Pan American Gold Corporation Reports Assay Certificates of Analysis Received from Huicicila Drilling Shows Misplotted Data on the DDH-1 Drill Log

Pan American Gold Corporation received the remaining assay certificates for the Huicicila project drilling. A routine review of data plotted on project drill logs from these certificates show gold and silver values were reversed when transcribed to the DDH-1 drill log. Intercepts of gold mineralization reported in the news release dated October 25, 2006, were, in reality, silver values. The DDH-1 intercepts are only anomalous in the parts per billion gold range over the same intervals. Silver values remain insignificant.

A review of the remaining holes for accuracy indicates strongly gold mineralized intercepts reported for Drill Hole 3 in the main Huichapa vein are as reported in the October 25, 2006, news release.

The Huicicila drill program was initiated prior to Pan American’s involvement by Grupo Anfaza S.A. de C.V. (“ANFAZA”), the property owner, and financed through a Fideicomiso Mexican government Credit Loan. Servicio Geologico Mexicano (“SGM”), a Mexican government agency (formerly Consejo de Recursos Minerales), supervised the project and provided exploration support services.

Eugene K. Schmidt, Vice President of Exploration for Pan American, acts as the “qualified person” for Pan American as that term is defined in National Instrument 43-101. Mr. Schmidt visited three drill sites and observed drilling operations and core logging procedures on two occasions during the project. On both occasions a wire line system was in use and core was being unloaded in a core trough from the core barrel after each run. Labeled core blocks were placed in the core boxes at the end of each run. Drill core was being logged and core samples collected based on geologic contacts.

The SGM geologist on site indicated core was split using a Longyear standard core splitter. Half of the core was bagged, tagged, and labeled for shipment to the SGM Chihuahua laboratory. The remaining half was returned to the box for storage.

Mr. Schmidt had no objection to the work observed while visiting the project but cannot confirm quality control measures used by ANFAZA or SGM for sampling, transporting, or the assaying of drill core based on two short visits. Core samples were transported to the “Centro Experimental Chihuahua Laboratory of Servicio Geologico Mexicano” for analysis. Although Mr. Schmidt and Pan American are not familiar with the laboratory, the Servicio Geologico Mexico website reports the “Centro Experimental Chihuahua Laboratory of Servicio Geologico Mexicano” is certified under international standards of quality ISO-9002.

Pan American Gold Corporation is a Canadian-based mineral exploration company quoted on the OTC Bulletin Board (Symbol:PNAMF). Pan American is focused on enhancing shareholder value by identifying, exploring, and developing world-class resource projects with a current focus on properties in Mexico.

Notice Regarding Forward-Looking Statements

This news release contains “forward-looking statements,” as that term is defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among others, the expectation and/or claim, as applicable, that Pan American will be able to enhance shareholder value and that Pan American will be able to develop world-class resource projects.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others: (i) the inherent uncertainties and speculative nature associated with mineral exploration; (ii) changes in reserve estimates, if any; (iii) any number of events or causes which delay or cease exploration and development of Pan American’s property interests such as environmental liabilities, weather, mechanical failures, safety concerns, labour problems and financing problems; (iv) changes in economic conditions, adverse exchange rates and financial markets; (v) the risk that Pan American does not execute its business plan; (vi) the inability to retain key employees; (vii) changes in the prices of precious metals or other minerals Pan American acquires or produces; (viii) Pan American’s inability to finance its operations or growth; and (ix) the inability to obtain all necessary government, environmental and regulatory approvals. These forward-looking statements are made as of the date of this news release and Pan American assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although Pan American believes that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations, or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in Pan American’s periodic reports filed from time to time with the Securities and Exchange Commission and available at www.sec.gov.

Contact:

Pan American Gold Corporation Investor Relations:

Steve Bajic, 604-738-3882 or 1-877-738-3882

Source: Pan American Gold Corporation