Etna Resources Inc. (to be renamed Pan American Lithium Corp.) Announces Letter of Intent with POSCO for Potential Private Place

  Etna Resources Inc. ("Etna") (TSX VENTURE: ETN) is pleased to announce that it has entered into a non-binding letter of Intent ("LOI") with POSCO, whereby an amount of up to CDN$5 million may be invested by POSCO in Etna (the "Investment").

The LOI provides that POSCO will undertake and complete technical due diligence on Etna and Etna's projects within 30 days from January 4, 2010 (the "Effective Date"), and complete all other due diligence and obtain management approvals for the Investment within 60 days of the Effective Date.

Should POSCO determine to proceed, the parties will execute and deliver a subscription agreement for the Investment, within 60 days of the Effective Date, on the following terms:

--  POSCO will make an initial payment of CDN$1 million on signing of the
    subscription agreement
--  POSCO will make the remaining payment of CDN$4 million at closing of the
    subscription agreement
--  POSCO will receive Etna shares at a price of CDN$.50 per share, or such
    greater price if required by the policies of the TSX Venture Exchange
--  for each share purchased, POSCO will receive a 1/2 warrant to purchase
    Etna shares at a price of CDN$1.00 per share for 2 years; the warrants
    will have a forced conversion feature whereby POSCO will be obligated to
    exercise the warrants if Etna shares trade at a price of CDN$1.40 or
    above for fifteen (15) consecutive trading days

The securities issuable to POSCO on closing will include a hold period in accordance with applicable securities laws.

Conditions of Closing

Closing of the Investment is subject to certain conditions including: (a) completion of POSCO's satisfactory due diligence review of Etna and its projects; (b) receipt of all necessary regulatory and exchange approvals; and (c) receipt of all necessary internal, management and Board approvals.

About POSCO

POSCO is a privately held Korean conglomerate, first established in 1967, with a focus on the production and sale of steel and steel products, both domestically in Korea and internationally. POSCO is the fourth largest steel producer in the world. In 2008, POSCO produced over 33 million tons of crude steel, had revenues of over CDN$28 billion and net profits of over $CDN4 billion.

On Behalf of the Board,

ETNA RESOURCES INC.

Andrew A. Brodkey, President and CEO

This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company such as the statement that the private placement may occur. There are numerous risks and uncertainties that could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information, including the (i) satisfactory due diligence of Etna and its properties by POSCO; (ii) inability to obtain Exchange approval and close the financing for any reason; (iii) adverse market conditions; (iv) a decrease in demand for and price of lithium; and (v) general uncertainties with respect to mineral exploration in general. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts: Etna Resources Inc. Andrew A. Brodkey President and CEO 520-989-0022