Pan American Silver Announces the Sale of La Arena for $245 Million in Cash Upfront and a $50 Million Contingent Payment

retains a 1.5% gold net smelting royalty on the La Arena II Project

Vancouver, British Columbia – Pan American Silver Corp. (NYSE: PAAS) (TSX: PAAS) (“Pan-American“) announces that it has agreed to transfer its 100% interest in La Arena SA (“La Arena”), which owns the La Arena Gold Mine and the La Arena II Project in Peru, to Jinteng (Singapore) Mining Pte . for sale. Ltd., a subsidiary of Zijin Mining Group Co., Ltd. (collectively, “Zijin”), for an upfront payment of US$245 million in cash and a contingent payment of US$50 million.

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“With the sale of La Arena, we continue our strategy to optimize our portfolio following the Yamana transaction while preserving future potential through royalty retention,” said Michael Steinmann, President and Chief Executive Officer of Pan American. “The proceeds from the transaction will further strengthen our financial position and enable us to meet our capital allocation priorities: investing in high-quality assets, reducing debt and returning capital to our shareholders.”

Under the terms of the agreement, Zijin will pay $245 million in cash upon closing and grant Pan American a 1.5% life-of-mine gold net smelting royalty for the La Arena II project. Upon commencement of commercial production of the La Arena II project, the agreement provides for an additional conditional payment from Zijin of US$50 million in cash. Completion of the transaction is subject to customary conditions and receipt of regulatory approvals. Pan American expects the transaction to close in the third quarter of 2024.

The La Arena Property is located in the La Libertad Province of Peru and consists of the La Arena Gold Mine and the La Arena II Project. Since acquiring the mine from Tahoe Resources Inc. in 2019, Pan American has successfully produced 535,521 ounces of gold through exploration and the Mine life extended from 2021 to 2026, with the possibility of further extension.

About Pan American Silver

Pan American Silver is a leading silver and gold producer in the Americas and operates mines in Canada, Mexico, Peru, Brazil, Bolivia, Chile and Argentina. We also own the Escobal mine in Guatemala, which is not currently operating, and we are involved in exploration and development projects. We have been operating in the Americas for three decades and have earned an industry-leading reputation for sustainability performance, operational excellence and prudent financial management. We are headquartered in Vancouver, BC and our shares trade on the New York Stock Exchange and the Toronto Stock Exchange under the symbol “PAAS.”

Learn more at panamericansilver.com

Cautionary Statement Regarding Forward-Looking Statements and Information

Certain statements and information in this press release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian provincial securities laws. All statements, other than statements of historical fact, are forward-looking statements or information. Forward-looking statements or information in this press release relate, among other things, to: the receipt of regulatory approvals and the successful completion of the proposed sale of La Arena and the anticipated terms and timing of closing; the expected use of proceeds, including investing in high quality assets and generating returns for our shareholders; the expected benefits from completing the sale of La Arena; the expected start of production of the La Arena II project; and the impact of such transaction on Pan American’s future financial or operating performance.

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These forward-looking statements and information reflect Pan American’s current views with respect to future events and are necessarily based on a number of assumptions that, while Pan American believes to be reasonable, inherently involve significant operational, business, economic and regulatory uncertainties and contingencies subject to. These assumptions include: the ability to satisfy closing conditions and obtain regulatory approval to complete the sale of La Arena; the impact of inflation and disruptions to global, regional and local supply chains; Tonnage of ore to be mined and processed; future expected prices for gold, silver and other metals and assumed exchange rates; the timing and impact of planned capital projects, including expected conservation, project and exploration expenditures; ore grades and recoveries; capital, decommissioning and rehabilitation estimates; our mineral reserve and mineral resource estimates and the assumptions on which they are based; prices for energy inputs, labor, materials, supplies and services (including transportation); no work-related disruptions in our operations; no unplanned delays or interruptions to planned production; obtain all necessary permits, licenses and regulatory approvals for our operations in a timely manner; our ability to secure and maintain title and ownership of mineral properties and surface rights necessary for our operations; whether Pan American will be able to maintain strong financial condition and have sufficient capital or access to capital through our credit facility tied to corporate sustainability or otherwise to sustain our business and operations; and our ability to comply with environmental, health and safety laws. The above list of assumptions is not exhaustive.

Pan American cautions the reader that forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from those contained in the forward-looking statements or information expressed or implied and Pan American has made assumptions and estimates based on or relating to many of these factors. These factors include, but are not limited to: the duration and impact of local and global inflationary pressures and the potential for economic recessions; fluctuations in silver, gold and base metal prices; fluctuations in prices for energy inputs, labor, materials, supplies and services (including transportation); Fluctuations in foreign exchange markets (such as PEN, MXN, ARS, BOB, GTQ, CAD, CLP and BRL versus USD); operational risks and hazards inherent in the mining business (including environmental accidents and hazards, industrial accidents, equipment failures, unusual or unexpected geological or structural formations, cave-ins, floods and severe weather); risks related to the creditworthiness or financial condition of suppliers, refiners and other parties with which Pan American does business; inadequate insurance or inability to obtain insurance to cover such risks and hazards; employee relations; relationships with and claims of local communities and indigenous populations; our ability to obtain all required permits, licenses and regulatory approvals on a timely basis; changes in laws, regulations and government practices in the jurisdictions in which we operate, including environmental, export and import laws and regulations; Changes in national and local government, legislation, taxation, controls or regulations, and political, legal or economic developments in Canada, the United States, Mexico, Peru, Argentina, Bolivia, Guatemala, Chile, Brazil or other countries in which Pan American operates could be business, including legal restrictions related to mining, risks related to expropriations and risks related to the ILO 169 consultation process in Guatemala ordered by the Constitutional Court; decreasing quantities or grades of mineral reserves as properties are mined; increasing competition in the mining industry for equipment and skilled personnel; those factors set forth under the heading “Risks Related to Pan American’s Business” in Pan American’s most recent Form 40-F and Annual Information Form filed with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities, respectively was submitted. Although Pan American has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to meet expectations, estimates, descriptions or intentions. Investors are cautioned not to place undue reliance on any forward-looking statements or information. Forward-looking statements and information are intended to help readers understand management’s current views on our near- and longer-term prospects and may not be appropriate for other purposes. Pan American does not intend, and undertakes no obligation, to update or revise any forward-looking statements or information, whether as a result of new information, changed assumptions, future events or otherwise, except as required by law.