I would like to welcome everyone to the Pan American Corporation First Quarter 2007 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer period. If you would like to ask a question during this time, please press * and then the number one on your telephone keypad. If you would like to withdraw your question, press the pound key. Thank you. It is now my pleasure to turn the floor over to your host Geoff Burns, President and CEO. Sir, you may begin your conference. Geoffrey A. Burns : Thank you Operator. Good morning Ladies and Gentlemen, and welcome to Pan American Silver’s First Quarter for 2007 Earnings Release Conference Call. Joining me today here in Vancouver are: Andy Pooler, our Senior VP of Operations, Steve Busby, our Senior VP of Project Development, Rob Doyle, Chief Financial Officer, Michael Steinmann our Senior VP of Exploration and Mine Geology, and Alexis Stewart, our Director of Investor Relations. Over the next 20 minutes or so, we’re going to try to update you on the company’s activities over the past several months, touching on our silver and base metal production, our construction activities in Argentina, our exploration activities through Mexico and South America, and also comment on our financial performance. We produced 3.34 million ounces of silver in the first quarter of 2007, marginally higher than in Q1 2006 at a consolidated cash cost of $2.98 per ounce. Excluding the higher cost production from Alamo Dorado, which we are still commissioning during the first quarter, our cash costs were $2.29 per ounce of silver. This is 7% lower than the first quarter of 2006 when our cash costs were $2.47 per ounce. In addition to silver,…

Good morning. I’m sure most of you have seen our press release from February 16 with its company wide reserve and resource estimates. We published a 20% increase of our private and public reserves, adding 35.4 million ounces of silver compared to the year before. In order to achieve similar results in 2007, an aggressive exploration program at our operations in Greenfield project has been started in January. I would like to give you a short overview of the exploration plan for this year. First, our ground field exploration programs. On Morocoha we’re building on 8-10 bricks on a program of 40,000 meters for exploration and over 7000 meters for drilling. The total costs for this program will be approximately $2.8 million. At Huaron the program is 28,000 meters using three to four weeks for a total of about $1.3 million. We are drilling through the year at about 20,000 meters using three weeks for a total cost of about $1 million. At La Colorada we are drilling with three weeks on a program of 13,000 meters for a total cost of about $1.5 million. In total our ground field exploration program for 2007 is about $6.5 million which will be spent on over 100,000 meters of diamond drilling alone. Our Greenfield exploration programs are mainly focused on Mexico, Peru, Ecuador and Argentina where we have several prospects in each country. We plan to spend a total of $2.5 million on these properties for exploration work and are constantly reviewing opportunities in these countries. We’re also active in staking new ground. For example in Peru, we staked in the first quarter 13,500 hectares of exploration properties which will be part of our exploration program throughout the year. As you see we are very active exploring around our mines as well…

At this time, if you would like to ask a question please press * then the number 1 on your telephone keypad. We will pause for a moment to compile the Q&A roster. Our first question comes from John Bridges of JP Morgan. John Bridges – JP Morgan: Hi, you reported copper production at La Colorado mine which is presumably coming from the new sulfate circuit? Could you please give us some more details on the copper grades in the sulfides, both the reserve grade and what you’re doing currently? Geoffrey A. Burns : Are copper grains coming from Colorado? We do not commercially produce copper in La Colorado. Andrew Pooler: I’m sorry to interrupt, thank you for point that out. I’m afraid that John refers to the gold production for the quota. Geoffrey A. Burns : That is 11,057 ounces. 857 ounces of gold produced for the year which is actually 46% above our budget. John Bridges – JP Morgan: OK, I was just wondering where all that copper came from. OK, thanks for that. Geoffrey A. Burns : You’re welcome.

Thank you. Our next question comes from Howard Flinker with Flinker & Co.. Howard Flinker – Flinker & Co.: I have a few questions about taxes. Is that VAT in Argentina new? Robert G. Doyle : No its not Howard, that’s been there for quite a while. Howard Flinker – Flinker & Co.: I understand that you describe it as something that was unexpected or did I misunderstand? Robert G. Doyle : No, the VAT taxes are not unexpected. They are fully refundable and we included them in our capital estimate because he pays them up front and then gets them back at the end of production. Howard Flinker – Flinker & Co.: Did you not include them before? Robert G. Doyle : They were included before as well. Howard Flinker – Flinker & Co.: Oh they were. Did the Peruvian tax go up? Is there a new Peruvian tax? Did Garcia say they need a new house or something like that? Robert G. Doyle : There has been no change to Peruvian tax rates. Howard Flinker – Flinker & Co.: And finally, please explain that accounting phenomenon where you shifted $4.5 million of costs in the fourth quarter to the first quarter, or it was delayed for some reason? I don’t understand that. Robert G. Doyle : OK, Howard, if you’re referring to our zinc pricing adjustment at the end of last year, we have sold our zinc on an accounting basis, but the final pricing on that material from our customers is not set for up to three months into the future. Howard Flinker – Flinker & Co.: How so? Robert G. Doyle : That’s just a function of how our concentrate sales contracts work, standard in the industry. Howard Flinker – Flinker & Co.: So, up to three months in the future the price can go either way? Robert G. Doyle : It can go either way, that’s correct. Howard Flinker – Flinker & Co.: And who gets the benefit if it goes up, and who gets the benefit if it goes down? Robert G. Doyle : If it goes up, we get the benefit. If it goes down, potentially we get less value for that material. Howard Flinker – Flinker & Co.: I see. So that’s also fixed. It’s not some choice of the smelter? Geoffrey A. Burns : No, the smelter determines that the period of pricing, but up or down goes to either party. Howard Flinker – Flinker & Co.: I forget where zinc was at the end of the year, clearly if I can infer properly… Geoffrey A. Burns : It was well above $4,000 thousand per ton, Howard. Howard Flinker – Flinker & Co.: Oh I see. And now it’s $3,200? Geoffrey A. Burns : Zinc pays $3,600 on three month basis. Howard Flinker – Flinker & Co.: OK, thanks, those are my only questions. Geoffrey A. Burns : You’re welcome.

Thank you. Once again if you would like to ask a question, please press star and the number one on your telephone keypad. Our next question comes from Haytham Hodaly with Salman Partners. Haytham Hodaly – Salman Partners : Good morning gentlemen. Geoffrey A. Burns : Good morning Haytham Haytham Hodaly – Salman Partners : Just a couple quick questions, can you just give me your forecast for G&A this full year and maybe for your expiration budget that would be expensed etc.? Geoffrey A. Burns : I think our G&A in the first quarter was just about $2 million and essentially for G&A, you can just take that and multiply it by four Haytham, and you’re going to get a pretty decent estimate for the year. Haytham Hodaly – Salman Partners : What about your stock based compensation expenses and all that? Is that built in there? Geoffrey A. Burns : It’s built in there, yes. And in terms of our expiration budget that will be expensed from that…expiration is capitalized. We’re looking at close to $7-$8 million for 2007. Haytham Hodaly – Salman Partners : Are there any plans to put any hedging in place for the (inaudible)? Geoffrey A. Burns : That was a long, heavily debated topic at our board meeting yesterday. What I can tell you is that as of today we do not have any mandate for putting any sink hedging in place, but we are going to watch the market very closely. Certainly we’re cognizant of some of the comments that were in your newsletter as well as some of the other people who follow the price who suggest that while they’re strong at the moment, there is some potential for degradation in the price. So we don’t have anything today, but I’m…

Thank you. Our next question comes from Daniel Altman with Bear Stearns. Daniel Altman – Bear Stearns: Good morning. Can you just share with us the revenue break-down of our product in the first quarter? Geoffrey A. Burns : Daniel, that’s a fairly detailed question in terms of dollars and percentages. If I could ask you to give us a call back here at Pan Am and talk to Robert Doyle, and he’d be happy to share that with you. We just don’t’ have that handy right at the moment. Daniel Altman – Bear Stearns: OK.

Thank you. Our next question comes from Frederick Brimberg with Avatar Associates. Frederick Brimberg – Avatar Associates: Hi, good morning. I have two macro questions. Can you update us on the strikes in Peru. I understand they’re not affecting you’re mine directly, but if you can just bring us up to date with your current situation down there. Andrew Pooler : Sure. Actually that’s an operations question and something I should have touched on in my comment. Yes, there has been a call for a general mining strike by the unionized workers in Peru and the issue really involves contracting out some of the work at various areas of the mine where companies have their own employees but then also carry on mining using contract employees. The issue really revolves around profit sharing. As a full time employee of a particular operation, you’re entitled to an 8% share, obviously pro-rated over a number of workers of the profits of any given operation. If you’re a contract worker, you do not participate in that profit sharing. So that’s the issue. And our operations were almost 100% company only employees. At the moment we have a number of contractors, but we have been systematically over the last two years adding them to our payroll to bring them on to our payroll. As it stands right now, as you’ve noted, all of our operations are still going full tilt. We have not been affected by the general strike. In fact, we’ve settled our labor contract with the union early this year and they actually wrote a letter to the country union telling them that they did not want to participate in any job action whatsoever. So at this point in time we have been very fortunate not to have a union disruption to…