Pan American Goldfields Ltd. (fka MXOM)

[Sheep]

MEXORO MINERALS LTD ANNOUNCES DRILLING UPDATE

AT THE SAHUAYACAN GOLD PROJECT



Follow up on earlier drilling of 7.5 meters grading 56 grams per ton gold

in project 20 kilometers from Gammon Gold's 4.5 million ounce Ocampo Mine





BROOMFIELD, COLORADO, February 1, 2010 - Mexoro Minerals Ltd (OTCBB:"MXOM") (the "Company") today announced progress and an update on its third round of drilling at the Sahuayacan Gold project located in the Sierra Madre gold region of Mexico, 20 kilometers from Gammon Gold's 4.5 million ounce Ocampo Mine. Following the mobilization of its drilling contractor, Major Drilling Inc., on January 11, 2010, 7 holes have been completed, for a total of 470 meters of drilling, and an eighth hole is currently being drilled. In all, 4,000 to 6,000 meters in total are planned for this round, mainly in the Santa Teresa and La Cumbre target areas.



The current drilling is designed to extend areas of higher grade mineralization and further define the extent of the mineralized system at Sahuayacan, particularly along the strike of the mineralization encountered in previous drilling. The first drilling program mainly focused to test the Santo Niño and La Cumbre mineralized zones. Near-surface gold mineralization in two drill holes in those areas was encountered in the first round of drilling, including intervals of 7.5 meters of 2.56 grams per ton, 11 meters of 2.24 grams per ton, and 4.5 meters of 1.77 grams per ton.

The second round of drilling tested the Santa Teresa target, with the objective of attempting to extend areas higher grade mineralization and further defining the margins of the Sahuayacan mineralized system to the south and southeast of the project area. Drilling in the second round intersected a high grade mineralized zone, yielding 7.5 meters with 56.01 g/t Au and 283.22 g/t Ag.

The highly mineralized area was developed along the contact between a shale sequence and a volcano-sedimentary package and apparently spatially associated to a rhyolite-dacite intrusive. Surface mapping, along with the two previous rounds of drilling results suggest that the higher gold values tend to cluster at certain areas along the Santo Niño and the Santa Teresa vein structures with intervening areas of low gold grades. The cluster of high gold values indicating the development of mineralized shoots within the extensive Sahuayacan system, as evidenced by the previous intercepts, have served to guide and inspire the present drilling campaign, which the Company expects to expand the extent of mineralization and the understanding of the entire system.

About Sahuayacan


Sahuayacan is a classic low-sulphidation gold-silver epithermal project in the Sierra Madre region in Mexico. Sahuayacan pertains to the Moris District in the State of Chihuahua, and is located approximately 20 kilometers from Gammon Gold's 4.5 million ounce Ocampo Mine which has an expected annual production of 270,000 ounces of gold-equivalent. Eight other multi-million ounce deposits in the nearby region have recently been discovered and/or put into production within the last several years.



The mineralization at Sahuayacan is controlled mainly by north-northwest and northwest striking structures. Mineralization is contained in high-grade mineralized-shoots located along a 4 km mineralized northwest trending Santo Niño and Santa Teresa structures.



Historical mining reports on Sahuayacan report substantial production of gold-silver bullion in the early 1900s before being shut down because of the Mexican Revolution. The Sahuayacan property is believed to have significant potential in this previously-forgotten region that had no significant modern exploration until the Company's arrival in 2007. The Company holds a 100% interest in the project.



About Pan American Goldfields/MexoroMinerals



Pan American Goldfields/Mexoro Minerals is a Chihuahua, Mexico based gold producer and exploration company. It is a specialist in exploration, mine development and production in Mexico's booming Sierra Nevada Gold Belt. The company's most advanced project is its now producing Cieneguita Gold Mine where a feasibility study to significantly increase the mine's already growing production profile is underway. Pan American is a well capitalized junior gold producer as cash flow from its gold production and cash on hand funds its current exploration programs now underway at Cieneguita South, Piedras Blancas, and Sahyacan as well as at the Encino Gordo Project.



On behalf of the Board of Directors,



George S. Young, President