Mr. Jason Latkowcer reports

PAN AMERICAN ENERGY ANNOUNCES COMPLETION OF THE PHASE TWO DRILL PROGRAM AT THE BIG MACK LITHIUM PROJECT

Pan American Energy Corp. has completed the phase 2 drilling program on its Big Mack lithium project, located approximately 80 kilometres north of the town of Kenora, Ont. The drilling program was carried out by Fullforce Diamond Drilling Ltd. under the geological support of Axiom Exploration Group Ltd. The program commenced on Jan. 6, completing 3,720 metres over 25 drill holes. This brings the 2023 phase 1 and 2024 phase 2 drilling program total to 8,322 metres. The project was completed both on time and on budget. A total of 2,355 samples obtained through the phase 2 program have been submitted to ALS Global for geochemical analysis.

This second phase of drilling mainly focused on areas of the property with no historic drilling data. Targets were generally identified using 2023 geochemical surface sampling results and UAV (unmanned aerial vehicle) detailed magnetic survey results at the project, with prospective areas extending along strike and down dip of previously identified mineralization also being a target of the phase 2 program. Assay results are expected to be received in the coming weeks.

Phase 2 drill program details:

• Two drill holes totalling 369 metres tested the down-dip extension of the Big Mack pegmatite.
• Fourteen drill holes totalling 1,897 metres tested the 6059/Sprinkler zone and surrounding area, including identified magnetic-low extensions of these pegmatites, as well as targets proximal to surface samples with elevated LCT (lithium-cesium-tantalum) pegmatite indicator elements.
• Eight exploratory drill holes totalling 1,328.5 metres tested along strike to the east and the west of the Big Mack and Eleven zone pegmatites where elevated surface geochemical signatures were identified with coincident magnetic lows.
• A 126-metre drill hole tested the down-dip extension of the Eleven zone surface expression and previous drilling intercepts.

Jason Latkowcer, chief executive officer, commented: "We are extremely pleased to have completed the second phase of the Big Mack drilling program. We would like to thank our contractors and technical team for the safe and efficient execution of this campaign. The data collected from this program will serve as a solid foundation for the next step in the development of the property. We eagerly await the final assay results and look forward to providing further updates."

Following the completion of drilling, the company will use the results of the phase 1 and phase 2 drill program to develop a mineral resource estimate (MRE) which is expected to be announced Q2 2024. The company recently announced a partnership with the University of Nevada, Reno, where it will provide samples from the phase 1 and phase 2 drilling program for metallurgical testing and research. Pan American is also in contract negotiations with localized experts in Canada for a preliminary metallurgical testing program to produce petalite concentrates as well as to produce battery-grade lithium hydroxide from the petalite concentrate produced from the Big Mack lithium project.

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. The scientific and technical data disclosed within this news release were verified by Dr. Suchan who reviewed the completed drill hole database.

About the property

The property is located two kilometres 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 pegmatites. The Big Mack pegmatite represents the largest petalite-bearing mass on the property and is exposed over an 80 by 225 m area.

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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