Mr. Jason Latkowcer reports

PAN AMERICAN ENERGY ANNOUNCES COMMENCEMENT OF THE PHASE 2 DRILLING PROGRAM AT THE BIG MACK LITHIUM PROJECT

Pan American Energy Corp. has commenced the phase 2 drilling program at 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 oversight of Axiom Exploration Group Ltd. The company is fully financed for the phase 2 drilling program and plans to drill approximately 5,000 metres.

Following a successful phase 1 drilling program (highlighted below), the phase 2 drilling program will continue to focus on infill and exploratory targets that were identified through historical drilling analysis, UAV (unmanned aerial vehicle) magnetic survey and the summer 2023 field prospecting program. The company intends to drill the Sprinkler/6059 zone, the Eleven zone and infill drilling on the Big Mack pegmatite. The company also plans to explore the possible petalite mineralization between Big Mack and Sprinkler. The objective of the drill program is to quantify the presence and extent of mineralization on the property to further advance the project.

Jason Latkowcer, chief executive officer, commented: "After pausing for the holidays, our team and contractors have returned to the Big Mack lithium project and commended drilling on the phase 2 drill program. Having recently closed a series of financing and recognizing costs savings due to contractor performance in 2023, this drilling program is fully funded any planned and additional metreage. A large majority of equipment remained mobilized on site, allowing the company to set up quickly and efficiently for this next phase. It is an exciting time for the company."

Phase 1 2023 drilling program highlights:

• Big Mack deposit: Extended known pegmatite at depth, included enough drilling to update the resource;
• Eleven zone: Increased the size of the known pegmatite both at depth and along strike to the west. Exploration holes resulted in multiple intersection of pegmatite in all but one drill hole. Extended the known Eleven zone pegmatite to the west;
• Drill hole BM23-001 result: Testing the interior section of the Big Mack pegmatite, returned assay values of 1.13 per cent lithium oxide over 27.98 m.

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 (BM23-001 to BM23-0034) and one abandoned hole (BM23-001A);
• 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 are planned to be cut and submitted in 2024.

Qualified person

The technical content of this news release has been reviewed and approved by Dr. Jared Suchan, PhD, PGeo, who is 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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