November 16, 2012 at 21:55 PM EST
Pan American Fertilizer (CNSX: PAF) Closes 48,000 Tonne Purchase Order for the previously announced LOI with Paraguay

VANCOUVER, BRITISH COLUMBIA, November 16th, 2012 - Pan American Fertilizer Corp., (CNSX: PAF) ("Pan American" or the "Company") is pleased to announce that it has confirmed a binding purchase order for 48,000 tonnes of calcium sulphate with Agro Industrial Campos Nuevos ("Agro Industrial")as per the terms of our previously announced ( October 17th, 2012) non-binding letter of intent (the "LOI"). Under the terms of the purchase order, Pan American will sell Agro Industrial 48,000 tonnes of calcium sulphate (agricultural gypsum) at an agreed sales price of US$97.81 per tonne.

"This confirmed purchase order not only represents our first large international sale to date, it also demonstrates our ability to deliver a high quality product, in a timely manner, to a sizable international entity in Agro Industrial. This is an extremely important milestone for Pan American, and one that we are very pleased to announce" reported Randy Wright, President and CEO of Pan American.

Termination of Merger Agreement with Pacific Potash

The Company also announces that the arrangement agreement with Pacific Potash Corporation ("Pacific Potash"), dated September 18, 2012, has been terminated by mutual agreement of the parties. Under the terms of the arrangement agreement, Pacific Potash was to amalgamate with a wholly owned subsidiary of the Company pursuant to a statutory plan of arrangement under the Business Corporations Act (British Columbia) and become a wholly-owned subsidiary of Pan American (see press releases dated August 14, 2012 and September 21, 2012). No break fees will be paid as a result of the termination and each party will pay its respective expenses incurred in connection with the proposed business combination.

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.

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