Mr. Jason Latkowcer reports

PAN AMERICAN ENERGY ANNOUNCES FURTHER DRILL RESULTS AT THE BIG MACK LITHIUM PROJECT, INCLUDING INTERSECTING 16.00 M AT 1.55% LI2O

Pan American Energy Corp. has released additional assay results on nine 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 pegmatites:
  • 1.96 per cent lithium oxide over 8.50 metres within the west to central flank of the Big Mack pegmatite of 1.55 per cent Li2O over 16 metres (BM23-025);
  • 1.66 per cent Li2O over three metres within the central body at depth of the Big Mack pegmatite of 1.16 per cent Li2O over 8.90 metres (BM23-026);
  • 1.34 per cent Li2O over 3.50 metres at depth near centre of the Big Mack pegmatite of 0.99 per cent Li2O over 7.90 metres (BM23-024).
• Holes 23 and 24 show an interesting occurrence where lithium values start decreasing with depth, but appear to increase again in hole 24, the deepest hole through the west of centre flank of the Big Mack pegmatite.
• The continuing drilling program is currently testing along strike to the east of the Big Mack.

Drill holes BM23-023 to BM23-027 were drilled to test along the Big Mack pegmatite at depth, while BM23-028 to BM23-031 were drilled as exploration holes to test magnetic anomalies to the north and southwest of the Big Mack pegmatite. Big Mack targets BM23-024, BM23-025 and BM23-026 returned encouraging values of 0.99 per cent Li2O over 7.90 m, 1.55 per cent Li2O over 16 m and 1.16 per cent Li2O over 8.9 m, respectively. These results indicate that mineralization is likely to continue at depth through the central zone of the Big Mack pegmatite and could potentially increase with depth as observed in hole BM23-024. These results provide valuable insight into mapping the internal structure of the Big Mack pegmatite.

Phase 1 of the 2023/2024 drilling program was completed in late 2023, when the company drilled 35 holes (including one abandoned hole), for 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, there has been over 7,800 metres drilled across 56 collar locations as part of the 2023/2024 drill program, with 3,317 samples having been submitted for analysis at the time of this news release.

Jason Latkowcer, chief executive officer, commented: "We are pleased to report on the latest assays received on the Big Mack lithium project. We continue to refine our understanding of the geology on the project and will soon be wrapping up the phase 2 portion of the drilling program and will be evaluating the data once final results are received in the coming months. Thank you to our team and contractors for continuing to execute."

General statements

Holes BM23-023 to BM23-027 described in this news release targeting the Big Mack pegmatite were drilled broadly perpendicular and inclined to the pegmatite orientations so that the true thickness of reported intercepts is estimated to range somewhere between 50 and 80 per cent of the drilled widths. Holes BM23-028 to BM23-031 were exploration holes targeting magnetic anomalies identified from the UAV-borne magnetics survey completed in 2023 by EarthEx Geophysical Solutions Inc. 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, 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 spectroscoyp 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 a 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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