The non-dilutive funds will directly support exploration initiatives at the Big Mack Lithium Project     

Also Announces Completion of Debt Settlement

CALGARY, Alberta, Oct. 16, 2024 (GLOBE NEWSWIRE) -- Pan American Energy Corp. (CSE: PNRG | OTCQB: PAANF | FRA: SS60) ("Pan American” or the "Company") is pleased to announce the Company has been awarded a grant of up to $200,000 under the Ontario Junior Exploration Program (“OJEP”) from the Government of Ontario to support ongoing exploration efforts at the Big Mack Lithium Project (the “Project” or “Big Mack”).

Pursuant to the OJEP grant, Pan American will receive up to $200,000 to cover 50% of eligible exploration costs on the Project. Pan American was selected for the grant under OJEP’s critical minerals stream, which focuses on promoting exploration on critical mineral projects in Ontario.

“We are thrilled to receive this non-dilutive funding from the Ontario government,” said Paul Gorman, CEO of Pan American. “OJEP is a highly competitive program and accessing up to $200,000 will allow us to offset the costs associated with our completed geomicrobiology work with the University of Regina and to partially fund future exploration activities on the Project.”

To support junior mining companies, Ontario is investing $13 million in 2024-2025 into OJEP. This includes $4 million for the critical minerals funding stream. The OJEP funding is conditional upon confirming the program’s eligibility requirements are met, execution of a funding agreement, and adherence to its terms and conditions.

More information about the Ontario Junior Exploration Program can be found at https://www.ontario.ca/page/ontario-junior-exploration-program.

The Company also announces, further to its news release dated September 10, 2024, that it has completed the settlement of outstanding debt owed to Ocean Wall Limited (“OWL”) in an amount of C$30,000 through the issuance of 600,000 common shares of the Company (at a deemed price of C$0.05 per common share) to OWL. The common shares issued to OWL in connection with the debt settlement are subject to a statutory four month and one day hold period which expires on January 18, 2025.

Nicky Grant, a director of the Company, is the Head of Corporate Advisory for OWL. As a result, the debt settlement may be considered to be a “related party transaction” as defined under Multilateral Instrument 61-101 – Protection of Minority Securityholders in Special Transactions (“MI 61-101”). The Company is relying on the exemptions from the formal valuation and minority approval requirements found in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the transaction is not more than 25% of the Company’s market capitalization. The debt settlement was unanimously approved by the independent directors of the Company (with Ms. Grant abstaining) and the negotiation of the debt settlement was undertaken by management of Pan American and OWL, without input or participation from Ms. Grant. In connection with the debt settlement, the Company and OWL entered into a debt settlement agreement on customary terms and conditions. The Company did not file a material change report in respect of the debt settlement at least 21 days before the closing of the debt settlement in order for the Company to conclude the debt settlement as soon as reasonably practicable.