Pan American Fertilizer (CNSX: PAF) Announces Mining Lease Agreement for EL TABLEADO Property

Tuesday, October 02, 2012

(via Thenewswire.ca)

VANCOUVER, BRITISH COLUMBIA, September 26, 2012 - Pan American Fertilizer Corp., (CNSX: PAF) ("Pan American" or the "Company") is pleased to announce that it has entered into a mining lease agreement (the "Agreement") in respect of the El Tableado property (the "Property") with Luis Peschiutta ("Peschiutta") to acquire exploration rights to the Property. The Property has a surface area of approximately 2,200 hectares and is located in the Province of Santiago del Estero in northern Argentina.

Pursuant to the terms of the Agreement, the Company has been granted the right to explore the Property for a quarry of gypsym for an initial term of 20 years and will be responsible to lead all mining exploration and exploitation activities. If, after one year, operations on the Property are not economically feasible, the Company has the right to terminate the Agreement by providing two-months notice. Both parties have agreed to re-negotiate a new agreement at the end of the term.

As compensation, effective November, 2012, the Company will pay Peschiutta the greater of (i) US$5,000 per month and (ii) US$2.00 per ton extracted from the Property per month (the "Lease Price"). The parties have agreed to re-negotiate the Lease Price every twelve months throughout the term.

The Property has not had previous exploration and is not currently permitted for exploration. The Company is in the process of applying for an exploration permit for the Property.

"The signing of the El Tableado mining lease agreement is consistent with Pan American's ongoing commitment to enhancing shareholder value through the identification and addition of strategic assets. The favorable terms of this agreement will allow Pan American to further establish itself as key player in the South American fertilizer market by increasing its current extraction potential" reported Randy Wright, President and CEO of Pan American.

About Pan American Fertilizer Corp.

Pan American is a Canadian company dedicated to providing fertilizer to a growing global market. The company is focused on the extraction of a specific type of fertilizer called calcium sulphate (also referred to as "Agricultural Gypsum"). 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.

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.