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Pan American Lithium Corp. news release



Pan American Lithium Corp.
Suite 110, 3040 N.

Campbell Avenue
Tucson, Arizona USA 85719

News Release
February 10, 2010 TSX.V SYMBOL - PL

Pan American Lithium Corp.

Updates Status of Letter of Intent with POSCO for Potential Private Placement

Pan American Lithium Corp.

("PAL") is pleased to provide the following update relating to a potential private placement by POSCO in PAL (the "Investment").

On January 13, 2010, the Company announced that it had entered into a non-binding letter of Intent ("LOI") with POSCO, whereby an amount of up to CDN$5 million may be invested by POSCO in the Company.

The LOI provided that POSCO will undertake and complete technical due diligence on the Company and its projects within 30 days from January 4, 2010 (the "Effective Date"), and complete all other due diligence and obtain management approvals for the Investment within 60 days of the Effective Date.

POSCO is currently engaged in and has not yet completed its technical due diligence on the Investment.

Accordingly, POSCO and PAL have agreed to extend the date to April 15, 2010, by which all legal and technical due diligence by POSCO will be completed, and all management and other approvals will be secured by POSCO should it determine to make the Investment.

All other terms of the LOI remain unchanged.

Conditions of Closing

Closing of the Investment is subject to certain conditions including: (a) completion of POSCO"s satisfactory due diligence review of PAL and its projects; (b) receipt of all necessary regulatory and exchange approvals; and (c) receipt of all necessary internal, management and Board approvals.

About POSCO

POSCO is a privately held Korean conglomerate, first established in 1967, 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 $CDN4 billion.
Resignation of Director
The Company also announces that Chris Dyakowski resigned as a director of the Company on January 25, 2010.

The Company is seeking a qualified replacement to fill the vacancy on the board created by the resignation of Mr.

Dyakowski.

The Company thanks him for his efforts and wishes him well on his future endeavours.
On Behalf of the Board,

PAN AMERICAN LITHIUM CORP.


/s/ Andrew A Brodkey
Andrew A.

Brodkey
President and CEO
For further information contact:
Tel: 520-623-3090
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 statement that the private placement may occur.

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 the (i) satisfactory due diligence of PAL and its properties by POSCO; (ii) inability to obtain Exchange approval, internal approval, and close the financing for any reason; (iii) adverse market conditions; (iv) a decrease in demand for and price of lithium; and (v) 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.
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.
THIS NEWS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES IN THE UNITED STATES.

THE SECURITIES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S.

SECURITIES ACT"), OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO "U.S.

PERSONS", AS SUCH TERM IS DEFINED IN REGULATION S UNDER THE U.S.

SECURITIES ACT, UNLESS AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE.

 




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