Pan American Silver Increases Estimated Proven and Probable Silver Reserves to 228 Million Ounces

Market Wire, February, 2008

Pan American Silver Corp. (TSX: PAA)(NASDAQ: PAAS) is pleased to announce the results of its 2007 year-end silver reserve and resource estimate.

In addition to replacing 100% of the 20.8 million ounces of contained silver that were mined during 2007, the Company added new proven and probable silver reserves of 14.5 million ounces and increased measured and indicated silver resources by another 4.9 million ounces.

"Once again, we have not only replaced what we mined, but have meaningfully added to our proven and probable silver reserves," said Geoff Burns, President and CEO. "In the last two years we have discovered, upgraded and added through acquisitions of joint venture interests over 86 million ounces of silver, before considering ore mined. In anyone's book, this represents significant value creation."

Reserve increases were driven by the Huaron, Morococha and San Vicente mines where net estimated proven and probable silver reserves rose 7.6 million ounces, 3.8 million ounces and 11.5 million ounces, respectively. At Morococha, proven and probable silver reserves have tripled since Pan American acquired the operation in mid-2004.

The following represents the changes in the Company's estimated silver reserves, year over year:

Proven and probable silver reserves,
 as at January 1, 2007                          213.3 million ounces
Less: mined ounces (contained) during 2007                     (20.8)
Discovered or acquired ounces during 2007                       35.3
------------------------------------------                    -------
Proven and probable silver reserves,
 as at January 1, 2008                           227.8 million ounces

Pan American has focused much of its exploration efforts over the past two years on its portfolio of operating properties. In 2007, the Company drilled over 95,000 meters, almost exclusively at its existing mines. The full results of the Company's 2007 drilling programs have been incorporated into the year-end silver reserve and resource estimate.

In 2008, the Company plans another plus 90,000 meter exploration drilling program and while much of this effort will again be focused on increasing proven and probable reserves at operating mines, it will also include for the first time in many years testing of a number of newly acquired, highly prospective greenfield projects in Peru and Mexico. Mr. Burns commented: "I am very excited about our greenfield exploration plan in 2008 and hope we will be able to announce a significant new silver discovery by this time next year."

Complete reserve and resource information for all metals, including tonnage, grade and accompanying metal price assumptions is available at www.panamericansilver.com . Complete silver reserve and resource information are as follows:

SILVER RESERVES - PROVEN AND PROBABLE
                                                                        Ag
                                                                      Cont.
                                                   Tonnes     Ag      (000'
             Location  Type         Classification (000's) (g/mt)      ozs)
             --------  ----         -------------- ------- ------   -------
Huaron       Peru      Vein         Proven          5,604    189    34,038
                       Vein         Probable        4,007    192    24,788
Morococha    Peru      Vein/Mantos  Proven          4,131    148    19,693
 (89.4%)
                       Vein/Mantos  Probable        2,540    152    12,427
La Colorada  Mexico    Vein         Proven            863    431    11,957
                       Vein         Probable          457    415     6,103
Quiruvilca   Peru      Vein         Proven            730    175     4,106
                       Vein         Probable          702    149     3,366
Silver       Peru      Flux         Probable          242    297     2,309
 Stockpiles            Material
Alamo        Mexico    Disseminated Proven          1,775     98     5,608
 Dorado
                       Disseminated Probable        9,444    114    34,605
Manantial    Argentina Vein         Proven          3,489    151    16,940
 Espejo
                       Vein         Probable        3,701    181    21,538
 San Vicente Bolivia   Vein         Proven          1,741    369    20,674
 (95%)
                       Vein         Probable          648    463     9,644
TOTALS                              Proven         40,074    177   227,795
                                     Probable



SILVER RESOURCES - MEASURED AND INDICATED

                                                                         Ag
                                                                       Cont.
                                                   Tonnes     Ag       (000'
             Location  Type         Classification (000's) (g/mt)       ozs)
             --------  ----         -------------- ------- ------    -------
Huaron       Peru      Vein         Measured        1,300    161      6,726
                       Vein         Indicated         846    163      4,421
Morococha    Peru      Vein/Mantos  Measured        1,154    162      5,999
 (89.4%)
                       Vein/Mantos  Indicated       1,385    237     10,552
La Colorada  Mexico    Vein         Measured          186    312      1,871
                       Vein         Indicated         928    313      9,337
Quiruvilca   Peru      Vein         Measured        4,246    114     15,556
                       Vein         Indicated         953    164      5,028
Alamo        Mexico    Disseminated Measured          263     84        710
 Dorado
                       Disseminated Indicated       3,610     71      8,241
Manantial    Argentina Vein         Measured        1,807     87      5,054
 Espejo
                       Vein         Indicated       2,288     94      6,915
San Vicente  Bolivia   Vein         Measured          509     93      1,520
 (95%)
                       Vein         Indicated         538    253      4,381
TOTALS                              Measured       20,014    134     86,312
                                     Indicated



SILVER RESOURCES - INFERRED
                                                                         Ag
                                                                       Cont.
                                                   Tonnes     Ag       (000'
             Location  Type         Classification (000's) (g/mt)       ozs)
             --------  ----         -------------- ------- ------    -------
Huaron       Peru      Vein         Inferred        3,939    177     22,467
Morococha    Peru      Vein/Mantos  Inferred        6,342    151 30,788.344
 (89.4%)
La Colorada  Mexico    Vein         Inferred        1,828    307     18,052
Quiruvilca   Peru      Vein         Inferred        2,472    135     10,761
Alamo        Mexico    Disseminated Inferred          518     79      1,316
 Dorado
Manantial    Argentina Vein         Inferred        2,523    107      8,679
 Espejo
 San Vicente Bolivia   Vein         Inferred          690    326      7,225
 (95%)
TOTALS                              Inferred       18,311    169     99,288



HISTORICAL ESTIMATES

                                                Tonnes     Ag     Ag Cont.
Property          Location  Unclassified        (000's) (g/mt)  (000' ozs)
--------          --------  ------------        ------- ------ -----------
Hog Heaven(i)     USA       Historical(i)(ii)    2,705    167      14,550
Hog Heaven(i)     USA       Historical(ii)       7,639    133      32,730
Waterloo(iv)      USA       Historical          33,758     93     100,937
                                                --------------------------
TOTAL                       Historical          44,102    104     148,217