"Proving commercially viable lithium mineralization has the potential for tremendous value generation for investors."

Jason Latkowcer

PRESIDENT, CEO AND DIRECTOR, PAN AMERICAN ENERGY CORP.

May 12, 2023

Can you introduce Pan American Energy Corp. and the firm’s Horizon Project?

Pan American Energy Corp. (CSE: PNRG | OTC: PAANF | FSE: SS6) is a North American mining exploration company engaged in expanding the boundaries of the lithium supply chain through the acquisition, exploration, and development of mineral properties. The company has a diversified asset base in Canada and the US, including hard rock lithium (Ontario), and claystone lithium (Nevada). Our Horizon lithium project, a 17,334-acre land package, is highly prospective for claystone lithium and is in the world-renowned Big Smoky Valley, Nevada. We are adjacent to industry-peer American Battery Technology and proximal to American Lithium. On April 24th, 2023, the Company announced the discovery of lithium, intersecting lithium in every hole sampled to date and testing as high as 2,040 ppm. We are actively exploring technology and partnership synergies and are thrilled with the government support in the region. For example, the Department of Energy recently awarded American Battery Technology the Bipartisan Infrastructure Law grant of US$115 million to build a first-of-its-kind commercial lithium hydroxide plant next door to Horizon.

What does your partnership with Respec at Horizon entail?

Our partnership with Respec, a global leader in geoscience, engineering, data, and integrated technology solutions for major industry sectors, is focused on designing and executing our maiden drill program at Horizon. Respec has evaluated the exploration program(s) of our adjacent peers and designed an up to 22-hole drill program that has been approved and permitted by the Bureau of Land Management. This drill plan gives excellent coverage across the property and will help characterize mineralization near the surface and at a max drill depth of 1,000 ft per hole.

What is the long-term plan to create value for Pan American’s shareholders?

First and foremost, we want to execute a best-in-class exploration program to validate our geological hypothesis at Horizon, and our goal is to develop a 43-101 compliant resource that is as good if not better than our neighbors American Battery Technology (15.8 million tonnes inferred lithium carbonate equivalent). Initial drill results show incredible potential, with significant lithium grades at multiple horizons that contain high grades and thick zones of lithium mineralization on our property. In tandem with our exploration efforts, we are excited about opportunities for technology implementation and partnerships. As part of our strategy, we are looking at new technologies constantly and have built a technical advisory team to guide this effort. We want to do things better, faster, and more sustainably. Our diversified asset base presents an opportunity to move one asset to production more quickly and use subsequent profits to support the exploration of our longer-term projects.

How would Horizon play in feeding the lithium market?

According to the 2022 analysis from Benchmark Mineral Intelligence, annual production of 11.2 million t of LCE will be needed by 2050 – a 20 times increase compared to today. Benchmark anticipates that by 2040, all the lithium mined last year will only meet one month’s demand, even with the supply from recycled batteries. The reality is that it takes years for a lithium mine to come into production. The Inflation Reduction Act (IRA) is acting as a major catalyst. Starting in 2024, 40% of critical minerals found in EV batteries will have to be extracted or processed in the United States or countries with which it has free trade agreements. This number increases to 100% by the end of 2028. Horizon is positioned to contribute directly to homeland production in the United States.

With the Department of Energy (DOE) grant to ABTC’s Tonopah Flats project in September, what is your outlook for the funding of future lithium projects?

Our outlook on North American government support for lithium projects and critical minerals is at an all-time high. The DOE Bipartisan Infrastructure Law: Battery Materials Processing and Battery Manufacturing grant was valued at US$2.8 billion and supported several lithium projects. We are also starting to see similar support in Canada. To meet carbon reduction goals, it is critical to support new technologies such as direct lithium extraction and claystone processing optimization. Not only are critical minerals being evaluated from an energy perspective, it is also a top priority for defense amongst Western allies, including the Department of Defense in America.

Can Tonopah become the main lithium hub in the US?

All the indicators are there for Tonopah to be a successful US lithium hub. We are one of the best places for access to the market, access to existing infrastructure, access partnerships, and access to commercial off-take customers. For instance, Reno, the home of Tesla’s gigafactory, is only 227.7 miles from Tonopah, NV. The opportunity of developing homegrown assets and getting them to market efficiently will set Nevada above all jurisdictions. In fact, Nevada recently regained the number #1 jurisdiction in the world for mining according to the Fraser Institute.

What is going to make Pan American a great story for investors in the coming months?

Our initial drill results have delivered fantastic results and we believe more great results are coming. With eleven of twenty-two drill holes complete, we are on the path to defining a resource at the Horizon Lithium Project by the end of the year. We’ve seen industry peers in the Tonopah region create tremendous value after announcing a resource and we are excited to deliver for our shareholders. Proving commercially viable lithium mineralization has the potential for tremendous value generation for investors.

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