Pan American silver closes US$103 million public offering of common shares



    VANCOUVER, Feb. 12 /CNW/ - Pan American Silver Corp. (NASDAQ:   PAAS; TSX:
PAA) (the "Company") has closed its previously announced public offering of
common shares (the "Offering"). Pursuant to the Offering, the Company today
issued 6,371,000 common shares at a price of US$16.25 per share, for aggregate
gross proceeds of US$103,528,750 and total proceeds, net of underwriting fees,
of US$98,611,134, including the exercise in full of the underwriters'
over-allotment option.
    The Company expects to use the net proceeds from the Offering to fund
acquisitions, development programs on acquired mineral properties, working
capital requirements and for other general corporate purposes.
    Goldman Sachs Canada Inc. and CIBC World Markets Inc. acted as co-lead
managers and joint book runners of the Offering and UBS Securities Canada
Inc., Merrill Lynch Canada Inc., RBC Dominion Securities Inc., National Bank
Financial Inc., Raymond James Ltd., Salman Partners Inc. and Canaccord Capital
Corporation, acted as co-managers of the Offering.
    This press release shall not constitute an offer to sell or a
solicitation of an offer to buy common shares nor shall there be any sale of
such securities in any jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the securities
laws of any such jurisdiction.

    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.

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATION

    THIS NEWS RELEASE CONTAINS "FORWARD-LOOKING STATEMENTS" WITHIN THE
MEANING OF THE UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
AND "FORWARD-LOOKING INFORMATION" WITHIN THE MEANING OF APPLICABLE CANADIAN
SECURITIES LEGISLATION. SUCH FORWARD-LOOKING STATEMENTS AND INFORMATION
INCLUDE, BUT ARE NOT LIMITED TO, STATEMENTS AS TO THE USE OF PROCEEDS FROM THE
OFFERING. THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION TO,
UPDATE SUCH FORWARD-LOOKING STATEMENTS OR INFORMATION, OTHER THAN AS REQUIRED
BY APPLICABLE LAW.
    FORWARD-LOOKING STATEMENTS OR INFORMATION INVOLVE KNOWN AND UNKNOWN
RISKS, UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE THE ACTUAL RESULTS,
LEVEL OF ACTIVITY, PERFORMANCE OR ACHIEVEMENTS OF PAN AMERICAN AND ITS
OPERATIONS TO BE MATERIALLY DIFFERENT FROM THOSE EXPRESSED OR IMPLIED BY SUCH
STATEMENTS. SUCH FACTORS INCLUDE, AMONG OTHERS: FLUCTUATIONS IN THE SPOT AND
FORWARD PRICE OF SILVER, GOLD, BASE METALS OR CERTAIN OTHER COMMODITIES (SUCH
AS NATURAL GAS, FUEL OIL AND ELECTRICITY); FLUCTUATIONS IN THE CURRENCY
MARKETS (SUCH AS THE PERUVIAN SOLE, MEXICAN PESO ARGENTINE PESO AND BOLIVIAN
BOLIVIANO VERSUS THE U.S. DOLLAR); CHANGES IN NATIONAL AND LOCAL GOVERNMENT,
LEGISLATION, TAXATION, CONTROLS, REGULATIONS AND POLITICAL OR ECONOMIC
DEVELOPMENTS IN CANADA, PERU, MEXICO, ARGENTINA, BOLIVIA, THE UNITED STATES OR
OTHER COUNTRIES IN WHICH THE COMPANY MAY CARRY ON BUSINESS IN THE FUTURE;
OPERATING OR TECHNICAL DIFFICULTIES IN CONNECTION WITH MINING OR DEVELOPMENT
ACTIVITIES; RISKS AND HAZARDS ASSOCIATED WITH THE BUSINESS OF MINERAL
EXPLORATION, DEVELOPMENT AND MINING (INCLUDING ENVIRONMENTAL HAZARDS,
INDUSTRIAL ACCIDENTS, UNUSUAL OR UNEXPECTED GEOLOGICAL FORMATIONS, PRESSURES,
CAVE-INS AND FLOODING); INADEQUATE INSURANCE, OR INABILITY TO OBTAIN
INSURANCE, TO COVER THESE RISKS AND HAZARDS; EMPLOYEE RELATIONS; AVAILABILITY
AND INCREASING COSTS ASSOCIATED WITH MINING INPUTS AND LABOR; THE SPECULATIVE
NATURE OF MINERAL EXPLORATION AND DEVELOPMENT, INCLUDING THE RISKS OF
OBTAINING NECESSARY LICENSES AND PERMITS; DIMINISHING QUANTITIES OR GRADES OF
MINERAL RESERVES AS PROPERTIES ARE MINED; BUSINESS OPPORTUNITIES THAT MAY BE
PRESENTED TO, OR PURSUED BY, THE COMPANY; THE COMPANY'S ABILITY TO
SUCCESSFULLY INTEGRATE ACQUISITIONS; AND CHALLENGES TO THE COMPANY'S TITLE TO
PROPERTIES; AS WELL AS THOSE FACTORS DESCRIBED IN THE SECTION "RISK RELATED TO
PAN AMERICAN'S BUSINESS" CONTAINED IN THE COMPANY'S MOST RECENT FORM
40F/ANNUAL INFORMATION FORM FILED WITH THE SEC AND CANADIAN SECURITIES
REGULATORY AUTHORITIES. ALTHOUGH THE COMPANY HAS ATTEMPTED TO IDENTIFY
IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM
THOSE CONTAINED IN FORWARD-LOOKING STATEMENTS OR INFORMATION, THERE MAY BE
OTHER FACTORS THAT CAUSE RESULTS TO BE MATERIALLY DIFFERENT FROM THOSE
ANTICIPATED, DESCRIBED, ESTIMATED, ASSESSED OR INTENDED. THERE CAN BE NO
ASSURANCE THAT ANY FORWARD-LOOKING STATEMENTS OR INFORMATION WILL PROVE TO BE
ACCURATE AS ACTUAL RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM
THOSE ANTICIPATED IN SUCH STATEMENTS OR INFORMATION. ACCORDINGLY, READERS
SHOULD NOT PLACE UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS OR INFORMATION.





For further information:

For further information: Kettina Cordero, Coordinator, Investor
Relations, (604) 684-1175, info@panamericansilver.com


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