CORPORATE
GOVERNANCE FIRMS RECOMMEND THAT SHAREHOLDERS OF PAN AMERICAN SILVER AND
MINEFINDERS VOTE FOR THE ARRANGEMENT
Vancouver,
B.C. � March 14, 2012 � Pan American Silver
Corp. (TSX: PAA; NASDAQ:
PAAS) and Minefinders Corporation Ltd. (TSX:
MFL; NYSE/AMEX: MFN) are pleased to announce that Institutional Shareholder
Services Inc. ("ISS") and Glass Lewis & Co., LLC
("Glass Lewis") have recommended that shareholders vote
FOR the Plan of Arrangement (the "Arrangement") pursuant to which Pan
American will acquire
all of the issued and outstanding
common shares of Minefinders. The Arrangement will be considered at Pan American's and Minefinders'
respective special shareholder
meetings to be held
on Monday, March 26, 2012.
ISS and Glass Lewis are leading independent international corporate
governance and proxy advisory
firms, which provide analysis and recommendations to assist
shareholders in making
decisions regarding
proxy voting.
ISS and Glass Lewis made their recommendations that shareholders of Pan American and Minefinders vote FOR the merger
based on their
respective findings that
the transaction is strategically
sound, structured at a satisfactory premium
at the approximate median for recent similar transactions in the mining
industry and raises
no governance concerns.
Geoff Burns, Pan American's President and CEO, said:
"We are pleased
that both ISS and
Glass Lewis support our respective Boards' conclusions that shareholders should approve this
arrangement. Their recommendations
affirm our view that this is a logical and strategic
transaction which de-risks
our overall
portfolio of assets and advances
Pan American's goal to be
the leading low-cost
primary producer of
silver in the world."
Mark Bailey, Minefinders' President
and CEO, said, "The positive recommendations of ISS and Glass Lewis support our belief that the consideration our shareholders will receive from this transaction is fair, and that the combination of
the two companies is in the best interests
of shareholders."
Pan American and Minefinders are also pleased to announce that they have received a resolution from the Mexican Federal Competition Commission authorizing
Pan American's acquisition of Minefinders pursuant to
the Arrangement. Aside from shareholder and
court approvals, this
was the principal outstanding
regulatory condition to closing
the Arrangement.
Shareholders are reminded
to vote their proxy FOR the Arrangement before the respective proxy deadlines:
Pan American Shareholders: Voting Deadline: Thursday, March 22,
2012 at 9:00 AM (PST)
For more information and assistance in voting
your proxy, Pan American shareholders
are urged to contact Kingsdale
Shareholder Services Inc. at
1-877-657-5859 or by e-mail at contactus@kingsdaleshareholder.com.
Minefinders Shareholders: Voting Deadline: Friday, March 23,
2012 at 11:00 AM (PST)
For more information and assistance in voting
your proxy, Minefinders
shareholders are urged
to contact Kingsdale Shareholder
Services Inc. at 1-877-659-1818 or by email at contactus@kingsdaleshareholder.com.
If you have any questions regarding the deposit of your Minefinders shares to the Arrangement, Minefinders'
shareholders can
contact Kingsdale Shareholder
Services Inc. at 1-877-659-1818.
About
Pan American
Pan American's mission is
to be the world's largest low-cost primary silver mining company by increasing its low-cost silver
production and silver reserves.
It has seven operating mines in Mexico, Peru, Argentina and Bolivia. Pan American also owns the Navidad project in
Chubut, Argentina, and is the operator of the La Preciosa
project in Durango, Mexico. For more
information about Pan American, please visit Pan American�s website at www.panamericansilver.com.
About Minefinders
Minefinders is a precious metals mining and
exploration company and operates
the multi-million ounce Dolores gold and silver mine in Mexico. For more information about Minefinders, please visit Minefinders� website at www.minefinders.com.
Pan American's Information Contact
Kettina Cordero
Manager, Investor Relations
(604) 684-1175
info@panamericansilver.com
www.panamericansilver.com
Minefinders' Information Contact
Jonathan Hackshaw
Director of Corporate
Communications
(604) 687-6263 extension 113
jon@minefinders.com
www.minefinders.com
Additional Information About the
Transaction and Where to Find
It
In connection with
the proposed transaction, Pan American and Minefinders have filed
relevant materials with
Canadian provincial securities regulatory authorities
and the SEC, including information circulars. Investors
and securityholders are urged
to read these
documents and any other
relevant documents filed by Pan American and Minefinders, as well as any amendments or supplements to these
documents, because they
will contain
important information. Investors and securityholders may obtain these documents
free of charge on the SEDAR website at www.sedar.com or on the SEC�s website at www.sec.gov. In addition, these documents may be obtained free of
charge by directing such
request to: Kingsdale
Shareholder Services Inc. at
1-877-657-5859. Outside of North America, please call collect at 416-867-2272, or email contactus@kingsdaleshareholder.com or visit Pan American's website at www.panamericansilver.com or Minefinders' website at www.minefinders.com. Such documents are currently
available. Investors
and securityholders are urged
to read the information circulars
and the other relevant materials
before making any investment decision with respect to
the proposed transaction. Securityholders who have
questions about the Arrangement can also contact Kingsdale Shareholder Services Inc. Kingsdale
Shareholder Services Inc. has been retained by Pan American on its
behalf and on behalf
of Minefinders to act
as Proxy Solicitation and Information Agent,
as well as Depositary,
for the Arrangement. This communication shall
not constitute an offer
to sell or the solicitation
of an offer to buy,
nor shall there be any sale of 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.
CAUTIONARY NOTE REGARDING
FORWARD-LOOKING STATEMENTS
CERTAIN OF THE
STATEMENTS AND INFORMATION IN THIS NEWS RELEASE CONSTITUTE
"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 PROVINCIAL SECURITIES LAWS. ALL STATEMENTS, OTHER
THAN STATEMENTS OF HISTORICAL FACT, ARE FORWARD-LOOKING STATEMENTS.
WHEN USED IN THIS NEWS RELEASE, THE WORDS, "WILL",
"COULD", "ADVANCES AND OTHER SIMILAR WORDS AND
EXPRESSIONS, IDENTIFY FORWARD-LOOKING STATEMENTS OR INFORMATION. THESE
FORWARD-LOOKING STATEMENTS OR INFORMATION RELATE TO, AMONG OTHER
THINGS: PAN AMERICAN'S AND MINEFINDERS' RESPECTIVE SHAREHOLDER APPROVAL
OF THE ARRANGEMENT AND CLOSING OF THE ARRANGEMENT.
THESE STATEMENTS
REFLECT THE COMPANIES' CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND
ARE NECESSARILY BASED UPON A NUMBER OF ASSUMPTIONS AND ESTIMATES THAT,
WHILE CONSIDERED REASONABLE BY THE COMPANIES, ARE INHERENTLY SUBJECT TO
SIGNIFICANT BUSINESS, ECONOMIC, COMPETITIVE, POLITICAL AND SOCIAL
UNCERTAINTIES AND CONTINGENCIES. MANY FACTORS, BOTH KNOWN AND UNKNOWN,
COULD CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS TO BE
MATERIALLY DIFFERENT FROM THE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT
ARE OR MAY BE EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS CONTAINED
IN THIS NEWS RELEASE AND THE COMPANIES HAVE MADE ASSUMPTIONS AND
ESTIMATES BASED ON OR RELATED TO MANY OF THESE FACTORS. SUCH FACTORS
INCLUDE, WITHOUT LIMITATION: FLUCTUATIONS IN SPOT AND FORWARD MARKETS
FOR SILVER, GOLD, BASE METALS AND CERTAIN OTHER COMMODITIES (SUCH AS
NATURAL GAS, FUEL OIL AND ELECTRICITY); FLUCTUATIONS IN CURRENCY
MARKETS (SUCH AS THE PERUVIAN SOL, MEXICAN PESO, ARGENTINE PESO AND
BOLIVIAN BOLIVIANO VERSUS THE U.S. DOLLAR); RISKS RELATED TO THE
TECHNOLOGICAL AND OPERATIONAL NATURE OF THE COMPANIES' BUSINESSES;
CHANGES IN NATIONAL AND LOCAL GOVERNMENT, LEGISLATION, TAXATION,
CONTROLS OR REGULATIONS INCLUDING, AMONG OTHERS, CHANGES TO IMPORT AND
EXPORT REGULATIONS AND LAWS RELATING TO THE REPATRIATION OF CAPITAL AND
FOREIGN CURRENCY CONTROLS; POLITICAL OR ECONOMIC DEVELOPMENTS IN
CANADA, THE UNITED STATES, MEXICO, PERU, ARGENTINA, BOLIVIA OR OTHER
COUNTRIES WHERE THE COMPANIES MAY CARRY ON BUSINESS IN THE FUTURE;
RISKS AND HAZARDS ASSOCIATED WITH THE BUSINESS OF MINERAL EXPLORATION,
DEVELOPMENT AND MINING (INCLUDING ENVIRONMENTAL HAZARDS, INDUSTRIAL
ACCIDENTS, UNUSUAL OR UNEXPECTED GEOLOGICAL OR STRUCTURAL FORMATIONS,
PRESSURES, CAVEINS AND FLOODING); RISKS RELATING TO THE CREDIT
WORTHINESS OR FINANCIAL CONDITION OF SUPPLIERS, REFINERS AND OTHER
PARTIES WITH WHOM THE COMPANIES DO BUSINESS; INADEQUATE INSURANCE, OR
INABILITY TO OBTAIN INSURANCE, TO COVER THESE RISKS AND HAZARDS;
EMPLOYEE RELATIONS; RELATIONSHIPS WITH AND CLAIMS BY LOCAL COMMUNITIES
AND INDIGENOUS POPULATIONS; AVAILABILITY AND INCREASING COSTS
ASSOCIATED WITH MINING INPUTS AND LABOUR; THE SPECULATIVE NATURE OF
MINERAL EXPLORATION AND DEVELOPMENT, INCLUDING THE RISKS OF OBTAINING
NECESSARY LICENSES AND PERMITS AND THE PRESENCE OF LAWS AND REGULATIONS
THAT MAY IMPOSE RESTRICTIONS ON MINING, INCLUDING THOSE CURRENTLY IN
THE PROVINCE OF CHUBUT, ARGENTINA; DIMINISHING QUANTITIES OR GRADES OF
MINERAL RESERVES AS PROPERTIES ARE MINED; GLOBAL FINANCIAL CONDITIONS;
PAN AMERICAN'S ABILITY TO COMPLETE AND SUCCESSFULLY INTEGRATE ACQUISITIONS
AND TO MITIGATE OTHER BUSINESS COMBINATION RISKS; CHALLENGES TO, OR
DIFFICULTY IN MAINTAINING, THE COMPANIES' TITLE TO PROPERTIES AND
CONTINUED OWNERSHIP THEREOF; THE ACTUAL RESULTS OF CURRENT EXPLORATION
ACTIVITIES, CONCLUSIONS OF ECONOMIC EVALUATIONS, AND CHANGES IN PROJECT
PARAMETERS TO DEAL WITH UNANTICIPATED ECONOMIC OR OTHER FACTORS;
INCREASED COMPETITION IN THE MINING INDUSTRY FOR PROPERTIES, EQUIPMENT,
QUALIFIED PERSONNEL, AND THEIR COSTS; AND THOSE FACTORS IDENTIFIED
UNDER THE CAPTION "RISKS RELATED TO THE COMPANY'S BUSINESS"
IN THE COMPANIES' MOST RECENT FORMS 40-F AND ANNUAL INFORMATION FORMS
FILED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION AND
CANADIAN PROVINCIAL SECURITIES REGULATORY AUTHORITIES. INVESTORS ARE
CAUTIONED AGAINST ATTRIBUTING UNDUE CERTAINTY OR RELIANCE ON
FORWARD-LOOKING STATEMENTS. ALTHOUGH THE COMPANIES HAVE ATTEMPTED TO
IDENTIFY IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER
MATERIALLY, THERE MAY BE OTHER FACTORS THAT CAUSE RESULTS NOT TO BE AS
ANTICIPATED, ESTIMATED, DESCRIBED OR INTENDED. THE COMPANIES DO NOT
INTEND, AND DO NOT ASSUME ANY OBLIGATION, TO UPDATE THESE
FORWARD-LOOKING STATEMENTS OR INFORMATION TO REFLECT CHANGES IN
ASSUMPTIONS OR CHANGES IN CIRCUMSTANCES OR ANY OTHER EVENTS AFFECTING
SUCH STATEMENTS OR INFORMATION, OTHER THAN AS REQUIRED BY APPLICABLE
LAW. 
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