Leveraging Global GeoPolitical Expertise to Acquire & Develop Precious Metals Deposits

Pan American Goldfields is developing the Cieneguita silver and gold project where the first phase of production began in November 2010. The project is in Mexico's Sierra Madres, one of the world's largest epithermal precious metal regions.

In Argentina, Pan American is exploring for precious metals in the prolific Maricunga Gold Belt where over 90 million ounces of gold (equivalent) has already been discovered within an area only 30 kilometers wide (east-west) and 150 kilometers long (north-south). Pan American's Cerro Delta porphyry gold project is at the southern end of the belt, straddling the border between Chile and Argentina.

Cieneguita Mine Development

Pan American's Cieneguita Project consists of a 43-101 compliant drill indicated and inferred resource of 20 million tonnes grading 0.74 grams/tonne gold and 51.8 grams/tonne silver---totals 33.4 million ounces of silver and 474,000 ounces of gold. The company's focus is the initiation of a feasibility study for the expansion of current production. A scoping study (PEA) to establish the potential for a much larger operation has begun with the hiring of M3 Engineering and Technology Corporation.

Cerro Delta Project

The Cerro Delta Project has drilling and environmental permits for its planned Q1 2012 program. The Cerro Porphyry is the focus of the initial 7,000 meter drill program. The mineralization in the porphyry is in a stockwork system of quartz and sulphide veinlets mainly in the potassic alteration zone, with gold contents in rock samples at surface grading up to 0.8 g/t. The Cerro Delta is geologically analogous to one of the largest undeveloped gold deposits in the world -- the Barrick-Kinross 21 million oz gold Cerro Casale porphyry deposit, located 20 kilometers west.