Mr. Jason Latkowcer reports

PAN AMERICAN ENERGY ANNOUNCES COMMENCEMENT OF DRILLING PROGRAM AT THE BIG MACK LITHIUM PROJECT

Pan American Energy Corp. has commenced drilling on its Big Mack lithium project, located approximately 80 kilometres north of the town of Kenora, Ont. The exploration program is being carried out by Fullforce Diamond Drilling Ltd. under the geological support of Axiom Exploration Group Ltd. The company plans to drill approximately 5,000 metres.

Pan American's inaugural drill program will focus on targets that were identified through historical drilling analysis, UAV (unmanned aerial vehicle) magnetic survey and the summer 2023 field prospecting program. The objective of the drill program is to quantify the presence and extent of mineralization on the property to further advance the project.

Project highlights:

• Over 20 pegmatites identified across the property with three priority targets -- Big Mack pegmatite, Eleven zone and 6059 pegmatite, which will be the focus of the planned exploration program.
• The property is adjacent to Avalon Advanced Material Corp.'s flagship Separation Rapids joint venture project, the Big Whopper, which has an estimated measured and indicated mineral resource of 10.08 million tonnes averaging a grade of 1.35 per cent lithium oxide (Li2O).
• The company has completed a magnetic survey, lidar survey and prospecting program with multiple high-priority drilling targets identified, which the company intends to drill as part of the planned program.
• Prior surface samples taken from the property graded up to 3.21 per cent Li2O, with sample values above 1 per cent Li2O from the Eleven, Big Mack and 6059 pegmatites, all with visible petalite on surface.
• The property is accessible by road and is located approximately 80 km north of Kenora, Ont.

Jason Latkowcer, chief executive officer, commented: "After extensive planning and work to get to this point, we are proud to announce the commencement of our exploration drilling program. The Big Mack lithium project hasn't been drilled in over 20 years and we are progressing extremely well through the first days of drilling. The Separation Rapids area where the Big Mack property is located has recently gained increased notoriety after SCR-Sibelco NV, a global leader in materials solutions, announced a $63-million strategic investment in our neighbours, Avalon Advanced Materials, to create a vertically integrated lithium strategic partnership in Ontario, Canada. We are in the right place to support the made-in-Ontario critical mineral supply chain. I'd like to wish a safe and successful program to our invaluable partners that are helping to make it happen."

Qualified person

The technical content of this news release has been reviewed and approved by Lynde Guillaume, PGeo, who is a consulting geologist of Axiom Exploration, an independent consultant of the company and a qualified person as defined by National Instrument 43-101.

For additional information regarding the company's surface sampling program at the property, including a complete summary of the samples collected and the results of the sampling program, including the sampling and analytical methods and quality assurance/quality control protocols, please see the company's news release dated Aug. 9, 2023, which is filed on the company's SEDAR+ profile.

About the property

The property is located two km east of all-weather Snook Lake Road about 80 km north of Kenora, Ont. The property is proximal (approximately 1.3 km) to Avalon'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 Li-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 by 225 m area. Historic drilling campaigns (1998, 1999, 2001) intersected mineralization extending along a strike length of approximately 150 metres and to a depth of 75 metres. The mineralization at the property 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 km 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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