Mr. Michael Steinmann reports

PAN AMERICAN SILVER REPORTS FIRST QUARTER 2023 RESULTS

Pan American Silver Corp. has released its unaudited results for the quarter ended March 31, 2023 (Q1 2023).

"Pan American reported solid results for the first quarter of 2023, with adjusted earnings of 10 cents per share," said Michael Steinmann, president and chief executive officer. "Going forward, Pan American will be a significantly larger, more diversified company following our acquisition of Yamana. Our guidance for 2023 demonstrates the positive impact of the four new mines on production and costs, and we are excited by the growth opportunities the combined portfolio presents."

On March 31, 2023, Pan American completed its previously announced acquisition of all of the issued and outstanding common shares of Yamana Gold Inc., following the sale by Yamana of its Canadian assets to Agnico Eagle Mines Ltd., by way of a plan of arrangement under the Canada Business Corporations Act. The Yamana transaction added four producing mines to Pan American's portfolio: the Jacobina mining complex in Brazil; the El Penon and Minera Florida mines in Chile; and the Cerro Moro mine in Argentina, plus several exploration and development projects in Chile, Brazil and Argentina. Operating and financial results reported in this news release, except for the financial position as at March 31, 2023, reflect only Pan American's original mines, specifically La Colorada, Huaron, San Vicente, Manantial Espejo, Timmins, Shahuindo, La Arena and Dolores (the original assets).

The following highlights for Q1 2023 include certain measures that are not generally accepted accounting principle (non-GAAP) financial measures.

Consolidated Q1 2023 highlights:

• Silver production of 3.9 million ounces and gold production of 122.7 thousand ounces. As previously disclosed, Manantial Espejo has been placed on care and maintenance following the completion of mining at the end of 2022; some residual production was recorded for Q1 2023.
• Revenue was $390.3-million, inclusive of a negative $3.8-million price adjustment on open concentrate shipments.
• Net earnings were $16.5-million (basic earnings of eight cents per share), including $18.9-million in transaction and integration costs related to the Yamana transaction, and $12.7-million in severance provisions. Adjusted earnings were $21.2-million (basic adjusted earnings of 10 cents per share).
• Cash flow from operations was $51.3-million, net of $30.7-million in tax payments.
• Silver segment cash costs and all-in sustaining costs (AISC) per silver ounce were $12.19 and $14.13, respectively. Excluding net realizable value (NRV) inventory adjustments, silver segment AISC was $14.11 per ounce.
• Gold segment cash costs and AISC per gold ounce were $1,120 and $1,196, respectively. Excluding NRV inventory adjustments, gold segment AISC was $1,361 per ounce.
• Pan American's financial position as at March 31, 2023, incorporates the assets and liabilities Pan American assumed through the Yamana transaction. As at March 31, 2023, Pan American had working capital of $826.6-million, inclusive of cash and short-term investment balances of $513.1-million ($204.7-million related to the Minera Agua Rica Alumbrera (MARA) project in Argentina), as well as $425-million available under its $750-million revolving sustainability-linked (SL) credit facility. Total debt of $1,187.0-million relates to the SL credit facility, construction loans and leases, and two senior notes Pan American assumed through the Yamana transaction: $500-million with a coupon of 2.63 per cent maturing in 2031; and $283-million with a coupon of 4.625 per cent maturing in 2027. Moody's Investors Service and S&P Global have assigned Pan American with an investment-grade credit rating.
• A cash dividend of 10 cents per common share with respect to Q1 2023 was previously declared on March 24, 2023, payable on or about May 12, 2023, to holders of record of Pan American's common shares as of the close of markets on April 14, 2023. The dividends are eligible dividends for Canadian income tax purposes. Pan American selected that record and payment date to harmonize its dividend with respect to Q1 2023 with Yamana's normal course dividend timing for payment of a first quarter dividend. Subsequent dividends to be declared by Pan American are expected to follow Pan American's previous schedule of dividend payments.
• Two ILO 169 consultation meetings for the Escobal mine were held in Q1 2023, as well as several working meetings between Guatemala's Ministry of Energy and Mines and Xinka indigenous community representatives. At this time, no date has been set for a potential restart of operations at Escobal.

Cash costs, AISC, adjusted earnings, basic adjusted earnings per share, sustaining and non-sustaining capital, working capital, total debt, and net cash are non-GAAP financial measures.

This news release should be read in conjunction with Pan American's unaudited condensed interim consolidated financial statements and its management's discussion and analysis (MD&A) for the three months ended March 31, 2023. This material is available on Pan American's website, on SEDAR and on EDGAR.

Conference call and webcast

Date:  May 11, 2023

Time:  11 a.m. ET (8 a.m. PT)

Dial-in numbers:  1-888-396-8049 (toll-free in Canada and the United States) and 1-416-764-8646 (international participants)

Conference ID No.:  49301459

Webcast:  A webcast will be available. The live webcast, presentation slides and the report for the first quarter of 2023 will be available on the company's website. An archive of the webcast will also be available for three months.

2023 guidance

The following provides management's 2023 guidance, as at May 10, 2023. Relative to the guidance provided on April 27, 2023, the only revision is an increase in estimated project capital expenditures to a range of $95-million to $105-million from the previous range of $75-million to $85-million. The revised range reflects an updated estimate to complete the preliminary economic assessment studies and to advance the exploration drilling for the La Colorada skarn project.

2023 general and administrative, care and maintenance, and exploration expense forecast

The 2023 general and administrative expenses are estimated to total between $75-million and $80-million, and reflect increased personnel following the Yamana transaction, increased regulatory and insurance costs, and a normalized year of stock-based compensation, which was lower than assumed in 2022 due to share price performance.

The 2023 care and maintenance costs are estimated to total $98-million to $109-million, reflecting expenditures for Escobal, the MARA project, Manantial Espejo and Morococha.

The 2023 exploration expense is estimated to total $14-million to $16-million for regional greenfield expenditures. The expenditures relating to near-mine exploration are included in the sustaining and project capital amounts provided in the capital expenditures forecast table attached.

The production and cost guidance provided in the attached tables reflects the contribution from the acquired operations for the nine-month period from March 31, 2023, to Dec. 31, 2023, and the full 12-month period of 2023 for Pan American's original assets. Please see the MD&A for the period ending March 31, 2023, for a more detailed breakdown of the guidance, including by individual mine and on a quarterly basis for 2023.

About Pan American Silver Corp.

Pan American is a leading producer of precious metals in the Americas, operating silver and gold mines in Canada, Mexico, Peru, Bolivia, Argentina, Chile and Brazil. The company also owns the Escobal mine in Guatemala, which is currently not operating, and it holds interests in exploration and development projects, including the MARA project in Argentina. The company has been operating in the Americas for nearly three decades, earning an industry-leading reputation for sustainability performance, operational excellence and prudent financial management. Pan American 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.

Technical information

Scientific and technical information contained in this news release have been reviewed and approved by Martin Wafforn, PEng, senior vice-president, technical services and process optimization, and Christopher Emerson, FAusIMM, vice-president, exploration and geology, each of whom are qualified persons, as the term is defined in Canadian National Instrument 43-101, Standards of Disclosure for Mineral Projects.

For additional information about Pan American's material mineral properties, please refer to Pan American's annual information form dated Feb. 22, 2023, filed on SEDAR, or the company's most recent Form 40-F, filed with the U.S. Securities and Exchange Commission.

We seek Safe Harbor.