Pan American Silver (PAAS) investor relations material

Project Development Plan and Timeline

• Revised PEA outlines a phased expansion, starting with a decline from the 588 level in 2026, construction of two shafts by 2030, and a new 15,000 tpd processing plant aligned with initial skarn production in 2032.

• Simultaneous development of high-grade veins and skarn deposit using conventional long-hole open stoping and sub-level open stoping, with the existing vein mine operating at 2,000 tpd during ramp-up.

• No additional permitting is needed for the initial decline/ramp, but permits are required for shafts, plant, and tailings expansion.

• Pre-feasibility study is expected after 2027, with ongoing exploration and engineering work.

• Project life is 37 years, with staged development and closure planning.

Exploration and Resource Growth

• Recent drilling has discovered multiple new high-grade silver zones and added 52.7 Moz to inferred resources, with four new high-grade veins found southeast of the current mine.

• Over 93,700m of drilling not yet included in current resource estimates could extend peak production years and further expand resources.

• Ongoing exploration aims to further expand resources and extend high production periods.

• La Colorada is now among the world's largest silver deposits, with combined vein and skarn resources placing it in the top tier globally.

• Mineral reserves and resources have been estimated in accordance with CIM and NI 43-101 standards, with robust QA/QC and technical oversight.

Economics and Production Profile

• Peak annual silver production is projected at 19.1 Moz for five years post-ramp-up, with average annual silver output of 15.8 Moz from the skarn project and a total LOM silver production of 243.4 Moz from skarn and 75.1 Moz from the vein mine.

• All-in sustaining costs are expected to average negative $22.67/oz Ag over the initial five years, reflecting strong by-product credits.

• After-tax NPV (5%) is $2.6B with a 17% IRR at base case prices ($45/oz Ag, $2,800/t Zn, $2,000/t Pb); at $75/oz Ag, NPV rises to $5.2B and IRR to 25%.

• Average incremental annual free cash flow of $653M over the initial five years at base case prices.

• Initial capital investment is $1.9B–$1.95B, with a payback period of four years at base case prices.