<SEC-DOCUMENT>0001279569-12-000676.txt : 20120516
<SEC-HEADER>0001279569-12-000676.hdr.sgml : 20120516
<ACCEPTANCE-DATETIME>20120516155329
ACCESSION NUMBER:		0001279569-12-000676
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20120515
FILED AS OF DATE:		20120516
DATE AS OF CHANGE:		20120516

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:		12848782

	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>panamericansilver6k.htm
<DESCRIPTION>FORM 6-K
<TEXT>
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<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 14pt Times New Roman, Times, Serif"><B>UNITED
STATES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 14pt Times New Roman, Times, Serif"><B>SECURITIES
AND EXCHANGE COMMISSION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Washington,
D.C. 20549</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>__________________</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 18pt Times New Roman, Times, Serif"><B>FORM
6-K&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">_____________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>REPORT OF FOREIGN PRIVATE ISSUER</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PURSUANT TO RULE 13a-16 OR 15d-16</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>UNDER THE SECURITIES EXCHANGE ACT of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>May 15, 2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">_____________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 24pt Times New Roman, Times, Serif"><B>Pan
American Silver Corp.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Exact name of registrant as specified in its
charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 18pt"><B>&nbsp;</B></FONT><B><FONT STYLE="font-size: 10pt">1500-625
HOWE STREET</FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>VANCOUVER BC CANADA V6C 2T6</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Address of principal executive offices)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 18pt"><B>&nbsp;</B></FONT><B><FONT STYLE="font-size: 10pt">000-13727</FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Commission File Number)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">_____________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<TR>
    <TD STYLE="width: 29%; text-align: right">&nbsp;Form 20-F</TD>
    <TD STYLE="width: 21%; text-align: center">&nbsp;<FONT STYLE="font-family: Wingdings 2">&#163;</FONT></TD>
    <TD STYLE="width: 25%; text-align: center">&nbsp;Form 40-F</TD>
    <TD STYLE="width: 25%"><FONT STYLE="font-family: Wingdings 2">&#83;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(1). _____</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<TR>
    <TD STYLE="width: 3%"></TD>
    <TD STYLE="width: 97%;"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Note: Regulation S-T Rule
    101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security
    holders.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<TR>
    <TD STYLE="width: 3%"></TD>
    <TD STYLE="width: 97%">Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a
    Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make
    public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant&rsquo;s
    &ldquo;home country&rdquo;), or under the rules of the home country exchange on which the registrant&rsquo;s securities are
    traded, as long as the report or other document is not a press release, is not required to be and has not been distributed
    to the registrant&rsquo;s security holders, and, if discussing a material event, has already been the subject of a Form 6-K
    submission or other Commission filing on EDGAR.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Indicate by check mark whether by furnishing the information contained
in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<TR>
    <TD STYLE="width: 29%; text-align: right">&nbsp;Yes</TD>
    <TD STYLE="width: 21%; text-align: center"><FONT STYLE="font-family: Wingdings 2">&#163;</FONT></TD>
    <TD STYLE="width: 25%; text-align: center">&nbsp;No</TD>
    <TD STYLE="width: 25%"><FONT STYLE="font-family: Wingdings 2">&#83;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">If &quot;Yes&quot; is marked, indicate below the file number assigned
to the registrant in connection with Rule 12g3-2(b):&nbsp;<B>______</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Signatures&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
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    <TD STYLE="width: 50%"></TD>
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    <TD STYLE="width: 49%"></TD></TR>
<TR STYLE="vertical-align: top">
    <TD></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold"><B>Pan American Silver Corp.</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD></TD>
    <TD COLSPAN="2">(Registrant)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Date:&nbsp;May 15, 2012</TD>
    <TD>By:&nbsp;&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">/s/&nbsp;<B><I>ROBERT PIROOZ</I></B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2"></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Robert Pirooz</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2"></TD>
    <TD STYLE="font-style: italic">General Counsel</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EXHIBIT LIST</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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    <TD STYLE="width: 8%; border-bottom: black 1pt solid">Exhibit</TD>
    <TD STYLE="width: 4%; padding-bottom: 0.75pt"></TD>
    <TD STYLE="border-bottom: black 1pt solid">Description</TD></TR>
<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;&nbsp;99.1</TD>
    <TD></TD>
    <TD>News Release dated May  15, 2012 - Pan American Silver Increases Quarterly Silver Production and Mine Operating
    Earnings</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>



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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>ex991.htm
<DESCRIPTION>NEWS RELEASE DATED MAY 15, 2012
<TEXT>
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<P STYLE="margin: 0; text-align: right"><FONT STYLE="font: 8pt Arial, Helvetica, Sans-Serif"><B>Exhibit 99.1</B></FONT></P>

<P STYLE="margin: 0; text-align: right">&nbsp;</P>

<P STYLE="margin: 0; text-align: left"></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><B>Pan American Silver Increases Quarterly Silver Production and
Mine Operating Earnings</B></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0">(All amounts in US dollars unless otherwise stated and all
production figures are approximate)</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0">VANCOUVER, May 15, 2012 /CNW/ - <B>Pan American Silver Corp.</B>
(NASDAQ: PAAS; TSX: PAA) (the &quot;Company&quot;, or &quot;Pan American&quot;), today reported strong operational and financial
results for the first quarter of 2012.&nbsp; In addition, the Company provided an update on its operations and on its development
projects, as well as a revised forecast for consolidated silver production and cash costs for 2012, which now includes production
from the recently acquired Dolores mine for the period April 1, 2012 to December 31, 2012.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0"><I>This earnings release should be read in conjunction with
the Company's MD&amp;A, Financial Statements and Notes to Financial Statements for the corresponding period, which have been posted
on SEDAR at www.sedar.com and are also available on the Company's website at www.panamericansilver.com.
</I></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0"><B>First Quarter 2012 Highlights (unaudited) <SUP>(1)</SUP></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.15in"></TD><TD STYLE="width: 0.35in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">Silver production of 5.5 million ounces </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.15in"></TD><TD STYLE="width: 0.35in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">Gold production of 19,496 ounces </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.15in"></TD><TD STYLE="width: 0.35in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">Consolidated cash costs<SUP>(2)</SUP> of $10.49<B><SUP> </SUP></B>per
ounce of silver, net of by-product credits </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.15in"></TD><TD STYLE="width: 0.35in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">Mine operating earnings<B><SUP> </SUP></B>of $101.9 million </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.15in"></TD><TD STYLE="width: 0.35in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">Net earnings of $50.2 million or $0.47 per share </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.15in"></TD><TD STYLE="width: 0.35in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">Adjusted earnings<SUP>(3)</SUP> of $61.4 million or $0.58 per share
</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.15in"></TD><TD STYLE="width: 0.35in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">Operating cash flow (before interest and income taxes) was $118.6 million
or $1.13 per share </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.15in"></TD><TD STYLE="width: 0.35in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">Sales of $228.8 million </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.15in"></TD><TD STYLE="width: 0.35in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">Cash and short-term investments of $594.2 million at March 31, 2012
</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.15in"></TD><TD STYLE="width: 0.35in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">Working capital of $782.8 million at March 31, 2012 </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.15in"></TD><TD STYLE="width: 0.35in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">Completed the acquisition of Minefinders Corporation Ltd. (&quot;Minefinders&quot;)
on March 30, 2012</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0"><B>Updated 2012 Forecast and Plans</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.15in"></TD><TD STYLE="width: 0.35in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">Produce 24.25 to 25.5 million ounces of silver at cash costs of $11.50
to $12.50 per ounce, net of by-product credits, including production from the Dolores mine from April 1, through year-end 2012
</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.15in"></TD><TD STYLE="width: 0.35in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">Produce 124,000 to 133,000 ounces of gold, including 49,000 to 53,000
ounces from Dolores </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.15in"></TD><TD STYLE="width: 0.35in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">Complete a Preliminary Assessment for the mill option for the Dolores
mine </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.15in"></TD><TD STYLE="width: 0.35in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">Complete the Feasibility Study for the Navidad development project
</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" STYLE="width: 100%">
<TR>
    <TD STYLE="padding: 1.5pt; font: 10pt Arial, Helvetica, Sans-Serif"><SUP>(1)</SUP> Financial information in this news release is based on International Financial Reporting Standards (&quot;IFRS&quot;); results are unaudited<BR>
<SUP>(2) </SUP>Cash costs per payable ounce of silver is a non-GAAP measure. The Company believes that in addition to production costs, depreciation and amortization, and royalties, cash cost per ounce is a useful and complementary benchmark that investors use to evaluate the Company's performance and ability to generate cash flow and is well understood and widely reported in the silver mining industry. However, cash costs per ounce does not have a standardized meaning prescribed by IFRS as an indicator of performance. Investors are cautioned that cash costs per ounce should not be construed as an alternative to production costs, depreciation and amortization, and royalties determined in accordance with IFRS as an indicator of performance. The Company's method of calculating cash costs per ounce may differ from the methods used by other entities and, accordingly, the Company's cash costs per ounce may not be comparable to similarly titled measures used by other entities. See &quot;Financial and Operating Highlights&quot; below for a reconciliation of this measure to the Company's production costs, depreciation and amortization, and royalties.<BR>
<BR>
<SUP>(3)</SUP> Adjusted earnings is a non-GAAP measure calculated as net earnings for the period adjusting for the gain or loss recorded on fair market value adjustments on the Company's outstanding warrants and the transaction costs of the Minefinders acquisition. The Company considers this measure to better reflect normalized earnings as it does not include unrealized gains or losses from outstanding warrants and non-recurring costs, which may be volatile from period to period and acquisition costs. </TD></TR>
</TABLE>
<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0">Commenting on the results, Geoff Burns, President and CEO
said; &quot;We've had an excellent start to 2012 and delivered a very respectable first quarter, on all metrics.&nbsp; Our consolidated
silver production was right in line with our forecast and our cash costs were more than 15% less than we had anticipated.&nbsp;
With the acquisition of Minefinders now behind us, we will spend the rest of this year focusing on what we do best: operating and
optimizing our mining assets to generate maximum cash flow and profits. I can't tell you how much our team is looking forward to
applying this expertise to the long-life Dolores mine&quot;.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0"><B>Financial Results </B></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0">During the first quarter of 2012, Pan American recorded revenue
of $228.8 million, or 20% more than during the first quarter of 2011.&nbsp; The increase was directly attributable to higher realized
precious metals prices and more quantities of metals sold, with the exception of copper.&nbsp; Average realized gold and silver
prices were $33.00 and $1,706 per ounce, respectively, or 6% and 23% higher than one year ago, respectively.&nbsp; In contrast,
average realized prices for zinc, lead and copper decreased by 16%, 21% and 17% to $2,021, $2,077 and $7,918 per tonne, respectively.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0">Pan American generated net earnings of $50.2 million or $0.47
per share during the first three months of 2012, which was $42.4 million less than net earnings generated in the first quarter
of 2011.&nbsp; The decrease was attributable to $13.8 million worth of closing costs incurred for the acquisition of Minefinders,
$7.2 million spent in exploration and development activities, and a negative variance of $24.9 million in non-cash gains on the
Company's outstanding warrants realized in Q1 2011.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0">After adjusting for a $2.7 million gain on derivatives and
the Minefinders' acquisition closing costs of $13.8 million, adjusted earnings for the first quarter were $61.4 million, or $0.58
per share, which compares to adjusted earnings of $65.2 million or $0.61 per share in same period in 2011.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0">Mine operating earnings generated during the first quarter
of 2012 rose to $101.9 million, or 6% higher than in the same period of 2011. The increase resulted from higher revenues, partially
offset by increased production costs and higher royalties. At the San Vicente mine, Pan American has recovered the capital invested
in the new processing plant and mine expansion as defined and permitted in its joint venture agreement with COMIBOL (the Bolivian
state-owned mining company), and as a consequence, royalties paid to COMIBOL have increased to 37.5% of the operation's cash flows,
from 9.375%.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0">Cash flow from operations generated during the first three
months of 2012 was $37.4 million, which was 37% less than in the comparable period of 2011.&nbsp; The decrease was primarily attributable
to higher income taxes paid during the quarter based on 2011's annual taxable income.&nbsp; Operating cash flow before interest
and income taxes was $118.6 million, or $1.13 per share during the first quarter, a healthy increase of 33% as compared to the
same period in 2011.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0">At March 31, 2012, Pan American's cash and short term investments
had risen to $594.2 million from December 31, 2011. The increase of $103 million was due to the net $86 million in cash acquired
with the Minefinders' transaction and $37 million of cash flows from operations, partially offset by $21 million in property and
equipment investments and $3.9 million paid in dividends. The Company's working capital increased by $216.4 million from the end
of the last quarter of 2011 to $782.8 million, of which a net $168.1 million was acquired through the Minefinders transaction.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0">The Company's effective tax rates vary considerably between
periods and from the amounts that would result from applying the Canadian statutory income tax rates to earnings before income
taxes. The main factors which have affected the effective tax rates for the quarter ended March 31, 2012 of 38% relative to the
first quarter of 2011 at 21% were the unrealized gains on the Company's warrants position, foreign income tax rate differentials
and foreign exchange gains and losses. Although these and other factors will continue to cause volatility in the future, the Company
expects that the effective tax rate for 2012 excluding the non-cash market adjustments for the volatility in warrants and convertible
debts is expected to be between 30% and 35%.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0"><B>Production and Operations</B></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0">During the first quarter of 2012, Pan American produced 5.5
million ounces of silver and 19,496 ounces of gold, which represented a year-on-year increase of 3% and 5%, respectively. The increase
in silver production was due to more ounces produced at San Vicente on better grades and higher throughput, in addition to increased
production at Huaron on higher throughput and recoveries. Gold production rose as a result of increased gold production from Manantial
Espejo.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0">In Peru, the Huaron mine had a strong operational quarter
and produced 0.8 million ounces of silver, 18% more than in the same period of last year.&nbsp; The improvement was a result of
higher throughput and better recovery rates.&nbsp; By contrast, the Morococha mine experienced a 10% reduction in silver production
with an output of 0.5 million ounces on expected lower silver grades, while increased in-fill drilling continued on a number of
higher grade areas, to permit longer-term mine plan optimizations.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0">In Mexico, production levels at the Alamo Dorado and La Colorada
mines were fairly stable in comparison to the first quarter of last year, with the operations contributing 1.3 million ounces and
1.1 million ounces of silver, respectively.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0">At 0.9 million ounces, silver production at the Manantial
Espejo mine in Argentina was also similar to that of a year ago, despite operational difficulties caused by lower-than expected
equipment availabilities at both the open pit and underground operations due to the negative effects of heightened import restrictions
and a four-day plant shutdown necessary to repair the SAG mill.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0">The San Vicente mine had an outstanding start to 2012 and
increased silver production by 34% to 0.9 million ounces of silver.&nbsp; The improvement was achieved in large part due to higher
throughput and higher grades.&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0">Consolidated cash costs for the first quarter of 2012 rose
to $10.49 per ounce of silver, net of by-product credits, from $7.83 during the first quarter of 2011.&nbsp; The increase was a
result of higher direct operating expenses, royalties at San Vicente, and increased underground mine development advances at the
Peruvian mines, which were all partially offset by higher by-product credits from more quantities of zinc and lead produced and
sold, in addition to higher realized gold prices.&nbsp; Our first quarter cash costs were well below the Company's guidance for
2012.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0"><B>Project Development</B></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0">At the Navidad silver development project in Argentina, Pan
American invested $7.1 million during the first quarter of 2012.&nbsp; Work focused on the completion of an updated Feasibility
Study, which is expected to be ready during the second half of the year.&nbsp; In addition, work continues in order to include
data collected during last year's exploration campaign into an updated resource model and mine plan, and to incorporate new baseline
data which takes into consideration the recent volcanic ash fall into the Environmental Impact Assessment. The Company also continues
to actively support the communities around the project, in particular in the areas of education, water management, fostering entrepreneurship
and small business development and providing agricultural assistance to local producers.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0">Although Chubut's legislation still bans open pit mining,
management believes that the provincial government will soon introduce new legislation which will allow for the responsible development
of Navidad.&nbsp; However, the Company is also keenly aware of the challenging investment environment in Argentina at this time,
and intends to move forward with Navidad cautiously.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0"><B>The Acquisition of Minefinders </B></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0">On March 30<SUP>th</SUP>, Pan American announced that it had
completed the previously announced Plan of Arrangement (the &quot;Arrangement&quot;), whereby Pan American acquired all of the
issued and outstanding common shares of Minefinders. The transaction, valued at approximately $1.3 billion at the time of completion,
is Pan American's largest acquisition to date. Total consideration was comprised of approximately $165.4 million in cash, $1.1
billion for the issuance of about 49.4 million Pan American shares, and $10.7 million for replacement options. The Company's transaction
costs related to the acquisition are estimated at $13.8 million. A total of $1.05 billion has been allocated to Minefinders' properties,
plant and equipment, in addition to $0.33 billion of working capital acquired.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0">Minefinders' flagship Dolores gold/silver mine, located in
the state of Chihuahua, Mexico, has now become Pan American's eighth operating mine.&nbsp; Pan American expects Dolores to contribute
2.75 to 3.0 million ounces of silver at cash costs between $5.00 to $6.00 per ounce, net of by-product gold credits, to our 2012
consolidated production.&nbsp; The table below sets out the Company's revised production forecast for the year, including production
from Dolores for the period April 1<SUP>st</SUP> to December 31<SUP>st</SUP>, 2012.</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border: black 1pt solid; padding: 1.5pt; text-align: center"></TD>
    <TD NOWRAP STYLE="border: black 1pt solid; padding: 1.5pt; text-align: center"><B>2012 Revised <BR>
Estimated <BR>
&nbsp;&nbsp;Silver Production&nbsp;</B>&nbsp;<BR>
<B>Million Ounces </B></TD>
    <TD NOWRAP STYLE="border: black 1pt solid; padding: 1.5pt; font-weight: bold; text-align: center"><B>2012 Estimated<BR>
Cash Costs<SUP>(1)</SUP> <BR>
Per Ounce US$</B> </TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border: black 1pt solid; padding: 1.5pt; text-align: center">Huaron</TD>
    <TD STYLE="border: black 1pt solid; padding: 1.5pt; text-align: center">2.7 to 2.8</TD>
    <TD STYLE="border: black 1pt solid; padding: 1.5pt; text-align: center">$20.90 to $22.70</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border: black 1pt solid; padding: 1.5pt; text-align: center">Morococha</TD>
    <TD STYLE="border: black 1pt solid; padding: 1.5pt; text-align: center">1.7 to 1.8</TD>
    <TD STYLE="border: black 1pt solid; padding: 1.5pt; text-align: center">$24.60 to $26.50</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border: black 1pt solid; padding: 1.5pt; text-align: center">Quiruvilca <SUP>(2)</SUP> </TD>
    <TD STYLE="border: black 1pt solid; padding: 1.5pt; text-align: center">0.2</TD>
    <TD STYLE="border: black 1pt solid; padding: 1.5pt; text-align: center">$31.30</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border: black 1pt solid; padding: 1.5pt; text-align: center">San Vicente</TD>
    <TD STYLE="border: black 1pt solid; padding: 1.5pt; text-align: center">3.4 to 3.5</TD>
    <TD STYLE="border: black 1pt solid; padding: 1.5pt; text-align: center">$18.40 to $18.70</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border: black 1pt solid; padding: 1.5pt; text-align: center">La Colorada</TD>
    <TD STYLE="border: black 1pt solid; padding: 1.5pt; text-align: center">4.1 to 4.3</TD>
    <TD STYLE="border: black 1pt solid; padding: 1.5pt; text-align: center">$9.50 to $9.90</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border: black 1pt solid; padding: 1.5pt; text-align: center">Alamo Dorado</TD>
    <TD STYLE="border: black 1pt solid; padding: 1.5pt; text-align: center">5.1 to 5.4</TD>
    <TD STYLE="border: black 1pt solid; padding: 1.5pt; text-align: center">$6.40 to $6.80</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border: black 1pt solid; padding: 1.5pt; text-align: center">&nbsp;&nbsp;Manantial Espejo&nbsp;&nbsp;</TD>
    <TD STYLE="border: black 1pt solid; padding: 1.5pt; text-align: center">4.3 to 4.5</TD>
    <TD STYLE="border: black 1pt solid; padding: 1.5pt; text-align: center">$8.60 to $10.40</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border: black 1pt solid; padding: 1.5pt; text-align: center">Dolores <SUP>(3)</SUP> </TD>
    <TD STYLE="border: black 1pt solid; padding: 1.5pt; text-align: center">2.8 to 3.0</TD>
    <TD STYLE="border: black 1pt solid; padding: 1.5pt; text-align: center">$5.00 to $6.00</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border: black 1pt solid; padding: 1.5pt; font-weight: bold; text-align: center">TOTAL</TD>
    <TD STYLE="border: black 1pt solid; padding: 1.5pt; font-weight: bold; text-align: center">24.25 to 25.5</TD>
    <TD STYLE="border: black 1pt solid; padding: 1.5pt; font-weight: bold; text-align: center">&nbsp;&nbsp;$11.50 to $12.50&nbsp;&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" STYLE="width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<TR>
    <TD STYLE="padding: 1.5pt"><SUP>(1)</SUP> For purposes of estimating 2012's cash costs, the Company assumed the following price levels for its by-product production: Zn $1,900/tonne; Pb $2,000/tonne; Cu $7,300/tonne; Au $1,600/oz.<BR>
<SUP>(2)<B> </B></SUP>The forecast for Quiruvilca only includes estimates for the first quarter of 2012.&nbsp; The Company is currently assessing strategic alternatives for the mine, which may include continued operations, divestiture, or placing the mine on care and maintenance.<BR>
<SUP>(3)<B> </B></SUP>The forecast for Dolores only includes production for the nine-month period from April 1<SUP>st</SUP> to December 31<SUP>st</SUP> 2012, representing the period of Pan American ownership in 2012. </TD></TR>
</TABLE>
<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0">Commenting on the transaction, Geoff Burns, President &amp;
CEO, said, &quot;With the acquisition and most of the integration activities now complete, we are concentrating on unlocking the
outstanding exploration upside and expansion potential of the Dolores mine, as well as aggressively exploring the highly prospective
La Virginia property also located in Mexico. The strategic rationale behind the transaction was clear: to de-risk our portfolio
of assets by increasing our silver production in a stable mining jurisdiction where our historical performance has simply been
excellent. I would like to welcome former Minefinders shareholders, as well as those employees and contractors who will continue
on with Pan American and support our mission to build the leading primary silver mining Company in the world.&quot;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0"><B>About Pan American Silver</B></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0">Pan American Silver's mission is to be the world's largest
and lowest cost primary silver mining company by increasing its low cost silver production and silver Mineral Reserves.&nbsp; The
Company has eight operating mines in Mexico, Peru, Argentina and Bolivia, including the recently acquired Dolores gold/silver mine
in Chihuahua, Mexico. Pan American also owns the Navidad silver development project in Chubut, Argentina, the Calcatreu gold project
in Rio Negro, also in Argentina and the La Bolsa development project in Sonora, Mexico.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0"><I>Technical information contained in this news release with
respect to Pan American has been reviewed by Michael Steinmann, P.Geo., Executive VP Geology &amp; Exploration, and Martin Wafforn,
P.Eng., VP Technical Services, who are the Company's Qualified Persons</I> <I>for the purposes of NI 43-101. </I></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0">Pan American will host a conference call to discuss the unaudited
quarterly results on Wednesday, May 16, 2012 at 11:00 am ET (08:00 am PT).&nbsp; To access the conference, North American participants
dial 1-647-427-7450, followed by conference ID 75517541.&nbsp; A live audio webcast can be accessed at http://www.newswire.ca/en/webcast/detail/960829/1030033.&nbsp;
Listeners may also gain access by logging on at http://www.panamericansilver.com/q1-2012-results-conference-call/.&nbsp;
The call will be available for replay for one week after the call by dialing 1-416-849-0833 and entering replay password # 75517541.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0"><B><I>CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS<BR>
</I></B><I>CERTAIN OF THE STATEMENTS AND INFORMATION IN THIS NEWS RELEASE CONSTITUTE &quot;FORWARD-LOOKING STATEMENTS&quot; WITHIN
THE MEANING OF THE UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND &quot;FORWARD-LOOKING INFORMATION&quot; WITHIN
THE MEANING OF APPLICABLE CANADIAN PROVINCIAL SECURITIES LAWS. ALL STATEMENTS, OTHER THAN STATEMENTS OF HISTORICAL FACT, ARE FORWARD-LOOKING
STATEMENTS. WHEN USED IN THIS NEWS RELEASE THE WORDS, &quot;BELIEVES&quot;, &quot;EXPECTS&quot;, &quot;INTENDS&quot;, &quot;PLANS&quot;,
&quot;FORECAST&quot;, &quot;OBJECTIVE&quot;, &quot;OUTLOOK&quot;, &quot;POSITIONING&quot;, &quot;POTENTIAL&quot;, &quot;ANTICIPATED&quot;,
&quot;BUDGET&quot;, AND OTHER SIMILAR WORDS AND EXPRESSIONS, IDENTIFY FORWARD-LOOKING STATEMENTS OR INFORMATION. THESE FORWARD-LOOKING
STATEMENTS OR INFORMATION RELATE TO, AMONG OTHER THINGS: FUTURE PRODUCTION OF SILVER, GOLD AND OTHER METALS AND THE TIMING OF SUCH
PRODUCTION; FUTURE CASH COSTS PER OUNCE OF SILVER; THE PRICE OF SILVER AND OTHER METALS; THE EFFECTS OF LAWS, REGULATIONS AND GOVERNMENT
POLICIES AFFECTING PAN AMERICAN'S OPERATIONS OR POTENTIAL FUTURE OPERATIONS INCLUDING BUT NOT LIMITED TO: LAWS IN THE PROVINCE
OF CHUBUT, ARGENTINA, WHICH, CURRENTLY HAVE SIGNIFICANT RESTRICTIONS ON MINING, CHANGES TO THE LAWS OF BOLIVIA WITH RESPECT TO
MINING, AND LAWS IN ARGENTINA WHICH IMPACT PAN AMERICAN'S ABILITY TO REPATRIATE FUNDS; SUCCESSFUL INTEGRATION OF MINEFINDERS AND
FUTURE EXPANSION OF MINEFINDERS' DOLORES MINE AND DEVELOPMENT OF THE NAVIDAD PROJECT, THE LA PRECIOSA PROJECT, AND OTHER DEVELOPMENT
PROJECTS OF THE COMPANIES, INCLUDING THE ADDITION OF A MILL AT MINEFINDERS' DOLORES MINE; THE SUFFICIENCY OF THE COMPANY'S CURRENT
WORKING CAPITAL, ANTICIPATED OPERATING CASH FLOW OR ITS ABILITY TO RAISE NECESSARY FUNDS; TIMING OFRELEASE OF TECHNICAL OR OTHER
REPORTS; THE ESTIMATES OF EXPECTED OR ANTICIPATED ECONOMIC RETURNS FROM THE COMPANY'S MINING PROJECTS; FORECAST CAPITAL AND NON-OPERATING
SPENDING; FUTURE SALES OF THE METALS, CONCENTRATES OR OTHER PRODUCTS PRODUCED BY THE COMPANY; AND THE COMPANY'S PLANS AND EXPECTATIONS
FOR ITS PROPERTIES AND OPERATIONS. </I></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0"><I>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 CANADIAN DOLLAR, 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 INCLUDING AMONG
OTHERS, CHANGES TO IMPORT AND EXPORT REGULATIONS AND LAWS RELATING TO THE REPATRIATION OF CAPITAL AND FOREIGN CURRENCY CONTROLS;
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; THE COMPANY'S ABILITY TO COMPLETE AND SUCCESSFULLY INTEGRATE ACQUISITIONS AND TO MITIGATE OTHER BUSINESS
COMBINATION RISKS; 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 &quot;RISKS RELATED TO PAN AMERICAN'S BUSINESS&quot;
IN THE COMPANY'S MOST RECENT FORM 40-F 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. </I></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt"><B>Pan American Silver Corp</B>. </TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
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    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt">Financial &amp; Operating Highlights</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
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    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
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    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD></TR>
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    <TD STYLE="padding: 1.5pt"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD COLSPAN="5" STYLE="padding: 1.5pt; font-weight: bold; text-align: center">Three months ended</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD COLSPAN="5" STYLE="padding: 1.5pt; font-weight: bold; text-align: center">March 31,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: black 1pt solid; padding: 1.5pt"></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding: 1.5pt; font-weight: bold; text-align: right">2012</TD>
    <TD STYLE="border-bottom: black 1pt solid; padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding: 1.5pt; text-align: right">2011</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt; font-weight: bold">Consolidated Financial Highlights</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt">(Unaudited in thousands of U.S. Dollars)</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt">Net earnings for the period</TD>
    <TD STYLE="padding: 1.5pt; font-weight: bold; text-align: right">$</TD>
    <TD STYLE="padding: 1.5pt; text-align: right">50,245</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right">$</TD>
    <TD STYLE="padding: 1.5pt; text-align: right">92,679</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt">Earnings per share attributable to common shareholders</TD>
    <TD STYLE="padding: 1.5pt; font-weight: bold; text-align: right">$</TD>
    <TD STYLE="padding: 1.5pt; text-align: right">0.47</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right">$</TD>
    <TD STYLE="padding: 1.5pt; text-align: right">0.86</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding: 1.5pt">Adjusted earnings for the period<SUP>(1)</SUP> </TD>
    <TD STYLE="padding: 1.5pt; font-weight: bold; text-align: right">$</TD>
    <TD STYLE="padding: 1.5pt; text-align: right">61,384</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right">$</TD>
    <TD STYLE="padding: 1.5pt; text-align: right">65,156</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt">Adjusted earnings per share</TD>
    <TD STYLE="padding: 1.5pt; font-weight: bold; text-align: right">$</TD>
    <TD STYLE="padding: 1.5pt; text-align: right">0.58</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right">$</TD>
    <TD STYLE="padding: 1.5pt; text-align: right">0.61</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding: 1.5pt">Mine operating earnings</TD>
    <TD STYLE="padding: 1.5pt; font-weight: bold; text-align: right">$</TD>
    <TD STYLE="padding: 1.5pt; text-align: right">101,896</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right">$</TD>
    <TD STYLE="padding: 1.5pt; text-align: right">96,018</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt">Cash flow from operations</TD>
    <TD STYLE="padding: 1.5pt; font-weight: bold; text-align: right">$</TD>
    <TD STYLE="padding: 1.5pt; text-align: right">37,395</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right">$</TD>
    <TD STYLE="padding: 1.5pt; text-align: right">59,465</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt">Operating cash flow before interest and income taxes</TD>
    <TD STYLE="padding: 1.5pt; font-weight: bold; text-align: right">$</TD>
    <TD STYLE="padding: 1.5pt; text-align: right">118,645</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right">$</TD>
    <TD STYLE="padding: 1.5pt; text-align: right">88,968</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt">Capital spending</TD>
    <TD STYLE="padding: 1.5pt; font-weight: bold; text-align: right">$</TD>
    <TD STYLE="padding: 1.5pt; text-align: right">21,361</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right">$</TD>
    <TD STYLE="padding: 1.5pt; text-align: right">17,192</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt">Cash and short-term investments</TD>
    <TD STYLE="padding: 1.5pt; font-weight: bold; text-align: right">$</TD>
    <TD STYLE="padding: 1.5pt; text-align: right">594,205</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right">$</TD>
    <TD STYLE="padding: 1.5pt; text-align: right">397,206</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding: 1.5pt">Working capital<SUP>(3)</SUP> </TD>
    <TD STYLE="padding: 1.5pt; font-weight: bold; text-align: right">$</TD>
    <TD STYLE="padding: 1.5pt; text-align: right">782,805</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right">$</TD>
    <TD STYLE="padding: 1.5pt; text-align: right">492,792</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding: 1.5pt; font-weight: bold">Consolidated Ore Milled &amp; Metals Recovered to Concentrate</TD>
    <TD NOWRAP STYLE="padding: 1.5pt"></TD>
    <TD NOWRAP STYLE="padding: 1.5pt"></TD>
    <TD NOWRAP STYLE="padding: 1.5pt"></TD>
    <TD NOWRAP STYLE="padding: 1.5pt"></TD>
    <TD NOWRAP STYLE="padding: 1.5pt"></TD>
    <TD NOWRAP STYLE="padding: 1.5pt"></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt">Tonnes milled</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right">1,156,049</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right">1,161,519</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt">Silver metal - ounces</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right">5,502,958</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right">5,344,739</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt">Gold metal - ounces</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right">19,496</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right">18,640</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt">Zinc metal - tonnes</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right">11,032</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right">8,844</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt">Lead metal - tonnes</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right">4,015</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right">3,300</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt">Copper metal - tonnes</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right">980</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right">1,246</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding: 1.5pt; font-weight: bold">Consolidated Cost per Ounce of Silver (net of by-product credits)</TD>
    <TD NOWRAP STYLE="padding: 1.5pt"></TD>
    <TD NOWRAP STYLE="padding: 1.5pt"></TD>
    <TD NOWRAP STYLE="padding: 1.5pt"></TD>
    <TD NOWRAP STYLE="padding: 1.5pt"></TD>
    <TD NOWRAP STYLE="padding: 1.5pt"></TD>
    <TD NOWRAP STYLE="padding: 1.5pt"></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt">Total cash cost per ounce</TD>
    <TD STYLE="padding: 1.5pt; font-weight: bold; text-align: right">$</TD>
    <TD STYLE="padding: 1.5pt; text-align: right">10.49</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right">$</TD>
    <TD STYLE="padding: 1.5pt; text-align: right">7.83</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt">Total production cost per ounce</TD>
    <TD STYLE="padding: 1.5pt; font-weight: bold; text-align: right">$</TD>
    <TD STYLE="padding: 1.5pt; text-align: right">14.15</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right">$</TD>
    <TD STYLE="padding: 1.5pt; text-align: right">11.38</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt">Payable ounces of silver (used in cost per ounce calculations)</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right">5,172,994</TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right">5,093,473</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD>
    <TD STYLE="padding: 1.5pt; text-align: right"></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="7" STYLE="padding: 1.5pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt"><SUP>(1)</SUP>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD STYLE="padding: 1.5pt">Adjusted earnings is a non-GAAP measure calculated as net earnings for the period adjusting the<BR> gain or loss recorded on fair market value adjustments on the Company's outstanding warrants<BR> and the closing costs of the Minefinders' transaction.&nbsp;The Company considers this measure to<BR> better reflect normalized earnings as it does not include unrealized gains or losses from<BR> outstanding warrants which may be volatile from period to period and acquisition costs.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 1.5pt"><SUP>(2)</SUP>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD STYLE="padding: 1.5pt">Working capital is a non-GAAP measure calculated as current assets less current liabilities. The<BR> Company and certain investors use this information to evaluate whether the Company is able to<BR> meet its current obligations using its current assets.</TD></TR>
<TR>
    <TD STYLE="padding: 1.5pt"></TD>
    <TD STYLE="padding: 0.75pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0">%CIK: 0000771992</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><B>For further information:</B></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0"><B>Information Contact&nbsp;<BR>
</B>Kettina Cordero<BR>
Manager, Investor Relations<BR>
(604) 684-1175<BR>
info@panamericansilver.com<BR>
www.panamericansilver.com</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0">CO: Pan American Silver Corp.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 9.75pt 0">CNW 22:01e 15-MAY-12</P>



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<P STYLE="margin: 0; text-align: left">&nbsp;</P>

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