Mr. Michael Steinmann reports

PAN AMERICAN SILVER REPORTS THIRD QUARTER 2023 RESULTS

Pan American Silver Corp. has released its unaudited results for the quarter ended Sept. 30, 2023 (Q3 2023).

"We are reaffirming our annual 2023 guidance ranges for silver and gold production with the expectation that production for both will come in at the low end of the ranges. We expect gold segment cash costs and AISC to be within the guidance ranges and silver segment cash costs and AISC to be marginally above their guidance ranges," said Michael Steinmann, president and chief executive officer. "While mine operating performance was broadly in line with the plan across the portfolio, ventilation constraints at La Colorada and lower grades at El Penon weighed on silver and gold production.

"With the recent sales of the Mara project, the Morococha mine and our interest in Agua de la Falda, which was completed on Nov. 6, 2023, we have advanced our objectives to rationalize the portfolio as well as reduce debt and future financial obligations. We expect to save approximately $90-million in cash annually, primarily from the elimination of care and maintenance, project development and reclamation costs associated with Mara and Morococha, in addition to interest expense from having repaid the $280-million that was drawn on our credit facility at the end of June 30, 2023.

"We expect to capture a further $40-million to $60-million in annual savings through synergies associated with integrating the Yamana assets. The integration is progressing well, and we are currently evaluating optimization and exploration plans for the newly acquired mines. We will also continue to evaluate ways to further rationalize our overall portfolio," added Mr. Steinmann.

The following highlights for Q3 2023 include certain measures that are not generally accepted accounting principles (non-GAAP) financial measures. Please refer to the section titled alternative performance (non-GAAP) measures at the end of this news release for further information on these measures.

Consolidated Q3 2023 highlights:

• Silver production of 5.7 million ounces and gold production of 244.2 thousand ounces. Silver production was at the low end and gold production was slightly below management's guidance ranges for Q3 2023.
• Revenue was $616.3-million.
• Net loss of $22.7-million (loss of six cents per share, basic), impacted by higher taxes.
• Adjusted earnings were $3.1-million or adjusted earnings of one cent per share.
• Cash flow from operations was $114.6-million, net of $35.8-million in tax payments.
• Silver segment cash costs and all-in sustaining costs (AISC) per silver ounce were $13.13 and $18.19, respectively.
• Gold segment cash costs and AISC per gold ounce were $1,187 and $1,451, respectively.
• Based on operating results to date and expected results for the remainder of the year, the company reaffirms its 2023 operating outlook, as provided in the company's Q1 2023 MD&A (management's discussion and analysis) dated May 10, 2023, for silver and gold production, but expects both to be at the low-end of their respective annual guidance ranges, and silver segment cash costs and AISC to come in marginally above the high end of the guidance ranges. The company reaffirms its 2023 operating outlook for production of base metals, gold segment cash costs and AISC, and sustaining and project capital expenditures, all of which are expected to be within guidance ranges.
• As at Sept. 30, 2023, the company had working capital of $832.1-million, inclusive of cash and investments of $386.0-million, and $750.0-million available under its revolving sustainability-linked (SL) credit facility. The company made a net repayment of $280.0-million on the SL credit facility in Q3 2023. Total debt of $809.1-million is primarily related to two senior notes Pan American assumed through the acquisition of Yamana Gold Inc., as well as construction and other loans and leases.
• A cash dividend of 10 cents per common share with respect to Q3 2023 was declared on Nov. 7, 2023, payable on or about Dec. 1, 2023, to holders of record of Pan American's common shares as of the close of markets on Nov. 20, 2023. For the nine months ended Sept. 30, 2023, the company paid cash dividends totalling $94.0-million. The dividends are eligible dividends for Canadian income tax purposes.
• At the La Colorada mine, the company invested $14.0-million of project capital in Q3 2023 to advance the La Colorada skarn project, largely for exploration and the preliminary economic study under way, as well as advancing the excavation of the concrete-lined ventilation shaft. The shaft reached a depth of 522 metres by the end of Q3 2023 and is expected to be fully excavated to a depth of 593 metres by the end of 2023. The installation of two large exhaust fans on the surface of the shaft is expected to be completed by mid-2024, following which ventilation conditions in the mine are expected to improve significantly. The preliminary economic study for the skarn project is on schedule to be released by year-end 2023.
• At the Escobal mine in Guatemala, Pan American hosted three visits to the mine for Xinka ondigenous representatives and their advisers, and participated in several other meetings with the Xinka representatives and Guatemala's Ministry of Energy and Mines during Q3 2023. At this time, no date has been set for the completion of the ILO 169 consultation process or a potential restart of operations at Escobal. In September, 2023, Guatemala's Chamber of Industry awarded Pan American first place in the environment category for a reforestation and conservation project, which involved an innovative approach for the reproduction of native oak trees within the Escobal mine area.

Completion of the sale of Agua de la Falda

On Nov. 6, 2023, Pan American completed the previously announced divestment of its 57.74-per-cent interest in Agua de la Falda S.A. (ADLF), a Chilean company that holds the historical Jeronimo project, located in the Atacama region of northern Chile, as well as several adjoining concessions.

Under the terms of the agreement, Rio Tinto Chile SPA, a subsidiary of Rio Tinto Ltd., paid $45.55-million (U.S.), in cash, for the shares in ADLF and granted to a Pan American subsidiary a net smelter return royalty of 1.25 per cent on all precious metals and a net smelter return royalty of 0.2 per cent on all base metals, on production from certain mineral concessions of ADLF, applied on a pro rata basis in accordance with the ownership interest acquired in such concessions. The remaining 42.26-per-cent interest is held by Corporacion Nacional del Cobre de Chile.

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. Please refer to the alternative performance (non-GAAP) measures section of this news release for further information on these measures.

This news release should be read in conjunction with Pan American's unaudited condensed interim consolidated financial statements and the company's MD&A for the three and nine months ended Sept. 30, 2023. This material is available on Pan American's website, on SEDAR+ and on EDGAR.

Conference call and webcast

Date:  Nov. 8, 2023

Time:  11 a.m. ET (8 a.m. PT)

Dial-in numbers:  1-888-886-7786 (toll-free in Canada and the United States) and 1-416-764-8658 (international participants)

Conference ID No.:  94321211

The live webcast, presentation slides and the report for Q3 2023 will be available on the company's 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. The company 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. The company 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.

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