Pan American Lithium Corp. is well positioned to capture the next wave in mineral exploration, lithium. Pan American Lithium is the owner of interests in eleven salars⁽¹⁾ with the potential to produce lithium, potussium and other metals from surface lakes and subsurface brines, all located in the mineral-rich Atacama Region III of Chile. The rights in these eleven lithium salars cover a cumulative area in excess of 20,000 hectares all accessible via serviceable roads.

Lithium is the lightest known metal and occurs naturally in several minerals. Demand for lithium has increased dramatically in recent years as a result of rapid adoption of new technologies such as lithium ion batteries to power electronic devices and electric vehicles.

 Primary Corporate Strategy

• Explore and develop brines from 11 salars in Atacama Region III, Chile

• Advance exploration of Laguna Verde surface lake (lead project) to establish a measured and indicated resource

• Commission a scoping and pre-feasibility study with respect to Laguna Verde

• Subject to satisfactory pre-feasiblity study, initiate permitting and project engineering and full feasibility study at Laguna Verde

• Subject to satisfactory feasibility study, permitting and financing, build facilities and commence Li and K production from surface waters at Laguna Verde

• Enter into strategic relationship with offtake partners such as POSCO who took a 19.9% equity position in the Company in September 2011

• Leverage unique expertise and capabilities to undertake additional mining projects in South America in areas with attractive geopolitical risk/return characteristics

Exploration on the company’s lead project, Laguna Verde, is being caried out with the goal to extract Li and other light metals initially from the brine lake and then from deeper brines.

• Inferred resource estimate at average lithium grade of 212.40 mg/litre computed to be 512,960 tons of lithium carbonate equivalent⁽²⁾ as per NI 43-101 compliant Technical Report authored by QP John Hiner, L.P. Geo. (current average LiCO₃ market price ~ $5,200/ metric ton; Source: as per "The Lithium Site," http://www.lithiumsite.com/Lithium_Market.html, July 8, 2010)
• Inferred resource estimate at average potassium grade of 4,881mg/litre computed to be 4,223,134 tons of potassium chloride equivalent⁽²⁾ as per NI 43-101 compliant Technical Report authored by QP John Hiner, L.P. Geo. (potash market price ~ $367/metric ton; Source: as per Reuters quote regarding potash pricing of KTS, a German salt miner and the world's 4th largest potash supplier, June 11, 2010)
• Exploration is also being pursued at the Company's Llanta and Pedernales projects in Region III
• POSCO and Pan American evaluating pilot plant project

Pan American Lithium also has interests in additional lithium projects including an option on a concession in the geothermal brines currently being produced at the Cerro Prieto geothermal power plant located in Baja California, Mexico.

⁽¹⁾ Salars are mineral-rich brine lakes formed as a result of volcanism. S. American salars (Chile, Bolivia, Argentina) provide ~75% of global lithium supply

⁽²⁾ See NI 43-101 Technical Report filed on SEDAR on June 14, 2010, here: http://www.sedar.com/search/search_form_pc_en.htm (search for "Pan American Lithium") for more information