Mr. Jason Latkowcer reports

PAN AMERICAN ENERGY CORP ANNOUNCES FILING OF INAUGURAL NI 43-101 TECHNICAL REPORT FOR THE HORIZON LITHIUM PROJECT

Further to its news release dated Nov. 20, 2023, announcing the maiden mineral resource estimate (the MRE) for the Horizon lithium project, Pan American Energy Corp. has filed a technical report pursuant to National Instrument 43-101 -- Standards of Disclosure for Mineral Projects entitled "NI 43-101 Technical Report for the Horizon Lithium Project" with an effective date of Dec. 21, 2023. The company has filed the technical report on the company's SEDAR+ profile and the technical report is also available on the company's website. The technical report was prepared by Tabetha Stirrett, PGeo, and Erik Hemstad, PE, each of Respec LLC, and each of whom is a qualified person for purposes 43-101 and independent of the company.

Key highlights of the technical report:

• 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 lithium (Li) (see attached table 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 one year of the company acquiring rights to the project pursuant to the property option agreement entered into with the owner of the project, Horizon Lithium LLC. 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, as recommended by the authors of the technical report.
• Project engineering. The authors of the technical report recommend that a preliminary economic assessment (PEA) be completed for the project, pending results from geochemical testing of samples gathered during the recommended drilling and planned metallurgical test work. The company has begun the work necessary to complete the necessary metallurgical test work, and the company is targeting the completion of a PEA 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).

Jason Latkowcer, chief executive officer of Pan American, states: "We are proud to publish the inaugural technical report for the project. The initial mineral resource estimation highlights the identification of a promising high-grade, large-tonnage lithium deposit in North America. The deposit is open in numerous directions and at depth. We expect upcoming geophysical exploration techniques to further refine phase 3 drill targeting and are in active conversations with partners to support metallurgical testing as we advance towards a PEA at the project."

Readers are encouraged to review the company's related Nov. 20, 2023, news release with respect to the MRE and the technical report, each of which is filed on the company's SEDAR+ profile. There are no material differences as between the MRE disclosed in the technical report and that disclosed in the company's Nov. 20, 2023, news release.

MRE preparation

The MRE was estimated and reported with an effective date of Nov. 15, 2023. The estimated mineral resources at the project were classified by geological and quantitative confidence in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum definition standards for mineral resources and reserves and NI 43-101. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that any mineral resource will be converted into a mineral reserve, and there are currently no mineral reserves estimated at the project.

The mineral resources were estimated by inverse distance to the second power. Two estimation passes were performed independently for each of the three mineral domains. Estimated grades and partial percentages of the domains were used to calculate weight-averaged lithium grades for each block. Grades and percentages outside modelled domains were included in calculations to produce fully block-diluted grades.

The mineral resources were tabulated to reflect potential open-pit mining extraction as the primary scenario. A pit optimization was produced to meet the requirement of reasonable prospects for eventual economic extraction and reports production as LCE. The in-pit mineral resources are reported at a cut-off grade of 300 parts per million Li. For additional information regarding the calculation of the MRE, please refer to the technical report.

Technical report recommendations

The authors of the technical report have recommended that the company conduct two phases of additional work on the project, including exploration and metallurgical testing, while concurrently developing a PEA. The authors recommend a phased approach to the further exploration of the project, including:

• Phase 1:
  • Geophysical survey -- conducting a seismic survey of the project to define the thickness of overburden sediments and gain a better understanding of underlying structural features;
  • Exploration and infill drilling -- completing drill holes in the western and southern portions of the project to laterally expand the stratigraphic understanding and potentially grow the mineral resource; completing infill drilling with the aim of upgrading the mineral resource classification and extending the mineral resource to greater depth;
  • Metallurgical testing -- developing a processing strategy, which is paramount to project advancement and overall derisking of the project. The authors recommend that the company continue pursuing partnerships with select academic and institutional and research groups to develop the process for the recovery of claystone-hosted Li.
• Phase 2:
  • PEA -- to define the economic viability of the project, the authors recommend the company complete a thorough scoping study of the potential profitability and risks associated with the project.

The company is actively evaluating geophysical exploration techniques and engaged in phase 3 drill planning. The company has also begun the work necessary to complete the necessary metallurgical test work, and the company is targeting the completion of the PEA in Q4 2024.

Qualified person

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

For additional information regarding the scientific and technical information contained in this press release, including data verification, collection and compilation information, and quality assurance/quality control procedures undertaken, please refer to the technical report.

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 into a property option agreement with Horizon Lithium, providing for the right to acquire a 100-per-cent interest in the Horizon lithium project, located within Esmeralda county, Tonopah lithium belt, Nevada, U.S.

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