Pan American Silver Files 40F including additional Financial Disclosure with respect to Recently Announced Purchase of Interest in Manantial Espejo

VANCOUVER, March 31 /PRNewswire-FirstCall/ -- Pan American Silver Corp. (PAAS: NASDAQ; PAA: TSX) today announced that it has filed its annual Form 40-F with the United States Securities and Exchange Commission.

On March 22, 2006 Pan American issued a press release announcing that the Company had signed an agreement to acquire the remaining 50% interest in the Manantial Espejo silver project it did not already own. Accordingly, Pan American has included a "Subsequent Event" note in the audited consolidated financial statements for the year ended December 31, 2005 filed with its Form 40-F in the United States describing this acquisition.

In order to maintain consistency between filings in Canada and the United States, Pan American has restated its audited consolidated financial statements for the year ended December 31, 2005 on SEDAR in Canada including the same "Subsequent Event" note.

For the same reason, the Canadian financial statements filed today also contain a "Fair Value of Financial Instruments" note describing the fair value of Pan American's forward positions in zinc metal, Mexican pesos and silver, as well as a description of the concentration among customers for Pan American's concentrate and dore sales. The information contained in this note has been previously fully disclosed in the MD&A for the year ended December 31, 2005. There are no other changes to the Canadian financial statements.

For further information visit the Company's website at http://www.panamericansilver.com/ or contact: Robert Doyle - CFO Pan American Silver Corp - [phone]