Mr. Michael Steinmann reports

PAN AMERICAN SILVER REPORTS FIRST QUARTER 2024 RESULTS

Pan American Silver Corp. has released unaudited results for the quarter ended March 31, 2024.

"Cash flow from operations before working capital changes of $133.2-million in the first quarter reflects strong performance on production and costs, with silver and gold production in line with our expectations, and costs for both metals lower than expected," said Michael Steinmann, president and chief executive officer. "We progressed our major projects, notably the new ventilation infrastructure at La Colorada and the plant upgrades at Jacobina, while returning $58.0-million of capital to shareholders through $36.5-million in total cash dividends paid and $21.5-million in shares repurchased."

Added Mr. Steinmann, "The sale of our La Arena asset in Peru, announced on May 1, 2024, will further improve our financial position with an upfront cash payment of $245-million on closing, and is aligned with our strategy of continued portfolio optimization."

The following highlights for first quarter 2024 include certain measures that are not generally accepted accounting principle financial measures.

Consolidated Q1 2024 highlights:

• Silver production of 5.01 million ounces and gold production of 222,900 ounces were in line with management's expectations for Q1 2024;
• Revenue of $601.4-million;
• Net loss of $30.8-million (eight-cent basic loss per share), including: an inflation adjustment in Argentina that increased income tax expense by $15.2-million; a $14.4-million net realizable value inventory expense; and a $10.8-million non-cash investment loss, largely due to the decrease of the New Pacific Metals Corp. share price;
• Adjusted earnings of $4.7-million, or one-cent adjusted earnings per share;
• Cash flow from operations of $133.2-million before working capital changes, including $41.1-million in cash taxes paid;
• Silver segment cash costs and all-in sustaining costs, excluding NRV inventory adjustments, per silver ounce of $12.67 and $16.63, respectively, were lower than management's expectations for Q1 2024;
• Gold segment cash costs and AISC, excluding NRV inventory adjustments, per gold ounce of $1,207 and $1,499, respectively, were lower than management's expectations for Q1 2024;
• The company reaffirms its 2024 guidance as provided in the company's fourth quarter 2023 management's discussion and analysis dated Feb. 21, 2024;
• As at March 31, 2024, the company had working capital of $693.5-million, inclusive of cash and investments of $331.4-million and $750.0-million available under its revolving sustainability-linked credit facility; total debt of $806.6-million is related to two senior notes, lease obligations, and construction and other loans;
• Following approval of the company's normal course issuer bid on March 4, 2024, Pan American Silver repurchased, for cancellation, approximately 1.7 million shares at an average price of $14.16 per share for total consideration of $24.3-million (of which $2.8-million was payable as at March 31, 2024);
• A cash dividend of 10 cents per common share with respect to Q1 2024 was declared on May 8, 2024, payable on or about June 3, 2024, to holders of record of Pan American Silver's common shares as of the close of markets on May 21, 2024; in March, 2024, the company paid cash dividends totalling $36.5-million; the dividends are eligible dividends for Canadian income tax purposes.

Q1 2024 project updates:

• At La Colorada, Pan American Silver invested $9.6-million on project capital in Q1 2024. The new ventilation infrastructure is on schedule for completion in mid-2024, which is expected to significantly improve ventilation conditions in the mine in the second half of 2024. Improved ventilation will allow development rates to accelerate, increasing the number of production areas and leading to higher throughput thereafter. As well, the company invested in continued exploration drilling at La Colorada skarn project, releasing additional high-grade drill results on April 8, 2024.
• At the Huaron mine, Pan American Silver invested $14.2-million on project capital for the construction of the new dry-stack tailings storage facility, which is on schedule to be completed in the second half of 2024.
• At the Jacobina mine, Pan American Silver invested $4.3-million on project capital related to plant facility infrastructure upgrades. The company is undertaking a study to optimize the economics of this long-life mine and evaluate opportunities to increase production rates.
• At the Timmins mine, Pan American Silver invested $2.8-million on project capital related to the construction of the paste plant project and its associated infrastructure, which is expected to provide an engineered backfill that will enhance orebody extraction and mine stability. The project is on schedule and is expected to be commissioned in third quarter 2024.
• At the Escobal mine in Guatemala, the ILO 169 consultation process has experienced delays since the new government in Guatemala took office in January, 2024. During meetings held in Q1 2024 between Pan American Silver, the Ministry of Energy and Mines, and other institutions, the government confirmed its commitment to completing the Escobal ILO 169 consultation process but has not provided an update to the timeline. On April 29, 2024, the MEM released the vice-minister of sustainable development, who was responsible for overseeing and co-ordinating the Escobal ILO 169 consultation process. Since the announcement, the MEM has not yet designated a replacement for this post.

Pan American Silver agrees to sell La Arena

On May 1, 2024, the company announced that it has agreed to sell La Arena gold mine, as well as La Arena II project, in Peru, to Jinteng (Singapore) Mining Pte. Ltd., a subsidiary of Zijin Mining Group Co. Ltd. Under the terms of the agreement, at closing, Zijin will pay $245-million in cash and will grant Pan American Silver a life-of-mine gold net smelter return royalty of 1.5 per cent for La Arena II project. Additionally, upon commencement of commercial production from La Arena II project, the agreement provides for an additional payment from Zijin of $50-million in cash. The closing of the transaction is subject to customary conditions and receipt of regulatory approvals. The company expects the transaction to be completed in the third quarter of 2024.

Following the completion of La Arena transaction, Pan American Silver plans to update the 2024 operating outlook disclosed in its management's discussion and analysis dated Feb. 21, 2024. At La Arena, the 2024 operating outlook assumed 83,000 to 95,000 ounces of gold production at cash costs of $1,400 to $1,470 per ounce and all-in sustaining costs of $1,675 to $1,775 per ounce. Sustaining capital expenditures were estimated to total $18-million to $19-million in 2024.

This news release should be read in conjunction with Pan American Silver's unaudited condensed interim consolidated financial statements and its management's discussion and analysis for the three months ended March 31, 2024. This material is available on Pan American Silver's website, on SEDAR+ and on EDGAR.

Conference call and webcast

Date:  May 9, 2024

Time:  11 a.m. ET (8 a.m. PT)

Dial-in numbers:  1-888-259-6580 (toll-free in Canada and the United States) or 1-416-764-8624 (international participants)

Conference ID:  12621721

A webcast will be available.

The live webcast, presentation slides and the report for Q1 2024 will be available at the Pan American Silver website. An archive of the webcast will also be available for three months.

About Pan American Silver Corp.

Pan American Silver is a leading producer of silver and gold in the Americas, operating mines in Canada, Mexico, Peru, Brazil, Bolivia, Chile and Argentina. It also owns the Escobal mine in Guatemala that is currently not operating, and it holds interests in exploration and development projects. It has been operating in the Americas for three decades, earning an industry-leading reputation for sustainability performance, operational excellence and prudent financial management. It is headquartered in Vancouver, B.C., and its shares trade on the New York Stock Exchange and the Toronto Stock Exchange under the symbol PAAS.

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