Pan American Lithium Corp. Updates Status of Letter of Intent with POSCO for Potential Private Placement

Pan American Lithium Corp. ("PAL") (TSX VENTURE:PL) is pleased to provide the
following update relating to a potential private placement by POSCO in PAL (the
"Investment").


On January 13, 2010, the Company announced that it had 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 the Company. The LOI provided that
POSCO will undertake and complete technical due diligence on the Company and its
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.


POSCO is currently engaged in and has not yet completed its technical due
diligence on the Investment. Accordingly, POSCO and PAL have agreed to extend
the date to April 15, 2010, by which all legal and technical due diligence by
POSCO will be completed, and all management and other approvals will be secured
by POSCO should it determine to make the Investment.


All other terms of the LOI remain unchanged. 

Conditions of Closing 

Closing of the Investment is subject to certain conditions including: (a)
completion of POSCO's satisfactory due diligence review of PAL 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.


Resignation of Director

The Company also announces that Chris Dyakowski resigned as a director of the
Company on January 25, 2010. The Company is seeking a qualified replacement to
fill the vacancy on the board created by the resignation of Mr. Dyakowski. The
Company thanks him for his efforts and wishes him well on his future endeavours.


On Behalf of the Board,

PAN AMERICAN LITHIUM CORP. 

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 PAL and its properties by POSCO; (ii)
inability to obtain Exchange approval, internal 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.


THIS NEWS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN
OFFER TO BUY ANY OF THE SECURITIES IN THE UNITED STATES. THE SECURITIES HAVE NOT
BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933,
AS AMENDED (THE "U.S. SECURITIES ACT"), OR ANY STATE SECURITIES LAWS AND MAY NOT
BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO "U.S. PERSONS", AS SUCH TERM
IS DEFINED IN REGULATION S UNDER THE U.S. SECURITIES ACT, UNLESS AN EXEMPTION
FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE.