Pancontinental Uranium Corporation announce that the Company has been advised by its Joint Venture partner and project operator, Crossland Strategic Metals Ltd., that the first stage of the drill program intended to identify zones where higher-grade starter pits for the initial years of production could be defined at the Charley Creek Alluvial REE Project in the Northern Territory, Australia, has been underway since late 2013. The Joint Venture (Crossland 55%: Pancontinental 45%) holds several Australian properties, including the Charley Creek Alluvial Rare Earth Project. Air core drilling for Stage 1 has now been completed.

This consisted of 148 holes for 2,071 metres of sampling. The samples are being prepared and submitted for assay. The first batch of samples was lodged at the assay lab prior to the Christmas-New Year break.

Sensitivity analyses in the January, 2014 National Instrument 43-101 Technical Report demonstrated that the value of the project will significantly benefit from increases in average grade. This drilling programme was designed to identify sites where higher-grade start-up pits could be located within the Joint Venture's large holdings of alluvial REE potential. Identification of such optimal locations is the next step in the advancement of the project.

Pancon has recently informed Crossland that, due to market conditions and its requirement to complete and fund a National Instrument 43-101 technical report on the project, it has not been able to raise sufficient funds to continue contributing its share and will be utilizing the dilution formula within the JV agreement which would result in a small dilution from its current 45% interest in the JV and the Charley Creek Project. In addition, approximately $350k remains due to Crossland from 2013 expenditures. Crossland has already submitted several hundred samples for assay, and will continue work intended to identify higher grades for potential start-up pits, but will be reducing the rate of expenditure and scope of work until more funding is secured.

Both Pancon and Crossland are working to obtain commitments for further funding. A second phase of infill drilling is planned for the second quarter, which will consist of infill drilling of the targets that responded positively to the first round of drilling. This second phase of drilling is targeted to proceed when additional funding is secured.