Pan American Goldfields Clarifies Its Disclosure

Pan American Goldfields Clarifies Its Disclosure 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 11/04/13 -- As a
result of a review by the British Columbia Securities Commission
("the BCSC"), the securities regulatory authority in the Province of
British Columbia, Pan American Goldfields Ltd. (the "Company")
(OTCQX:MXOM) is issuing the following news release to clarify the
Company's disclosure, based on discussions between the management
team and the BCSC.  
Technical Report Compliance:  
The review by the BCSC has identified a number of technical
compliance and filing issues with respect to the technical report
entitled "Cieneguita Project, Preliminary Economic Assessment,
Chihuahua, Mexico", by M3 Engineering and Technology Corporation,
dated May 16, 2013 (the "Technical Report"). The updated mineral
resource estimate and preliminary economic assessment are not
supported by a compliant, fully independent NI 43-101 technical
report, contrary to NI 43-101, and should not be relied on until they
are independently verified and supported by an amended technical
report. To correct the current situation going forward, the Company
is working with the relevant Qualified Persons and is correcting the
issues and intends to file an amended Technical Report on or before
25th November, 2013.  
Clarification of previous disclosure:  
The review by the BCSC has identified a number of disclosure issues
with respect to the Technical Report, also occurring in the Company's
news releases, website, and investor materials. Specifically: 
1. Non-compliant disclosure of Preliminary Economic Assessment (PEA)  
In its previous news releases, on its website, and investor
presentation, the Company referred to the results of a PEA in a
manner contrary to NI 43-101. Disclosure did not include prominent
cautionary language required by section 2.3(3) and 3.4(e) of NI
43-101. The Company clarifies that the preliminary economic
assessment is preliminary in nature, that it includes inferred
mineral resources that are considered too speculative geologically to
have the economic considerations applied to them that would enable
them to be categorized as mineral reserves, and there is no certainty
that the preliminary economic assessment will be realised. Mineral
resources that are not mineral reserves do not have demonstrated
economic viability.  
Disclosure of PEA results also included potentially misleading
promotional information, which disclosed or implied the PEA
demonstrates economic viability. This is contrary to the preliminary
nature of a PEA and the required cautionary language and such
disclosure is hereby retracted and investors are cautioned that such
disclosure should not be relied upon. Going forward, the Company will
ensure that the required proximate cautionary language will appear
with all disclosure of results of the PEA. 
2. Reporting Gross In-Situ Metal Value  
The company's June 12, 2013 news release highlighted a gross metal
value for the material used in the PEA. However, the use of gross
in-situ value is misleading because it fails to take into
consideration operating and capital costs, recoveries, smelter costs
and other factors relating to the potential mining, extraction and
recovery of metals and such disclosure is hereby retracted and
investors are cautioned that such disclosure should not be relied
3. Non-compliant disclosure of Mineral Resources  
The Company occasionally reported mineral resources for its
Cieneguita mineral property that were contrary to section 2.2 and 3.4
of NI 43-101 because the estimates omitted classification, tonnage,
and grade and only disclosed gross contained metal quantities. In
addition, estimates did not disclose resource classes separately.  
"We are committed to achieving the highest standards of excellence in
meeting the requirements of the regulatory authorities" commented
CEO, Emilio Alvarez. "As part of this process, our technical
disclosure must also comply with the requirements of Canadian
National Instrument 43-101 "Standards of Disclosure for Mineral
Projects" in all respects, and we are committed to meeting that
objective and enhancing the value of the Company for all our
About Pan American Goldfields Ltd. 
Pan American Goldfields is a precious metals mining and exploration
company. Its focus is the production of gold and silver and the
development and expansion of its Cieneguita mine in Mexico's booming
Sierra Madre gold-silver belt. 
On behalf of the Board of Directors,  
Emilio Alvarez, Director 
Safe Harbor Disclosure 
The information in this press release contains forward-looking
statements regarding future events or the future financial
performance of the Company. Please note that any statements that may
be considered forward-looking are based on projections; that any
projections involve judgment, and that individual judgments may vary.
Moreover, these projections are based only on limited information
available to us now, which is subject to change. Although those
projections and the factors influencing them will likely change, we
are under no obligation to inform you if they do. Actual results may
differ substantially from any such forward looking statements as a
result of various factors, many of which are beyond our control,
including, among others, the timing and outcome of our feasibility
study on our Cieneguita Project; the costs and results of our initial
production activities on our Cieneguita Project; the future financial
and operating performances of our projects; the estimation of mineral
resources and the realization of mineral reserves, if any, on our
existing and any future projects; the timing of exploration,
development, and production activities and estimated future
production, if any; estimates related to costs of production,
capital, operating and exploration expenditures; requirements for
additional capital and our ability to raise additional capital on a
timely basis and on acceptable terms; government regulation of mining
operations, environmental risks, reclamation and rehabilitation
expenses; title disputes or claims against our existing and any
future projects; and the future price of gold, silver, or other
minerals. These and other factors can be found in our filings with
the SEC. The Company undertakes no obligation to release publicly the
results of any revision to these forward-looking statements to
reflect events or circumstances following the date of this release.
Pan American Goldfields Ltd.
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