Pan American Silver Corp. (TSX: PAA.TO - News)(NASDAQ: PAAS - News) ("Pan American" or the "Company") today announced that the Company's Board of Directors has approved the first quarterly cash dividend of 2012 and increased the dividend amount per share by 50%.

The cash dividend, in the amount of $0.0375 per share, will be distributed on or about Monday, March 19, 2012 to holders of record of common shares as of the close of business on Monday, March 5, 2012. Specific distribution dates and amounts of future dividends will be determined by the Board on an ongoing basis.

The Company's dividends are designated as eligible dividends for the purposes of the Income Tax Act (Canada).

About Pan American Silver

Pan American Silver's mission is to be the world's largest and lowest cost primary silver mining company by increasing its low cost silver production and silver reserves. The Company has seven operating mines in Mexico, Peru, Argentina and Bolivia. Pan American also owns the Navidad silver development project in Chubut, Argentina and is the operator of the La Preciosa joint venture development project in Durango, Mexico.