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Message: Pan American Fertilizer (CNSX: PAF) Chairman Letter: Re-cap 2012, a look at 2013

Pan American Fertilizer (CNSX: PAF) Chairman Letter: Re-cap 2012, a look at 2013.

VANCOUVER, BRITISH COLUMBIA, February 15, 2013 - Pan American Fertilizer Corp., (CNSX: PAF) (“Pan American” or the “Company”) releases the following Corporate Update to its shareholders, from the Chairman; Randy Wright.

Source: http://bit.ly/VmbS0n

Dear Shareholder,

It gives me great pleasure to be able to provide you with an update on the progress and developments of Pan American Fertilizer Corp. Since our establishment in May 2012, we have made significant progress on our Santiago Del Estero Agricultural Gypsum project and I am pleased to confirm that the Company has successfully met the milestones that were established for 2012.

Highlights for 2012 include:

Official Mining Certificate obtained;

Successful testing of our extraction process;

Execution of 24 hour extraction cycle;

Agreement established with nation-wide distribution company (Mamasu);

Successful execution of end-to-end sales cycle;

12,000 tonnes of Calcium Sulphate (granular and powder) extracted; and

USD$490,000.00 received in revenue (from actual sales completed during our testing phase).

These achievements are significant as 2012 was a testing, building and development year for us. In 2013 our focus shifts to the following areas; growing our sales channels, increasing our extraction capacity and expanding distribution into other countries. It is our expectation that we will experience continuous organic growth this year, and our confidence in meeting our expectations is demonstrated in the milestones we have set for 2013.

Primary Milestone (2013):

Sales of 100,000 tonnes

Late last year, Pan American disclosed that the Company had successfully closed a purchase order with Paraguayan company; Agro Industrial (“Agro”), for up to 48,000 tonnes (announced Nov 16, 2012), at a price of US$97.81 per tonne, to be executed and delivered in 2013. We are pleased to announce that the Company has met, and continues to meet, the delivery milestones under this agreement.

In addition to the sales to Agro, we will continue to distribute our high quality product throughout Argentina, via our Mamasu distributor (per the arrangement with Mamasu announced July 30, 2012). We are pleased to report that through this arrangement, we have shipped approximately 10,000 tonnes.

As we continue to mature, and in alignment with our core business model of increasing cash-flow by extracting and selling fertilizer related products, once primary growth milestones are reached, it is the Company’s medium to long term intended goal, that subject to legal and contractual restrictions, we will be able to declare a dividend to shareholders.

Actual declared dividends are subject to the discretion of the Company’s Board of Directors and may vary from the intentions stated depending on, among other things, the Company’s earnings, financial requirements and other conditions existing at such future time.

Our strategy remains based on the simple principal of supplying the highest quality product available to a continually growing, robust market. As we move forward and meet both our extraction and sales milestones, our anticipated revenue stream will allow us to also pursue value added transactions with local Argentinean and international partners. We will continue to remain open to new opportunities that will leverage our current position and enable us to meet our long-term vision of becoming a major global fertilizer supplier.

Your Board of Directors and management team remain dedicated to increasing shareholder value, and we continue to be motivated by the prospects of the Company. I would like to personally thank each of you, and will work to ensure your trust is maintained as Pan American grows.

Sincerely,

Randy Wright

Chairman, President and CEO

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