Mr. Jason Latkowcer reports

PAN AMERICAN ENERGY CORP. ANNOUNCES RESULTS OF UAV-BORNE MAGNETIC SURVEY AT THE BIG MACK LITHIUM PROJECT

Pan American Energy Corp. has released the results from the 2023 high-resolution UAV (unmanned aerial vehicle)-borne magnetics survey over the Big Mack lithium project. The survey was completed by EarthEx Geophysical Solutions Inc. and was successful in identifying multiple prospective features exhibiting low magnetic responses, which have been interpreted to have the potential to host lithium-bearing pegmatites. These results are expected to aid in defining exploration targets and further delineating the extent of this type of mineralization at surface.

The survey was part of a larger collaboration project between the company and Avalon Advanced Materials Inc. at the Big Mack and Big Whopper projects near Kenora, Ont. The University of Manitoba and EarthEx are also granted use of the data generated by the survey for research, publication and case study purposes. The survey was completed to provide a highly detailed magnetic map to aid in exploration mapping and drill-targeting in the area. The survey was conducted by EarthEx by flying a drone equipped with an exMAG high-resolution magnetic surveying system over the Big Mack and Big Whopper projects in a grid. The grid was composed of 732.1 line kilometres with data acquired on 25-metre-spaced lines, with 250 m spaced tie-lines. The survey data were then processed by EarthEx to generate 3-D inversion voxels and isosurfaces, as well as advanced 2-D imagery products, including magnetic imagery data grids and interpreted maps.

Pegmatites often occur in semi-discontinuous swarms that can be concentrated along structural trends and geological boundaries. The exMAG high-resolution, low-flying UAV magnetic surveying system used by EarthEx is useful in identifying structural trends and areas of low magnetic susceptibility that may correlate with lithium-bearing pegmatites. Final images from EarthEx's magnetic data identified multiple high-priority magnetic low targets. The coincidence of these magnetic lows with the known lithium-bearing pegmatites and their extensions appears to show the dominant-trending structure of the geology within the project, striking along a northeast-southeast plane. Of particular note is the anomalies that directly match the magnetic signatures of the Big Mack and Eleven zone pegmatites. This result provides strong motivation to investigate for previously undetected potential lithium-bearing pegmatites. The company intends to examine these anomalies further with the hopes of identifying additional lithium-bearing pegmatites at the project.

Based on the results of the survey, three high-priority target zones have been identified at the project in the immediate vicinity of the Big Mack pegmatite. These exploration targets were generated using 3-D inversion and advanced 2-D data imagery, by correlating low-magnetic structures with historic data and proximity to areas of known lithium mineralization.

• EEX01 -- immediately south of the Big Mack pegmatite, and almost continuous with it. The 3-D modelling in this area suggests that a sizable but discrete deep magnetically low body extends down-plunge to the southeast of the known Big Mack mineralization. Two drill holes, EX-A-P01 and EX-A-P02, have been recommended by EarthEx to test the core of the low magnetic susceptibility model.
• EEX02 -- this trend extends to the northwest from the Big Mack pegmatite and follows mapped pegmatite trends. It exhibits appreciable volume, but less depth extent than target EEX01.
• EEX03 -- a low body in the magnetic model correlates with a significant number of mapped pegmatites at surface.

The company intends to incorporate the results of the survey into future exploration program design and drill targeting.

"The northwest-southeast-trending thick low body identified by the detailed 3-D modelling of the data generated by the survey suggests that there may be significant additional extent to the Big Mack pegmatite that is not yet drill tested. While many felsic rock types can exhibit low magnetic signatures, the U of M pegmatite mapping suggests that pegmatite sources for these lows is one likely interpretation," states Daniel Card, president of EarthEx. "The correlation between historic drilling and the 3-D-modelled magnetic low directly below Big Mack, as well as the 2-D representation of the mineralization's surface expression, are among the best EarthEx has seen to date."

Jason Latkowcer, Pan American's chief executive officer, commented: "We are thrilled with the results of this magnetic survey and have identified several high-priority drill targets with potential for lithium mineralization. We'd like to congratulate Avalon on their recent measured and indicated mineral resource estimate upgrade at the Big Whopper, and thank them for their collaboration on this survey. We'd also like to thank Daniel Card and his team at EarthEx for a job well done."

Qualified person and quality assurance/quality control

The technical content of this news release has been reviewed and approved by Mr. Card, PGeo, RPGeo, who is independent of the company and is a qualified person as defined by National Instrument 43-101.

The magnetic data from the survey have passed standard control measures for verification by Mr. Card, PGeo, EarthEx.

Before surveying the grid, a cloverleaf test was completed to confirm that the geophysical system in the drone was performing correctly. While doing this test, the drone flew in a cloverleaf pattern recording the total magnetic field in the centre of the cloverleaf on each pass, while flying in several different directions. This provided a measure of the consistency of the readings with the sensor in various orientations. The cloverleaf tests for the survey grid flown by EarthEx were successful and within the appropriate standard deviation.

Data from the survey have shown to be consistent across the survey area at locations where survey lines meet and where they intersect with tie lines. Tie-line levelling and decorrugation filters have been properly applied to correct any minor data deviations due to variations in sensor altitude or turbulent flight.

Examination of high-order differentials of the data (fourth and eigth difference) has been used to isolate noise envelopes, and show they are consistent and within acceptable ranges throughout the study area.

About the Big Mack project

The Big Mack lithium project is located two kilometres east of all-weather Snook Lake Road about 80 km north of Kenora, Ont. The property is proximal (approximately 1.3 km) to Avalon Advanced Material's Separation Rapids, Big Whopper deposit, which hosts a measured and indicated resource. The property is within an Ontario-registered mining lease, with over 30 years of exploration history. The property lies within the traditional land use area of the Wabaseemoong Independent Nations of Whitedog, Ont.: an aboriginal community located approximately 35 km southwest of the property.

The property hosts four known lithium-bearing pegmatites, including the Big Mack pegmatite, Eleven zone, Sprinkler zone and 6095 pegmatite, which are thought to be related to the Separation Rapids pluton. They are interpreted as zoned complex type, petalite subtype, LCT (lithium-cesium-tantalum) pegmatites. The Big Mack pegmatite represents the largest petalite-bearing mass on the property and is exposed over an 80 m by 225 m area. Historic drilling campaigns (1998, 1999 and 2001) intersected mineralization extending along a strike length of approximately 150 metres and to a depth of 75 metres. The deposit remains open at depth and along strike.

About Pan American Energy Corp.

Pan American Energy is an exploration-stage company engaged principally in the acquisition, exploration and development of mineral properties containing battery metals in North America.

The company executed an option agreement in Canada with Magabra Resources providing for the right to acquire up to a 90-per-cent interest in the drill-ready Big Mack lithium project, 80 kilometres north of Kenora, Ont. The company has also entered a property option agreement with Horizon Lithium LLC providing for the right to acquire a 100-per-cent interest in the Horizon lithium project, located within Esmeralda county-Tonopah lithium belt, Nevada, United States.

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