ALAMO DORADO

Pan American Silver Corp. updated the reserve and/or resource estimates for LA COLORADA, located in Mexico.

Pan American reported that in 2008alamo Dorado mine produced 6,115,836 ounces at $4.38 per ounce. Mill tonnage at Alamo Dorado increased by 30% in 2008 to 1.56 million tonnes, which together with substantial improvements in silver grades to 149 gpt silver and recoveries to 89% resulted in a 61% increase in silver production to 6.1 million ounces compared to 2007’s 3.8 million ounces. The higher mill throughput and gold recoveries in 2008 of 84%, partially offset by lower gold grades of 0.42 gpt resulted in a 26% increase in the production of gold to 16,822 ounces compared to 13,335 ounces in 2007.

Reported that in Q3 2008, produced 1.7 Moz silver and 4,179 oz gold. The mine has consistently produced above forecasts in 2008 due to higher actual head grades and better than expected throughput rates. Cash costs of $4.42 per ounce were 12% lower than Q3 2007 due to higher silver production and higher gold by-product credits offset by escalated costs, primarily for supplies, energy, and labor.