Mr. Andrew Williams reports

NEW PACIFIC METALS ANNOUNCES C$35 MILLION BOUGHT DEAL FINANCING

New Pacific Metals Corp. has entered into an agreement with a syndicate of underwriters, pursuant to which the underwriters have agreed to purchase, on a bought deal basis, 13,208,000 common shares of the company at a price of $2.65 per common share, for total gross proceeds of approximately $35-million. The company will also grant to the underwriters an overallotment option to purchase up to 1,981,200 additional common shares. The overallotment option will be exercisable for a period of 30 days following closing.

Silvercorp Metals Inc. has indicated its intent to participate in the offering by subscribing to 2,541,890 common shares representing approximately $5-million (U.S.) in gross proceeds (approximately $6.7-million). Upon completion of the offering, Silvercorp will own, directly and indirectly, approximately 27.4 per cent of the outstanding common shares of the company assuming the overallotment is not exercised.

In addition, Pan American Silver Corp. has indicated its intent to participate in the offering by subscribing to 5,083,780 common shares representing approximately $10-million (U.S.) in gross proceeds (approximately $13.5-million). Upon completion of the offering, Pan American will own, directly and indirectly, approximately 11.6 per cent of the outstanding common shares of the company assuming the overallotment is not exercised.

The common shares will be offered in all of the provinces of Canada, except the province of Quebec, by way of a prospectus supplement to the company's existing short form base shelf prospectus dated Aug. 16, 2023, and may also be offered by way of private placement in the United States, pursuant to registration exemptions.

The net proceeds of the offering will be used to advance exploration and development at the company's Silver Sand and Carangas projects, for working capital, and for general corporate purposes.

The offering is expected to close on or about Sept. 29, 2023, and is subject to New Pacific receiving all necessary regulatory approvals, including the approval of the Toronto Stock Exchange and the common shares having been approved for listing on the NYSE American.

Silvercorp is a related party of the company for the purposes of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions and the acquisition by Silvercorp of common shares pursuant to the offering is a related party transaction. The acquisition by Silvercorp of common shares pursuant to the offering is exempt from the valuation and minority approval requirements of MI 61-101 pursuant to the exemptions in sections 5.5(a) and 5.7(a) of NI 61-101.

About New Pacific Metals Corp.

New Pacific is a Canadian exploration and development company with precious metal projects in Bolivia, including the company's flagship project, the Silver Sand silver project, the company's recently discovered Carangas silver-gold project and the company's third project, the Silverstrike silver-gold project.

We seek Safe Harbor.