Mr. Jason Latkowcer reports

PAN AMERICAN ENERGY COLLABORATES WITH THE SASKATCHEWAN RESEARCH COUNCIL FOR PRELIMINARY METALLURGICAL TESTING TO PRODUCE PETALITE CONCENTRATES

Pan American Energy Corp. has contracted with the Saskatchewan Research Council (SRC) for comprehensive metallurgical testing and conceptual process development for bulk sample production in respect of the Big Mack lithium project, located approximately 80 kilometres (km) north of the town of Kenora, Ont.

The company will provide lithium-bearing core samples from the phase 1 and phase 2 drilling programs recently completed at Big Mack to the SRC for the purposes of the proposed metallurgical testing. The preliminary testing program is expected to include gravity separation, magnetic separation and flotation tests. Following the completion of the first test work, the company expects to commission SRC to complete additional follow-up work, including evaluating the production of battery-grade lithium hydroxide monohydrate from the samples provided from the Big Mack.

In 1999, the former operator of Big Mack removed a representative 5,000-tonne bulk sample from the Big Mack pegmatite exposure. This sample was processed by International Metallurgical and Environmental Inc. to create petalite concentrate. The petalite concentrate was then sent to Corning Laboratory Services of Corning, N.Y., for petalite analysis and trial glass metals, where three glass melts were made using the supplied petalite. The petalite yielded glass of acceptable visual quality, validating the opportunity for commercial offtake partners of the petalite concentrate material.

Jason Latkowcer, chief executive officer, commented: "We specifically sought out the SRC for this work as a result of their experience working with petalite-bearing pegmatites similar to that of the Big Mack. Over 25 years ago, a petalite concentrate from the Big Mack was commercially validated by a major glass and acrylics manufacturer. We believe the SRC will be able to utilize modern day technology to develop processes to optimize recovery which we believe will assist in our efforts to requalify the material extracted from Big Mack for use in commercial applications. We expect to follow this initial work with work evaluating the production of battery grade lithium hydroxide monohydrate from the material extracted from Big Mack. We are looking forward to working with the team at SRC."

The proposed scope of work is divided into five distinct phases.

Scope of work

Phase 1 -- sample preparation and characterization: The composite pegmatite sample will be created and crushed at two millimetres prior to homogenization and splitting for sampling. A representative 40-kilogram composite sample will be prepared.

Phase 2 -- heavy liquid separation: Heavy liquids separation (HLS) is proposed to provide detail information of gravity separation including potential dense medium separator processing. The composite sample will be classified into six-size fractions and each fraction will be subjected to HLS at five specific gravities. The sink and floats will be analyzed to determine the lithium (petalite) grade-recovery curves. The grade recovery curves can be used to determine the primary crushing size of the pegmatite and gravity separation process.

Phase 3 -- flotation tests: Flotation tests will be done on the composite sample and HLS concentrate (sink) sample. Approximately eight preliminary flotation tests will be done on the composite pegmatite sample and the HLS concentrate. Each flotation test typically includes a rougher, scavenger and cleaners. Each stage of flotation will be done at the optimized flotation conditions determined from previous petalite flotation test work. Further optimization is not considered at this stage of preliminary testing.

Phase 4 -- magnetic separation: Magnetic separation is mainly used to remove the iron components. Wet high-intensity magnetic separation will be performed on both feed and concentrate to determine iron removal efficiency.

Phase 5 -- conceptual process development and bulk sample production: A conceptual process will be developed.

The study is being led by Jack Zhang, associate vice-president, strategic technologies, Saskatchewan Research Council. The project period under the agreement is intended to commence immediately and continue until approximately July 31, 2024.

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.

We seek Safe Harbor.