Pan American Silver Increases Cash Dividend By 150%

             Pan American Silver Increases Cash Dividend By 150%

PR Newswire

VANCOUVER, Feb. 20, 2013

Quarterly Dividend Increased to $0.125 per Share

(All amounts in US dollars unless otherwise stated)

VANCOUVER, Feb. 20,  2013 /PRNewswire/  - Pan American  Silver Corp.  (NASDAQ: 
PAAS) (TSX: PAA) ("Pan  American" or the "Company")  today announced that  the 
Company's Board of Directors has approved the first quarterly cash dividend of
2013 and increased the amount of the quarterly cash dividend by 150% to $0.125
per common  share, representing  dividends of  $0.50 per  common share  on  an 
annual basis  assuming  the  Board  of  Directors  approves  future  quarterly 
dividends in this amount.

Geoff Burns,  President &  CEO,  commented on  the  dividend increase;  "I  am 
extremely pleased to have our shareholders continue to participate directly in
our prosperity. This is the fourth and most significant dividend increase  we 
have delivered since announcing our first cash dividend in February 2010.  At 
the current silver price, we again expect  to generate solid net cash flow  in 
2013, and have more  than the necessary cash  reserves to fund organic  growth 
opportunities at  our La  Colorada and  Dolores mines.  In addition,  we  are 
equally  able  to  invest  in   ongoing  capital  projects  to  increase   the 
productivity of our mining  operations, fund our  exploration programs and  to 
continue to repurchase shares through our Normal Course Issuer Bid."

The cash dividend in the amount of $0.125 per common share will be distributed
on or about Monday, March 18, 2013 to holders of record of common shares as of
the close of business on Monday,  March 4, 2013. Specific distribution  dates 
and amounts of future dividends will  be determined by the Company's Board  of 
Directors on an ongoing basis.

Pan American's dividends are designated as eligible dividends for the purposes
of the Income Tax Act (Canada).

About Pan American

Pan American's mission is to be the world's pre-eminent silver producer,  with 
a  reputation  for  excellence  in  discovery,  engineering,  innovation   and 
sustainable development.  The Company  has seven  operating mines  in  Mexico, 
Peru,  Argentina  and  Bolivia,   including  the  recently  acquired   Dolores 
gold/silver mine in Chihuahua, Mexico. Pan American also owns the La Virginia
development  project  in  Sonora,  Mexico,  the  Waterloo  silver  project  in 
California, USA, as well as both the Navidad silver project and the  Calcatreu 
gold project in Argentina.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

THIS NEWS RELEASE CONTAINS "FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING  OF 
THE UNITED  STATES  PRIVATE  SECURITIES  LITIGATION REFORM  ACT  OF  1995  AND 
"FORWARD-LOOKING  INFORMATION"  WITHIN  THE  MEANING  OF  APPLICABLE  CANADIAN 
SECURITIES LEGISLATION. ALL  STATEMENTS, OTHER THAN  STATEMENTS OF  HISTORICAL 
FACT, ARE  FORWARD-LOOKING STATEMENTS.  STATEMENTS CONTAINING  FORWARD-LOOKING 
INFORMATION EXPRESS, AS AT THE DATE OF THIS NEWS RELEASE, THE COMPANY'S PLANS,
ESTIMATES, FORECASTS,  PROJECTIONS,  EXPECTATIONS,  OR BELIEFS  AS  TO  FUTURE 
EVENTS OR RESULTS. SUCH  FORWARD-LOOKING STATEMENTS AND INFORMATION  INCLUDE, 
BUT ARE NOT  LIMITED TO STATEMENTS  AS TO ANY  FUTURE DIVIDENDS;  EXPECTATIONS 
WITH RESPECT  TO FUTURE  CASH FLOWS  AND ADEQUACY  OF CASH  RESERVES; AND  THE 
COMPANY'S PLANS FOR  FUTURE CAPITAL EXPENDITURES,  EXPLORATION ACTIVITIES  AND 
GROWTH OPPORTUNITIES AT THE LA COLORADA AND DOLORES MINES.

THESE STATEMENTS REFLECT THE  COMPANY'S CURRENT VIEWS  WITH RESPECT TO  FUTURE 
EVENTS AND ARE NECESSARILY  BASED UPON A NUMBER  OF ASSUMPTIONS AND  ESTIMATES 
THAT, WHILE CONSIDERED REASONABLE  BY THE COMPANY,  ARE INHERENTLY SUBJECT  TO 
SIGNIFICANT   BUSINESS,   ECONOMIC,   COMPETITIVE,   POLITICAL   AND    SOCIAL 
UNCERTAINTIES AND CONTINGENCIES. MANY FACTORS, BOTH KNOWN AND UNKNOWN,  COULD 
CAUSE ACTUAL RESULTS, PERFORMANCE OR  ACHIEVEMENTS TO BE MATERIALLY  DIFFERENT 
FROM THE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT ARE OR MAY BE EXPRESSED  OR 
IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS CONTAINED IN THIS NEWS RELEASE  AND 
THE COMPANY HAS MADE ASSUMPTIONS AND ESTIMATES BASED ON OR RELATED TO MANY  OF 
THESE FACTORS. SUCH FACTORS INCLUDE, WITHOUT LIMITATION: FLUCTUATIONS IN SPOT
AND  FORWARD  MARKETS  FOR  SILVER,  GOLD,  BASE  METALS  AND  CERTAIN   OTHER 
COMMODITIES (SUCH AS NATURAL GAS,  FUEL OIL AND ELECTRICITY); FLUCTUATIONS  IN 
CURRENCY MARKETS (SUCH AS THE PERUVIAN  SOL, MEXICAN PESO, ARGENTINE PESO  AND 
BOLIVIAN BOLIVIANO VERSUS THE U.S. DOLLAR); RISKS RELATED TO THE TECHNOLOGICAL
AND OPERATIONAL  NATURE OF  THE COMPANY'S  BUSINESS; CHANGES  IN NATIONAL  AND 
LOCAL  GOVERNMENT,  LEGISLATION,  TAXATION,   CONTROLS  OR  REGULATIONS   AND 
POLITICAL OR ECONOMIC DEVELOPMENTS IN CANADA, THE UNITED STATES, MEXICO, PERU,
ARGENTINA, BOLIVIA OR OTHER COUNTRIES WHERE THE COMPANY MAY CARRY ON  BUSINESS 
IN THE  FUTURE; RISKS  AND HAZARDS  ASSOCIATED WITH  THE BUSINESS  OF  MINERAL 
EXPLORATION,  DEVELOPMENT   AND  MINING   (INCLUDING  ENVIRONMENTAL   HAZARDS, 
INDUSTRIAL  ACCIDENTS,  UNUSUAL   OR  UNEXPECTED   GEOLOGICAL  OR   STRUCTURAL 
FORMATIONS, PRESSURES, CAVE-INS  AND FLOODING); RISKS  RELATING TO THE  CREDIT 
WORTHINESS OR FINANCIAL  CONDITION OF  SUPPLIERS, REFINERS  AND OTHER  PARTIES 
WITH WHOM THE  COMPANY DOES  BUSINESS; INADEQUATE INSURANCE,  OR INABILITY  TO 
OBTAIN INSURANCE,  TO  COVER  THESE RISKS  AND  HAZARDS;  EMPLOYEE  RELATIONS; 
RELATIONSHIPS WITH AND CLAIMS BY LOCAL COMMUNITIES AND INDIGENOUS POPULATIONS;
AVAILABILITY AND INCREASING  COSTS ASSOCIATED WITH  MINING INPUTS AND  LABOUR; 
THE SPECULATIVE NATURE OF MINERAL  EXPLORATION AND DEVELOPMENT, INCLUDING  THE 
RISKS OF OBTAINING NECESSARY LICENSES AND PERMITS AND THE PRESENCE OF LAWS AND
REGULATIONS THAT MAY IMPOSE RESTRICTIONS ON MINING, INCLUDING THOSE  CURRENTLY 
IN THE  PROVINCE OF  CHUBUT, ARGENTINA;  DIMINISHING QUANTITIES  OR GRADES  OF 
MINERAL  RESERVES  AS  PROPERTIES  ARE  MINED;  GLOBAL  FINANCIAL  CONDITIONS; 
BUSINESS OPPORTUNITIES THAT MAY BE PRESENTED  TO, OR PURSUED BY, THE  COMPANY; 
CHALLENGES TO, OR DIFFICULTY IN MAINTAINING, THE COMPANY'S TITLE TO PROPERTIES
AND CONTINUED OWNERSHIP  THEREOF; THE  ACTUAL RESULTS  OF CURRENT  EXPLORATION 
ACTIVITIES, CONCLUSIONS  OF  ECONOMIC  EVALUATIONS,  AND  CHANGES  IN  PROJECT 
PARAMETERS TO DEAL  WITH UNANTICIPATED  ECONOMIC OR  OTHER FACTORS;  INCREASED 
COMPETITION IN  THE  MINING  INDUSTRY  FOR  PROPERTIES,  EQUIPMENT,  QUALIFIED 
PERSONNEL, AND THEIR  COSTS; AND  THOSE FACTORS IDENTIFIED  UNDER THE  CAPTION 
"RISKS RELATED TO PAN AMERICAN'S BUSINESS"  IN THE COMPANY'S MOST RECENT  FORM 
40F AND ANNUAL INFORMATION  FORM FILED WITH THE  UNITED STATES SECURITIES  AND 
EXCHANGE   COMMISSION   AND   CANADIAN   PROVINCIAL   SECURITIES    REGULATORY 
AUTHORITIES. INVESTORS ARE CAUTIONED  AGAINST ATTRIBUTING UNDUE CERTAINTY  OR 
RELIANCE ON FORWARD-LOOKING STATEMENTS. ALTHOUGH THE COMPANY HAS ATTEMPTED TO
IDENTIFY  IMPORTANT  FACTORS  THAT  COULD  CAUSE  ACTUAL  RESULTS  TO   DIFFER 
MATERIALLY, THERE  MAY  BE OTHER  FACTORS  THAT CAUSE  RESULTS  NOT TO  BE  AS 
ANTICIPATED, ESTIMATED, DESCRIBED OR INTENDED.  THE COMPANY DOES NOT  INTEND, 
AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE THESE FORWARD-LOOKING STATEMENTS
OR INFORMATION TO REFLECT CHANGES  IN ASSUMPTIONS OR CHANGES IN  CIRCUMSTANCES 
OR ANY OTHER EVENTS  AFFECTING SUCH STATEMENTS OR  INFORMATION, OTHER THAN  AS 
REQUIRED BY APPLICABLE LAW.

SOURCE Pan American Silver Corp.

Contact:

Information Contact

Kettina Cordero
Manager, Investor Relations
(604) 684-1175
info@panamericansilver.com
www.panamericansilver.com
 
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