Lithium-Bearing Exploration Drilling Program At Horizon Project

CALGARY - Pan American Energy Corp. reported the completion and assay results of its exploratory subsurface drill program, Phase 1 and 2, at its Horizon Lithium Project in the Big Smoky Valley, Esmeralda County, Nevada. This exploratory drilling program consisted of twenty-one (21) targeted diamond core drill holes on Pan American’s 17,334 acres of lithium-bearing claims and resulted in the discovery of significant lithium mineralization on the project. The program was designed based on extensive geological research. A total of 2,306 Project assays were processed.

Lithium Concentrations: Using a 900 ppm cut-off weighted lithium grade, eight (8) drill holes ranged from 902 ppm to 1033 ppm with a total cumulative thickness of 2,426 feet. The highest measured assay value was 2,040 ppm (HL008) at a depth of 394 ft. Sixteen (16) drill holes produced an average weighted lithium grade above 300 ppm with a total cumulative thickness of 7,390 ft (Table 2). Higher-grade drill holes are particularly attractive for recovery using known extraction technologies.

Shallow Overburden: Anomalous lithium concentrations were measured at shallow depth, with as little as 15.5 ft (HL030) overburden. The alluvium cover on the property is comparable to industry peers with a similar range of depths indicating that low-cost and low-strip ratio techniques can potentially be applied.

Depth of Mineralization: Drill holes were advanced as far as 1,000 ft of depth confirming lithium mineralization extends to a significant range. Also, the drill results show that lithium-bearing claystone at Horizon is extensive and several meters thick. The basal bedrock of the Siebert Formation was not encountered, allowing for further exploration at depth.

Deposit Significance: The Horizon Lithium Project sits immediately adjacent to American Battery Technology’s (“ABTC”) Tonopah Flats project, one of the largest known lithium claystone projects in the United States at 15.8 million tonnes of inferred lithium. Pan American’s team believes the Horizon Lithium Project has the potential to further expand on the total resource magnitude in the Big Smoky Valley, Nevada and is aiming to classify the deposit as an inferred, indicated, and measured using appropriate modifying factors as defined by CIM Definition Standards.

Pan American will use the results from the Phase 1 and 2 programs to develop a MRE. With less than one-third of the Project currently explored, the Company will develop a step-out drill program to further characterize the deposit including grade and thickness assessment and resource estimation. The Company intends to progress to a feasibility study and environmental assessment in subsequent phases of Project development.

The drilling equipment employed in the Phase 1 and 2 program drilled up to a maximum depth of 1,000 feet on multiple drill holes (HL24 – HL 26). In several drill holes, significant lithium was present at final depths, and bedrock was not encountered. This suggests that anomalous lithium concentrations could be present at depths greater than 1000 ft, creating a compelling pathway for a Phase 3 program. The Company is actively evaluating future exploration potential both at depth and in the untapped west-northwest and southern portion of the property to further delineate the size, quality, and economic viability of the lithium-bearing resource. Pan American will also explore metallurgy testing and strategic partners for production testing and processing.