Mr. Jason Latkowcer reports

PAN AMERICAN ENERGY ANNOUNCES FURTHER DRILL RESULTS AT THE BIG MACK LITHIUM PROJECT, INCLUDING INTERSECTING 22.85 M AT 1.67% LI2O

Pan American Energy Corp. has released additional assay results on 14 holes from the continuing 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 encountered high grade lithium-bearing intercepts within the Big Mack and Eleven zone pegmatites:
  • 1.90 per cent Li2O (lithium oxide) over 16.90 metres within the western flank of the Big Mack pegmatite of 1.67 per cent Li2O over 22.85 metres (BM23-011);
  • 1.78 per cent Li2O over 6.75 metres within the western flank of the Big Mack pegmatite of 1.46 per cent Li2O over 12 metres (BM23-012);
  • 2.36 per cent Li2O over 1.90 metres and 1.79 per cent Li2O over 6.60 metres within the western flank of the Big Mack pegmatite of 1.51 per cent Li2O over 16.60 metres (BM23-014);
  • 2.13 per cent Li2O over two metres within the Eleven zone pegmatite of 1.34 per cent Li2O over 7.67 metres (BM23-017);
  • 1.51 per cent Li2O over four metres, 1.77 per cent Li2O over six metres and 1.59 per cent Li2O over 4.80 metres within the Eleven zone pegmatite of 1.32 per cent Li2O over 22.20 metres (BM23-021).
• Holes 10 to 15 show multiple lenses of lithium mineralization continue west from the interior of the Big Mack pegmatite.
• Holes 16 to 22 show multiple lenses of lithium mineralization stack below surface at the Eleven zone pegmatite and remain open at depth.
• The continuing drilling program is currently testing a lithium surface anomaly that coincides with a geophysical target along strike of the Eleven zone toward the west.

Drill holes BM23-009 to BM23-015 were drilled to test the western flank of the Big Mack pegmatite, while BM23-016 to BM23-022 were drilled to test the Eleven zone pegmatite. Big Mack targets BM23-010 and BM23-011 returned encouraging values of 1.23 per cent Li2O over 22.60 m and 1.67 per cent Li2O over 22.85 m, respectively, while BM23-0014 returned 1.51 per cent over 16.60 m. Eleven zone targets BM23-017 and BM23-021 intercepted 1.50 per cent Li2O over 14.53 m and 1.32 per cent Li2O over 22.20 m, respectively. These results indicate that meaningful mineralization may continue at depth through the western zone of the pegmatite, and provide valuable insights into mapping of the internal structure for Big Mack and Eleven zone.

Phase 1 of the 2023/2024 drilling program was completed in late 2023, when the company drilled 35 holes (including one abandoned hole), to a total metreage of 4,582 metres. Targeting is based upon historical drilling analyses, the unmanned aerial vehicle magnetic survey conducted on the property and the company's 2023 field prospecting program. In this second phase of the program, the company plans to drill approximately 5,000 metres to delineate the Big Mack and Eleven zone pegmatites, test their down-dip extensions, explore the Sprinkler zone, and test other exploration targets. To date, over 6,800 metres have been drilled across 50 collar locations as part of the 2023/2024 drill program, with 2,317 samples having been submitted for analysis at the time of this news release.

Jason Latkowcer, chief executive officer, commented: "We continue to see promising intercepts at the Big Mack western flank drilling and the Eleven zone pegmatite to the west. These impressive intercepts will help the team plan follow-up drilling to test deeper targets and understand the geometry of these pegmatite bodies and their lenses. Strategic drilling will continue to test the western side of Big Mack before moving to focus on exploration drilling toward the Sprinkler zone to understand the geology between the two eastern pegmatite bodies. Our ranked targets are quickly becoming higher confidence with our successful intercepts and promising assays, and further exploration step-outs will be planned as the drill campaign continues."

General statements

All 14 holes described in this news release were drilled broadly perpendicular and inclined to the pegmatite orientations so that the true thickness of reported intercepts is estimated to range somewhere between 60 and 80 per cent of the drilled widths. Visual core logging indicates that the predominant host mineral for the Big Mack pegmatites is petalite.

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, dependant 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 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 scientific and technical content of this news release has been reviewed and approved by Dr. Jared Suchan, PhD, PGeo, who is an independent consultant to the company and a qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. 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 kilometre 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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