Mr. Andrew Brodkey reports

PAN AMERICAN LITHIUM ANNOUNCES NON-BROKERED PRIVATE PLACEMENT

Pan American Lithium Corp. has entered into a non-brokered private placement for the sale of 500,000 common shares of the company at seven cents per share to raise $35,000. The proceeds will be used for working capital purposes.

The company has provided Posco Canada Ltd. with notice of this private placement pursuant to Posco's pre-emptive right contained in the subscription agreement dated Aug. 23, 2011. Posco may exercise this right to acquire such number of shares as to maintain its current percentage of the issued and outstanding shares until March 24, 2012. If Posco exercises this right, the company will issue a subsequent news release announcing the placement by Posco.