Pan American Silver Corp. · TSX:PAAS
Pan American Silver — Merger or Acquisition (May 2025)
24 slides from Pan American Silver's merger presentation, May 12, 2025
Slide 1: May 2025 Investor Presentation
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Slide 2: Cautionary note and forward-looking statements
2 American’s liquidity; execution risk of the Transaction; Pan American’s forecasted silver American has made assumptions and estimates based on or related to many of these production in 2025; Pan American’s mineral reserves and resources; Pan American’s free factors. Such factors include, without l
Slide 3: Cautionary note continued
3 C O N T IN UED and “inferred resources” as defined in accordance with NI 43-101 and the CIM Standards. U.S. investors are advised that, while such terms are recognized and required by Canadian THIS PRESENTATION DOES NOT CONSTITUTE (AND MAY NOT BE CONSTRUED TO BE) A securities laws, the SEC does no
Slide 4: Key transaction terms
4 // Key transaction terms Proposed Transaction • Pan American to acquire all of the issued and outstanding common shares of MAG Silver Corp. (“MAG”) • MAG shareholders can elect to receive cash or shares, up to a maximum of $500 million in cash prorated: I. $20.54 in cash per MAG share, or II. 0.75
Slide 5: Transaction strengthens Pan American's position as one of the world's premier silver producers
5 // Transaction strengthens Pan American’s position as one of the world’s premier silver producers Adds 44% ownership interest in Juanicipio, one of the best silver mines globally ✓ Juanicipio is a large-scale, high-grade, low-cost silver mine located in Zacatecas, Mexico, with significant explorat
Slide 6: Transaction offers compelling benefits for MAG shareholders
6 // Transaction offers compelling benefits for MAG shareholders Attractive immediate premium ✓ Immediate value uplift of approximately 21% and 27%, respectively, on a prorated basis to the closing price and the 20-day VWAP of MAG common shares on the NYSEAM ending May 9, 2025 Diversified exposure a
Slide 7: Juanicipio is a large-scale, high-grade, low-cost silver mine
7 // Juanicipio is a large-scale, high-grade, low-cost silver mine located in Zacatecas, Mexico Juanicipio is the Largest-Scale and Lowest-Cost Primary Silver Mine Globally $5.00 2024 Co-Product AISC ($/oz Ag) Top 10 Primary Silver Mines by Production (100%-basis) Juanicipio $10.00 Cerro Los Gatos1
Slide 8: Juanicipio forecasted to produce 14.7 to 16.7 Moz of silver in 2025
8 // Juanicipio is forecasted to produce between 14.7 Moz and 16.7 Moz of silver in 2025 (100% -basis) 2025E Silver Production Guidance (Moz) 35.0 30.0 …leading to a meaningful +34% 25.0 increase in Pan American’s pro forma silver production 20.0 52.5 15.0 Attributable silver production 27.4 from Ju
Slide 9: Juanicipio cash cost and AISC guidance for 2025
10 // Juanicipio cash cost and AISC to range between ($1.00)-$1.00 and $6.00-$8.00 per silver oz in 2025 1 Addition of Juanicipio Will Meaningfully Reduce Pan American’s Silver Segment AISC 1,2 $0.00 Transaction meaningfully = Silver Reserves improves silver segment AISC 1,2,3 Juanicipio (44%) ~20%
Slide 10: Leverages Pan American's experience operating in the Americas
11 // Leverages Pan American’s experience operating in the Americas for over 30 years Dolores Juanicipio joint venture represents a strong fit within Pan American’s Americas- based operations La Colorada Juanicipio Skarn Deposit Complements operating presence in Zacatecas, Mexico (La Colorada / Skar
Slide 11: Juanicipio expected to generate free cash flow of approx. $200M in 2025
12 // Juanicipio is expected to generate free cash flow of approx. $200M in 2025 (100%-basis) 1 ,2 1,2 Pro Forma Free Cash Flow (2025E) Juanicipio Free Cash Flow (100%-basis) +23% expected growth MAG $243M $217M $98M 3 $198M PF FREE CASH FLOW 44% interest provides immediate $788M impact to pro forma
Slide 12: Exposure to growth through exploration at Juanicipio, Deer Trail and Larder
13 // Exposure to growth opportunities through exploration at Juanicipio, Deer Trail and Larder projects Juanicipio Project, Mexico Larder Project, Ontario Core mine opportunities 6,450 Positive ~41,000 ✓ Conversion of inferred into M&I resources hectares of First Nations meters drilled ✓ Optimizati
Slide 13: Deploys portion of cash balance in a measured and strategic manner
14 // Deploys portion of cash balance in a measured and strategic manner to enhance silver exposure Transaction Cash Consideration Maintains strong balance sheet with flexibility to Revolving Credit $500M support organic growth initiatives Facility PF TOTAL $750M AVAILABLE Accretive use of cash that
Slide 14: Strong deal rationale for both Pan American and MAG shareholders
15 // Strong deal rationale for both Pan American and MAG shareholders Benefits to Pan American Shareholders Benefits to MAG Shareholders Adds 44% ownership interest in Juanicipio, one of the best Attractive immediate premium silver mines globally Strengthens Pan American's position as one of the wo
Slide 15: Appendix
Pa | MAG SILVER PAN AMERICAN SILVER APPENDIX
Slide 16: Juanicipio mineral reserves as of June 30, 2024
16 16 as of June 30, 2024 Tonnes Ag Contained Au Contained Cu Contained Pb Contained Zn Contained Property Location Classification (Mt) (g/t) Ag (Moz) (g/t) Au (koz) (%) Cu (kt) (%) Pb (kt) (%) Zn (kt) Juanicipio Mexico Proven 1.5 450 22.4 1.18 59.0 - - 1.45 22.0 2.69 42.0 Probable 17.0 201 109.6 1.
Slide 17: Juanicipio mineral resources as of June 30, 2024
17 17 as of June 30, 2024 Tonnes Ag Contained Au Contained Cu Contained Pb Contained Zn Contained Property Location Classification (Mt) (g/t) Ag (Moz) (g/t) Au (koz) (%) Cu (kt) (%) Pb (kt) (%) Zn (kt) Juanicipio Mexico Measured 2.0 662 43.4 1.77 116.0 - - 1.90 39.0 3.59 73.0 Indicated 16.8 242 131.
Slide 18: Pan American Silver mineral reserves
PAN AMERICAN SILVER MINERAL RESERVES «>i... 30 2020 Tonnes Ag Contained Au Contained Cu Contained Pb Contained Zn Contained Property Location Classificetion (wit) _(g/t)__Ag(Moz) (g/t) Au (Koz) (%) __Cu(kt) _—_—(%)_—sPb (kt) —(%)_——Zn (kt) Escobal Guatemala Proven 25 ‘486 39.5 0.42 34.2 - - 1.02 25.
Slide 19: Pan American Silver measured and indicated resources
PAN AMERICAN SILVER MEASURED « INDICATED RESOURCES as of June 30, 2024123 Contained Contained Au Property Location Classification Tonnes(Mt) Ag(B/t) “A2iaros) Au (at) (kez) cu(%) Pb(%) Zn (%) Navidad Argentina Measured 15.4 137 67.8 - - 0.10 1.44 - Indicated 139.8 126 564.5 - - 0.04 0.79 - La Colora
Slide 20: Pan American Silver measured and indicated resources (gold assets)
PAN AMERICAN SILVER MEASURED « INDICATED RESOURCES as of June 30, 2024123 Property Location Classi Tonnes (Mt) en revs Au (2/t) coe AU cu(%) Pb (%) 2m (%) Jacobina Brazil Measured 39.7 1.70 2,475.1 - - - Indicated 55.1 1.58 2,796.0 - - - La Pepa (80%)!") Chile Measured a7 0.61 922.8 - - - Indicated
Slide 21: Inferred resources as of June 30, 2024
21 21 as of June 30, 20241,2,3 (5)
Slide 22: Metal price assumptions used to estimate mineral reserves and resources
METAL PRICE ASSUMPTIONS USED TO ESTIMATE MINERAL RESERVES & RESOURCES 5: fine 0, 2024 Mine Category Ag US$/oz Au US$/oz cu US$/t Pb USS/t Zn USS/t Escobal All categories 20.00 1,300 2,204 2,424 Resemes 20.00 1,700 8,000 2,100 2,600 La Colorada Resources 22.00 1,850 9,000 2,200 2,800 La Colorada Skar
Slide 23: Metal price assumptions used to estimate mineral reserves and resources
METAL PRICE ASSUMPTIONS USED TO ESTIMATE MINERAL RESERVES & RESOURCES «rune 30, 2024 Mine Category Ag US$/oz Au US$/oz cu uss/t Pb USS/t Zn US$/t Reserves 21.00 1,850 Timmins West Resources 23.00 1,950 Reserves 21.00 1,850 Bell Creek Resources 23.00 1,950 Whitney Resources 1,950 Reserves 21.00 1,850
Slide 24: Mineral reserve and resource estimation notes
24 24 All mineral reserves and mineral resources have been estimated in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the "CIM Standards") and reported in accordance with National Instrument 43-101 – Standards of Discl
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