VANCOUVER, January 16, 2013 /PRNewswire/ -- - Currency is in US dollars Pan American Goldfields Ltd. (OTCQB: "MXOM") (the "Company") acknowledges its receipt of Mr. Emilio Alvarez's recent Delaware lawsuit which seeks to force the Company to hold an immediate Annual Meeting of Shareholders. The Company is disappointed and confused by Mr. Alvarez's actions. Mr. Alvarez is a partner of Mr. Bruno Le Barber, a director of the Company. Messrs. LeBarber and Alvarez were both notified in writing on October 25, 2012 (more than two months prior to the filing of the Delaware lawsuit) of the Company's intention to hold an Annual Meeting in June 2013 following the filing of its Annual Report on Form 10-K for its fiscal year ending February 28, 2013. The Company has formally selected June 28, 2013 as the date of its Annual Meeting, and will petition the Delaware court to allow the Company to hold the Annual Meeting on this date. The Company's financial condition has improved substantially since September 2009 when the current executive team assumed management of the Company. At the time of their appointment, the Company had a working capital deficiency of approximately $4.7 million and, because of its dire financial condition, was at risk of having its ownership interest in the Cieneguita project reduced from 40% to 25%. In contrast, as of November 2012, the Company's working capital position was a positive $1.09 million, an amount the Company expects will continue to grow in future periods. Furthermore, as a result of its new agreement with Minera Rio Tinto that was negotiated last year, the Company received 29% of the net cash flows from the pilot production activities at the Cieneguita project retroactive to March 1, 2012, and as of January 1st this year will receive 35% of future net cash flows. The positive impact of this new agreement is already being felt. As of December 31, 2012, the Company had cash and receivables of $1.14 million. We expect our financial position to improve further and revenues to continue to grow as this year's 35% interest is reflected and pilot production expansion plans are implemented. For the first time in the Company's history, Pan American Goldfields now has a positive operating income and cash-flow (excluding exploration and development costs) which it plans to continue to primarily reinvest in the further expansion of the Cieneguita project and brown field exploration to its south. To ensure the continued improvement in its financial position, the Company has decided not to continue activities in Argentina and in relation to this Miguel Di Nanno has stepped down as president. Since 2009, the executive team's negotiations on behalf of the Company have resulted in the Company's interest in the Cieneguita deposit and planned larger commercial operation doubling to 80%. The Company expects to complete a Preliminary Economic Assessment ("PEA") regarding the planned larger commercial operation at the Cieneguita project by the end of Q1 2013. The PEA should further inform shareholders as to the activities of the Company's management team and why the team remains excited about the Company's future. The Company's management team believes that the timing of the Annual Meeting should be conducted so as to further the interests of all shareholders. They also believe it is critical that all shareholders are properly informed of the Company's current position and its future prospects so they are able to make decisions based on factual and complete corporate information. As a result, the Company believes that its shareholders should have the information contained in the PEA as well as the Company's Annual Report for the fiscal year ending February 28, 2013 prior to holding an Annual Meeting. The Company plans to provide both the PEA results as well as the Annual Report to its shareholders prior to its planned Annual Meeting on June 28, 2013. About Pan American Goldfields Ltd.