Mr. Adrian Lamoureux reports

PAN AMERICAN ENERGY SIGNS OPTION AGREEMENT TO ACQUIRE 100% INTEREST IN THE THARSIS PROJECT, NORTHWEST TERRITORIES

Pan American Energy Corp. has entered into a definitive option agreement with Northern Critical Minerals Corp. (NCM), under which Pan American has the right to acquire an up to 100-per-cent interest in the Tharsis project, located in the Northwest Territories, Canada.

The project consists of seven mineral claims totalling 8,750 hectares and encompasses the prospective Squalus Lake Alkaline complex (SLAC). The project is located approximately 180 kilometres north-northeast of Yellowknife and 55 kilometres southeast of Wekweeti. Exploration to date has confirmed the presence of carbonatite-bearing rocks and potential for associated rare-earth elements (REE) and high-field strength element (HFSE) mineralization.

Under the terms of the agreement, Pan American may earn up to a 100-per-cent interest in the Tharsis project over four stages by making aggregate cash payments of $400,000, issuing 800,000 common shares and funding a total of $5-million in exploration expenditures over four years, as shown in the attached table.

During the option period, NCM will act as operator of the Tharsis project, and will manage exploration activities in coordination with Pan American. Upon completion of the fourth stage, Pan American will hold a 100-per-cent interest in the Tharsis project, subject to a 2-per-cent net smelter return (NSR) royalty in favour of NCM, of which 1 per cent may be repurchased for $1-million.

The project covers the SLAC, which is a Proterozoic-aged intrusive complex featuring ringed and core carbonatite intrusions, which are globally recognized for their potential to host high-grade light rare-earth element (LREE) mineralization. Located north-northeast of Yellowknife, the project is accessible by helicopter and floatplane. Exploration work completed to date by NCM has included detailed geochemical sampling and a high-resolution UAV (unmanned aerial vehicle) magnetic survey. The project features strong magnetic anomalies interpreted to reflect zoned carbonatite phases, with surface rock samples returning elevated concentrations of REEs and HFSEs. The mineralization is spatially associated with mega-crystic pyroxene-rich fenite alteration zones and narrow carbonatite dykes, interpreted to be the surface expression of a vertically extensive intrusive system. This style of alteration and mineralization is analogous to other globally significant REE deposits and represents a high-priority target for future exploration and drilling.

Qualified person

The scientific and technical content of this news release has been reviewed, verified and approved by Jared Suchan, PhD, PGeo, technical adviser at the company and a qualified person as defined by National Instrument 43-101. Dr. Suchan has verified the data through a comprehensive review of drill logs, core samples and geological interpretations.

For a discussion of the company's data verification and QA/QC (quality assurance/quality control) procedures and processes, please see its technical report, entitled technical report on the Big Mack property Kenora mining district Northwestern Ontario, Canada, a copy of which may be obtained from the company's profile at SEDAR+.

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 and critical metals in North America.

The company has executed an option agreement in Canada with Magabra Resources pursuant to which it has acquired a 75-per-cent interest in the Big Mack lithium project, 80 kilometres north of Kenora, Ont., with the right to earn an additional 15 per cent for a total 90-per-cent interest. Pan American has also entered into an option agreement with Northern Critical Minerals Corp. to acquire up to a 100-per-cent interest in the Tharsis REE (rare-earth element) project, located in the Northwest Territories. The project hosts the Squalus Lake Alkaline complex, a Proterozoic-age carbonatite-bearing intrusion prospective for rare-earth and high-field strength elements.

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