Pan American Fertilizer (CNSX: PAF) Announces LOI for the Sale of up to 50,000 Tonnes of Calcium Sulphate to Paraguay

Tuesday, October 09, 2012

(via Thenewswire.ca)

VANCOUVER, BRITISH COLUMBIA, October 9th, 2012 - Pan American Fertilizer Corp., (CNSX: PAF) ("Pan American" or the "Company") is pleased to announce that it has entered into a non-binding letter of intent (the "LOI") with Agro Industrial Campos Nuevos S.A. ("Agro Industrial"). Under the terms of the LOI, Pan American will sell Agro Industrial between 30,000 and 50,000 tonnes of Calcium Sulphate (Agricultural Gypsum) over a 12 month period at a mutually agreed price per tonne.

"This sales LOI is an extremely important milestone for Pan American. It not only represents our first international sales agreement, but also demonstrates the massive potential international market for our product. The testing that Agro did validates the quality of our product and we expect to establish many more strategic sales arrangements with international partners" reported Randy Wright, President and CEO of Pan American.

"We at Agro Industrial are very pleased with the signing of this LOI with Pan American. We have long been searching for a partner that can provide a high quality product in a professional and timely manner. We feel we have found that partner in Pan American" reported Nivaldo Ouriques, President of Argo Industrial.

About Pan American Fertilizer Corp.

Pan American is a Canadian company dedicated to providing fertilizer to growing global markets specifically in South and Central America. The company is focused on the extraction of a specific type of fertilizer called calcium sulphate (also referred to as "Agricultural Gypsum") currently in Argentina. To ensure long term development and increase shareholder value, Pan American currently plans to significantly expand its current operational objectives while expanding its asset base by acquiring additional calcium sulphate and other fertilizer related assets and by expanding its markets to neighbouring countries with Argentina.

When used as a fertilizer and as a soil remediator, calcium sulphate is a soft sulfate mineral composed of calcium sulfate dihydrate which is extremely rich in sulphur and calcium. When dissolved in water, the mineral becomes calcium and sulphate sulphur ions, both of which are required nutrients for plants. Calcium sulphate plays a vital role in establishing and maintaining good chemical balance in soil, water and plants, specifically with healthy root development. Ultimately, calcium sulphate increases overall crop quality and yields. www.PAFertilzer.com

On behalf of the board of directors of Pan American Fertilizer Corp.

"Randy Wright"

Randy Wright

President and CEO

FOR MORE INFORMATION, PLEASE CONTACT:

Jeff French

Investor Relations

jfrench@pafertilizer.com

(604)638-3480

The CNSX does not accept responsibility for the adequacy or accuracy of this release.

Forward Looking Statements

Statements contained in this news release that are not historical facts constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws and are based on expectations, estimates and projections as of the date of this release. The words "is expected" or "estimates" or variations of such words and phrases or statements that certain actions, events or results "may" or "could" occur and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Pan American as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Many of these factors can affect Pan American's actual results and could cause actual results to differ materially from those expressed or implied in any forward looking statements made by, or on behalf of, Pan American. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future.