Disclaimer / Forward Looking StatementsThis presentation is prepared by Pan American Lithium Corp. (“ the Company”), and is solely for the purpose of corporate comm communication andgeneral reference only. The presentation is not intended as an offer to sell or to solicit an offer to buy or form any basis of investment decision forany class of securities of the Company in any jurisdiction. All such information should not be used or relied on without prof professional advice.The presentation is a brief summary in nature and does not purport to be a complete description of the Company, its business, its current orhistorical operation results or its future business prospects.The presentation contains certain forward looking statements with respect to the financial conditions, results, operations an business of the andCompany. The statements and forecasts involve risk and uncertainly because they relate to events and depend on circumstances that occur in thefuture. There are a number of factors that could cause actual results or developments to differ materially from those express or implied by theseforward looking statements and forecasts.This presentation is provided without any warranty or representation of any kind, either express or implied. The Company spec specifically disclaims allresponsibility in respect of any use or reliance of any information, whether financial or otherwise, contained in this presen presentation.This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Sectio 21E of the looking SectionSecurities Exchange Act of 1934, including statements regarding the business of the Company and its industry generally, busin strategy and businessprospects. These statements are based on our estimates, projections, beliefs, and assumptions and are not guarantees of futur performance. We futurecaution that these statements are subject to various known and unknown risks and that actual results may differ materially fr from those express inforward-looking statements. The Company undertakes no duty to update these forward looking forward-looking statements except as required by law.
Company Overview Pan American Lithium Corp. (“PALC”) is a publicly traded Junior Mining company that is engaged in the business of acquiring, exploring, and evaluating lithium properties in Latin America. A world-class portfolio of properties – brine salars (not hard rock) in Chile – Rights in 11 salars in Atacama Region III, Chile (containing Lithium / Potassium / other metals) – All projects are brine salars – lowest quartile of global operating costs NI 43-101 resource estimate for first project (surface brine lake) 101 – Average Lithium (Li) grade of 212.40 mg/liter; 512,960 metric tons of lithium carbonate equivalent – Average Potassium (K) grade of 4,881mg/liter; 4,223,134 metric tons of potash chloride equivalent Trades in the U.S. (OTCBB:PALTF), (OTCQB:PALTF) and in Canada (TSXV:PL) Corporate headquarters in Tucson, Arizona
Investor Highlights 1 • Experienced management team 2 • PALC is highly undervalued 3 • Lithium – a metal with an exciting future 4 • World-class portfolio of properties in development class 5 • Significant valuation inflection points ahead
Management Team Andrew Brodkey – CEO and President Former Managing Director of International Mining & Metals Group of CB Richard Ellis, Inc. (NYSE:CBG); responsible for over $100M in asset purchase/divestiture transactions. Served as VP and General Counsel of Magma Copper Company, (NYSE:MCU) acquired by BHP Billiton Ltd. (ASX:BHP) for $3.5 billion in 1996 merger. Became VP of Business Development for one of their divisions, BHP Copper where he was responsible for managing company’s portfolio of mining assets, both new mining acquisitions and asset divestitures. Former Attorney specializing in natural resource and environmental law at Denver Denver-based law firm of Gorsuch, Kirgis, Campbell, Walker and Grover. B.S. in Mining Engineering (with distinction) from University of Arizona; J.D. (cum laude) from Creighton University. Dr. David Hackman – Vice President of Exploration Geologist with 35+ years of experience specializing in leachable metal deposits. Former geologist for Exxon Mobil Corporation (NYSE:XOM) and Alcoa, Inc. (NYSE:AA). Served as VP of Exploration for Mercator Minerals Ltd. (TSX:ML), current Market Cap. of $500M. Former VP of Exploration for AZCO Mining, where he helped to discover the Piedras Verdes Property (copper in Mexico) later sold to Phelps Dodge Corp. Deposit is in production via Frontera Copper Corp. (TSX:FCC).
Management Team Dr. Ron Richman - Member of Board of Directors, Pan American Lithium • Co-Director of the University of Arizona’s Arid Lands Sustainable Bio Director Bio-Energy Institute • Chairman of the Board for the Innovative Technology Development Center ( a 501c3 devoted to sustainable economic development in Southern Arizona • Member of the Board of Directors, Titan Iron Corp • Retired IBM executive where he managed a variety of groups including, business development, strategy, small and medium business development, as well as various consulting groups. • Ph.D. in chemistry and an MBA Dr. David Terry - Member of Board of Directors, Pan American Lithium • 20 years experience in the resource sector with a focus on exploration for wide spectrum of precious and base metal deposits in North and South • Ph.D. in geology from University of Western Ontario • Specializes in public company management and international projects • Held a position with the British Columbia Ministry of Energy and Mines • Expertise in implementation of exploration programs Mr. Hyundae Kim - Member of Board of Directors, Pan American Lithium • POSCO Director nominee • Serves as the Director in the Growth and Investment Division for POSCO • Served in the Korean Central Government’s Ministry of Commerce, Industry and Energy from 1994 to 2006 • From 2006 to 2009 worked in the private sector as Managing Director for New Investment Development and Strategy at ILJIN materials, a Korean B2B company
PALTF is Undervalued – Peer Comparison (as of January 20, 2012)Pan American Lithium Corp. (OTCBB:PALTF) Li3 Energy, Inc. (OTCBB:LIEG)Market Capitalization: $4.5M Market Capitalization: $23M Multiples of PALTF 5xChile Asset Concentration Diversified amongst 11 properties Chile Asset Concentration Only 1 propertyNI 43-101 Resource 500,000 tonnes NI 43-101 Resource None so farHectares of Chilean 20,000 Hectares of Chilean Mineral Rights 11,000Mineral RightsOwnership Full ownership in 8 salars / partial Ownership JV/partial ownership in ownership in 3 others one project at one salarStrategic Offtake Partner POSCO (Korean multi-national) Strategic Offtake Partner POSCOProperty Snapshot: Salar de Maricunga (15,000 Property Snapshot: Salar de Maricunga hectares with >20 separate owners) (15,000 hectares with >20 separate owners)PALTF owns 1,220 hectares in the Maricunga Salar. It owns LIEG has rights to a joint venture, 60% interest in 1,400them though an 80/20 joint venture Most importantly, it owns hectares of mineral concessions in Maricunga and has recentlyall of the available 15,000 hectares of water rights at this salar signed a letter of intent to buy another 1,500 hectares in theneeded for a project. salar. This is LIEG’s flagship property.
Requirements to Mitigate Investment Risk Properties have secure mineral and water rights Production targeted at less than $2500 cash cost per tonne of Li2CO3— Lithium brine salars Minimal potential legal exposure (multiple Li concession holders or ‘fragmented’ ownership at a salar cause complications) Multiple properties to spread risk and reward Competent, experienced management team, Board and technical advisors Projects sited within stable and pro-mining jurisdictions mining jurisdictions—Chile and Mexico Minimal transportation costs to west coast South American for export to Asia Time to startup of production and delivery to market is reasonable Strategic investor/offtake partner (POSCO) acquired19.9% stake in Pan (POSCO)— American in August, 2011, plus right to build pilot facility Only one “Junior” Company meets all these requirements in Chile
Lithium Industry Overview - Demand Drivers Lithium demand fueled by growth in battery industry and use in automobiles, electronics, etc. Overall demand growing 5% per annum (with battery demand increasing over 25% annually) – Total lithium carbonate demand was ~45,000 metric tons (1997) – Rising to ~110,000 tonnes (2009) – Predicted to increase further (>200,000 metric tons by 2015 – 2020) As lithium battery technology matures, its applications in mobile electronics products have achieved great success. – In the future, lithium battery and nickel-metal hybrid battery will compete for the electric metal vehicle power battery market. On average, each electric car needs 10kg lithium carbonate.
Lithium Industry Overview – Lithium Price Trends Demand growth of lithium has been solid for over a decade – and will continue. In the mid-to-long term, once the world’s energy power batteries are in large long large-scale application, lithium market prospects will be extremely favorable. – The current price for lithium carbonate is $5,120/ton; and the average price on longlong-term contracts for the last 3 years has been in excess of $5,000/ton of lithium carbonate. Lithium Carbonate Unit Value ($USD/ton) $7,500 $6,500 $5,500 $4,500 $3,500 $2,500 $1,500 $500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E 2011E 2012E 2013E 2014E 2015E Source: Roskill
Chilean Salar Overview – 11 sites 11 10 PA AMERICA PROJECT LOCATIO S 1 Salar de Piedra Parada 2 Laguna Brava 3 Lagunas del Jilguero 4 La Laguna 5 Rio de la Sal/Pedernales 6 Laguna Verde 7 Salar de Wheelwright 8 Laguna Escondida 9 Salar Ignorado 10 Salar de Maricunga 11 Llanta Project
Significant Benefits to being in Chile Chile is one of the best mining jurisdictions in the world Worlds No. 1 copper producer Center-right government of Sebastian Piñera with pro right pro-business credentials Low political/regulatory and permitting risk for mining projects Mining represents 23.5% of GDP in Chile in 2010 Almost 200 year history of support for mining industry Political, economic and social stability Independent Judiciary, Parliament, Government Mining project finance, tax, royalty, capital repatriation and other corporate, fiscal and financial advantages over other South American countries Significantly Lower Risk vs. other South American countries Argentina: Soaring inflation, debt crisis, shortages of natural gas, electricity and labor, demands for higher wages, and inability to project finance Bolivia: Recent threats by President Evo Morales to “nationalize” mining concessions; announcement that Bolivia will develop Li by itself at huge Salar de Uyuni Venezuela: President Hugo Chavez caused panic in the mining industry after he nationalized the countrys gold mines in August of 2011
Overview of Lithium Projects The management team of PALC has carefully selected properties with strong reserve potential. The rights in the Company’s 11 lithium projects cover in excess of 20,000 hectares. Nine of these properties are accessible by passenger car and are adjacent to serviceable roads. All of the key projects have both mineral rights and water rightsProject Name Mineral Rights Water Next Steps Inferred Lithium Inferred Potassium / Hectares Rights (tons) / Grade (tons) / GradeSTAGE I Projects Scoping & Laguna Verde 512,960 - 213 mg/l 4,223,134 - 4,881 mg/l 3,400 Yes Pre-Feasibility Study Feasibility Rio de la Sal/Pederales 5,100 Yes NI-43101 Resource Study 43101 TBD Llanta Project 3,000 Yes NI-43101 Resource Study 43101 140 mg/l 1575 mg/l Laguna Brava 4,400 Yes NI-43101 Resource Study 43101 TBDStage II Projects Salar de Maricunga 1,220 Yes Trenching Study TBD Salar Piedra Parada 3,600 Yes Trenching Study TBD Lagunas Jilgueros 1,100 Trenching Study TBDStage III Projects La Laguna 400 TBD Laguna Escondida 900 TBD Salar Ignorado 600 TBD Salar de Wheelwright 1,200 TBD
Major Projects – Laguna Verde The Laguna Verde Project comprises 13 mineral exploration claims, totaling 3,400 hectares, plus senior water exploration rights applications. Property is 4 hours from Copiapo (the capital of Atacama Region III) – northeasterly and easterly 161 kilometers to the border station at Maricunga, then south and east 80 kilometers to Laguna Verde. Young volcanic cones and vents surround the entire basin, and in most instances constitute the divides separating the basin from other valleys and nearby salars. – Elevations surrounding Laguna Verde reach 6,800 meters and more. The lake is fed by active hot springs, and is thought to be of geothermal origin. March 2010 – undertook work program to determine the depth and volume of the surface lake. April 2010 - Initiated a comprehensive lake brine sampling program. June 2010 – filed a NI 43-101 technical report for an inferred 101 resource estimate – Average Li grade of 212.40 mg/liter; 512,960 metric tons of lithium carbonate equivalent – Average potassium (K) grade of 4,881mg/liter; 4,223,134 metric tons of potassium chloride equivalent Next Phases: Scoping & Pre-feasibility Study feasibility
Major Projects – Rio de Sal / Pedernales The Rio de Sal / Pedernales Project comprises of 15 exploration concessions totaling 5,100 hectares, plus senior water rights applications Located 60 kilometers north of Salar de Maricunga, roughly 4 hours from Copiapo. The Salar de Pedernales is the second-largest salar in Chile. largest PALC is the only Lithium company with concessions at this salar November 2009 – Initial exploration yielded Li values as high as 391 mg/liter. November of 2010 - began a trenching exploration program on the combined Pedernales property position. Li grades as high as 1,070 ppm, and K grades over 8,000 ppm from trenching work. Exploration drilling program in design for Q4- -2011 Next Phase: NI-43101 Resource Study
Major Projects – Llanta The Llanta Project comprises of 10 exploration concessions totaling 3,000 hectares plus senior water rights applications. Located close to the city of Diego del Amagro, has road access, power and low elevation. Property Is 2 hours by car from Copiapo. The Llanta project is a closed basin aquifer that is roughly 40 km downstream from the Salar de Pedernales and in geological theory contains brines that originated from that salar. – In addition, the Rio de la Sal, which leaves from the Salar de Pedernales, flows into the valley comprising the Llanta project and disappears subsurface at these concessions. November 2009 – Initial sampling yielded Li values as high as 391 mg/liter in Rio de Sal. 2011 Exploration drilling program and geophysical surveys - 4 drillholes, 342 meters total - Samples analyzed at 140 mg/l Li and 1575 mg/l K - Montgomery & Associates recommended follow follow-up drill programs and pump testing. Next Phase: NI-43101 Resource Study
Major Projects – Laguna Brava The Laguna Brava Project comprises 16 mineral exploration claims, totaling 4,400 hectares. Situated near Maricunga, a noted mining district, in the same general region of the central Andes, near the Argentine border - accessible via paved International Highway C31 from Copiapo (travel time is 4 hours); project is accessible via 2 wheel drive vehicles. Situated in a region of young and active volcanoes and obvious geothermal activity. Entire catchment area is dominated by Cenozoic dacite and andesite volcanic rocks, many of which have been altered by hydrothermal fluids associated with volcanism. The lake is fed by active hot springs, which appears to be the principal source of lithium, potassium, and other metallic salts. In April 2010, PALC initiated a comprehensive lake brine sampling program at the shallow Laguna Brava surface lake. Strong Li grades in shallow surface lake of 310 ppm. Exploration program anticipated for 2012. Next Phase: NI-43101 Resource Study
What’s Next? COMPANY OPERATIONS Opportunities to expand footprint – PALC has both water rights/mining rights at its major projects and is constantly offered other projects and claims in Chile Additional exploration to prove out NI 43-101 resource number on 3 major projects 101 Moving forward with POSCO on permitting and construction of pilot plant for lithium and potassium Plans for discussions with off-take partners or marketing arrangements for Potash take CAPITAL MARKETS Robust Investor Relations program has commenced
Capitalization Table (as of March 15, 2012) Capitalization Table Common Stock Common Shares % of Outstanding Insider Holders Harold Gardner (Owner of Gareste Limitada) (1) 2,088,482 3.8% Eduardo Estefan Marco (Owner of Gareste Limitada) 1,653,600 3.0% Andrew Brodkey (CEO & President) 2,023,000 3.7% Other Members of Management Team 700,000 1.3% Institutional Holders Canaccord Financial 5,970,036 10.9% POSCO 10,522,090 19.1% Public Float 32,046,984 58.2% TOTAL 55,003,592 100.0% Warrants Warrants Outstanding (Weighted Average Exercise Price of $0.30) 10,306,773 Options Options Outstanding (Weighted Average Exercise Price of $0.33) 4,775,000 Notes: (1) Gareste Limitada is Pan American Lithium’s Chilean Operation Company
In The News • Pan American Lithium is Highlighted in NEWSMAX Analysis of Latin American Lithium - October 2011 • Pan American Lithium Corp. CEO Interviewed by CDTV - September 2011 • Pan American Lithium Corp. CEO Andrew Brodkey Interviewed by CEOCFO – July 2011 • Pan American Lithium Corp. Featured as Stock Pick by KonLin Investment Letter – April 2010 • Pan American Lithium Corp. CEO Andrew Brodkey Interviewed by CEOcast – April 2010 • Pan American Lithium CEO Featured in Wall Street Transcript Interview – March 2011 Please visit www.panamericanlithium.com to read these articles in full.
Investor Presentation – Spring 2012U.S. Listing: (OTCQB:PALTF), (OTCBB:PALTF)Canadian Listing: (TSXV:PL)Please Contact:Andrew Brodkey, CEO & PresidentPan American Lithium Corp.Tel: (520) 989-0031Email: firstname.lastname@example.orgCorporate Website: (www.panamericanlithium.com)