VANCOUVER, B.C. CANADA March 21, 2012 – Pan American Goldfields Ltd. (OTCQB: “MXOM”) (the “Company”) is pleased to announce the mineral production and revenues received from its Cieneguita Project located in Chihuahua, Mexico for the third quarter ending November 30th, 2011.
The Cieneguita Project is currently being operated at a limited or pilot scale under an agreement with Minera Rio Tinto (“MRT”). Under this agreement MRT has the right to mine the first 15 meters depth of the deposit from which the Company receives 20% of net profits and 80% of any net profits from material mined deeper than 15 meters. After December 31st, 2012, 100% of the project reverts back to the Company and MRT has the right to earn a 20% interest by contributing on a pro-rata basis to the costs of the development of a planned larger operation. This larger operation is the subject of a preliminary economic assessment (“PEA”) being prepared by M3 Engineering & Technology of Tucson, Arizona with an expected completion date of early third quarter 2012.