Canarc Resource Terminates Letter of Intent with Pan American Goldfields with Respect to a Business Combination

TORONTO, ONTARIO--(Marketwired - May 6, 2014) - Pan American Goldfields Ltd. (the "Company") (OTCQX: MXOM), announces that, as a result of its due diligence, Canarc Resources Corp ("Canarc") has terminated its previously announced Letter of Intent with the Company with respect to a business combination.

The Company is reviewing its strategy with its strategic and investment advisors and intends to resume discussions with certain resource companies and investors (which were suspended after the execution of the Letter of Intent) and that have previously expressed an interest in pursuing a transaction with the Company.

Emilio Alvarez, CEO

Pan American Gold Fields Ltd.

About Pan American Goldfields Ltd.

Pan American Goldfields is a precious metals mining and exploration company. Its focus is the production of gold and silver and the development and expansion of its La Cieneguita mine in Mexico's prolific Sierra Madre gold-silver belt.

Cautionary Note Regarding Forward-Looking Statements

This news release contains "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 securities legislation. Statements contained in this news release that are not historical facts are forward-looking information that involves known and unknown risks and uncertainties. Forward-looking statements in this news release include, but are not limited to, statements with respect to the potential Transaction, the completion of a private placement, the benefits of the potential Transaction, the merits of the mineral properties of Pan American, the future performance of Pan American, mineral resource estimates and the Company's plans and exploration programs for its mineral properties, including the timing of such plans and programs. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "has proven", "expects" or "does not expect", "is expected", "potential", "appears", "budget", "scheduled", "estimates", "forecasts", "at least", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will be taken", "occur" or "be achieved".