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.