Pan American Lithium is Highlighted in NEWSMAX Analysis of Latin American Lithium

TUCSON, Ariz., Oct. 4, 2011 (GLOBE NEWSWIRE) -- Pan American Lithium Corp. (TSX-V:PL) PALTF PALTF has announced that the company was highlighted in an analysis entitled "Scrambling for Latin Lithium" by NEWSMAX, an independent online news site with an estimated 4 million monthly viewership. Langley Intelligence Group is NEWSMAX's foreign news analysis service. 

The article is available at http://www.langleyintelligencegroup.com/Manage/ArticleAnalysis/Chile-Bolivia-China-Iran--Tehran-and-Beijing-Seek-.aspx (A free login and password can be used to read the article.)

The article cited Chile's friendly business practices and pointed out that the Pan American Lithium recently announced a partnership with the Pohang Iron and Steel Company (also known as POSCO) PKX, one of the world's largest steel manufacturers, to potentially develop a Chile-based lithium pilot facility.

POSCO now has a 19.9% equity position in Pan American. Pan American's goal is to develop and construct a pilot facility at one of its eleven Chile lithium locations. Pan American CEO Andrew Brodkey noted that Chile's low political risk and climate, coupled with its legal, environmental, and investment laws and regulations, combine to make the country the premier nation for current and future lithium production.

The news analysis said that the policies of Chile have resulted in bilateral trade with the U.S., and pointed out that the U.S. Geological Survey (USGS) estimates that Chile provides 61% of all lithium exports to the U.S.

Lithium carbonate is most often extracted from brines in salt lakes, also known as salars, which are common in South America. The USGS estimates that the total amount of lithium extracted from Chile may eventually reach 3 million tons.

Lithium is often used in coolants for heat transfer applications. It is attractive in the production of batteries due to its unusually high storage capacity, making it the obvious choice for laptop computers, hand held electronic devices and electric vehicles. 

Overall demand for lithium is estimated to grow approximately 5% per year with battery demand increasing over 25% annually. Total lithium carbonate demand, which was estimated to be approximately 85,000 metric tons per year in 2007, is predicted to increase to over 200,000 metric tons per year by 2015.

The extraction and production of lithium comes from three primary sources, with brine solutions located under salt beds, such as those that are the target of Pan American's efforts dominating production, as they represent the lowest cost extraction.

On Behalf of the Board,

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.