Mr. Jason Latkowcer reports

PAN AMERICAN ENERGY ANNOUNCES FURTHER DRILL RESULTS AT THE BIG MACK LITHIUM PROJECT, INCLUDING INTERSECTING 32.34 M AT 1.49% LI2O

Pan American Energy Corp. has released additional assay results on seven holes from the first phase of the 2023/2024 diamond drill 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 Full Force Diamond Drilling Ltd. under the geological guidance of Axiom Exploration Group Ltd.

Highlights:

• Drilling intercepts encountered high grade lithium-bearing petalite within the eastern extent of the Big Mack pegmatite:
  • 1.97 per cent lithium oxide (Li2O) over 5.04 metres and 2.33 per cent Li2O over 2.14 metres within the interior of the Big Mack pegmatite of 1.49 per cent Li2O over 32.34 metres (BM23-002);
  • 1.99 per cent Li2O over 2.35 metres and 1.89 per cent Li2O over three metres within the interior of the Big Mack pegmatite of 1.55 per cent Li2O over 18.35 metres (BM23-005);
  • 1.23 per cent Li2O over one metre within eastern extent of the Big Mack pegmatite of 0.76 per cent Li2O over three metres (BM23-003).
• Holes No. 1 to 3, and 5 show lithium mineralization continues downward from the surface within the interior and eastern extent of the Big Mack pegmatite.
• Drilling results suggest the Big Mack pegmatite body continues and remains open at depth (assays pending to evaluate mineralization).
• Drilling results encountered new pegmatite intersections to the south and below the Big Mack pegmatite (assays pending to evaluate mineralization).
• The continuing drilling program is currently testing a lithium surface anomaly that coincides with a geophysical target along strike of the Big Mack toward the Sprinkler pegmatite.

Drill holes BM23-002 and BM23-005 were drilled to test the interior of the Big Mack pegmatite, while BM23-003, -004, -006, -007 and -008 were drilled to test the eastern and western flanks of the Big Mack pegmatite. BM23-002 and BM23-005 returned encouraging values of 1.49 per cent Li2O over 32.34 m and 1.55 per cent Li2O over 18.35 m, respectively, while BM23-003 returned 0.76 per cent over three m. These results indicate that meaningful mineralization continues at depth through the interior zone of the pegmatite, and provide valuable insights into mapping of the internal structure.

As part of the phase 1 drilling program, the company drilled 35 holes (including one abandoned hole), for a total metreage of 4,582 metres. The phase 1 drilling program focused on targets that were identified through historical drilling analyses, the unmanned aerial vehicle magnetic survey conducted on the property and the company's 2023 field prospecting program. The company plans to drill approximately 5,000 metres as part of the second phase of the drilling program. Phase 2 of the drilling program is designed to delineate the Big Mack and Eleven zone pegmatites, test their down-dip extensions, explore the Sprinkler zone, and test other exploration targets identified from the geophysics and surface sampling program undertaken by the company in the summer of 2023. Over 5,100 metres across 38 collar locations have been drilled to date (as part of both phases of the 2023/2024 drill program), with 1,817 samples having been submitted for analysis at the time of this news release.

Jason Latkowcer, chief executive officer, commented: "We're thrilled to announce continued success at the ongoing drilling program at our Big Mack lithium project. Not only are we gaining new insights into the locations of mineral-rich areas, but we're also confirming the effectiveness of our target selection method. As we continue to map the deposit's structure and integrate this information with our geophysical data sets, we're strategically improving our plans for future drilling this year. We are looking forward to providing further updates on the program as they are received."

General statements

All seven holes described in this news release were drilled broadly perpendicular to the pegmatite orientation so that the true thickness of reported intercepts will range somewhere between 65 and 100 per cent of the drilled widths.

Sample quality assurance/quality control

A thorough chain-of-custody and QA/QC program is being carried out on the continuing 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 inductively coupled plasma mass spectrometry for trace element values on total digestion and inductively coupled plasma atomic emission spectroscopy on samples with values greater than 25,000 parts per million Li. 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 Dr. Jared Suchan, PhD, PGeo, who is an independent consultant of the company, and a qualified person as defined by National Instrument 43-101. Dr. Suchan verified the data disclosed (or underlying the information disclosed) in this news release by reviewing imported and sorted assay data; checking the performance of blank samples and certified reference materials; reviewing the variance in field duplicate results; and reviewing grade calculation formulas.

About the property

The property is located two kilometres east of the 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 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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