PL First Potash Corporation

Pan American Lithium Corp. (the "Company") (TSX VENTURE: PL) announces that it has entered into a letter agreement dated March 18, 2010 and accepted March 29, 2010, with Escondidas Internacional S.A. de C.V., a privately held Mexican corporation ("Escondidas"), and the shareholders of Escondidas, whereby the parties have agreed to extend the closing date set out in the Share Option Agreement dated December 18, 2009, from March 31, 2010 to June 30, 2010.

The Company also announces that its Board of Directors (the "Board") has approved a new incentive option plan which allows the Company to reserve for issuance up to 10% of the issued and outstanding common shares of the Company, at the time of such respective grant (the "10% Rolling Plan"). In accordance with the policies of the TSX Venture Exchange (the "Exchange"), the 10% Rolling Plan must be approved by the Company's shareholders at the Company's next annual general meeting (the "2010 AGM") (and each annual general meeting thereafter).

The Company's previous incentive option plan was recently approved by the Company's shareholders at the annual general and special meeting held on December 15, 2009 (the "Previous Plan"). As disclosed in the Company's management information circular dated November 10, 2009 for that meeting, the Previous Plan allows for the issuance of up to 2,176,200 incentive stock options, of which 651,200 remain issuable.

Following the Board's approval of the 10% Rolling Plan, the Company granted 651,200 incentive stock options under the Previous Plan and 298,800 incentive stock options under the 10% Rolling Plan (the "New Grants"), all of which were granted to directors, officers, consultants and employees of the Company. The incentive stock options granted under the Previous Plan are exercisable at the price of $0.55 until March 30, 2015 and those granted under the 10% Rolling Plan are exercisable at the price of $0.55 until March 30, 2020.

As required by the Exchange, the New Grants will vest following approval of the 10% Rolling Plan by the Exchange and following approval of the 10% Rolling Plan and the New Grants by the Company's shareholders at the 2010 AGM.

On Behalf of the Board,

PAN AMERICAN LITHIUM CORP.

Andrew A. Brodkey, President and CEO

This press release contain projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company such as the statements related to: (i) the Exchange approval of the 10% Rolling Plan; and (ii) the shareholders' approval of the 10% Rolling Plan and the New Grants at the 2010 AGM. There are numerous risks and uncertainties that could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information, including: (i) the Exchange's refusal to accept the 10% Rolling Plan; and (ii) the shareholders' refusal to approve to the 10% Rolling Plan or the New Grants for any reason. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts: Pan American Lithium Corp. Damien Lowry 866-669-9377 (toll free)