Pan American Energy Announces Completion of Phase Two Drilling Program at the Horizon Lithium Project, Esmeralda County, Nevada

CALGARY, Alberta, July 31, 2023 (GLOBE NEWSWIRE) -- Pan American Energy Corp. (the “Company” or “Pan American”) (CSE: PNRG) (OTC PINK: PAANF) (FRA: SS60) is pleased to announce the completion of its Phase 2 exploratory subsurface drill program at its Horizon Lithium Project (“Horizon”) in Big Smoky Valley, Nevada. The program involved targeted drilling in strategic locations based on geological research conducted by the Company’s strategic contractor partner, RESPEC (“RESPEC”). Following the success of the Phase 1 exploratory drilling program, where a lithium mineralization discovery was made, the Phase 2 exploratory drilling program consisted of nine targeted diamond core drill holes at Horizon, aggregating a total of 6,856 feet of drilling.

The successful completion of the drill program represents another milestone for Pan American as it works towards delineating the size, quality, and economic viability of the newly discovered lithium mineralization at Horizon. The Company is awaiting assay results from the Phase 2 drilling program and will use the combined Phase 1 and Phase 2 results to move towards declaring a mineral resource estimate at Horizon in the coming months. RESPEC will continue to support the Company as it works towards declaring a mineral resource in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) standards of disclosure and National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

Preliminary Highlights from the Phase 2 drilling program include:

• A total of nine boreholes were drilled and cored over 65 days of rig time.
• Drill pads were strategically placed to explore the eastern flank of Horizon’s subsurface for lithium mineralization.
• The average total depth (“TD”) for holes drilled in the Phase 2 drill program was 761 ft, with a maximum depth of 1,000 ft (HL024, and HL026).
• A total of 6,856 ft was drilled in the Phase 2 drill program, with 5,716 ft, or 84%, of intervals cored in the Siebert Formation.
• Compared to the Phase 1 program, less time was spent to reach the target zones due to improved proximity to the Siebert Formation top (ie., shallow overburden) in the areas drilled in the Phase 2 program

Proximity to Surface, Total Depth, and Siebert Elevation:

• Phase 2 boreholes did not intersect major subsurface structures with significant vertical displacement of strata due to faulting as was observed in boreholes (HL019 and HL005) located in the west central portion of Phase 1
• HL030, located in the northeast quadrant of Horizon, intersected the Siebert Formation top 15.5 feet below the ground surface. This aligns with the interpretation of the Siebert Formation as it outcrops to the east/northeast of Horizon.
• There is geological continuity of claystone stratigraphy in the majority of the drill holes. Boreholes HL023, HL024, and HL026 were drilled to a depth of up to 1000 ft based on their proximity to the Phase 1 boreholes (HL005, HL006, HL007, and HL008) where the best lithium mineralization was observed.
• Every borehole in Phase 2 except HL027 reached at least 600 ft depth.

Jason Latkowcer, Chief Executive Officer, commented, “The drill program was executed on time and on budget. It reflects the quality of work by the Company and our contractors. The completion of the Phase 2 drill program positions the Company to advance toward the next step of delineating a mineral resource estimate and releasing a NI 43-101 technical report on Horizon in the coming months. Horizon is still vastly unexplored, creating an excellent opportunity for follow-on work programs to take place. With so much activity in the region, we are continually monitoring our industry peers for learnings and gaining valuable insights that will benefit our future exploration activities.”

Figure 1 – Phase 2 Siebert Depth, Cored Siebert, Total Depth, Surface Elevation and Siebert Elevation

Table 1: Summary of Phase 2 Exploration

Figure 2 - Drill Hole Locations

Figure 3 – HL026 from 388 ft to 398 ft

Figure 4 – HL029 from 427 ft to 435.5 ft

HANDLING AND SAMPLING PROCEDURE

• Cored samples were transported twice daily from the drill pad to the RESPEC/Pan American core logging headquarters in Tonopah, NV by RESPEC geologists.
• Detailed core examination of samples was completed following industry standards for core descriptions. Logging criteria included geotechnical and structural parameters (RQD, structure types and infill, planarity, roughness, hardness and angle to core axis), lithologic qualifiers (lithofacies, mineralogical composition, and cementation) and acid reactivity for calcium carbonate.
• On-site core-slab sampling program was performed by RESPEC geologists with a 5% quality control insertion rate using Certified Reference Materials:
  • 2 pulp types of known Lithium content and 2 (pulp and coarse) blanks.
  • Sample selection was completed on every 5-foot depth increment and accounts for notable stratigraphic variations.
  • The program also includes random core-slab sample duplicates from every drill hole in the study area. Once coarse and pulp rejects are returned from ALS Geochemistry, located in Reno, NV, a small percentage will be sent to a check lab.
• Core photography and database management of all sampled intervals and core boxes were performed by RESPEC’s field personnel.
• Samples were transported to ALS Geochemistry located in Reno, NV by RESPEC field personnel. ALS Geochemistry is independent of the Company.
• Chain of custody and sample assaying tracking/controls were kept throughout the entire program.
• ALS Geochemistry performed ME-MS61 multi-element analyses by four acid digestion and ICP-MS on all lithium-bearing claystone samples.
• Bulk Density testing using the wax immersion method was performed by RESPEC personnel on representative lithological samples encountered in the subsurface.

Qualified Person

The technical content of this news release has been reviewed and approved by Tabetha Stirrett, P.Geo, who is a Qualified Person as defined by NI 43-101.

About Pan American Energy Corp.

Pan American Energy Corp. (CSE: PNRG) (OTC PINK: PAANF) (FSE: SS60) is an exploration stage company engaged principally in the acquisition, exploration and development of mineral properties containing battery metals in North America.

The Company executed an option agreement in Canada with Magabra Resources providing for the right to acquire up to a 90% interest in the drill-ready Big Mack Lithium Project, 80 km north of Kenora, Ontario. The Company has also entered a property option agreement with Horizon Lithium LLC providing for the right to acquire a 100% interest in the Horizon Lithium Project, located within Esmeralda County – Tonopah Lithium Belt, Nevada, USA.

To register for investor updates please visit https://panam-energy.com.

On Behalf of the Board of DirectorsJason LatkowcerCEO & Director

ContactPhone : (587) 885-5970 Email: [email protected]

Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company’s current beliefs or assumptions as to the outcome and timing of such future events. In particular, this press release contains forward-looking information relating to, among other things, the Company’s intention to declare a mineral resource at Horizon and release a NI 43-101 compliant technical report in respect of Horizon in the coming months; the Company’s intention to delineate the size, quality and economic viability of the lithium mineralization at Horizon; the Company’s intention to send certain pulp rejects to a check lab; and the exploration potential of Horizon.

Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information, including, in respect of the forward-looking information included in this press release, the assumption that: the Company will be in a position, following the receipt of the assays from the Phase 2 drilling program, to declare a mineral resource at, and file a NI 43-101 Technical Report for, Horizon on the timeline anticipated; that the Company will continue to explore Horizon to delineate the size, quality and economic viability of the lithium mineralization at Horizon; and that the unexplored areas of Horizon contain lithium mineralization which can be explored for by the Company.

Although forward-looking information is based on the reasonable assumptions of the Company’s management, there can be no assurance that any forward-looking information will prove to be accurate. Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include the risk that the Company is unsuccessful in declaring a mineral resource estimate at, and filing a NI 43-101 technical report for, Horizon, on the timeline currently anticipated, or at all; risks inherent in the exploration and development of mineral deposits, including risks relating to receiving requisite permits and approvals, changes in project parameters or delays as plans continue to be redefined, that mineral exploration is inherently uncertain and that the results of mineral exploration may not be indicative of the actual geology or mineralization of a project; that the geology or mineralization of one part of Horizon may not be indicative of the geology or mineralization at another part of Horizon; that mineral exploration may be unsuccessful or fail to achieve the results anticipated by the Company; and the other risks and factors identified by the Company in its continuous disclosure filings, filed on the Company’s SEDAR profile at www.sedar.com. The forward-looking information contained in this release is made as of the date hereof, and the Company not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

The CSE has neither approved nor disapproved the information contained herein.

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Figure 1

Phase 2 Siebert Depth, Cored Siebert, Total Depth, Surface Elevation and Siebert Elevation

Figure 2

Drill Hole Locations

Figure 3

HL026 from 388 ft to 398 ft

Figure 4

HL029 from 427 ft to 435.5 ft