PL First Potash Corporation

Pan American Lithium Corp. (TSX-V:PL) (OTCBB:PALTF) ("Pan American" or the "Company"), www.panamericanlithium.com, today announces it has terminated its consulting agreement with Lexxus Capital, Inc. ("Lexxus"), that was previously announced on May 3, 2012, in which Lexxus was to assist the Company as a corporate finance and strategic planning advisor. The Company has, under the agreement, terminated the consulting agreement before any shares were issued.

About Pan American:

Pan American has rights in ten lithium-bearing salars in Chile's Atacama Region III covering cumulatively more than 19,000 hectares, including the Laguna Verde surface brine lake.

On Behalf of the Board

PAN AMERICAN LITHIUM CORP.

/s/ Andrew Brodkey

Andrew A. Brodkey

President and CEO

Tel: (520) 623-3090

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.

CONTACT: Jodi Henderson, Corporate Secretary
         1-520-989-0032
         Email: jhenderson@kriyah.com