Pan American Silver Files Base Shelf Prospectus

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 13, 2009) - Pan American Silver Corp. (TSX:PAA)(NASDAQ:PAAS) (the "Company") has today filed a preliminary short form shelf prospectus with the securities commissions in each province and territory of Canada and a corresponding registration statement with the United States Securities and Exchange Commission. These filings, when made final, will allow the Company to make offerings of common shares, warrants, debt securities, subscription receipts or any combination thereof of up to US$200 million during the next 25 months to potential purchasers in each province and territory of Canada and the United States. This base shelf prospectus replaces the Company's previous base shelf prospectus, which has expired. The proceeds from any such offerings will be used by the Company to fund acquisitions, development programs on existing or acquired mineral properties, working capital requirements, repayment of outstanding indebtedness from time-to-time or for other general corporate purposes.

A registration statement relating to these securities has been filed with the United States Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state. A copy of the prospectus may be obtained from Robert Pirooz, the Company's Secretary, at 1500 - 625 Howe Street, Vancouver, British Columbia, V6C 2T6.

About Pan American Silver

Pan American Silver's mission is to be the world's largest and lowest cost primary silver mining company by increasing its low cost silver production and silver reserves. The Company has eight operating mines in Mexico, Peru, Bolivia and Argentina.