Pacton Gold Inc. entered into a purchase agreement dated October 18, 2022 with Chesterfield Resources PLC and its wholly owned subsidiary Chesterfield (Canada) Inc., as well as a as well as a Transition Services Agreement dated October 18, 2022 pursuant to which Pacton has agreed to acquire a 100% 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% 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 first quarter, 2023.

The acquisition of the Adeline Project represents a Fundamental Transaction for Pacton. District-Scale in Safe, Stable Jurisdiction. The 297 km2 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 has confirmed the presence of high-grade copper mineralization at multiple key prospect areas. 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 under explored portions of the Project.

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 $1,250,000 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% 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% of Pacton's issued and outstanding shares. The Adeline Project is subject to an underlying 1.6% 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 NI 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 fund exploration and development of the Adeline Project, and approval to the acquisition by the TSXV.