Ms. Jacobina Steinmann reports

PAN AMERICAN SILVER REPORTS AUDITED FINANCIAL RESULTS FOR 2023 AND ANNOUNCES INTENTION TO MAKE A NORMAL COURSE ISSUER BID

Pan American Silver Corp. has released its fourth quarter (Q4 2023) financial results and audited financial results for the year ended Dec. 31, 2023 (fiscal year (FY) 2023).

"Pan American enters 2024 in a solid financial position with cash and short-term investments totalling $440.9-million and the full $750.0-million available under our undrawn credit facility," said Michael Steinmann, president and chief executive officer. "We expect cash flow generation in 2024 to benefit from a full-year contribution of the assets we acquired through the Yamana Gold transaction, improved operations at La Colorada with higher throughput and lower costs in the second half of the year following completion of the new ventilation system, and reduced care and maintenance costs. Strategic initiatives in 2024 include advancing our La Colorada skarn project, with engagement on long-term development partnerships currently under way, completing a study to optimize the Jacobina operations and further portfolio rationalization.

"Today, we also announced our intention to make a normal course issuer bid to repurchase our common shares when we believe that the market price of our shares, from time to time, may not fully reflect the underlying value of our mining operations, properties and future growth prospects," added Mr. Steinmann.

Q4 2023 and FY 2023 highlights:

• Silver production was 4.8 million ounces in Q4 2023 and 20.4 million ounces in FY 2023. Gold production achieved record levels of 267,800 ounces in Q4 2023 and 882,900 ounces in FY 2023. Silver production was slightly below the guidance range provided in Pan American's news release dated April 27, 2023 (the 2023 guidance), and gold production was within the 2023 guidance range.
• Record revenue of $669.6-million and $2.3-billion was recorded for Q4 2023 and FY 2023, respectively.
• A net loss of $67.8-million, or 19 cents per share basic, was recorded for Q4 2023 and a net loss of $104.9-million, or 32 cents per share basic, for FY 2023. Pan American finalized the purchase price allocation (PPA) asset values for the Yamana Gold Inc. acquisition in Q4 2023. International financial reporting standards (IFRS) for business acquisitions require that all accounting impacts to earnings from the finalization of PPA asset values be retrospectively recast to prior quarters since the date of the acquisition. As a result, an additional $16.5-million (five cents per share) in earnings for the year related to revised depreciation charges for the final PPA asset values must be retroactively applied to Q2 2023 and Q3 2023 rather than applied to Q4 2023 earnings. There is no impact on FY 2023 earnings. In addition, Q4 2023 earnings were impacted by a $36.2-million impairment charge for the crushing and agglomeration plant at Shahuindo, which has never been operated and was built before Pan American acquired the mine in February, 2019, and a $13.8-million closure and decommissioning expense, largely due to revised estimates at Alamo Dorado to further bolster waste dump covers and site drainage systems.
• Adjusted loss of $16.3-million, or four cents per share basic, in Q4 2023. FY 2023 adjusted earnings were $39.3-million, or 12 cents per share basic. The impact of the impairment charge and closure and decommissioning expense was adjusted from Q4 2023 earnings.
• Cash flow generated from operating activities was $167.4-million in Q4 2023 and $450.2-million for FY 2023.
• Silver segment cash costs were $19.31 and $13.07 per ounce in Q4 2023 and FY 2023, respectively. Silver segment all-in sustaining costs (AISC) were $26.55 and $18.17 per ounce in Q4 2023 and FY 2023, respectively. FY 2023 silver segment cash costs and AISC were above the 2023 guidance ranges. The higher costs were largely affected by the ventilation-driven production shortfalls at La Colorada and an increase in underground mine developments at Huaron, partially offset by lower-than-expected costs at Cerro Moro from higher throughput and higher gold prices, process plant optimizations, and organizational enhancements.
• Gold segment cash costs were $1,096 and $1,113 per ounce in Q4 2023 and FY 2023, respectively. Gold segment AISC was $1,411 and $1,371 per ounce in Q4 2023 and FY 2023, respectively. FY 2023 gold segment cash costs were slightly above the 2023 guidance range while AISC was within the 2023 guidance range. The higher than forecast gold segment cash costs were due to lower than anticipated gold production at El Penon.
• Capital expenditures totalled $429.7-million in 2023, comprising $288.5-million of sustaining capital, $94.5-million of project capital, which was largely directed to the La Colorada skarn project and Jacobina, and $46.8-million in non-recurring non-sustaining expenditures largely related to Mara. The new ventilation shaft at La Colorada was fully excavated to a depth of 581 metres on schedule in December, 2023. Sustaining and project capital expenditures were both below the 2023 guidance range.
• As at Dec. 31, 2023, the company had working capital of $765.8-million, inclusive of cash and short-term investments of $440.9-million, and $750.0-million available under its revolving sustainability-linked credit facility. Total debt of $801.6-million was related to construction and other loans, leases and two senior notes Pan American assumed through the acquisition of Yamana.
• A cash dividend of 10 cents per common share has been declared, payable on or about March 15, 2024, to holders of record of Pan American's common shares as of the close on March 4, 2024. The dividends are eligible dividends for Canadian income tax purposes.

Pan American Silver announces intention to make a normal course issuer bid

Pan American today announced that its board of directors has authorized a normal course issuer bid to purchase up to 5 per cent of the company's issued and outstanding common shares. The bid is subject to the approval of the Toronto Stock Exchange.

It is expected that the bid will begin on or around March 6, 2024, and will continue until on or around March 5, 2025, or an earlier date should the company complete its purchases. All common shares acquired by the company under the bid will be cancelled and purchases will be funded out of Pan American's working capital. Although the company has a present intention to acquire its common shares pursuant to the bid, it is not obligated to make any purchases, and the actual number of common shares to be purchased and the timing of any purchases will be at the company's discretion.

Purchases pursuant to the bid would be made on the open market through the facilities of the TSX and the New York Stock Exchange and alternative trading systems. Pan American will pay the market price at the time of acquisition of any common shares in accordance with the rules and policies of the TSX and NYSE and applicable securities laws.

Pan American believes that the market price of its common shares, from time to time, may not fully reflect the underlying value of its mining operations, properties and future growth prospects. Under such circumstances, the repurchase of common shares represents an appealing investment for Pan American since a portion of the company's excess cash generated on an annual basis can be invested for an attractive risk-adjusted return on capital through the bid.

ILO 169 consultation for the Escobal mine

A new government took office in Guatemala in January, 2024, and the company had its first meeting with the new Minister of Energy and Mines (MEM) on Feb. 7, 2024. A meeting for the ILO 169 consultation was held on Feb. 21, 2024, with the newly appointed vice-minister of energy and mines and Xinka representatives, during which a presentation on the observations of the Xinka's appointed consultants was communicated. The company looks forward to receipt of the report and working with the MEM to ensure accurate information is communicated to the Xinka participating in the consultation process. As usual, the company is not providing a time frame for completion of the consultation or a potential restart of the mine.

Pan American appoints senior vice-president, operations and projects

Pan American is pleased to announce that Scott Campbell has been appointed senior vice-president, operations and projects, effective April 2, 2024. Mr. Campbell will oversee the company's operations and lead the corporate projects group, reporting to Pan American's chief operating officer, Steve Busby. Mr. Campbell was most recently general manager for Dundee Precious Metals in Ecuador. Previous to that role, he was Pan American's vice-president of South American projects from 2018 to 2022, and held senior positions with Barrick Gold Corp. as well as other engineering and exploration companies. Mr. Campbell earned a bachelor's degree in earth sciences from Dalhousie University in Canada and has completed business and project management programs at various universities.

George Greer, senior vice-president, projects, will support Mr. Campbell in his new position until Mr. Greer retires in June, 2024. Pan American extends its best wishes to Mr. Greer for his retirement and its appreciation for his more than 17 years of distinguished service to the company. Throughout his career with Pan American, Mr. Greer demonstrated his unwavering commitment to safety, personnel development and efficiently delivering high-quality, fit-for-purpose projects that are a hallmark of Pan American's history.

2024 operating outlook

Pan American provided its operating outlook for 2024 in the news release dated Jan. 17, 2024, as further detailed below and in the company's management's discussion and analysis for the period ended Dec. 31, 2023.

Pan American reports mines under either a silver segment or a gold segment with cash costs and AISC calculated on a byproduct basis; specifically, byproduct metal sales are credited against the operating costs to produce the primary metal for that segment.

The estimates in the attached tables contain forward-looking information about expected future events and financial and operating performance of Pan American. Pan American may revise forecasts during the year to reflect actual results to date and those anticipated for the remainder of the year.

Conference call and webcast

Date:  Feb. 22, 2024

Time:  11 a.m. ET (8 a.m. PT)

Dial-in numbers:  1-888-259-6580 (toll-free in Canada and the United States); 1-416-764-8624 (international participants)

Conference ID No.:  33139030

Webcast:  A webcast will be available.

The live webcast, presentation slides and the report for Q4 2023 and FY 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, Brazil, Bolivia, Chile and Argentina. The company also owns the Escobal mine in Guatemala, which is currently not operating, and the company holds interests in exploration and development projects. Pan American Silver has been operating in the Americas for 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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