehicle News• China's electric car ambitions• Mercedes unveils first Tesla rival • Lowering cobalt content in lithium-ion

batteries outweighted by surging battery demand

• Detroit Auto Show 2022: EV dominate in Detroit as the ghost of Tesla looms

• Reduced cobalt electric car batteries delayed amid price fall

• Nickel is dancing to a new electric vehicle beat

• Should Tesla be worried about the IMFs lithium and cobalt warning?

Battery Metals Supply & Demand News• Metals hit hard by trade disputes• Chinese Miners are buying these 4 metals • Congo to declare cobalt and other miner-

als as 'strategic' • Nickel price to benefit from short supply,

strong steel demand• Cobalt shortage ahead• Cobalt much antecipated demise (NOT)

• Nornickel: demand for nickel to leapt 38% in the first quarter of this year

• EV progress influenced by cobalt and lithium prices

• Future demand for batteries bold well for Ontario nickel

• BHP boosts nickel mining, exploration investment

• Sole supplier puts cobalt (and EV) market at risk

• Battery metals deal activity starting to accelarate

• Sherritt sees soft cobalt prices as tempo-rary trend

Source: The London Metal Exchange

EXPLORING FOR CLEAN ENERGY

PUC Battery Metals Report October 2018

Copyright ©2018 Pancontinental Resources Corporation. All rights reserved.

Battery Minerals Report October 2018

Page 2

BATTERY METALS MONTH-OVER-MONTH STOCK PERFORMANCE

Battery Metals Producer/Developers and Funds

Battery Metals ExplorersPancontinental Resources Corporation ("Pancon" or the "Company") (TSXV: PUC) is a Canadian-based mining company focused on exploring and developing 4 nickel-co-balt-copper projects in Ontario :• Three early stage projects near Tim-

mins: Montcalm, Nova and Gambler Projects, and

• The advanced stage McBride Project near Bancroft

Pancon's purpose is generating value through responsible exploration. Our strate-gy is to create value from prospective assets in areas with existing resources and/or in proximity to producing or former mines.

The Company also holds a 100% interest in the Jefferson Gold Project in South Carolina, USA. In 2015. Pancon sold its interest in its Australian rare earth element (REE) and uranium properties, formerly held through a joint venture, and retains a 1% gross overriding royalty on 100% of future REE production.

Click here to sign-up to get the monthly PUC Battery Metals Report and Pancon

updates right on your inbox

@PanconResources

PANCONTINENTAL RESOURCES CORPORATION (TSXV: PUC)

MONTHLY PUC BATTERY MINERALS REPORT

Presented by Pancon, the monthly Battery Metals Report highlights the latest news on the Battery Metals space.

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.

BE IN THE KNOW

FOLLOW US ON TWITTER

Copyright ©2018 Pancontinental Resources Corporation. All rights reserved.

Battery Minerals Report October 2018

Page 3

BATTERY METALS YEAR-TO-DATE STOCK PERFORMANCE

Battery Metals Producer/Developers and Funds

Battery Metals ExplorersThe Montcalm Project (3,780 hectares) is one of three Pancon projects in the Mont-calm Greenstone Belt. It is located within the prospective Montcalm Gabbro Com-plex in the Montcalm Greenstone Belt, 65 kilometres northwest of Timmins, Ontario. The Project is contiguous to and surrounds the western, northwestern and southwest-ern portion of the former Montcalm Mine, which was discovered and developed based on a single airborne electromagnetic anom-aly identified in the 1970s and previously mined 3,931,610 tonnes of ore grading 1.25% nickel (Ni), 0.67% copper (Cu), and 0.051% cobalt (Co), producing in excess of 4 million pounds of Co (Ontario Geological Survey, Atkinson, 2011).

Also located in the Montcalm Greenstone Belt, the Nova Project (2,080 hectares) is lo-cated 19 kilometres southwest of Glencore's former Montcalm Mine.

Regionally, the Nova Project covers a portion of the eastern boundary of a major regional structure known as the Kapuskasing High (also known as the Kap High).

Very little exploration has been conducted on this structure until recently, leading up to Goldcorp's recent announcement of plans to develop its Borden Lake Gold Mine, located in the Kap High.

MONTCALM PROJECT

NOVA PROJECT

GAMBLER PROJECT

MCBRIDE PROJECT

The Gambler Project s adjacent to the Montcalm Project and covers 7,620 hect-ares of the Montcalm Gabbro Complex in the Montcalm Greenstone Belt.

The McBride Project is an advanced-stage nickel-cobalt-copper project, covering 880 hectares of patented mining land located in Limerick Township, 25 km south of Bancroft, Ontario. The project contains Historical Resources of an estimated 5.1 million tons of near-surface nickel-cobalt-copper mineralization that includes the North Zone deposit, the South Zone deposit, and the South Extension prospect [Reno Pressacco, Micon International Limited (“Micon”), 2004, NI 43-101 Technical Report].

Copyright ©2018 Pancontinental Resources Corporation. All rights reserved.

Battery Minerals Report October 2018

Page 4Continue on page 6

China'ss electric car ambitionsSeptember 20, 2018

Mercedes unveils first Tesla rival in $12 billion attackSeptember 4, 2018

Lowering cobalt content in lithium-ion batteries outweighted by surging battery demandAugust 29, 2018

Detroit Auto Show 2022: EV dominate in Detroit as the ghost of Tesla loomsAugust 28, 2018

Reduced cobalt electric car batteries de-layed amid price fall August 24, 2018

Nickel is dancing to a new electric vehicle beatAugust 15, 2018

Should Tesla be worried about the IMF's lithium and cobalt warning? August 14, 2018

ELECTRIC VEHICLE TOP NEWSPancon Provides Exploration Update on Montcalm ProjectSeptember 17, 2018

Pancon provided an update on exploration activities at the Company's early stage nickel-co-balt-copper Montcalm Project, 65km northwest of Timmins, Ontario. The Montcalm Project covers 3,780 hectares and is adjacent to Glencore's former Montcalm Mine.

“We are encouraged by initial and ongoing results of our carefully designed geophysical pro-gram to identify the best possible drill targets at the Montcalm Project,” said Layton Croft, Pancon President and CEO. “Our preliminary analysis of VTEM and gravity data corroborate our value creation thesis that the former Montcalm Mine is potentially just one of many prospective nickel-cobalt-copper areas within the larger Montcalm Gabbro Complex. Pancon has strategically secured most all available exploration land within this Gabbro Complex outside of Glencore’s property. At Montcalm, we will continue taking a studious approach to gathering and integrating all relevant data using the latest technology and the best analysts. This will maximize our probability of drilling success.”

HIGHLIGHTS:

• State-of-the-art Virtual Time Domain Electromagnetic (VTEM) and gravity airborne geophysical surveys have been flown over approximately 80% of the Project area.

• Pancon has identified 25 priority geophysical targets which warrant follow-up as a result of initial VTEM analysis, in addition to analysis of historic University of Toronto Electromagnetic (UTEM) survey results.

• As part of the follow up, Pancon plans to conduct a ground pulse electromagnetic (PEM) survey in mid-December, after the ground freezes over historic UTEM targets for target confirmation and acquisition of EM profiles to determine positioning of drill holes.

• The Company expects a final VTEM assessment report in the coming weeks; this data will be integrated with the preliminary gravity data to further prioritize the VTEM and historical ground UTEM targets.

• By the end of 2018, Pancon expects to have a strategic drilling plan for the most prospective targets with a diamond drill program of 5,000 to 10,000 metres for the 2018-2019 winter season.

• Productive First Nation consultations and local government engagement has com-menced in order to secure community support and all necessary permits well in ad-vance of drilling season, which is January-April.

ETHICAL SOURCING TOP NEWS

Open letter to anyone who uses a smart-phone, drives an electric car, or flies a planeSeptember 18, 2018

We need double the cobalt to meet EV demand, but will ethical supply keep up? September 12, 2018

Photographing Congo's cobalt empireSeptember 7, 2018

Montcalm Project - Cobalt mineralization at surface

Copyright ©2018 Pancontinental Resources Corporation. All rights reserved.

Battery Minerals Report October 2018

Page 5

Pancon Confirms Cobalt and Polymetallic Targets at Nova ProjectAugust 21, 2018

Pancon announced initial prospecting and mobile metal ion (MMI) soil sampling programs on its Nova Project confirmed the presence of cobalt mineralization as well as significant MMI cobalt and gold anomalies.

Layton Croft, President and CEO of the Company stated: "We are pleased with the results from our initial surface exploration work at Nova, includ-ing results from a series of MMI soil pathfinder elements. Rock sampling confirmed the presence of cobalt mineralization. Our independent MMI analysis identified a broad cobalt anomaly in the northeast sector of the survey area, coincident with electro-magnetics (EM) and a strong magnetic anomaly, forming a bullseye target. The MMI soil data also showed a significant and unexpected gold anomaly stretching over 200 metres in a northeast-southwest direction and open to the southwest. Based on these surprisingly positive initial surface exploration results, the Company recently staked additional claims and the Nova Project now encompasses 2,080 hectares."

HIGHLIGHTS:

• Sampling of a bedrock area in the vicinity of the original 1991 Teck occurrence con-firmed the presence of cobalt mineralization with the best sample returning 536 parts per million (ppm) cobalt (500 ppm cobalt is equivalent to one pound of cobalt per ton.)

• Sampling of a second trenched area, with massive sulphides, returned 120 ppm cobalt and 138 ppm cobalt in the northeast sector of the survey area. This trench is associ-ated with a broad cobalt MMI soil anomaly on the flank of a strong bullseye magnetic response with untested electromagnetic conductors.

• MMI soil sampling also located a very significant gold anomaly stretching more than 200 metres in a north-northeasterly direction; this anomaly remains open to the south-west.

• Anomalous MMI copper responses correspond, to a limited extent, with the elevated MMI gold responses.

• Weak anomalous gold and zinc values were also identified in bedrock occurrences host-ed within felsic rocks proximal to the MMI gold and copper soil anomalies. This environ-ment suggests potential for a polymetallic volcanogenic massive sulphide deposition.

• All targets of interest to date are associated with a bullseye magnetic anomaly located within a larger, complex, folded magnetic anomaly stretching across the entire property.

• Within this larger magnetic anomaly there is a series of smaller bullseye magnetic tar-gets with coincident EM anomalies which are untested; these areas represent prospec-tive targets similar to where the new gold and base metal targets were detected.

Nova Property Airborne anomalies

BATTERY METALS SUPPLY & DEMAND TOP NEWS

Metals hit hard by trade disputesSeptember 19, 2018

Chinese Miners are bying these 4 metals accross the globeSeptember 18, 2018

US imposes new tariffs on metlas from ChinaSeptember 17, 2018

Congo will declare cobalt and other miner-als as 'strategic'September 15, 2018

Nickel price to benefit from short supply, strong steel demand through 2019September 12, 2018

Cobalt shortages aheadSeptember 10, 2018

Cobalt's much anticipated demise (NOT) September 6, 2018

How Canada's Mining Sector impacts the economy August 13, 2018

Nornickel, the world's second-largest nickel producer, sad demand for the metal leapt 38% in the first hal of this yearAugust 13, 2018

EV progress influenced by cobalt and lithi-um pricesAugust 14, 2018

Future demand for batteries bodes well for Ontario nickel August 8, 2018

BHP boosts nickel mining, exploration investmend amid electric vehicle boomAugust 6, 2018

Sole supplier puts cobalt (and EV) market at risk August 6, 2018

Battery metals deal activity starting to accelarateAugust 2, 2018

Sherritt sees soft cobalt prices as temporary trendJuly 31, 2018

Copyright ©2018 Pancontinental Resources Corporation. All rights reserved.

Battery Minerals Report October 2018

Page 6

The McBride Exploration Project Nickel-Cobalt-Copper Project

Historical drill core sample from the McBride project

The McBride nickel-cobalt-copper project is an advanced-stage nickel-cobalt-copper project, covering 880 hectares of patented mining land located in Limerick Township, 25 km south of Bancroft, Ontario,

The project contains Historical Resources of an estimated 5.1 million tons of near-surface nickel-cobalt-copper mineralization that includes the North Zone deposit, the South Zone deposit, and the South Extension prospect [Reno Pressacco, Micon International Limited (“Micon”), 2004, NI 43-101 Technical Report].

The Project was discovered in the 1960s and diamond drill tested with more than 90 holes by Macassa Gold Mines Limited (“Macassa”) and Long Lac Minerals Limited (“Long Lac”), which later acquired control of Macassa.

In 1971, Long Lac produced the following Historical Resource estimate [Pressacco/Micon, 2004; and Robert Chataway, 2015, NI 43-101 Technical Report]:• North Zone: 3.9 million tons grading 0.82% nickel, 0.054% cobalt and 0.25% copper;• South Zone: 1.2 million tons, grading 0.30% nickel, 0.03% cobalt and 0.14% copper.

EXPLORATION HIGHLIGHTS:

Phase 1 exploration work commenced in May 2018 with the objective of producing a comprehensive modern exploration database, delivering a NI 43-101-compliant Resource Estimate, and drilling in order to expand the resource and prepare for a Preliminary Econom-ic Assessment.

All work up to date has been prepared according to the Pancon’s Exploration Plan, regis-tered with the Ontario Ministry of Energy, Northern Development and Mines (MENDM). The Company has also registered with the Ontario Ministry of Natural Resources and Forestry, and has commenced environmental baseline work and community and first nations consultations to ensure strict compliance with all environmental regulations and a social license to operate.

Market demand for battery metals, including cobalt and nickel, remains strong. The McBride Project is well positioned to be a source of high quality, low cost, ethically sourced battery metal supply to meet that growing demand in the medium term and over time.▪

Pancon hosts McBride community information session, listens carefully and responds to stakeholders requests

September 11, 2018

Pancon hosted its first public McBride Project Community Information Session at the Limerick Township Community Centre on Sunday, September 9th. The consultative event lasted almost four hours and was attended by more than 200 local residents and cottage owners from Hastings County in southeast Ontario.

Pancon President and CEO Layton Croft provided information about the Company and the current exploration Project. He moderated a lively and sometimes emo-tional discussion that included criticisms, questions and comments on mining, as well as recommendations and requests. Many participants expressed their opposition to the exploration project due to potential en-vironmental issues and concerns to human health and wildlife should a mine ever be developed. Local residents, representatives and members of local associations including the Alderville First Nation and the Anishi-nabek Nation, Limerick Area Conservation Coalition, Steenburg Lake Association, Shawano Ratepayers Incorporated, Mining Watch Canada, as well as local media from Bancroft and Peterborough, participated.

Croft and seven of his Pancon and McBride Project colleagues listened carefully to all comments and concerns. Croft explained that the Project under Pancon's leadership, which commenced in May 2018, has not completed any field work impacting surface land, soils or water sources. Line cutting to re-establish the historic grid by prior oper-ators, geological mapping and soil sampling have been the only field work conducted to date. No earthworks, trenching or drill-ing has yet taken place. Croft apologized to those land owners and residents who expressed frustration with how the Proj-ect has been managed to date, including apologizing for one instance where the Project's contracted line cutter accidentally encroached on private lands outside the Project boundary.

"Our first community information session

Continue on page 7

Copyright ©2018 Pancontinental Resources Corporation. All rights reserved.

Battery Minerals Report October 2018

Page 7

Pancon hosts McBride community information session, listens carefully and responds to stakeholders requests (Cont'd)

and public consultation had a significant impact on me personally, and on our team's strategic planning for the Project moving forward," Croft said. "Pancon's Community Relations Policy is based on the principles of honesty, empathy, accountability, respect, transparency, and trust. Our September 9th event showed me and our team, first-hand, that we have a lot of work yet to do to earn and maintain the trust and social license of our local community and stakeholders. Listening and responding to our stakehold-ers, in addition to our shareholders, is my promise. I am confident that, under Pan-con's leadership, this mineral exploration project can and will perform with robust environmental stewardship, stimulate local job creation, provide economic benefits, and foster healthy, productive stakeholder rela-tionships. This Project was discovered in the 1960s and subject to earlier exploration by Macassa and Long Lac Minerals, who drilled 100 drill holes to establish the historical re-source referred to in our news release dated April 26, 2018. We are exploring minerals in support of clean technologies and a green economy. It is our intention to complete our ongoing exploration work in an environ-mentally sensitive and socially responsible manner."

Croft continued: "As a result of our recent consultative meeting, I have decided to delay field work, including trenching and drilling, until our external environmental consultants have commenced our Partici-patory Environmental Baseline Study and provided an Environmental Management Plan to move the project forward, which will be made public once completed."

Pancon recently contracted environmental consultants Grace and Associates Inc., a geological and environmental consulting firm based in Lindsay, Ontario, as inde-pendent experts to lead and advise on the Project's environmental management plan and baseline study. ▪

BOARD OF DIRECTORS

Donald Whalen (Chairman)

Layton Croft

Rick Mark

David Mosher

David Petroff

TECHNICAL ADVISORY COMMITTEE

Dr. Laurie Curtis (Chairman)

David Mosher

Kevin Filo, P.Geo.

Todd Keast, P. Geo.

CAPITAL STRUCTURE

Shares Outstanding 141,542,854

Share Price (09-30-18) $0.065

52 Week Range $0.10 / $0.02

Average Daily Volume 62,500

Options 12,000,000

Warrants 13,835,000

Fully Diluted 167,377,854

Insider Ownership 10%

Institutional Ownership (CMP, Dundee, Ninepoint)

22%

Cash on Hand (09-30-18) $300,000

CONTACT INFORMATION

Twitter: @PanconResources

Website: www.panconresources.com

Email: info@panconresources.com

Mailing Address: 365 Bay Street, Suite 400Toronto, ON, M5H 2V1

Telephone: +1.416.293.8437

Layton Croft, President & CEOGlobal business executive with more than 25 years experience, beginning in non-prof-it sustainable development, followed by minerals exploration, mining and energy with Ivanhoe Mines, Rio Tinto, Peabody En-ergy, and Duke Energy. Director of Erdene Resources Development (TSX: ERD) since 2015.

Kevin Filo, P.Geo., Montcalm, Nova & Gam-bler Project ManagerExploration geologist, mining geologist and project generator with almost 40 years experience, including 30 years in the Abitibi Greenstone Belt region, Ontario. Former VP Exploration for acquisition team which acquired the Detour Gold Mine from Placer Dome, now one of the largest gold mines in Canada.

Todd Keast, P.Geo, Consultanting GeologistExploration and project geologist with al-most 30 years of experience in 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.

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

Jeanny So, Manager, External RelationsMore than 15 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.

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 com-pleteness. Any and all statements as of the date of this newsletter are subject to change without notice. All informationprovided on this news-letter 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 J. Kevin Filo, PGeo, a Qualified Person as defined by NI 43-101, a member of Pancon's Technical Advisory Committee, and Pancon's Project Manager for the Montcalm, Nova and Gambler Projects. Certain technical information within this nesletter 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.