Mr. Jason Latkowcer reports

PAN AMERICAN ENERGY ANNOUNCES FURTHER DRILL RESULTS AT THE BIG MACK LITHIUM PROJECT, INCLUDING 1.29% LI2O OVER 16.6 M AT THE 6059 PEGMATITE

Pan American Energy Corp. has released additional assay results on 15 holes from the 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 was carried out by Full Force Diamond Drilling Ltd. under the geological guidance of Axiom Exploration Group Ltd.

This phase of drilling focused on areas of the property with indications for mineralization but no historic drill testing. Targets were identified using 2023 geochemical surface sampling results and UAV (unmanned aerial vehicle) detailed magnetic survey results, and also were designed to test prospective areas extending along strike and down dip of previously identified mineralization. Exploration drilling has encountered high-grade lithium mineralization in drill holes targeting below the 6059 pegmatite and exploration drill holes to the southeast of the Sprinkler zone.

Highlights:

• 1.29 per cent Li2O (lithium oxide) over 16.6 metres (BM24-039), including 3.61 per cent Li2O over 0.57 metre below the western flank of the 6059 pegmatite.
• 2.28 per cent Li2O over three metres within a 22.26-metre interval of 0.68 per cent Li2O (BM24-045) intersected approximately 110 m east of the main 6059/Sprinkler zone.
• 1.03 per cent Li2O over 0.98 metre (BM24-046) was encountered at depth below drill hole BM24-045.
• Mineralization remains open at depth and along strike to the southeast of the Sprinkler zone.
• Anomalous tin values up to 5,520 parts per million (ppm) were intersected in exploration drill holes along strike of the Eleven zone and Big Mack pegmatite, indicating the potential for mineralization to the west of the known showings.

Jason Latkowcer, chief executive officer, commented: "We are pleased to report on the latest assays received on the property. Our team has identified new mineralized zones in areas where high-grade lithium had not previously been identified. This confirms to us that the property has the potential for more discoveries, and as we refine our understanding of the geology, we will look to follow up these intercepts as they remain open at depth and along strike."

Drill holes BM23-032 to BM23-034 were drilled to the south and west of the Big Mack pegmatite and Eleven zone, testing high-priority exploration targets that coincided with magnetic lows and elevated geochemical samples from the summer 2023 prospecting program. BM24-035 to BM24-046 were testing the 6059/Sprinkler zone. BM24-039, BM23-040, BM23-045 and BM23-046 returned encouraging lithium results, as holes BM24-039 and BM24-040 indicate that surface-exposed lithium mineralization does continue at depth. Additionally, follow-up drilling in the vicinity of surface samples elevated in Sn-Ta (tin-tantalum) have proved encouraging. The table entitled "Drill hole assay highlights table" highlights the lithium, tantalum and tin values within holes BM23-032 to BM24-046.

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 of 4,599 metres. Targeting was based upon historical drilling analyses, the UAV magnetic survey conducted on the property and the company's 2023 field prospecting program. In this second phase of the program, the company drilled 3,720.24 metres to delineate the Big Mack and Eleven zone pegmatites, test their down-dip extensions, explore the Sprinkler zone, and test other exploration targets. The company drilled 8,319.24 metres across 59 collar locations as part of the 2023/2024 drill program, with 4,693 samples having been submitted for analysis.

General statements

Visual core logging indicates that the predominant host mineral for the Big Mack pegmatites is petalite. The true width of these pegmatites reported in this release has not yet been determined.

Sample quality assurance/quality control (QA/QC)

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 metre 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. (ALS), 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 ICP-MS (inductively coupled plasma mass spectrometry) for trace element values on total digestion and ICP-AES (inductively coupled plasma atomic emission spectroscopy) on samples with values greater than 25,000 parts per million (ppm) lithium (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 Jared Suchan, PhD, PGeo, who is an independent 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 LCT (lithium-cesium-tantalum) pegmatites. The Big Mack pegmatite represents the largest petalite-bearing mass on the property and is exposed over an 80 m by 225 m area. 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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