Mr. Shanthar Pathmanathan of Pan American reports

EARLY WARNING REPORT IN RESPECT OF MUSTANG LITHIUM LLC S HOLDINGS IN PAN AMERICAN ENERGY

Mustang Lithium LLC has provided an update to its beneficial ownership of Pan American Energy Corp. pursuant to National Instrument 62-103 -- The Early Warning System and Related Take-Over Bid and Insider Reporting Issues. Mustang has indirectly acquired beneficial ownership of 20,563,387 common shares of Pan American pursuant to a spinout transaction whereby FMS Lithium Corp. spun out its interest in Mustang and ceased to have beneficial ownership or exercise direction and control over the common shares.

Prior to the acquisition, Mustang did not hold any common shares of Pan American. After the acquisition, Mustang holds or exercises direction or control of, through Horizon Lithium LLC, 20,563,387 common shares representing 21.6 per cent of Pan American's issued and outstanding common shares on an undiluted basis.

All securities of Pan American held by Mustang (through Horizon) are held for investment purposes. In the future, Mustang (directly or indirectly), may acquire and/or dispose of securities of Pan American through the market, privately or otherwise, as circumstances or market conditions may warrant. The common shares are listed for trading on the Canadian Securities Exchange under the symbol PNRG. Pan American is located at No. 610, 505 3 St. SW Calgary, Alta., T2P 3E6.

This news release is issued pursuant to NI 62-103, which also requires an early warning report to be filed with the applicable securities regulators containing additional information with respect to the foregoing matters. A copy of the early warning report of FMS will be available under Pan American's profile on SEDAR+.