Pan American Lithium Corp. Announces Amendment of Chilean Agreements and Extension of Closing Dates

Pan American Lithium Corp. (the "

Company

") announces that it has entered into three agreements dated December 21, 2011 with Sociedad Gareste Limitada, a privately held Chilean corporation ("

Gareste

"), whereby the parties agreed to extend the closing dates set out in three agreements dated February 14, 2011 (the "

Agreements

") from December 31, 2011 to June 30, 2012.

The Agreements with Gareste include a definitive purchase agreement, whereby the Company has agreed to acquire mineral concessions totaling 4,200 hectares and other rights at the Salar de Pedernales, and two binding letters of intent for earn-in/joint venture agreements at both the Salar de Maricunga and the Llanta aquifer project (for concessions totaling 2,400 hectares along with other rights). Please see the Company's news release dated February 14, 2011 for additional information on the Agreements.

About Pan American:

In total, the Company has rights in eleven lithium and potash-bearing brine projects in Chile's Atacama Region III covering cumulatively more than 20,000 hectares. The Company also has an option to acquire an indirect interest in the Cierro Prieto geothermal lithium brine project in Baja California Norte, Mexico. The Laguna Verde surface brine lake project is the most advanced of the Company's portfolio of 11 lithium and potassium bearing brines projects in Chile.

On Behalf of the Board

PAN AMERICAN LITHIUM CORP.

/s/ Andrew Brodkey

Andrew A. Brodkey

President and CEO Tel: [phone]

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.

CONTACT: Jodi Henderson
         Corporate Secretary
         Tel: [phone]
         [e-mail]