Pan American Lithium Corp. CEO Discusses South Korean POSCO Agreement on CDTV.net Radio Show

TUCSON, Ariz., Sept. 26, 2011 (GLOBE NEWSWIRE) -- Pan American Lithium Corp. (TSX-V:PL) (OTCBB/OTCQB:PALTF) CEO Andrew Brodkey confirmed in a CDTV.net financial radio news interview (http://www.cdtv.net/users/content/lithium-ceo-andrew-brodkey-pan-american-lithium) that the company's recently announced partnership with the Pohang Iron and Steel Company (also known as POSCO) PKX, one of the world's largest steel manufacturers, has entered into an agreement to potentially develop a Chile-based lithium pilot facility. POSCO now has a 19.9% equity position in Pan American.

According to Mr. Brodkey, Pan American expects the entry into the agreement with POSCO will accelerate the Chile lithium pilot facility project which is expected to allow for improved lithium recovery, selection, and production. The company's goal is to develop and construct a pilot facility at one of its eleven Chile lithium locations.

Other key highlights from the CDTV.net interview include the following:

• Brine Lithium mining is a faster process than hard rock mining, taking 3-4 years from inception to production, versus hard rock which can take 7-10 years.
• Hard rock mining costs $5,000 per metric ton on average, whereas brine mining's cost can be half the hard rock average or less.
• The market demand is currently 100,000 tons per annum of lithium carbonate and expected to grow to a demand of 300,000 tons by 2020.¹

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.

About POSCO

POSCO is a publicly traded Korean conglomerate, first established in 1968, 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 CDN$4 billion.

On Behalf of the Board,

PAN AMERICAN LITHIUM CORP.
/s/ Andrew Brodkey
Andrew A. Brodkey
President and CEO

¹Astle, Tom (2009). Lithium-Hype or Substance, Dundee Capital Markets, Investment Research, Lithium, 26.

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 statements that: (i) Pan American expects that the entry into the agreement will accelerate the Chilean lithium pilot facility; (ii) the facility is expected to allow for improved lithium recovery, selection and production; and (iii) Pan American's goal is to develop and construct a pilot facility at one of its eleven Chilean lithium locations. 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: (i) a decision from either Pan American and/or POSCO not to proceed with the pilot plant for any reason; (ii) adverse market conditions; (iii) a decrease in demand for and price of lithium; and (iv) general uncertainties with respect to mineral exploration and the financing of such projects 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. Except as required by law, the Company does not intend to update these forward-looking statements.

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.