Pan American Silver to complete Morococha silver mine acquisition in August (all amounts in $US unless otherwise stated) VANCOUVER, July 23 /PRNewswire-FirstCall/ -- Pan American Silver Corp. (PAAS: NASDAQ; PAA: TSX) is pleased to announce it has launched its $36.7 million cash offer, through the Peru Stock Exchange, to purchase the voting shares of Compania Minera Argentum S.A. ("Argentum"), which owns the Morococha silver mine, as announced in February. Pan American has a lock-up agreement to acquire 92% of Argentum's voting shares. The public offering must remain open for 20 business days, after which the purchase of Morococha will be completed. In addition, Pan American has acquired 100% of Compania Minera Natividad ("Natividad") for $1.5 million, which holds numerous adjacent mineral concessions. Pan American intends to combine Natividad with Argentum upon completion of the public offering, which, assuming 100% of the common shares of Argentum are tendered to Pan American, will give the Company an 88% interest in the Morococha silver mine. According to Pan American's President and CEO, Geoff Burns, "Morococha is an excellent addition to our Peruvian assets and will provide immediate silver production, positive cash flow and profits for the Company. Coupled with the mine's outstanding exploration potential, we see Morococha as a cornerstone of Pan American's operations for many years to come." For Further Information Contact: Brenda Radies, VP Corporate Relations (604) 684-1175 http://www.panamericansilver.com/ CAUTIONARY NOTE Some of the statements in this news release are forward-looking statements and as such are based on an assumed set of economic conditions and courses of action. These include estimates of future production levels, expectations regarding mine production costs, expected trends in mineral prices and statements that describe Pan American's future plans, objectives or goals. There is a significant risk that actual results will vary, perhaps materially, from results projected depending on such factors as changes in general economic conditions and financial markets, changes in prices for silver and other metals, technological and operational hazards in Pan American's mining and mine development activities, uncertainties inherent in the calculation of mineral reserves, mineral resources and metal recoveries, the timing and availability of financing, governmental and other approvals, political unrest or instability in countries where Pan American is active, labor relations and other risk factors listed from time to time in Pan American's Form 40-F. DATASOURCE: Pan American Silver Corp. CONTACT: Brenda Radies, VP Corporate Relations, (604) 684-1175, http://www.panamericansilver.com/

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