Pan American Goldfields Reports Renegotiated Cieneguita Mine Pilot Production and Development Agreement With Minera Rio Tinto (MRT)

Pan American Goldfields Reports Renegotiated Cieneguita Mine Pilot Production and Development Agreement With Minera Rio Tinto (MRT) PR Newswire VANCOUVER, September 12, 2012 VANCOUVER, September 12, 2012 /PRNewswire/ -- - Anticipated Increase in Net Cash Flow Expected to Finance Planned Feasibility Study for Larger Operation. MRT to Increase Stake in Pan American Goldfields Pan American Goldfields Ltd. (the "Company") has entered into a Second Amended and Restated Development Agreement for mineral exploration, production and development of the Cieneguita Project with its partner Minera Rio Tinto SA (MRT) of Chihuahua, Mexico and Marje Minerals SA. Under the new agreement, the Company's share of net cash flow from the Pilot Project operated by MRT increases from 20% to 29% beginning retroactive to March 1, 2012 through December 31, 2012. Beginning January 1, 2013 through December 31, 2013, the Company's share of net cash flow from the Pilot Project increases to 35%. At all times, the Company retains its 80% ownership interest in the entire Project. Under the previous agreement, which was to lapse December 31, 2012, the Company received 20% of net cash flow from the pilot production from the first 15 meters mined and 80% of the net cash flow below the first 15 meters. The Company's ownership of the entire Project, for which a Preliminary Economic Assessment ("PEA") is in its final stages of completion, remained at 80%.