Mr. Jason Latkowcer reports

PAN AMERICAN ENERGY ANNOUNCES RESULTS FROM FIRST DRILL HOLE AT THE BIG MACK LITHIUM PROJECT

Pan American Energy Corp. has released assay results from the first diamond drill hole of the 2023 program on the Big Mack lithium project, located approximately 80 kilometres north of the town of Kenora, Ont. The drilling campaign is being carried out by Fullforce Diamond Drilling Ltd. under the geological guidance of Axiom Exploration Group Ltd.

Drill hole BM23-001 was testing the interior section of the Big Mack pegmatite and returned assay values of 1.13 per cent Li2O (lithium oxide) over 27.98 m (see the table entitled "2023 Big Mack drill hole (BM23-001) assay highlights table"), confirming previous exploration conducted on the Big Mack pegmatite which indicated that concentrations of lithium mineralization were present in this area. The company plans to drill approximately 5,000 metres as part of the current exploration program, which is designed to delineate the Big Mack and Elven zone pegmatites, test the down-dip extensions of these pegmatites, and explore the Sprinkler zone and other exploration targets identified from the geophysics and surface sampling program undertaken by the company in the summer of 2023. Over 3,300 metres across 28 collar locations having been drilled to date, with 601 samples having been submitted for analysis at the time of this news release.

Jason Latkowcer, chief executive officer, commented: "We are encouraged by the first drill results received as part of our ongoing program, and are looking forward to receiving further results in the coming weeks. What we have seen to date further reinforces our belief in the potential of the property, and we look forward to testing the surrounding targets identified in the detailed UAV [unmanned aerial vehicle] magnetics survey and surface sampling program that we previously carried out. Our team of geologists is currently conducting a detailed analysis of the data collected to date during the drilling process. We expect this information will provide valuable insights into the geological conditions present at the property and allow us to further refine our approach to exploration."

Sample quality assurance/quality control

A thorough chain-of-custody and QA/QC program is being carried out on the continuing 2023 drill program. Samples are taken across all pegmatite intervals, with shoulder samples into the host rock on either side of the dikes. Sample lengths are ranging from 0.3 m to 1.5 m, dependent on internal zoning of the dikes, mineralization and lithology contacts. Core to be sampled is cut in half on site, with half being sent for analysis and the other half remaining in the box for future reference and resampling, if needed.

A malfunction of downhole location survey equipment could cause inaccurate dip and azimuth tracking due to drill hole deviation, which would affect the planned drill hole spacing and required density for the resource estimation. To ensure accuracy, downhole surveys are performed every 30 metres of drilling, with survey tests repeated in the event of results that are outside planned drill hole drift. Additional downhole survey tools are kept on site in the event of malfunction during drilling.

The company's implemented QA/QC procedures include the insertion of certified standard control samples, one-fourth cut duplicates and blanks. This is being used to test for natural variability/sampling bias/testing the lab for homogeneity during sample preparation processes within the lab, as well as testing the precision and any possible contamination from the lab, and ensure proper calibration of lab equipment.

Sample analyses are being conducted by ALS Canada Ltd., an independent lab. Samples are shipped to the Winnipeg, Man., prep lab, and then shipped by ALS to the geochemistry analysis lab in North Vancouver, B.C. Drill core samples are subject to sodium peroxide fusion analyses using ICP-MS (inductively coupled plasma mass spectrometry) for trace element values on total digestion and ICP-AES (inductively coupled plasma atomic emission spectroscopy) on samples with values greater than 25,000 parts per million lithium. ALS follows the quality management and operational guidelines set out in the international standards ISO/IEC 17025 -- General Requirement for the Competence of Testing and Calibration Laboratories and ISO 9001 -- Quality Management Systems.

Qualified person

The technical content of this news release has been reviewed and approved by Lynde Guillaume, PGeo (senior geologist, Axiom), who is a qualified person as defined under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. Ms. Guillaume is independent of the company.

The data disclosed within this news release were verified by Ms. Guillaume, PGeo. Data verification involved review of assay data, downhole drill hole surveys and geologic logs of the pegmatite intersections. All current drill hole data were then compiled in a 3-D Leapfrog model to ensure accuracy of drill hole traces and the sampled pegmatite intersections.

About the property

The property 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'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, 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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