Mr. Fausto Di Trapani of Mag Silver reports

MAG SHAREHOLDERS APPROVE THE PROPOSED ACQUISITION BY PAN AMERICAN

Mag Silver Corp.'s shareholders have approved the previously announced acquisition of Mag by Pan American Silver Corp. by way of a plan of arrangement at a special meeting of Mag shareholders held earlier on July 10, 2025. All amounts expressed are in U.S. dollars unless otherwise indicated.

The special resolution approving the arrangement was approved by 99.52 per cent of the votes cast by Mag shareholders present in person or represented by proxy and entitled to vote at the meeting. A total of 61,077,441 common shares of the company were represented at the meeting, representing 59.03 per cent of the total issued and outstanding Mag shares as of the record date of the meeting.

Under the terms of the arrangement, each Mag shareholder will receive, at such shareholder's election, on closing of the arrangement: (a) $20.54 in cash for each Mag share held; or (b) 0.01 cent in cash and 0.755 of a common share in the capital of Pan American for each Mag share held, in each case subject to proration such that the aggregate consideration paid to all Mag shareholders consists of $500-million in cash and the remaining consideration paid in Pan American shares.

Additional information regarding the arrangement and the procedure for the exchange of Mag shares for the consideration is provided in the company's management information circular dated June 6, 2025, related to the meeting. The circular and the accompanying letter of transmittal and election form are available under the company's SEDAR+ profile and on the company's website.

With the approval by the Mag shareholders at the meeting, Mag will seek a final order from the Supreme Court of British Columbia to approve the arrangement at a hearing expected to be held on July 14, 2025. In addition to approval of the court, completion of the arrangement is subject to applicable regulatory approvals, including both Canadian (received) and Mexican competition authorization, the approval of the Toronto Stock Exchange (received), and the New York Stock Exchange (received), for the arrangement, and for the listing and posting for trading of the Pan American shares to be issued in connection with the arrangement, and the satisfaction of certain other closing conditions customary for a transaction of this nature. If all conditions are satisfied or waived, the arrangement is expected to close in the second half of 2025. Following completion of the arrangement, the Mag shares are expected to be delisted from the Toronto Stock Exchange and NYSE American LLC. An application is also expected to be made for Mag to cease to be a reporting issuer in the applicable jurisdictions following closing of the arrangement.

About Mag Silver Corp.

Mag is a growth-oriented Canadian mining and exploration company focused on advancing high-grade, district-scale precious metal projects in the Americas. Mag is a top-tier primary silver mining company through its (44 per cent) joint venture interest in the 4,000-tonne-per-day Juanicipio mine, operated by Fresnillo (56 per cent). The mine is located in the Fresnillo silver trend in Mexico, the world's premier silver mining camp, where, in addition to mining and processing operations, an expanded exploration program is in place targeting multiple highly prospective targets. Mag is also executing multiphase exploration programs at the 100-per-cent earn-in Deer Trail project in Utah and the 100-per-cent-owned Larder project, located in the historically prolific Abitibi region of Canada.

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