News Release: Pan American Fertilizer Corp. (CNSX: PAF) Announces Closing Of Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA, January 31, 2013 - Pan American Fertilizer Corp. (CNSX: PAF) (“Pan American” or the "Company") announces that it has closed a portion of the non-brokered private placement (the “Offering”) as previously announced on October 24, 2012 and issued 240,000 units (“Units”) at a price of $0.25 per Unit for gross proceeds of $60,000. Each Unit consists of one common share of the Company (a “Share”) and one common share purchase warrant (a “Warrant”). Each Warrant entitles the holder thereof to purchase one additional Share at a price of $0.40 per Share at any time until January 31, 2018.

In connection with the Offering, the Company has paid Jordan Capital Market Inc. (the “Finder”) a cash commission in the amount of $4,800, being 8% of the aggregate proceeds from the sale of Units to purchasers introduced by the Finder. The Company has also issued non-transferrable Warrants to the Finder to acquire up to 19,200 Shares, being 8% of the number of Units sold under the Offering to purchasers introduced by the Finder, exercisable at $0.40 per Share until January 31, 2018.