MRE Identifies One Of The Largest Lithium Deposits

CALGARY - Pan American Energy Corp. reported on the inaugural mineral resource estimate (MRE") on its Horizon Lithium Project in Big Smoky Valley, Esmeralda County, Nevada. The MRE was completed pursuant to the requirements of National Instrument 43-101 – ?Standards of Disclosure for Mineral Projects (NI 43-101). The Horizon Lithium Project is one of the largest ?land packages in the Tonopah Lithium Belt, encompassing 839 unpatented lode claims covering ?approximately 17,334 acres. Pan American holds its interest in the Project pursuant to a property option agreement (the “Property Option ?Agreement”) entered into with the owner of the Project, Horizon Lithium LLC, which allows Pan ?American to explore the Project and to earn a 100% interest in the Project.

The MRE was completed by RESPEC, LLC utilizing the results of the Company’s 20-hole ?exploratory drill program, which had totalled approximately 4,371.6 metres.? RESPEC has also been engaged to prepare a technical report on the Project containing the full results of the Company’s drill program and the MRE

Highlights: 1) One of the largest identified lithium deposits in the U.S. with an estimated Indicated Mineral Resource of 1,325 Lithium Carbonate Equivalent (LCE) Kilo tonnes (KTonnes) and Inferred Mineral Resource of 8,879 LCE KTonnes, with an average grade of 678 ppm lithium (Li). 2) High-Grade Mineral Resources. Estimates were calculated based on a conservative 300 ppm Li cut-off within an optimized pit. 3) Rapid advancement in a short timeframe. The MRE is based on 20 diamond drill holes completed in 2023, within a year of the Company acquiring rights to the Project pursuant to the Property Option Agreement. One hole was abandoned due to hole conditions and was not used in the MRE. 4) Significant expansion potential through step-out drilling to extend the deposit to the North West, South, East and West and at greater depths. The Company is actively evaluating geophysical exploration techniques and Phase 3 drill planning. 5) Accelerated project engineering. The work necessary to complete a Preliminary Economic Assessment (PEA) for the Project, including metallurgical assessment, is underway and expected to be completed in Q4-2024. 6) Access and infrastructure. The Project benefits from an ideal location near essential infrastructure and the town of Tonopah with limited impediments.

The Project’s resource block model and tabulation was completed based on the data collected from 20 drill holes which were completed during 2023. Mineral domains were interpreted on 450-meter cross sections, solidified into 3D solids, and coded into the model as lithium domain percentages. The lithium grades were interpolated by inverse-distance at a power of 2 by using the lithium domain percentages to assist in constraining the grade estimation. The resource estimate has also been constrained by pit optimization to determine a shape and cut-off grade in order to meet the requirement of reasonable prospects for economic extraction.