Pan American Lithium Corp. Announces $1,000,000 Non-brokered Private Placement

Pan American Lithium Corp. (the “Company”) has arranged a non-brokered private placement for the sale of up to 6,666,667 million units of the Company (the “Units”), at C$0.15 per Unit, to raise up to C$1,000,000.05 (the “Offering”). The size of the Offering is subject to change as the Company’s board of directors may determine. Each Unit will consist of one common share and one non-transferrable common share purchase warrant, with each such warrant exercisable at C$0.25 for a period of two years from the date of closing. Proceeds from the Offering will be used for scoping and pre-feasibility studies at the Laguna Verde project in Chile, and for working capital purposes. The Company anticipates that the closing of this Offering will occur on or before August 31, 2010.

In connection with the Offering, the Company may pay eligible finders who introduce subscribers to the Company a finder's fee of ten percent (10%) of the gross proceeds raised by such eligible finders in the Offering in cash, and issue such number of common share purchase warrants to the eligible finders equal to ten percent (10%) of the Units purchased by subscribers introduced by such eligible finders. The common share purchase warrants to be issued to such eligible finders will have the same exercise price and expiry date as the common share purchase warrant that form part of the Unit.

On Behalf of the Board,

PAN AMERICAN LITHIUM CORP.

/s/ Andrew Brodkey

Andrew A. Brodkey

President and CEO

For further information contact:

David K. Waldman / John J. Quirk 

Crescendo Communications, LLC

Tel: (212) 671-1020

Email: panam@crescendo-ir.com

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 statements that: (i) proceeds from the Offering will be used for scoping and pre-feasibility studies at the Laguna Verde project in Chile, and for working capital purposes; (ii) the Company anticipates that the closing of this Offering will occur on or before August 31, 2010; and (iii) the Company may pay eligible finders who introduce subscribers to the Company a finder's fee of ten percent (10%) of the gross proceeds raised by such eligible finders in the Offering in cash, and issue such number of common share purchase warrants to the eligible finders equal to ten percent (10%) of the Units purchased by subscribers introduced by such eligible finders. 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 close the Offering for any reason; (ii) adverse market conditions; (iii) a decrease in demand for and price of lithium; and (iv) 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.