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<SEC-DOCUMENT>0001171843-07-000286.txt : 20070606
<SEC-HEADER>0001171843-07-000286.hdr.sgml : 20070606
<ACCEPTANCE-DATETIME>20070606154117
ACCESSION NUMBER:		0001171843-07-000286
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20070606
FILED AS OF DATE:		20070606
DATE AS OF CHANGE:		20070606

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PAN AMERICAN SILVER CORP
		CENTRAL INDEX KEY:			0000771992
		STANDARD INDUSTRIAL CLASSIFICATION:	GOLD & SILVER ORES [1040]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-13727
		FILM NUMBER:		07904008

	BUSINESS ADDRESS:	
		STREET 1:		1500-625 HOWE STREET
		CITY:			VANCOUVER BC CANADA
		STATE:			A1
		ZIP:			V6C 2T6

	MAIL ADDRESS:	
		STREET 1:		1500 625 HOWE ST
		CITY:			VANCOUVER BC V6C 2T6
		STATE:			A1
		ZIP:			999999999

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PAN AMERICAN MINERALS CORP
		DATE OF NAME CHANGE:	19950608
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>f6k_060607.htm
<DESCRIPTION>FORM 6-K
<TEXT>

<p align="center"><font size="5"><b>UNITED STATES<br>
			SECURITIES AND EXCHANGE COMMISSION<br>
		</b></font></p>
<p align="center"><font size="3"><b>Washington, D.C. 20549</b> </font></p>
<hr align="center" noshade="1" width="120">
<p align="center"><font size="5"><b>FORM 6-K</b><br>
	</font></p>
<hr align="center" noshade="1" width="120">
<p align="center"><font size="3"><b>REPORT OF FOREIGN PRIVATE ISSUER</b><br>
		<br>
		<b>Pursuant to Rule&nbsp;13a-16 or 15d-16 of</b><br>
		<b>The Securities Exchange Act of 1934</b><br>
	</font></p>
<p align="center"><font size="3"><b>June 6, 2007</b><br>
	</font></p>
<hr align="center" noshade="1" width="150">
<p align="center"><font size="5"><b>Pan American Silver Corp.</b> </font><br>
	<font size="2">(Exact name of registrant as specified in its charter) </font></p>
<p align="center"><font size="3"><b>1500-625 HOWE STREET<br>
			VANCOUVER BC CANADA V6C 2T6</b> </font><br>
	<font size="2">(Address of principal executive offices) </font></p>
<p align="center"><font size="3"><b>000-13727</b> </font><br>
	<font size="2">(Commission File Number) </font></p>
<hr align="center" noshade="1" width="150">
<p align="center">Indicate by check mark whether the registrant files or will file<br>
	annual reports under cover of Form 20-F or Form 40-F:<br>
</p>
<p align="center">Form 20-F&nbsp;&nbsp;/&nbsp;&nbsp;&nbsp; / &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Form 40-F&nbsp;&nbsp;/ x /</p>
<p align="center">Indicate by check mark whether the registrant by furnishing the<br>
	information contained in this form is also thereby furnishing the information to the<br>
	Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.</p>
<p align="center">Yes&nbsp;&nbsp;/ &nbsp; / &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No&nbsp;&nbsp;/ x /</p>
<hr noshade="1">
<div id="lockwidth" style="width: 640px">
	<font size="2">The Registrant's material change report and its press release dated June 6, 2007, are incorporated by reference herein.<br>
		<br>
	</font></div>
<div id="lockwidth" style="width: 640px">
	<table border="0" cellpadding="5" cellspacing="0">
		<tr>
			<td valign="top" width="35"><font size="2">(c)</font></td>
			<td nowrap valign="top"><font size="2">Exhibit 99.1.</font></td>
			<td valign="top"><font size="2">Material change report and press release dated June 6, 2007</font></td>
		</tr>
	</table>
</div>
<hr noshade="1">
<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. </font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
		<tr valign="top">
			<td width="47%">&nbsp;</td>
			<td width="5%">&nbsp;</td>
			<td align="center" width="47%"><font size="2"><b>Pan American Silver Corp.</b> </font>
				<hr noshade="1">
				<font size="2">(Registrant)<br>
					<br>
				</font></td>
		</tr>
		<tr valign="top">
			<td align="center" width="47%"><font size="2"><b>June 6, 2007</b> </font>
				<hr noshade="1">
				<font size="2">(Date) </font></td>
			<td width="5%">&nbsp;</td>
			<td align="center" width="47%"><font size="2"><b>/s/ &nbsp; ROBERT PIROOZ</b> </font>
				<hr noshade="1">
				<font size="2">Robert Pirooz</font><br>
				<font size="2"><i>General Counsel and Secretary</i> </font></td>
		</tr>
</table>
<hr>
<p align="right"></p>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>exh_991.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html>

  <head>
    <title>Unassociated Document</title>
    <!--Licensed to: NASDAQ-->
    <!--Document Created using EDGARizer 4.0.1.0-->
    <!--Copyright 2007 EDGARfilings, Ltd., an IEC company.-->
    <!--All rights reserved EDGARfilings.com-->
  </head>
  <body bgcolor="#ffffff">
  <div id="lockwidth" style="width: 640px">
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;">Exhibit
      99.1</font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><strong>FORM
      51-102F3</strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><strong>MATERIAL
      CHANGE REPORT</strong></font></div>
    <div><br></div>
    <div><br></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><strong>ITEM
      1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<em>NAME
      AND ADDRESS OF COMPANY</em></strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Pan
      American Silver Corp. (the
&#8220;<strong>Company</strong>&#8221;)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>1500
&#8211;
625
      Howe Street</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>Vancouver,
      British
      Columbia&#160;&#160;V6C 2T6</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><strong>ITEM
      2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<em>DATE
      OF MATERIAL CHANGE</em></strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><font id="TAB1" style="MARGIN-LEFT: 36pt;"></font>June
      6, 2007</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><strong>ITEM
      3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<em>NEWS
      RELEASE</em></strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;">A
      news
      release was issued by the Company on June 6, 2007 at Vancouver, British Columbia
      and distributed through the facilities of Prime News Wire.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><strong>ITEM
      4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<em>SUMMARY
      OF MATERIAL CHANGE</em></strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;">Pan
      American
      Silver Corp. announces it plans to proceed with a project to expand production
      at its San Vicente silver-zinc mine located near Potosi, Bolivia.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><strong>ITEM
      5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<em>FULL
      DESCRIPTION OF MATERIAL CHANGE</em></strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;">See
      attached
      News Release</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><strong>ITEM
      6.</strong></font>&#160;<strong><font size="2"><font size="+0">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><em>RELIANCE
      ON SUBSECTION 7.1(2) OR (3) OF NATIONAL INSTRUMENT
      51-102</em></font></font></font></strong></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;">This
      report
      is <u>not</u> being filed on a confidential basis.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><strong>ITEM
      7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<em>OMITTED
      INFORMATION</em></strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;">There
      are no
      significant facts required to be disclosed herein which have been
      omitted.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><strong>ITEM
      8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<em>EXECUTIVE
      OFFICER</em></strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><font id="TAB1" style="MARGIN-LEFT: 72pt;"></font>For
      further information, please
      contact:</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><font id="TAB1" style="MARGIN-LEFT: 72pt;"></font>Name:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Robert
      Pirooz</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><font id="TAB1" style="MARGIN-LEFT: 72pt;"></font>Office:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;General
      Counsel</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><font id="TAB1" style="MARGIN-LEFT: 72pt;"></font>Telephone:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(604)
      687-0333</font></div>
    <div><br></div>
    <div><br></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><strong>ITEM
      9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<em>DATE
      OF REPORT</em></strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><font id="TAB1" style="MARGIN-LEFT: 72pt;"></font>DATED
      at Vancouver, British Columbia,
      this 6<font style="DISPLAY: inline; FONT-SIZE: 10pt;"><sup>th</sup></font> day of
      June, 2007.</font></div>
    <div><br></div>
    <div><br></div>
    <div><br></div>
    <div><br></div>
    <div><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="justify" valign="top" width="28%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: arial narrow;"><u>&#8220;Signed&#8221;</u></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="justify" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: arial narrow;">Robert
                Pirooz</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: arial narrow;">General
                Counsel</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div><br></div>
    <div><br></div>
    <div>
      <div>
        <hr style="COLOR: black" align="center" noshade size="1" width="100%">
      </div><br></div>
    <div><br></div>
    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;">June
      6,
      2007&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;For
      Immediate Release</font></div>
    <div><br></div>
    <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><strong>PAN
      AMERICAN SILVER PLANS</strong></font></div>
    <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><strong>PRODUCTION
      EXPANSION AT SAN VICENTE MINE</strong></font></div>
    <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;">(<em>all
      amounts in $US dollars unless otherwise stated</em>)</font></div>
    <div><br></div>
    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><strong>VANCOUVER,
      BRITISH COLUMBIA</strong>&#8211; Pan American Silver Corp. (&#8220;Pan American&#8221;)(PAAS:
      NASDAQ; PAA: TSX) today announces it plans to proceed with a project (the
&#8220;Project&#8221;) to expand production at its San Vicente silver-zinc mine located near
      Potosi, Bolivia (&#8220;San Vicente&#8221;). The Project will include the construction of a
      new 750 tonnes per day processing facility, together with the related
      underground mine development necessary to achieve sustained production at this
      rate.</font></div>
    <div><br></div>
    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;">In
      connection with expanding production at San Vicente, Pan American has purchased
      Empresa Minera Unificada S.A.&#8217;s 40% interest in Pan American Silver (Bolivia)
      S.A. (&#8220;PASB&#8221;), the operating entity of San Vicente, for $9.0 million plus a 2%
      NSR payable only after Pan American has recovered its capital investment in
      the
      Project and only when the average price of silver in a given financial quarter
      is $9.00 per ounce or greater.&#160;&#160;As a result of this purchase, Pan
      American has increased its ownership interest in PASB to 95%, with Trafigura
      Beheer B.V., an international commodities trading company, retaining its 5%
      minority interest.</font></div>
    <div><br></div>
    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;">Based
      on
      engineering studies conducted for the Project<font style="DISPLAY: inline; FONT-SIZE: 10pt;"><sup>1</sup></font>, Pan American
      estimates that, once the Project is complete and the mine is operating at
      capacity, San Vicente should produce approximately 2.8 million ounces of silver
      annually, on a 100% basis, at an average cost of less than $2.00 per ounce,
      net
      of zinc byproduct credits, for the first five years of the
      operation.&#160;&#160;Based on 100% of the mine&#8217;s proven and probable reserves
      of approximately 3.1 million tonnes<font style="DISPLAY: inline; FONT-SIZE: 10pt;"><sup>2</sup></font>, San Vicente
      should
      have a 13 year mine life.&#160;&#160;The Project should take 18-20 months to
      complete, at an estimated capital cost of approximately US$40.5 million, which
      includes a 10% allowance for unforeseen escalation in construction costs, in
      addition to a 15% contingency.</font></div>
    <div><br></div>
    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;">At
      price
      assumptions of $9.00 per ounce of silver and $2,100 per tonne of zinc, Pan
      American&#8217;s 95% share of the mine is expected to provide an undiscounted
      after-tax value of $64.8 million, generate an internal rate of return (&#8220;IRR&#8221;) of
      26% and have a capital payback of 2.6 years.</font></div>
    <div><br></div>
    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;">At
      today&#8217;s
      silver and zinc prices, the IRR for the Project should increase substantially
      and the payback period will be significantly reduced.</font></div>
    <div><br></div>
    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;">Commenting
      on the expansion of San Vicente and the acquisition of the additional interest
      in the Project, Geoff Burns, President and CEO, said; &#8220;The long mine life, low
      cash costs and exploration potential combine to make the expansion an extremely
      attractive investment.&#160;&#160;It is rewarding to be able to add significant
      organic growth to our production profile for such a modest capital
      investment.&#8221;</font></div>
    <div><br></div>
    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;">The
      economic
      analysis used in this press release has incorporated tax increases that have
      recently been proposed by the Bolivian government.&#160;&#160;As of the date of
      this release the proposed tax increases are still subject to ratification by
      the
      Bolivian legislature. The economics also assume that Pan American will continue
      to mine at San Vicente while the new mill is being constructed, with ore being
      processed at the nearby Chilcobija mill facility pursuant to a toll milling
      agreement.</font></div>
    <div><br></div>
    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;">The
      Company
      will seek approval from Comibol (the Bolivian state mining company) to continue
      processing at Chilcobija for the entire duration of the construction period.
      In
      addition, pursuant to PASB&#8217;s commitment to consult with Comibol regarding
      operations and development at San Vicente, updated engineering designs for
      the
      Project have been submitted for review, and approval is expected
      shortly.</font></div>
    <div><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><sup>1</sup></font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif;">&#160;</font>Pan
                American has conducted a number of engineering studies into the expansion
                of the San Vicente mine over the course of the previous three years.
                These
                studies have been conducted primarily by international and Bolivian
                consultants under the supervision of Pan American employees. A Technical
                Report for the San Vicente Project will be made available on SEDAR
                (<font style="DISPLAY: inline; FONT-SIZE: 10pt;">www.sedar.com</font>) within 45
                days of this press release in compliance with National Instrument
                43-101
                (&#8220;NI 43-101&#8221;). The information contained in this press release with
                respect to estimated construction schedule, forecast production rates
                and
                operating costs, and Project economics, including estimated capital
                costs
                and rates of return, has been prepared by or under the supervision
                of,
                Martin Wafforn, P.Eng., Vice President Mine Engineering for the Company,
                who is a Qualified Person (&#8220;QP&#8221;) as the term is defined in NI
                43-101.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><font style="DISPLAY: inline; FONT-SIZE: 10pt;"><sup>2</sup></font>
                As at
                December 31, 2006, proven reserves at San Vicente were approximately
                2.0
                million tonnes with a grade of 304 grams of silver per tonne and
                3.9%
                zinc, and probable reserves were approximately 1.1 million tonnes
                with a
                grade of 430 grams of silver per tonne and 2.7% zinc. Proven and
                probable
                reserves were calculated in accordance with NI 43-101, as required
                by
                Canadian securities regulatory authorities and have been prepared
                by, or
                under the supervision of, Michael Steinmann, P.Geo., Senior Vice
                President
                Geology &amp; Exploration for the Company, and Martin Wafforn, P.Eng.,
                both QPs. For a more detailed description of Pan American&#8217;s reserves and
                resources, see the Company&#8217;s Form 40-F or Annual Information Form, both
                dated March 21, 2007.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div><br></div>
    <div><br></div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;">For
      further
      information, please contact:</font></div>
    <div><br></div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;">Alexis
      Stewart, Director Corporate &amp; Investor Relations</font></div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;">(604)
      684-1175</font></div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><u>astewart@panamericansilver.com</u></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;">-
      end
      -</font></div>
    <div><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div>&#160;</div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><em>CAUTIONARY
                NOTE REGARDING FORWARD-LOOKING
                STATEMENTS</em></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><em>THIS
      PRESS RELEASE CONTAINS &#8220;FORWARD-LOOKING INFORMATION&#8221; WITHIN THE MEANING OF THE
      UNITED STATES &#8220;PRIVATE SECURITIES LITIGATION REFORM ACT&#8221; OF 1995 AND APPLICABLE
      CANADIAN SECURITIES LEGISLATION. STATEMENTS CONTAINING FORWARD-LOOKING
      INFORMATION EXPRESS, AS AT THE DATE OF THIS PRESS RELEASE, THE COMPANY&#8217;S PLANS,
      ESTIMATES, FORECASTS, PROJECTIONS, EXPECTATIONS, OR BELIEFS AS TO FUTURE EVENTS
      OR RESULTS AND THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION,
      TO UPDATE SUCH STATEMENTS CONTAINING THE FORWARD-LOOKING INFORMATION. GENERALLY,
      FORWARD-LOOKING INFORMATION CAN BE IDENTIFIED BY THE USE OF FORWARD-LOOKING
      TERMINOLOGY SUCH AS &#8220;PLANS&#8221;, &#8220;PROJECTS&#8221; OR &#8220;PROJECTED&#8221;, &#8220;EXPECTS&#8221; OR &#8220;DOES NOT
      EXPECT&#8221;, &#8220;IS EXPECTED&#8221;, &#8220;ESTIMATES&#8221;, &#8220;FORECASTS&#8221;, &#8220;SCHEDULED&#8221;, &#8220;INTENDS&#8221;,
&#8220;ANTICIPATES&#8221; OR &#8220;DOES NOT ANTICIPATE&#8221;, OR &#8220;BELIEVES&#8221;, OR VARIATIONS OF SUCH
      WORDS AND PHRASES, OR STATEMENTS THAT CERTAIN ACTIONS, EVENTS OR RESULTS &#8220;MAY&#8221;,
&#8220;CAN&#8221;, &#8220;COULD&#8221;, &#8220;WOULD&#8221;, &#8220;SHOULD&#8221;, &#8220;MIGHT&#8221; OR &#8220;WILL BE TAKEN&#8221;, &#8220;OCCUR&#8221; OR &#8220;BE
      ACHIEVED&#8221;. STATEMENTS CONTAINING FORWARD-LOOKING INFORMATION INCLUDE, BUT ARE
      NOT LIMITED TO, STATEMENTS WITH RESPECT TO INTENDED EXPANSION PLANS AT SAN
      VICENTE, INCLUDING ESTIMATED CONSTRUCTION, MINING AND PRODUCTION SCHEDULES,
      THE
      ANTICIPATED CAPITAL AND ECONOMIC RETURNS OF SAN VICENTE, THE ACCURACY OF MINERAL
      RESERVE AND RESOURCE ESTIMATES AND ESTIMATES OF ANTICIPATED SILVER AND GOLD
      PRODUCTION FROM SAN VICENTE.</em></font></div>
    <div><br></div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Arial Narrow;"><em>STATEMENTS
      CONTAINING FORWARD-LOOKING INFORMATION INVOLVE KNOWN AND UNKNOWN RISKS,
      UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE THE ACTUAL RESULTS, LEVEL OF
      ACTIVITY, PERFORMANCE OR ACHIEVEMENTS OF PAN AMERICAN AND ITS OPERATIONS TO
      BE
      MATERIALLY DIFFERENT FROM THOSE EXPRESSED OR IMPLIED BY SUCH STATEMENTS. SUCH
      FACTORS INCLUDE, AMONG OTHERS, POLITICAL RISKS RELATING TO OPERATING IN BOLIVIA,
      INCLUDING RISKS RELATED TO THE EXPROPRIATION OF ASSETS, CHANGES IN LOCAL
      GOVERNMENT LEGISLATION, LABOUR UNREST, ROAD BLOCKAGES, TAX INCREASES, THE
      FAILURE TO OBTAIN NECESSARY APPROVALS AND PERMITS FROM GOVERNMENTAL AUTHORITIES;
      RISKS RELATED TO THE ABILITY TO HIRE AND RETAIN EXPERIENCED SUPERVISORY STAFF,
      PARTICULARLY IN REMOTE LOCATIONS SUCH AS SAN VICENTE AND IN THE CURRENT
      COMPETITIVE ENVIRONMENT. FURTHER RISKS ARE RELATED TO THE TECHNOLOGICAL AND
      OPERATIONAL NATURE OF THE COMPANY&#8217;S BUSINESS, EXPOSURE TO FLUCTUATIONS IN THE
      LOCAL CURRENCY IN BOLIVIA, THE ACTUAL RESULTS OF CURRENT EXPLORATION ACTIVITIES,
      THE FUTURE PRICES OF SILVER, GOLD AND BASE METALS, INCREASED COMPETITION IN
      THE
      MINING INDUSTRY FOR PROPERTIES, EQUIPMENT, QUALIFIED PERSONNEL, AND THEIR RISING
      COSTS, FLUCTUATIONS IN THE PRICE FOR NATURAL GAS, FUEL OIL AND OTHER KEY
      SUPPLIES, AS WELL AS THOSE FACTORS DESCRIBED IN THE SECTION &#8220;RISKS RELATED TO
      PAN AMERICAN&#8217;S BUSINESS&#8221; CONTAINED IN THE COMPANY&#8217;S MOST RECENT FORM 40F/ANNUAL
      INFORMATION FORM FILED WITH THE SEC AND CANADIAN PROVINCIAL SECURITIES
      REGULATORY AUTHORITIES. ALTHOUGH THE COMPANY HAS ATTEMPTED TO IDENTIFY IMPORTANT
      FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE
      CONTAINED IN FORWARD-LOOKING STATEMENTS, THERE MAY BE OTHER FACTORS THAT CAUSE
      RESULTS TO BE MATERIALLY DIFFERENT FROM THOSE ANTICIPATED, DESCRIBED, ESTIMATED,
      ASSESSED OR INTENDED. THERE CAN BE NO ASSURANCE THAT ANY STATEMENTS CONTAINING
      FORWARD-LOOKING INFORMATION WILL PROVE TO BE ACCURATE AS ACTUAL RESULTS AND
      FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SUCH STATEMENTS.
      ACCORDINGLY, READERS SHOULD NOT PLACE UNDUE RELIANCE ON STATEMENTS CONTAINING
      FORWARD-LOOKING INFORMATION.</em></font></div>
    <div><br></div>
    <div><br></div>
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