Mr. Michael Steinmann of Pan American Silver reports

PAN AMERICAN SILVER COMPLETES ACQUISITION OF MAG SILVER

Pan American Silver Corp. has completed its previously announced acquisition of all of the issued and outstanding common shares of Mag Silver Corp. pursuant to a plan of arrangement. The transaction adds a 44-per-cent joint venture interest in the large-scale, high-grade Juanicipio silver mine in Zacatecas, Mexico, operated by Fresnillo PLC, along with 100-per-cent ownership of the Larder exploration project and a 100-per-cent earn-in interest in the Deer Trail exploration project. The transaction further strengthens Pan American's position as one of the world's leading silver producers, enhances its industry-leading silver reserve base, and provides significant near-term cash flow growth and long-term exploration potential.

"The Juanicipio mine is a high-quality addition to our portfolio that will contribute meaningfully to our silver production, reserves and cash flow," said Michael Steinmann, president and chief executive officer of Pan American. "We are pleased to welcome Mag shareholders to Pan American, who now benefit from participation in a larger, diversified and growth-oriented silver and gold producer. We also look forward to working collaboratively with Fresnillo, the mine's operator, to advance the potential of the Juanicipio asset for the benefit of all stakeholders."

Transaction consideration

Pursuant to the terms of the transaction, Mag Silver shareholders received an aggregate of $500-million (U.S.) in cash and approximately 60.2 million Pan American shares in consideration for their Mag Silver shares. Following completion of the transaction, former Mag Silver shareholders own approximately 14.3 per cent of the issued and outstanding Pan American shares, on a fully diluted basis.

Full details of the transaction are included in Mag Silver's management information circular dated June 6, 2025, which can be found under Mag Silver's profile on SEDAR+ and EDGAR.

Delisting of Mag Silver shares

The Mag Silver shares are expected to be delisted from the Toronto Stock Exchange as of the closing of the market Sept. 8, 2025, and to cease trading on the NYSE American exchange as of the opening of the market on Sept. 4, 2025. Pan American is in the process of applying for Mag Silver to cease to be a reporting issuer under applicable Canadian securities laws and to otherwise terminate Mag Silver's public reporting requirements.

About Pan American Silver Corp.

Pan American Silver is a leading producer of silver and gold in the Americas, operating mines in Canada, Mexico, Peru, Brazil, Bolivia, Chile and Argentina. Pan American Silver also owns a 44-per-cent joint venture interest in the Juanicipio mine in Mexico and a 100-per-cent interest in the Escobal mine in Guatemala, which is currently not operating, and holds interests in exploration and development projects. Pan American Silver has been operating in the Americas for over three decades, earning an industry-leading reputation for sustainability performance, operational excellence and prudent financial management. Pan American Silver 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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