Mr. Jason Latkowcer reports

PAN AMERICAN ENERGY CORP ANNOUNCES ONE OF THE LARGEST IDENTIFIED LITHIUM DEPOSITS IN THE US AT THE HORIZON LITHIUM PROJECT

Pan American Energy Corp. has released its inaugural mineral resource estimate (MRE) on its Horizon lithium project in Big Smoky Valley, Esmeralda county, Nevada. The MRE was completed pursuant to the requirements of National Instrument 43-101 -- Standards of Disclosure for Mineral Projects (NI 43-101). The Horizon lithium project is one of the largest land packages in the Tonopah lithium belt, encompassing 839 unpatented lode claims covering approximately 17,334 acres. Pan American holds its interest in the project pursuant to a property option agreement entered into with the owner of the project, Horizon Lithium LLC, which allows Pan American to explore the project, and to earn a 100-per-cent interest in the project by making certain cash payments and share issuances to Horizon Lithium LLC.

The MRE was completed by Respec LLC, a leader in lithium claystone resource estimations and engineering design work, utilizing the results of the company's 20-hole exploratory drill program, which had totalled approximately 4,371.6 metres. Respec has also been engaged to prepare a technical report on the project containing the full results of the company's drill program and the MRE. Pursuant to NI 43-101, the company will file the technical report within 45 days of the date hereof on the company's SEDAR+ profile.

Highlights:

• One of the largest identified lithium deposits in the United States, with an estimated indicated mineral resource of 1,325,000 lithium carbonate equivalent (LCE) tonnes and inferred mineral resource of 8,879,000 LCE tonnes, with an average grade of 678 parts per million ppm lithium (Li) (see the table entitled "Mineral resource estimate for the Horizon lithium project" for additional details regarding the calculation of the MRE, and the average Li grades for the inferred mineral resources and indicated mineral resources).
• High-grade mineral resources: Estimates were calculated based on a conservative 300 ppm Li cut-off within an optimized pit.
• Rapid advancement in a short time frame: The MRE is based on 20 diamond drill holes completed in 2023, within a year of the company acquiring rights to the project pursuant to the property option agreement. One hole was abandoned due to hole conditions and was not used in the MRE.
• Significant expansion potential through stepout drilling to extend the deposit to the northwest, south, east and west, and at greater depths. The company is actively evaluating geophysical exploration techniques and phase 3 drill planning.
• Accelerated project engineering: The work necessary to complete a preliminary economic assessment (PEA) for the project, including metallurgical assessment, is under way and expected to be completed in Q4 2024.
• Access and infrastructure: The project benefits from an ideal location near essential infrastructure and the town of Tonopah, with limited impediments (that is, no highway intersects impacting pit design).

The project sits immediately adjacent to American Battery Technology's (ABTC) Tonopah Flats project, with a mineral resource estimate of 15.8 million tonnes of inferred LCE mineral resources. The mineral resource estimate completed by ABTC for its Tonopah Flats project was also prepared by Respec and was completed in accordance with Securities and Exchange Commission (SEC) Regulation S-K 1300.

The project's resource block model and tabulation was completed based on the data collected from 20 drill holes which were completed during 2023. Mineral domains were interpreted on 450-metre cross-sections, solidified into 3-D solids and coded into the model as lithium domain percentages. The lithium grades were interpolated by inverse-distance at a power of two by using the lithium domain percentages to assist in constraining the grade estimation. The resource estimate has also been constrained by pit optimization to determine a shape and cut-off grade in order to meet the requirement of reasonable prospects for economic extraction. The MRE is summarized in the table entitled "Mineral resource estimate for the Horizon lithium project."

Jason Latkowcer, chief executive officer of Pan American, commented: "This initial mineral resource estimate marks the most important milestone to date for our company, highlighting the identification of a large-scale and high-grade lithium deposit with significant future potential right here in North America. The past year has been an impressive demonstration of how quickly our team has been able to meet operational objectives. Within less than a year, our drilling efforts led to a tremendous discovery of a cluster of lithium mineralization and the inaugural mineral resource estimate on the project -- one of the largest in the United States. I commend our team and contractors. Our execution strategy is to advance the project through engineering as quickly as possible, while concurrently working to expand and upgrade the mineral resources at the project. We will also consider prospective acquisition targets in the area in order to enhance our land package. We look forward continuing to deliver results."

Tabetha Stirrett, PGeo, consulting geologist of Respec, independent consultant of the company, commented: "This maiden NI 43-101 mineral resource estimate is a major achievement for Pan American and I am very proud of what our exploration team has done to support this accomplishment in such a short period of time. Pan American have established a strong foundation to build upon, and we are focused on continuing to help them grow their lithium resources significantly over the next six to 12 months. The team is currently planning geophysical exploration work and additional infill holes that have the potential to expand the mineralization."

Details related to the calculation of the MRE

The MRE was prepared by Ms. Stirrett, PGeo (the author, or qualified person (QP)) with an effective date of Nov. 15, 2023. This estimate is the inaugural mineral resource estimate produced by Pan American since the company acquired rights to the project pursuant to the property option agreement.

The MRE was estimated using the following geological and resource block modelling parameters, which are based on geological interpretations, geostatistical studies and best practices in mineral estimation.

The QP is not aware of any factors or issues that materially affect the MRE, other than normal risks faced by mining projects in the area of the project in terms of environmental, permitting, taxation, socio-economic, marketing and political factors, and the additional risk factors normally associated with the estimation of inferred mineral resources:

• The project geology is composed of sedimentary rocks of the Siebert formation deposited by lacustrine, fluvial and volcanic processes during the middle Miocene epoch. The Siebert formation is overlain in varying amounts by sedimentary and volcaniclastic sands and gravels sourced from the surrounding terrain.
• Drilling conducted by Pan American included diamond core drilling of HQ size (63.5-millimetre (mm) diameter).
• Diamond core has been sampled in intervals of 1.52 m where possible; 2,311 core samples have been collected and submitted for analysis. Duplicate samples, pulp and coarse blank samples, and certified reference material used as standard samples were submitted for quality assurance/quality control (QA/QC) analysis.
• Geochemical analysis of drill core samples was conducted by ALS Global in Reno, Nev., where they were analyzed for a 48-element suite via ICP-MS (inductively coupled plasma mass spectrometry) following four-acid digestion. ALS is independent of the company.
• The MRE was estimated from the diamond drill holes completed by Pan American since February, 2023. A total of 20 drill holes comprising 2,311 assays were used for the mineral resources model.
• The 3-D modelling of the mineral resources was conducted using a minimum grade of 60 ppm Li within a preliminary lithological model. The Li-grade distribution was analyzed on a population distribution graph and three grade populations were identified for modelling purposes. These populations were used in conjunction with geologic characteristics to generate 2-D mineral domain interpretations on 450 m cross-sections. The 2-D mineral domains were used to generate 3-D mineralized solids. Volume percentages of these solids were coded into the block model and applied to the interpolation of Li grades to constrain the estimation. The interpolation was conducted using inverse distance squared (ID2) methodology with two interpolation passes for each mineral domain.
• The block model was defined by a block size of 30 m long by 30 m wide by 10 m thick and covers a strike length of approximately 10,800 m to a maximal vertical depth of 870 m below surface.
• The MRE was classified as indicated or inferred mineral resources based on data quality, sample spacing and mineral domain continuity. Mineral resources were defined using a search ellipsoid 1,000 m by 1,000 m by 250 m.
• Classification focused on spatial relation using a minimum of one composite within a maximum isotropic distance of 200 m to a block for the indicated mineral resources.
• Validation has proven that the block model fairly reflects the underlying data inputs. Variability over distance is relatively moderate to low for this deposit type, therefore the maximum classification level is indicated mineral resources.
• Mineralization at the deposit extends to surface and is expected to be suitable for open cut mining. No minimum mining width was applied. Internal mining dilution is limited to internal barren host rock intervals within the mineralized claystone intervals. Based on these assumptions, it is considered that there are no mining factors which are likely to affect the assumption that the deposit has reasonable prospects for eventual economic extraction.
• It is the QP's opinion that the current classification used is adequate and reliable for this type of mineralization and mineral resource estimate.
• Mineral resources were constrained within the boundaries of an optimized pit shell using the following constraints: Concentrate price: $20,000 (U.S.)/tonne; mining costs: $2.20 (U.S.)/tonne ROM (run-of-mine); processing costs: $14.12 (U.S.)/tonne ROM; general/administrative: 42 U.S. cents/tonne ROM; lithium recovery: 66 per cent. The MRE reported is a pit-constrained estimate with reasonable prospects of eventual economic extraction.

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.

Qualified persons

The technical content of this news release has been reviewed and approved by Ms. Stirrett, PGeo, who is a consulting geologist of Respec, an independent consultant of the company, and a qualified person as defined by NI 43-101.

In accordance with the guidelines outlined in NI 43-101, Section 3.2, the geological information presented herein is based on extensive fieldwork, drilling campaigns and laboratory analyses conducted by qualified persons in compliance with the CIM (Canadian Institute of Mining, Metallurgy and Petroleum) Definition Standards on Mineral Resources and Mineral Reserves.

Data verification

The data presented in this press release have undergone a comprehensive verification process to ensure accuracy and reliability. The verification procedures were conducted by qualified professionals with relevant expertise in geological and mining disciplines, and were overseen by the qualified person.

Data collection and compilation

All raw data, including geological, drilling and analytical data, were collected and compiled from various sources, including fieldwork, drilling campaigns and laboratory analyses. Data compilation involved a meticulous review to identify and rectify any inconsistencies or errors in the dataset.

QA/QC procedures

Quality assurance and quality control procedures were implemented throughout the data collection process. Standard QA/QC measures, including the insertion of certified reference materials, duplicate samples and blanks, were employed during drilling and sampling campaigns. Regular checks and audits were conducted to monitor and address any deviations from established QA/QC protocols.

MRE verification

The project's mineral resource estimation heavily depended on explicitly modelling lithium mineralization domains in cross-sections. This practical approach ensured a thorough verification of the data, meticulously assessing the continuity and significance of geological variables and assays within that context.

Limitations on the verification process

Despite rigorous verification efforts, it is essential to acknowledge certain limitations associated with the data verification process:

Sampling variability

While QA/QC measures were implemented to address sampling variability, inherent variability in geological and mineralization characteristics may introduce uncertainties in the data set.

Geological complexity

The property's geological setting may pose challenges in terms of interpretation and verification. Unknown geological structures and mineralization patterns could introduce uncertainties despite verification efforts.

It is crucial to note that, despite these limitations, every effort has been made to minimize potential biases and inaccuracies in the data. Qualified persons have exercised their professional judgment to mitigate these limitations and ensure the reliability of the information presented in this report.

We seek Safe Harbor.