PAN AMERICAN GOLDFIELDS LTD ANNOUNCES CIENEGUITA GOLD-SILVER PROJECT PRE-CONCENTRATE/CONCENTRATE SHIPMENTS ON TARGET

Producing gold, silver and lead in concentrates

BROOMFIELD, CO, Nov. 29 /PRNewswire/ - Further to its press release of November 9, 2010, Pan American Goldfields Ltd (OTCBB:"MXOM") (the "Company") is pleased to announce that the company's partner Minera Rio Tinto (MRT)  continues to increase production and optimize operations at the  Cieneguita project mill in Chihuahua, Mexico as projected previously. Pre-concentrate produced at the Cieneguita mill is shipped for further processing at MRT's mill at Choix, Mexico, where final concentrates are produced and shipped to the Trafigura warehouse in Manzanillo for sale under a contract with Trafigura.

Prior to the recent installation and commissioning of the ball mill and additional flotation cells, bulk sulfide pre-concentrate production included 380 tonnes in July, 462 tonnes in August, and 499 tonnes in September of 2010. In October, over 1,000 tonnes were produced, although only 702 tonnes were shipped due to the installation schedule associated with the filtration/drying equipment, which is now fully installed and operating. It is estimated that over 1,500 tonnes will be shipped in November, including the unshipped October production. 

Following further treatment at Choix, final lead and zinc concentrates are shipped for sale to Trafigura in Manzanillo, Mexico. Final concentrates produced and shipped to Trafigura during October and the first 10 days of November are summarized in the table below::

Another 100 tonnes is being readied for shipment as of the date of this press release.

"We are very pleased with progress to date as the initial production following the installation of the ball mill is as forecast," said Mario Ayub Chairman, Pan American Goldfields. 

MRT, the company's partner, has advised the Company that it expects to continue increasing pre-concentrate production at Cieneguita along with improved metal recoveries as the ball mill grinding process is fine-tuned. The amount of ore material mined and processed at Cieneguita is currently about 500 tons per day and it is intended to increase this amount to 600 tons per day by year end. This amount of ore production would relate to the production of approximately 260 tons of concentrate per month with metal contents similar to current concentrate shipments.  

About Cieneguita

The Cieneguita mill makes a bulk sulfide flotation concentrate that is sent to the MRT owned mill at Choix where it is then reground and separate lead and zinc concentrates produced. These concentrates are then shipped to the port at Manzanillo where they are sold under contract to the trading company Trafigura. Most of the gold and silver report to the lead concentrate. The anticipated increase in the production capacity at Cieneguita will not require any modifications to the plant at Choix. Pan American currently has a joint venture agreement with MRT under which MRT can earn 60% of the project by successfully initiating production on a small scale, followed by the funding of an additional $4 million toward the completion of a bankable feasibility study. With the completion of the construction start-up phase at Cieneguita, the focus will now be the acceleration of the feasibility study. This study will evaluate a full-scale operation which will target a production rate of about 5,000 tonnes of material processed per day along with saleable metal production directly from the Cieneguita site.

The technical information in this release has been prepared by Gary A. Parkison, CPG, a Director of the Company and a Qualified Person as defined by NI43-101.

About Pan American Goldfields/MexoroMinerals

Pan American Goldfields is a Chihuahua, Mexico based precious metal producer and exploration company. It is a specialist in exploration, mine development and production in Mexico's booming Sierra Madre Gold-Silver Belt. The company's most advanced project is its now producing Cieneguita Gold Mine where a feasibility study to significantly increase the mine's already growing production profile is underway. 

On behalf of the Board of Directors,

Mario Ayub, Chairman

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 timing and amount of funds received from the sale of our Guazapares Project 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.