Leveraging Global Geological and Political Expertise to Acquire and Develop Major 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 metals 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 2012 program. Geophysical (IP) and sampling indicate regionally typical epithermal and porphyry mineralization with gold contents in rock samples at surface grading up to 3 g/t. The Cerro Delta is on the same structure, and is geologically analogous to one of the largest undeveloped gold deposits in the world---the Barrick-Kinross 23.2 million oz gold Cerro Casale porphyry deposit, located twenty kilometers (12 miles) west.