Fri Jun 28, 2002

Pan American And Corner Bay Approve Revised Merger Terms

Vancouver, British Columbia ...... Pan American Silver Corp. (NASDAQ: PAAS; TSE: PAA) and Corner Bay Silver Inc. (TSE: BAY) announce that each company's Board of Directors has unanimously approved the proposed merger of the companies. A definitive agreement governing the merger of the companies, the terms of which were announced on June 19th, has been signed and Extraordinary General Meetings to approve the transaction are scheduled to be held on September 4th in Toronto for Corner Bay shareholders, and on September 5th in Vancouver for Pan American shareholders. The transaction remains subject to regulatory approvals.

For further information, please contact:
Ross J. Beaty, Chairman or
Rosie Moore, VP Corporate Relations, Pan American
(604) 684-1175

Peter Mordaunt, Chairman or
Steve Brunelle, Vice President, Corner Bay
(416) 368-6240

www.panamericansilver.com

CAUTIONARY NOTE
Some of the statements in this news release are forward-looking statements, such as estimates of future production levels, expectations regarding mine production costs, expected trends in mineral prices and statements that describe Pan American's or Corner Bay's future plans, objectives or goals. Actual results and developments may differ materially from those contemplated by these statements depending on such factors as changes in general economic conditions and financial markets, changes in prices for silver and other metals, technological and operational hazards in Pan American's mining and mine development activities, uncertainties inherent in the calculation of mineral reserves, mineral resources and metal recoveries, the timing and availability of financing, governmental and other approvals, political unrest or instability in countries where Pan American or Corner Bay are active, labor relations and other risk factors listed from time to time in Pan American's Form 40-F and Corner Bay's Form 20-F.