Pan American Lithium CEO is Interviewed by Business News Americas

TUCSON, Ariz., Oct. 26, 2011 (GLOBE NEWSWIRE) -- Pan American Lithium Corp. (TSX-V:PL) PALTF PALTF has announced that CEO Andrew Brodkey was interviewed recently by Business News Americas, a leading English-language, business news publisher covering Latin America.

In the interview, entitled, "Chile is the right place to do business", Brodkey noted that demand for lithium has increased dramatically in recent years as a result of new technologies such as lithium ion batteries which are used to power electronic devices and electric vehicles. The full text of the interview is available at http://content.stockpr.com/paltf/media/7020d72ec3c7b9f5e5259bf1d096701e.pdf and on the Pan American Lithium website www.panamericanlithium.com.

In the interview, Brodkey noted that Pan American Lithium owns 11 lithium and potash-bearing brine lake projects in Chile's northern region III where it is advancing the Laguna Verde project towards scoping, pre-feasibility and feasibility studies. Brodkey said it is estimated that Laguna Verde contains 500,000 tons of lithium carbonate equivalent, with the potential that those resources can be grown significantly.

Overall demand for lithium is estimated to be growing 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.

In addition, the interview highlighted Pan American's recent closing of a private placement with POSCO Canada (Poscan), a subsidiary of South Korean steelmaker POSCO PKX. Brodkey said the investment from POSCO of almost $1.5 million will help Pan American to produce lithium and potassium within the next four years.

The second part of the agreement gives POSCO the right to build a lithium and potassium pilot plant at one of Pan American's brine properties in Chile. Brodkey noted that Pan American believes that Chile contains the most stable mining jurisdiction in the world and that Chile is the right place to do business due to its long relationship with the mining industry, favorable regulations, and well-understood land and mineral tender and water laws.

In addition to Chile, Brodkey told Business News Americas that Pan American is continuing to explore an option to participate in a joint venture with a Mexican partner for the Cerro Prieto geothermal lithium brine project in Baja California.

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

On Behalf of the Board,

PAN AMERICAN LITHIUM CORP.
/s/ Andrew Brodkey
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. 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) inability of the Company to complete its business plan; (ii) a decrease in demand for and price of lithium or potassium; and (iii) 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. 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.