Pan American Achieved Record Production

VANCOUVER, BC - Pan American Silver Corp. reported that it achieved record annual silver production in 2007 of 17.1 million ounces. This represented an increase of 31% as compared to 2006 and surpassed the Company's guidance for 2007 of 17.0 million ounces. Silver production in the fourth quarter of 2007 was also a new record at 5.1 million ounces, an increase of 63% as compared to the fourth quarter of 2006.
Total cash costs for 2007 have been estimated at $3.42 per ounce of silver produced, net of byproduct credits, which was 16% higher than the Company's 2007 guidance of $2.94 per ounce. In the fourth quarter of 2007, estimated cash costs increased to $4.54 per ounce, due primarily to decreased by-product credits resulting from lower zinc production and prices, some unplanned maintenance costs at the Alamo Dorado mine and the strengthening of the Peruvian currency relative to the US dollar.
Pan American is expecting to increase its silver production by 14% in 2008 to 19.5 million ounces at a forecasted cash cost of $4.31 per ounce of silver produced. The Company used a zinc and lead price of $2,100 per tonne, a copper price of $6,000 per tonne and a gold price of $700 per ounce in estimating its 2008 by-product credits.
"Led by production from the La Colorada and Alamo Dorado mines in Mexico and the Huaron mine in Peru, we delivered as promised, our 13th consecutive year of growth,'' said Geoff Burns, President and CEO of Pan American Silver. ``With the expected start up of Manantial Espejo in Argentina only a few months away, we are poised to achieve record silver production again in 2008 and add a significant gold component to our revenue stream at the same time."
Zinc production in 2007 was 39,074 tonnes, compared to 39,366 tonnes in 2006 and is expected to increase to more than 43,000 tonnes in 2008. Gold production in 2007 was 23,580 ounces, more than a three-fold increase from 2006 and should increase again, to more than 50,000 ounces in 2008.
The company's address is 1500-625 Howe Street, Vancouver, BC V6C 2T6, (604) 684-1175, fax: (604) 684-0147, email: [email protected].