Pan American Goldfields Ltd. (MXOM: OTCQX U.S.) | New Board of Directors Elected and Shareholders Vote for all Vortex Capital Nominees

VANCOUVER, June 28, 2013 /PRNewswire/ – Pan American Goldfields Ltd. (“Pan Am” or “the Company”) (OTCQX: “MXOM”) announces that it has
reached a settlement agreement with Vortex Capital (“Vortex”) to end an
ongoing proxy contest dispute.

Emilio Alvarez and Vortex submitted an intention to nominate five
individuals (the “Vortex Nominees”) at the Annual General Meeting of
the Company. Mr. Alvarez and Vortex solicited proxies on behalf of the
Vortex Nominees in advance of the Annual Meeting. At the Annual
Meeting, the Company questioned the Notice’s compliance with one of the
Company’s Bylaw requirements for stockholder nominations and took the
position at the meeting that the Notice did not comply with such Bylaw
requirement and that the Vortex nominees were excluded from
consideration at the Annual Meeting. Vortex disputed the Company’s
position and took the position that it submitted a valid Notice and
asserted the nomination of the Vortex Nominees was valid and
sufficient. At the Annual General Meeting on June 17, 2013 the Company
and Vortex entered into discussions to resolve the dispute and avoid
litigation and, as a result, entered into a settlement agreement (“the
Settlement Agreement”). Among other things, the Settlement Agreement
provides that the following persons, all of whom are Vortex Nominees,
shall serve as directors and hold office: (i) Laurent Deydier; (ii)
Balbir Bindra; (iii) William R. Majcher; (iv) Emilio Alvarez; and (v)
Bruno Le Barber. In addition, pursuant to the terms of the Settlement
Agreement, Ricardo Ernesto Marcos Touche has also been appointed to
hold office.

The holders of a total of 71,817,998 shares of common stock were present
at the Annual Meeting, either in person or by proxy, which total
constituted a majority of the issued and outstanding shares on the
record date of the Annual Meeting. The preliminary tally of votes of
the inspector of election at the Annual Meeting, showed that votes were
cast in the election of directors for the Vortex slate of nominees as

The new board of Pan Am would like to thank the previous members of the
Board, Messrs. Hernan Celorrio, George Young, Randy Buchamer and Gary
. Pan Am’s Chairman and Chief Executive Officer, Neil Maedel,
was not re-elected as a director of Pan Am and resigned as an officer
of Pan Am. He has entered into a consulting agreement with Pan Am
pursuant to which he will provide assistance to the Company. The new
board of directors would like to thank Mr. Maedel for his numerous
years of service in guiding the Company.

“We believe the combination of new leadership will help in unlocking the
significant value we see in Pan Am’s gold and silver project at
Cieneguita in Mexico and demonstrates Vortex’s commitment to
shareholders’ interests with the ability and determination to adopt a
corporate activism strategy, if necessary,” said Bruno Le Barber,
Managing Director of Vortex Capital. He added, “the new Board, going
forward, will be working very closely with the JV partner, MRT in
Mexico and will be relying on MRT’s mining expertise in assessing
options to increase production from the existing pilot production

About Pan American Goldfields Ltd.

Pan American Goldfields is a precious metals mining and exploration
company. Its focus is the production of gold and silver and the
development and expansion of its Cieneguita mine in Mexico’s booming
Sierra Madre gold-silver belt.

On behalf of the Board of Directors,
Emilio Alvarez, Director

Safe Harbor Disclosure

The information in this press release contains forward-looking
statements regarding future events or the future financial performance
of the Company. Please note that any statements that may be considered
forward-looking are based on projections; that any projections involve
judgment, and that individual judgments may vary. Moreover, these
projections are based only on limited information available to us now,
which is subject to change. Although those projections and the factors
influencing them will likely change, we are under no obligation to
inform you if they do. Actual results may differ substantially from any
such forward looking statements as a result of various factors, many of
which are beyond our control, including, among others, the timing and
outcome of our feasibility study on our Cieneguita Project; the costs
and results of our initial production activities on our Cieneguita
Project; the future financial and operating performances of our
projects; the estimation of mineral resources and the realization of
mineral reserves, if any, on our existing and any future projects; the
timing of exploration, development, and production activities and
estimated future production, if any; estimates related to costs of
production, capital, operating and exploration expenditures;
requirements for additional capital and our ability to raise additional
capital on a timely basis and on acceptable terms; government
regulation of mining operations, environmental risks, reclamation and
rehabilitation expenses; title disputes or claims against our existing
and any future projects; and the future price of gold, silver, or other
minerals. These and other factors can be found in our filings with the
SEC. The Company undertakes no obligation to release publicly the
results of any revision to these forward-looking statements to reflect
events or circumstances following the date of this release. 

SOURCE Pan American Goldfields Ltd.

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