Pan American Lithium Corp. Announces Closing of Non-Brokered Private Placement

Pan American Lithium Corp. (TSX-V:PL) (OTCQB:PALTF) (the "

Company

") is pleased to announce in furtherance to its news release dated March 15, 2012, it has completed a non-brokered private placement (the "

Offering

") of 500,000 common shares of the Company (each, a "

Share

") at $0.07 per Share. The proceeds will be used for working capital purposes. All of the Shares issued by the Company in connection with the Offering are subject to a four-month hold period expiring on July 29, 2012. 

In addition, the Company announces that it has terminated its consulting agreement with Level 3 Capital Management Inc. ("Level 3"), in which Level 3 assisted the Company as a corporate finance and strategic planning advisor. 

On Behalf of the Board,

PAN AMERICAN LITHIUM CORP.

"Andrew Brodkey" Andrew A. Brodkey President and CEO 520.989.0031

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]