Pan American Goldfields Ltd Announces Operations Update at the Cieneguita Gold-Silver Project

Broomfield, Colorado (ots/PRNewswire) - Pan American
Goldfields Ltd (the "Company") is pleased to announce that the
installation of the ball mill and additional flotation capacity has
been completed at the Cieneguita project mill in Chihuahua, Mexico by
the Company's partner, Minera Rio Tinto (MRT). These improvements at
the mill are expected to increase the daily production rate of ore
through the mill as well as the recovery of gold, silver and other
metals from the processing operations underway at the mill.

Both the ball mill and the new flotation cells are currently
undergoing commissioning and start-up and full operational
integration with the existing mill facilities should be achieved in
the next few weeks. Once fully commissioned, the Company expects that
the production capacity of the mill will be approximately 700 tonnes
per day with an appropriate grind size to achieve the maximum
recovery rate of gold, silver and other metals consistent with the
mineralogy of the ore and the standards in the industry.

Earlier this year mill operations experienced intermittent issues
with availability owing to a lack of water and interruptions in
electrical power supply which have now been remedied. MRT and the
Company determined that the addition of a ball mill and related
flotation cells would improve overall mill availability and
production as well as improve metal recoveries. The ball mill has a
nominal capacity of 750 tonnes per day, however due to the overall
softness of the Cieneguita gold ore, higher throughput may be
achieved from time to time. To match the flotation capacity with the
increased grinding/ball mill capacity, an additional bank of 10
Agitair cells of 48 cubic foot size have been added to the previously
installed bank of 10 WEMCO flotation cells (2 at 100 cubic foot
capacity, 8 at 50 cubic foot capacity).

The Cieneguita mill makes a bulk sulfide flotation concentrate
that is sent to the MRT owned mill at Choix where it is then reground
and separate lead and zinc concentrates produced. These concentrates
are then shipped to the port at Manzanillo where they are sold under
contract to the trading company Trafigura. Most of the gold and
silver report to the lead concentrate. The anticipated increase in
the production capacity at Cieneguita will not require any
modifications to the plant at Choix. Over the last quarter
(July-September) during the start-up phase of operations,
approximately 30,000 tonnes of material was mined from the pit and
2,000 tonnes of bulk concentrate shipped to Choix with the following
average grades as follows:

Au g/t Ag g/t Cu% Pb% Zn%
Mined head from pit 1.20 90 0.04 0.35 0.65
Bulk concentrate 15.0 900 0.40 3.5 4.0

Pan American currently has a joint venture agreement with MRT
under which MRT can earn 60% of the project by successfully
initiating production on a small scale, followed by the funding of an
additional $4 million toward the completion of a bankable feasibility
study. With the completion of the construction start-up phase at
Cieneguita, the focus will now be the acceleration of the feasibility
study. This study will evaluate a full-scale operation which will
target a production rate of about 5,000 tonnes of material processed
per day along with saleable metal production directly from the
Cieneguita site.

The technical information in this release has been prepared by
Gary A. Parkison, CPG, a Director of the Company and a Qualified
Person as defined by NI43-101.

About Pan American Goldfields/MexoroMinerals

Pan American Goldfields is a Chihuahua, Mexico based precious
metal producer and exploration company. It is a specialist in
exploration, mine development and production in Mexico's booming
Sierra Madre Gold-Silver Belt. The company's most advanced project is
its now producing Cieneguita Gold Mine where a feasibility study to
significantly increase the mine's already growing production profile
is underway.

On behalf of the Board of Directors,

Mario Ayub, Chairman

Safe Harbor Disclosure, http://www.goldnotes.com/disclaimer/

For further information: Christopher R Anderson, Investor
Relations, +1-604-628-7065, +44(0)20-3-371-7844 - UK - London,
info@PanAmericanGoldFields.com

ots Originaltext: Pan American Goldfields Ltd
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Contact:
CONTACT: For further information: Christopher R Anderson,
InvestorRelations, +1-604-628-7065, +44(0)20-3-371-7844 - UK -
London,info@PanAmericanGoldFields.com