PAN AMERICAN SILVER CORP.

Pan American Silver reported unaudited financial and operating results for the quarter ended March 31, 2009 and provided an update on operations. Highlights includes recorded sales of $70.4 million during the first quarter of 2009, compared to $108.8 million in the first quarter of 2008. The decrease was the result of lower silver and base metal prices, which were partially offset by an 11% increase in the quantity of silver sold and a 206% increase in the amount of gold sold. Quantities of base metals sold were comparable to the year-earlier period. Cost of sales for the quarter was $45.1 million, which was 11% lower than a year ago and reflected a concerted company-wide effort to reduce expenses. Mine operating earnings totaled $10.5 million, a 78% decrease from the first quarter of 2008, but a $20.4 million improvement over the mine operating loss that was posted in the 4th quarter of 2008.