Mr. Michael Steinmann reports

PAN AMERICAN SILVER REPORTS SECOND QUARTER 2023 RESULTS, DEMONSTRATING THE TRANSFORMATIVE IMPACT OF THE YAMANA ACQUISITION

Pan American Silver Corp. today released its unaudited results for the quarter ended June 30, 2023 (Q2 2023), inclusive of the assets acquired through the Yamana Gold Inc. transaction, which closed on March 31, 2023.

"Our Q2 2023 results show the significant enhancement in the scale and quality of our portfolio following the strategic acquisition of Yamana. Production is up 55 per cent for silver and 102 per cent for gold compared with the prior quarter, while the addition of three new low-cost producers provided tangible benefits to the company's cost structure. Based on year-to-date production and costs, we are maintaining our guidance for 2023," said Michael Steinmann, president and chief executive officer. "Revenue of $639.9-million reflects the step change in our operating base, and drove a 151-per-cent increase in operating cash flow before working capital changes compared with Q1 2023. These results deliver on the benefits we had expected from the Yamana transaction, and have allowed us to repay a net $55.4-million of debt and distribute $36.4-million in dividends in the past quarter. We are also on track to meet our target of realizing $40-million to $60-million in synergies through the transaction."

"We have made significant progress on our commitment to optimize our portfolio by concluding agreements on the disposition of three non-core assets. On July 31, 2023, we announced the sales of Pan American's interests in the MARA project in Argentina, the Morococha mine in Peru and the Agua de la Falda project in Chile, as well as non-core equity investments. These dispositions will significantly reduce project development, reclamation, and care and maintenance costs going forward, and the cash proceeds will further strengthen our balance sheet. Pan American is well positioned to build on the momentum for growth and deliver returns to shareholders," added Mr. Steinmann.

These highlights for Q2 2023 include certain measures that are not generally accepted accounting principles (non-GAAP) financial measures.

Consolidated Q2 2023 highlights:

• Silver production of 6.02 million ounces and record gold production of 248,200 ounces. Silver production was slightly above management's outlook for Q2 2023 while gold production was at the high end of the quarterly outlook.
• Revenue was $639.9-million, up 64 per cent compared with Q1 2023, reflecting the expanded operating base following the Yamana transaction.
• Net loss of $47.4-million (13 cents basic loss per share) reflects non-cash accounting impacts, including a net of tax impairment charge of $33.3-million related to the sale of the company's 92.3-per-cent interest in the Morococha mine, and $26.1-million net of tax fair value adjustments on finished goods inventories related to the Yamana transaction accounting.
• Adjusted earnings were $14.7-million, or four cents adjusted earnings per share, which exclude the impairment charge and the fair value adjustment noted herein, among other adjustments.
• Cash flow from operations was $117.0-million, net of $50.5-million in tax payments.
• Silver segment cash costs and all-in sustaining costs (AISC) per silver ounce of $9.29 and $15.70, respectively. Excluding net realizable value (NRV) inventory adjustments, silver segment AISC was $14.87 per ounce.
• Gold segment cash costs and AISC per gold ounce of $1,045 and $1,342, respectively. Excluding NRV inventory adjustments, gold segment AISC was $1,369 per ounce.
• As at June 30, 2023, the company had working capital of $743.8-million, inclusive of cash and short-term investments of $409.2-million (of which $192.9-million of cash is restricted to the MARA project), and $470.0-million available under its $750.0-million revolving sustainability-linked credit facility (SL credit facility). The company made a net repayment of debt of $55.4-million in Q2 2023. Total debt as at June 30, 2023, was $1,135.3-million, comprising amounts drawn on the SL credit facility, construction and other loans, leases, and the senior notes Pan American assumed through the Yamana transaction.
• A cash dividend of 10 cents per common share with respect to Q2 2023 was declared on Aug. 9, 2023, payable on or about Sept. 1, 2023, to holders of record of Pan American's common shares as of the close of markets on Aug. 21, 2023. The dividends are eligible dividends for Canadian income tax purposes.
• Three ILO 169 consultation meetings for the Escobal mine were held in Q2 2023. During the meetings, the company and government institutions completed the information transfer process described in the phase 2 consultation timeline. The company also participated in a working meeting with the Xinka Parliament, their consultants and government institutions to present details on the dry-stack tailings facility, management of water and vibrations from blasting activities when the mine was in operation. At this time, no date has been set for a potential restart of operations at Escobal.
• The company reaffirmed its 2023 operating outlook for production of silver, gold, base metals, cash costs and AISC, and sustaining and project capital expenditures, as presented in the company's Q2 2023 MD&A (management's discussion and analysis) dated May 10, 2023. Silver production is estimated to be between 21 million and 23 million ounces and gold production between 870,000 to 970,000 ounces in 2023. The estimated range for silver segment AISC is $14.00 to $16.00 per ounce and $1,275 to $1,425 per ounce for gold segment AISC.

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 MD&A for the three and six months ended June 30, 2023. This material is available on Pan American's website, on SEDAR+ and on EDGAR.

Conference call and webcast

Date:  Aug. 10, 2023

Time:  11 a.m. ET (8 a.m. PT)

Dial-in numbers:   1-888-886-7786 (toll-free in Canada and the U.S.), 1-416-764-8658 (international participants)

Conference ID:  71222615

The live webcast, presentation slides and the report for Q2 2023 will be available on the company 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 precious metals in the Americas, operating silver and gold mines in Canada, Mexico, Peru, Bolivia, Argentina, Chile and Brazil. 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 nearly 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.

We seek Safe Harbor.