Mr. Jason Latkowcer reports

PAN AMERICAN ENERGY ANNOUNCES THE COMMENCEMENT OF METALLURGICAL TESTING ON CORE SAMPLES FROM THE HORIZON LITHIUM PROJECT

Pan American Energy Corp. has commenced comprehensive metallurgical testing at University of Nevada, Reno (UNR). The company delivered 46 individual lithium-bearing core samples from 12 separate drill holes at the Horizon Lithium project, located in the Big Smoky Valley, Esmeralda county, Nevada.

The 12 represented drill holes were part of the phase 1 and phase 2 drilling campaigns completed by Pan American at Horizon in 2023. Utilizing the results of the phase 1 and phase 2 drilling, Pan American declared an indicated mineral resource of 1,325,000 tonnes lithium carbonate equivalent (LCE) and an inferred mineral resource of 8,879,000 tonnes LCE. The average grade of the indicated mineral resources was 669 parts per million (ppm) lithium (over a total tonnage of 372,845,000 tonnes) and the average grade of the inferred mineral resources was 680 ppm lithium (over a total tonnage of 2,453,963,000 tonnes). To provide a sample set that is representative of the deposit, the 46 submitted samples each carry an assayed lithium grade within 50 ppm, plus or minus, of 669 ppm, and each exhibit lithological traits that are characteristics of the host lithology. For additional details regarding the company's mineral resource estimate, please see the company's technical report for Horizon entitled "NI [National Instrument] 43-101 technical report for the Horizon lithium project," with an effective date of Dec. 21, 2023, filed on the company's SEDAR+ profile.

Jason Latkowcer, chief executive officer, commented: "The commencement of the metallurgical research and evaluation on the Horizon core samples is a big step forward for the company. Through thorough analysis and in collaboration with the UNR, we believe we can unlock valuable insights into the composition of the material at Horizon and potential extraction methods, with the ultimate goal of optimizing our process designs and thereby enhancing our competitive position. This strategic initiative aims not only to fuel innovation but also to position the company for success."

The metallurgical testing and mineral processing procedure is divided into distinct phases. Phase 1 is currently under way:

• Phase 1: Sample receipt and preparation: Physical properties assessment -- including conducting particle size analysis, determining sample density and undertaking meticulous sample preparation protocols.
• Phase 2: Head analyses -- including analyzing samples for lithium, boron, magnesium, calcium, sodium and a series of individual elements through the ICP (inductively coupled plasma) method.
• Phase 3: Leach extraction testing -- including sulphuric acid leach shake tests to determine the preliminary leaching characteristics of the sample at ambient temperature.
• Phase 4: Lithium recovery from solution -- using experimental methods to remove impurities and increase lithium concentrations with the aim of producing lithium carbonate.
• Phase 5: Exploring potential byproducts -- investigating the possibility of extracting other elements if present in notable qualities.
• Phase 6: Proposed flowsheet development -- proposing an initial flowsheet outlining material flow rates across different sections of this process, which is expected to undergo modifications based on continuing testing and optimization.

Qualified person

The technical content of this news release has been reviewed and approved by Jared Suchan, PhD, PGeo, who is an independent consultant of the company and a qualified person as defined by National Instrument 43-101.

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 kilometres 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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