Pan American Silver Replaces Proven and Probable Silver Reserves

VANCOUVER, BC - Pan American Silver Corp. reported the results of its 2008 year end silver reserves and resources update.
In 2008, Pan American carried out extensive exploration programs, both on its properties as well as on selected greenfield exploration projects in Peru and Mexico. In total, the Company drilled nearly 100,000 meters, resulting in the discovery and definition of 26.9 million ounces of new silver reserves, which more than replaced the 22.2 million ounces of silver consumed by mining operations in 2008. However lower base metal price assumptions coupled with higher cut off grades downgraded 8.8 million ounces from reserves to resources, and as a result, at December 31, 2008 the Company had 223.7 million ounces of silver in proven and probable reserves, down a modest 1.8% from a year ago.
At Huaron and Morococha, year end proven and probable reserves increased by 5%, or 3.2 million ounces and 10%, or 3.1 million ounces, respectively after subtracting ore mined during 2008. The Company also added 4.6 million ounces of silver to La Colorada's reserves and 1.4 million ounces of silver to San Vicente, basically replacing all the reserves mined during 2008.
Reserve losses were experienced at Alamo Dorado due to mining and at Quiruvilca due to a combination of mining and the Company's intention to prepare the mine for a period of care and maintenance. At Manantial Espejo, reserves remained relatively unchanged year over year.
Commenting on the 2008 exploration results, Michael Steinmann, Executive VP Geology and Exploration indicated: "I am very pleased with the results of last year's exploration program. Our corporate reserve book has a healthy 224 million ounces of silver and gold reserves increased by 1% to over 701,000 ounces. Once again, Morococha and Huaron proved their excellent exploration potential and I strongly believe that in these large ore deposits we will continue to add reserves for many years to come. In addition, I am very excited that with Manantial Espejo's construction complete, we will now start tapping into the tremendous exploration potential of our extensive land holdings around our newest mine."
The company’s address is 1500-625 Howe Street Vancouver, BC V6C 2T6, (604) 684-1175, fax: (604) 684-0147, email: [email protected].