Mr. Jason Latkowcer reports

PAN AMERICAN ENERGY ANNOUNCES COMPLETION OF THE PHASE ONE DRILLING PROGRAM AT THE BIG MACK LITHIUM PROJECT

Pan American Energy Corp. has completed the phase 1 drilling program at the Big Mack lithium project, located approximately 80 kilometres north of the town of Kenora, Ont. The exploration program was carried out by Fullforce Diamond Drilling Ltd. under the geological support of Axiom Exploration Group Ltd. Due to operational efficiency, the phase 1 program was completed both on time and below budget.

The company and its contractors are currently planning a phase 2 drilling program at the project, which is expected to continue the phase 1 program's focus on targets that were identified through historical drilling analysis, the UAV (unmanned aerial vehicle) magnetic survey conducted on the project and the company's 2023 field prospecting program. The objective of the company's phase 1 and planned phase 2 drilling programs is to quantify the presence and extent of critical mineral mineralization on the project, to further advance the project. The company expects that, as a result of the extent of drilling conducted during the phase 1 drilling program, the company will be in a position at the conclusion of the planned phase 2 drilling program to declare a mineral resource estimate in compliance with National Instrument 43-101 -- Standards of Disclosure for Mineral Projects on the project.

Phase 1 2023 drilling program highlights:

• Big Mack pegmatite: Drilled 19 holes (including BM 23-001) totalling 1,984 metres, resulting in the extension of the known pegmatite at depth.
• Eleven zone: Drilled seven holes totalling 879 metres, resulting in the extension of the known pegmatite both at depth and along strike to the west.
• Drill hole BM 23-001 result: Testing the interior section of the Big Mack pegmatite, returned assay values of 1.13 per cent Li2O (lithium oxide) over 27.98 m. For additional information regarding drill hole BM 23-001, please see the company's news release dated Dec. 12, 2023, filed on the company's SEDAR+ profile.

Phase 1 2023 drilling program details:

• Commencement date: Mobilization and drill start dates, respectively: Oct. 31 and Nov. 3, 2023;
• Shutdown date: Drilling stop date and crew's last day on site: Dec. 14 and Dec. 19, 2023;
• Total number of drill holes: 34 completed holes (BM 23-001 to BM 23-0034) and one abandoned hole (BM 23-001A);
• Total metres drilled: 4,582 metres drilled in 2023;
• Geochemical assay samples: A total of 2,337 samples have been taken across the 34 completed holes. Of these, 1,817 samples have been delivered to ALS Global for geochemical assays. The remaining 520 samples will be cut and submitted in early January, 2024.

Jason Latkowcer, chief executive officer, commented: "We are extremely pleased with the execution and results of our phase 1 2023 drilling program. Completing the first leg of the program on time and under budget is a testament to the efficacy of our team and contractors. We are fully funded to complete the planned follow-on exploration initiatives at the project, including the phase 2 drill program, and the related resource modelling and reporting, geophysics, and field prospecting programs."

Qualified person

The technical content of this news release has been reviewed and approved by Jared Suchan, PhD, PGeo, who is an independent consultant of the company, and a qualified person as defined by National Instrument 43-101. The scientific and technical data disclosed within this news release was verified by Dr. Suchan, who reviewed the completed downhole drill surveys and geologic logs of the pegmatite intersections. The completed drill hole information was plotted in a mapping program and checked for accuracy.

For additional information regarding the company's surface sampling program at the project, 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 (QA/QC) protocols, please see the company's news release dated Aug. 9, 2023, which is filed on the company's SEDAR+ profile.

For additional information regarding sample quality assurance and quality control measures taken with respect to the company's phase 1 drilling program, please see the company's news release dated Dec. 12, 2023, which is filed on the company's SEDAR+ profile.

About the project

The project 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 project is within an Ontario registered mining lease, with over 30 years of exploration history. The project lies within the traditional land use area of the Wabaseemoong Independent Nations of Whitedog, Ontario -- an aboriginal community located approximately 35 km southwest of the property.

The project 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 project 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 mineralization at the project 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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