Pan American Silver : Q1 2026 Financial Report (PAAS 03 31 2026 Website Report 5026 32pm)

Published: 2026-05-05 18:55:14 ET PAAS.TO

Published on 05/05/2026 at 06:55 pm EDT

Suite 2100 - 733 Seymour St.

Vancouver, BC Canada, V6B 0S6 604-684-1175

Pan American Silver reports first quarter 2026 financial results; strong mine operating earnings lead to record cash balance and an enhanced shareholder return framework

Vancouver, B.C. - May 5, 2026 - Pan American Silver Corp. (NYSE: PAAS) (TSX: PAAS) ("Pan American" or the "Company") reports first quarter ("Q1 2026") financial results. The Company will host a conference call and webcast on May 6, 2026 to discuss the results; details provided further in this news release.

"Q1 delivered solid results, driven by strong production, disciplined cost management, and improved quarter-over-quarter silver and gold prices," said Michael Steinmann, President and Chief Executive Officer. "We are firmly on track to achieve our 2026 guidance, supporting continued momentum in free cash flow generation. In Q1, operations generated $488 million in free cash flow, bringing our cash and short-term investments to a record

$1.8 billion, including $199 million attributable to our interest in Juanicipio."

"Supported by a strong balance sheet and free cash flow, we are well positioned to invest in growth while enhancing shareholder returns. Today, the Board approved an updated capital allocation framework, targeting up to $1 billion in returns in 2026, through increased share repurchases alongside our meaningful dividend increase introduced last quarter, as described in detail in a separate news release issued today," said Mr. Steinmann.

"This enhanced framework links shareholder returns to free cash flow while preserving capacity to fund growth, including the expansion of our La Colorada mine. In Q1, we released a revised Preliminary Economic Assessment for the La Colorada Skarn project, highlighting potential annual silver production of more than 19 million ounces during the peak five years from a combination of production from high-grade veins and skarn mineralization, which will make La Colorada one of the largest and lowest cost silver mines in the world. The Board has approved the initial spend of $265 million, out of a total estimated $1.9 billion investment, to begin construction of an internal ramp to access the skarn mineralization, marking a key milestone in advancing this high-quality project."

The following highlights for Q1 2026 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.

Q1 2026 Results:

Revenue of $1.2 billion and Attributable(1) revenue of $1.3 billion, inclusive of the Company's 44% ownership share of revenue from Juanicipio. Revenue was reduced by the build up of approximately 644 thousand ounces of silver in inventory due to the timing of concentrate shipments.

Net earnings of $456 million, or $1.08 basic earnings per share.

Adjusted earnings(2) of $459 million, or $1.09 basic adjusted earnings per share.

Cash flow from operations of $505 million (net of $29 million use of cash for working capital). Attributable(1) cash flow from operations of $582 million, inclusive of the Company's 44% ownership share of cash flow from operations from Juanicipio.

Attributable(1) free cash flow(2) of $488 million, inclusive of the Company's 44% ownership share of free cash flow from Juanicipio.

Production on track to meet 2026 guidance(3). Attributable(1) silver production was 6.44 million ounces and Attributable(1) gold production was 169.2 thousand ounces.

Silver Segment all-in sustaining costs ("AISC")(2)(4) were $6.63 per silver ounce, which is lower than the Company's 2026 Quarterly Operating Outlook(3), reflecting the impact of by-product metals from higher gold prices and a greater contribution of low-cost ounces from Juanicipio.

Gold Segment AISC(2)(5) were $1,851 per gold ounce, in line with the Company's 2026 Quarterly Operating Outlook(3).

Record high cash and cash equivalents and short-term investments of $1.6 billion as at March 31, 2026, excluding $199 million of cash for the Company's 44% interest in Juanicipio, and total available liquidity(2) of $2.4 billion.

Total shareholder returns of $101 million through dividends and share repurchases.

ENHANCED SHAREHOLDER RETURN FRAMEWORK

On May 5, 2026, the Company's Board of Directors approved an enhanced shareholder return framework (the "Shareholder Return Framework") targeting the return of 35% to 40% of annual Attributable Free Cash Flow(1)(2) to shareholders through a combination of dividends and common share repurchases under Pan American's NCIB that began on March 6, 2026. Based on the Shareholder Return Framework target and assuming that the current strong free cash flow generation continues, Pan American anticipates returning up to $1 billion to shareholders in 2026.

Under the Shareholder Return Framework for 2026, Pan American expects to pay aggregate dividends of $305 million during the year, paid in equal quarterly installments (currently equivalent to $0.18 per common share per quarter). Excess Attributable Free Cash Flow(1)(2) that is not distributed through dividends will be allocated to common share repurchases, at the Company's discretion, through the NCIB. Please see the news release dated May 5, 2026 for further details.

A cash dividend of $0.18 per common share, or $76 million in aggregate, with respect to Q1 2026 was declared on May 5, 2026, payable on or about June 1, 2026, to holders of record of Pan American's common shares as of the close of markets on May 19, 2026. The dividends are eligible dividends for Canadian income tax purposes. The declaration, timing, amount and payment of any future dividends remain at the discretion of the Company's Board of Directors.

On March 4, 2026, the Company renewed its normal course issuer bid (the "NCIB") until March 5, 2027 for the ability to purchase up to 21,090,323 of its common shares for cancellation. In Q1 2026, 460,200 common shares were repurchased for cancellation under the NCIB at an average price of $54.04 per share for a total consideration of $25 million, leaving 20,630,123 common shares available under the current NCIB.

References to "Attributable" refer to the Company's ownership share of results, which includes results from the operations that the Company has a 100% interest in, as well as from the operations, specifically Juanicipio and San Vicente, that the Company does not own a 100% interest in.

Adjusted earnings, Attributable free cash flow, AISC, working capital and total available liquidity are non-GAAP measures; AISC are presented on an Attributable basis; please refer to the "Alternative Performance (Non-GAAP) Measures" section of this news release for a description of the composition and usefulness of these non-GAAP measures; please also refer to the MD&A for the period ended March 31, 2026, for a detailed reconciliation of these measures to the Q1 2026 Financial Statements.

The 2026 Operating Outlook and the 2026 Quarterly Operating Outlook were provided in the Company's MD&A dated February 18, 2026.

Silver Segment AISC are calculated net of credits for realized revenues from all metals other than silver and are calculated per ounce of silver sold on an Attributable basis.

Gold Segment AISC are calculated net of credits for realized revenues from all metals other than gold and are calculated per ounce of gold sold.

PAN AMERICAN SILVER APPOINTS IGNACIO BUSTAMANTE TO ITS BOARD OF DIRECTORS

Pan American is pleased to announce that Mr. Ignacio Bustamante was appointed to its Board of Directors at the Company's Annual and Special Meeting of Shareholders held on April 30, 2026.

Mr. Bustamante is the Head of Base Metals for Appian Capital Advisory, based in London. Prior to joining Appian, Mr. Bustamante was CEO and Board Member of Hochschild Mining Plc ("Hochschild") in Lima, Peru (2010-2023), having occupied other positions in Hochschild before his appointment, including as Chief Operating Officer (2008-2010) and General Manager of its Peruvian Operations (2007-2008). Before that, Mr. Bustamante was President of Zemex Corporation (USA), and Chief Financial Officer of Cementos Pacasmayo (Peru). Mr. Bustamante is currently on the Board of Antofagasta plc, and previously held Board positions with Hochschild, Aclara Resources (TSX), Lake Shore Gold (TSX), Scotiabank Peru, Profuturo AFP, Colegio Roosevelt, among others. Mr. Bustamante

holds a B.S. in Business and Accounting from Universidad del Pacifico (Peru), and an MBA from Stanford University (USA).

PROJECT UPDATES

In Q1 2026, the Company invested $27 million of project capital at the following operations: Juanicipio, La Colorada, Jacobina, Huaron, Timmins, Cerro Moro and Shahuindo. Progress achieved on the main projects during Q1 2026 is described below.

La Colorada, Mexico

In addition to continued exploration drilling of the La Colorada vein mine, the Company invested $8 million of project capital on the La Colorada Skarn Project in Q1 2026, largely for exploration and in-fill drilling and advancing engineering work. The Company announced the results of a revised Preliminary Economic Assessment ("Revised PEA") for the future development of the 100% owned La Colorada property on March 24, 2026. The Revised PEA includes a portion of the mineral resources from the La Colorada vein mine, mainly comprised of inferred mineral resources, as well as high-grade portions of the skarn deposit mineral resources. The Revised PEA envisions combining development of the newly identified silver mineral resource in the eastern Candelaria area of the existing La Colorada mine concurrently with the higher grade portions of the skarn deposit, using conventional long-hole open stoping, and the construction of a new, 15,000 tonnes per day plant (the "La Colorada Skarn Project"). Production from the existing La Colorada vein mineral reserves would continue throughout construction, commissioning and well into the operation of the La Colorada Skarn Project, resulting in an overall expansion of La Colorada (collectively, the "Expanded La Colorada Mine"). The Expanded La Colorada Mine is anticipated to significantly increase silver production, averaging 19.1 million ounces annually during the peak five years following construction and ramp-up, and extend mine life. The Company anticipates that it will release an updated technical report within 45 days of the March 24, 2026 news release.

On April 27, 2026, the Company's Board of Directors approved $265 million of project capital to be spent over the next five years to complete one of the critical path works of developing a decline to access the skarn deposit that will be initiated from the existing vein mine 588RL drift (approximately 588 metres below surface) (the "588 Decline Project"). The 588 Decline Project primarily involves 12.4 kilometres of decline and required ancillary development to access the three Skarn deposits (901, 902, and 903), provide development for ventilation and to ultimately connect to the bottom of an "East Hoisting Shaft" at approximately 1,350 metres below surface, which would be sunk within the same period. In addition, the 588 Decline Project will include installation of strategically staged dewatering pump stations and necessary power supply that will form a key part of the life-of-mine dewatering and power supply needs for the entire mine. The Company now anticipates spending between $92 to

$95 million on the La Colorada Skarn Project in 2026, including spending on the 588 Decline Project, an increase of

$45 million from the original $47 to $50 million guidance disclosed in Pan American's MD&A dated February 18, 2026. In addition to the 588 Decline Project, the Company will continue advancing engineering to allow for staged approvals of other critical path items to achieve the production timeline presented in the Revised PEA.

Jacobina, Brazil

In Q1 2026, project capital of $12 million was focused on enhancing infrastructure and making certain plant improvements, while advancing studies for overall long-term operational optimizations. The key project advances during Q1 2026 included: construction of two new carbon-in-pulp tanks, improvements to the tailings pump system, engineering for upgrading the main substation and motor control center, and further exploration in-fill drilling activities directed towards expanding the mineral reserve and mineral resource base. In addition, the process plant optimization program, focused on streamlining and simplifying the process plant flow sheet, is progressing through conceptual engineering. A significant evaluation of this intensive brownfield project is being undertaken to develop an approach to upgrade the existing process plant circuitry and remove obsolete equipment in isolated stages to avoid significant disruptions to ongoing operations. Meanwhile, a filtration plant, filtered tailings stack, and temporary mine paste backfill preparation plant are being evaluated independently of the process plant upgrade projects. The conceptual engineering phase of these projects is nearing completion and will advance into detailed engineering over the next few months.

Escobal, Guatemala

The government of Guatemala continued to hold meetings for the Escobal ILO 169 consultation process. The Ministry of Energy and Mines ("MEM") has not provided a schedule to conclude the consultation process, but has indicated that it held several meetings with the Xinka Parliament in preparation for further bilateral meetings between government institutions and the Xinka Parliament. Members of the Xinka Parliament and the MEM visited the Escobal mine in March 2026 to conduct another inspection of ongoing care and maintenance activities and to confirm compliance with the court-ordered suspension. There is currently no date for a restart of operations at the Escobal mine.

CONSOLIDATED FINANCIAL AND OPERATIONAL RESULTS

March 31,

2026

March 31,

2025

Weighted average shares during period (thousands)

421,849

362,408

Shares outstanding end of period (thousands)

421,424

362,190

Three months ended March 31,

Unit

2026

2025

FINANCIAL

Revenue

$ 1,154

$ 773

Net earnings

$ 456

$ 169

Basic earnings per share(1)(2)

$/share

$ 1.08

$ 0.47

Adjusted earnings(2)

$ 459

$ 153

Basic adjusted earnings per share(1)(2)

$/share

$ 1.09

$ 0.42

Cash flow from operations

$ 505

$ 177

ATTRIBUTABLE FINANCIAL(3)

Revenue

$ 1,332

$ 771

Cash flow from operations

$ 582

$ 176

Sustaining capital expenditures(4)

$ (94)

$ (62)

Free cash flow(2)

$ 488

$ 114

ATTRIBUTABLE PRODUCTION(3)

Silver Production

koz

6,435

5,003

Gold Production

koz

169.2

182.2

Zinc Production

15.2

14.0

Lead Production

7.9

6.7

Copper Production

0.7

0.6

AISC(2)(3)

Silver Segment

$/Oz

$ 6.63

$ 13.88

Gold Segment

$/Oz

$ 1,851

$ 1,485

AVERAGE REALIZED PRICES(5)

Silver

$/Oz

$ 89.43

$ 31.25

Gold

$/Oz

$ 4,859

$ 2,868

Zinc

$/t

$ 3,750

$ 2,819

Lead

$/t

$ 2,076

$ 1,974

Copper

$/t

$ 14,496

$ 9,287

Per share amounts are based on basic weighted average common shares.

Non-GAAP measure; please refer to the "Alternative Performance (Non-GAAP) Measures" section of this news release for a description of the composition and usefulness of these non-GAAP measures; please also refer to the MD&A for the period ended March 31, 2026, for a detailed reconciliation of these measures to the Q1 2026 Financial Statements..

Attributable financial, production and AISC figures are inclusive of Pan American's 44.0% interest in the Juanicipio mine less Pan American's non-controlling 5.0% interest in the San Vicente mine. Pan American uses the equity method to account for its interest in Juanicipio, as presented in the Company's Q1 2026 Financial Statements under Note 7 "Investment in Juanicipio".

As included in the AISC reconciliation of payments for mineral properties, plant and equipment and sustaining capital, inclusive of Pan American's 44.0% interest in the Juanicipio mine and reduced for Pan American's non-controlling 5.0% interest in the San Vicente mine.

Metal prices stated are inclusive of final settlement adjustments on concentrate sales.

2026 OPERATING OUTLOOK

Based on production and costs to date, the Company reaffirms its 2026 Operating Outlook for silver and gold production, zinc, lead and copper ("base metal") production, Silver Segment and Gold Segment AISC, and sustaining capital expenditures, as provided in the Company's MD&A dated February 18, 2026. Following the release of a revised Preliminary Economic Assessment for the La Colorada Skarn Project in Q1 2026, the Company now anticipates spending between $92 to $95 million in 2026 to advance the La Colorada Skarn Project, an

increase of $45 million from the original $47 to $50 million guidance, as described in the "Project Updates" section, thus is increasing full year consolidated project capital expenditures to be between $240 and $255 million from the original $195 to $210 million guidance. The Company reiterates its production and cost guidance, but now expects gold production to be more heavily weighted to the fourth quarter of 2026 than originally indicated in its 2026 Quarterly Operating Outlook, as some production from the second quarter is expected to be deferred to the fourth quarter.

Please see Pan American's MD&A dated February 18, 2026, for further detail on the Company's 2026 Operating Outlook, including the original breakdown of the 2026 Operating Outlook by quarter. Please also refer to the Cautionary Note Regarding Forward-Looking Statements and Information at the end of this news release.

2026 Annual Guidance

Attributable Silver Production (million ounces)

25 - 27

Attributable Gold Production (thousand ounces)

700 - 750

Silver Segment AISC(1) ($ per ounce)

15.75 - 18.25

Gold Segment AISC (1) ($ per ounce)

1,700 - 1,850

Sustaining Capital Expenditures ($ millions)

320 - 340

Project Capital Expenditures ($ millions)

240 - 255

AISC is a non-GAAP measure. Please refer to the "Alternative Performance (Non-GAAP) Measures" section of this MD&A for further information on this measure. The AISC forecasts assume average metal prices of $70.00/oz for silver, $4,200/oz for gold, $3,000/tonne ($1.36/lb) for zinc, $2,000/tonne ($0.91/lb) for lead, and $10,000/tonne ($4.54/lb) for copper; and average annual exchange rates relative to 1 USD of $18.50 for the Mexican peso ("MXN"), $3.45 for the Peruvian sol ("PEN"), $1,427 for the Argentine peso ("ARS"),

$7.00 for the Bolivian boliviano ("BOB"), $1.39 for the Canadian dollar ("CAD"), $950 for the Chilean peso ("CLP") and $5.50 for the Brazilian real ("BRL").

AISC, Cash Costs, adjusted earnings, basic adjusted earnings per share, sustaining and project capital, Attributable revenue, Attributable cash flow from operations, Attributable free cash flow, and working capital 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 Audited Consolidated Financial Statements and our MD&A for the year ended March 31, 2026. This material is available on Pan American's website at https:// panamericansilver.com/invest/financial-reports-and-filings/ on SEDAR+ at https://www.sedarplus.ca and on EDGAR at https://www.sec.gov.

CONFERENCE CALL AND WEBCAST

Date: Wednesday, May 6, 2026

Time: 8:00 am ET (5:00 am PT)

Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=tTx2MVcP Participants can register for the conference at: https://dpregister.com

Upon registration, dial-in details will be displayed on screen and emailed as a calendar booking.

Those unable to register may join the call by dialing:

1-833-752-3507 (toll-free in Canada and the U.S.) 1-647-846-7282 (international participants)

Web Phone https://hd.choruscall.com

The live webcast and presentation slides will be available at https://panamericansilver.com/invest/events-and-presentations/. An archive of the webcast will also be available for three months.

About Pan American

Pan American is a leading producer of silver and gold in the Americas, operating mines in Canada, Mexico, Peru, Brazil, Bolivia, Chile and Argentina. We also own a 44% joint venture interest in the Juanicipio mine in Mexico, a 100% interest in the Escobal mine in Guatemala that is currently not operating, and we hold interests in exploration and development projects. We have been operating in the Americas for over three decades, earning an industry-leading reputation for sustainability performance, operational excellence and prudent financial management. We are headquartered in Vancouver, B.C. and our shares trade on the New York Stock Exchange and the Toronto Stock Exchange under the symbol "PAAS".

Learn more at panamericansilver.com Follow us on LinkedIn

For more information contact:

Siren Fisekci

VP, Investor Relations & Corporate Communications Ph: 604-806-3191

Email: [email protected]

Alternative Performance (Non-GAAP) Measures

In this news release, we refer to measures that are non-GAAP financial measures. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning as prescribed by IFRS as an indicator of performance, and may differ from methods used by other companies with similar descriptions. These non-GAAP financial measures include:

Adjusted earnings and basic adjusted earnings per share. Pan American believes that these measures better reflect normalized earnings as they eliminate items that in management's judgment are subject to volatility as a result of factors, which are unrelated to operations in the period, and/or relate to items that will settle in future periods.

Attributable revenue, Attributable cash flow from operations, and Attributable free cash flow. Any reference to "Attributable" in this news release should be understood to reflect the Company's ownership share of results, which includes results from the operations that the Company has a 100% ownership interest in as well as from the operations, specifically the Juanicipio mine and the San Vicente mine, that the Company does not own a 100% interest in.

Free cash flow is calculated as net cash generated from operating activities less sustaining capital expenditures. Free cash flow does not have any standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other companies. Pan American and certain investors use this information to evaluate the profitability of Pan American and identify capital that may be available for investment or return to shareholders.

AISC. Any reference to "AISC" in this news release should be understood to mean all-in sustaining costs per silver or gold ounce sold, net of impact from by-product metals (respectively, the "Silver Segment AISC" or "Gold Segment AISC"), presented on an Attributable basis. Pan American believes that AISC, calculated net of by-products, is a more comprehensive measure of the cost of operating our consolidated business, given it includes the cost of replacing silver and gold ounces through exploration, the cost of ongoing capital investments at current operations ("sustaining capital"), as well as other items that affect the Company's consolidated cash flow. AISC excludes capital investments that are expected to increase production levels or mine life beyond those contemplated in the base case life-of-mine plan ("project capital").

Working capital is calculated as current assets less current liabilities. Working capital does not have any standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other companies. Pan American and certain investors use this information to evaluate whether Pan American is able to meet its current obligations using its current assets.

Total available liquidity is calculated as cash and cash equivalents plus short-term investments, plus undrawn amounts under the Credit Facility. Total available liquidity does not have any standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other companies. Pan American and certain investors use this information to evaluate the liquid financial resources available to the Company.

Project capital refers to investments that are expected to increase production levels or mine life beyond those contemplated in the base case life-of-mine plan. Project capital does not have any standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other companies. Pan

American and certain investors use this information to evaluate capital investments that are directed at increasing production levels or mine life beyond those contemplated in the base case life-of-mine plan.

Readers should refer to the "Alternative Performance (non-GAAP) Measures" section of Pan American's MD&A for the period ended March 31, 2026 for a more detailed discussion of these and other non-GAAP measures and a detailed reconciliation of these measures to the 2026 Annual Financial Statement.

Cautionary Note Regarding Forward-Looking Statements and Information

Certain of the statements and information in this news 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 news release relate to, among other things: future financial or operational performance, including our estimated production of silver, gold and other metals forecasted for 2026, our estimated AISC, and our sustaining and project capital expenditures in 2026; any anticipated benefits resulting from project capital expenditures; the anticipated dividend payment date of March 13, 2026; Juanicipio's expected contributions, including with respect to free cash flow, silver production, and a decrease in Silver Segment AISC; the development of the La Colorada Skarn, including the proposed phased approach and discussions regarding a potential partnership, and any anticipated benefits to be derived therefrom; expectations regarding the release of an updated technical report in the second quarter of 2026 to include a preliminary economic assessment of the phased development approach for the Skarn project; expectations regarding the ILO 169 consultation process with respect to Escobal; and Pan American's plans and expectations for its properties and operations.

These forward-looking statements and information reflect Pan American's current views with respect to future events and are necessarily based upon a number of assumptions that, while considered reasonable by Pan American, are inherently subject to significant operational, business, economic and regulatory uncertainties and contingencies. These assumptions include: the impact of inflation and disruptions to the global, regional and local supply chains; tonnage of ore to be mined and processed; future anticipated prices for gold, silver and other metals and assumed foreign exchange rates; the timing and impact of planned capital expenditure projects, including anticipated sustaining, project, and exploration expenditures; the ongoing impact and timing of the court-mandated ILO 169 consultation process in Guatemala; ore grades and recoveries; capital, reclamation estimates; our mineral reserve and mineral resource estimates and the assumptions upon which they are based; prices for energy inputs, labour, materials, supplies and services (including transportation); no labour-related disruptions at any of our operations; no unplanned delays or interruptions in scheduled production; all necessary permits, licenses and regulatory approvals for our operations are received in a timely manner; our ability to secure and maintain title and ownership to mineral properties and the surface rights necessary for our operations; whether Pan American is able to maintain a strong financial condition and have sufficient capital, or have access to capital through our corporate Credit Facility or otherwise, to sustain our business and operations; and our ability to comply with environmental, health and safety laws. The foregoing 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 expressed or implied by such forward-looking statements or information contained in this news release and Pan American has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: the duration and effect of local and world-wide inflationary pressures and the potential for economic recessions; fluctuations in silver, gold and base metal prices; fluctuations in prices for energy inputs, labour, materials, supplies and services (including transportation); fluctuations in currency markets, such as the Mexican peso ("MXN"), Peruvian sol ("PEN"), Argentine peso ("ARS"), Bolivian boliviano ("BOB"), Canadian dollar ("CAD"), Chilean peso ("CLP") and Brazilian real ("BRL") versus the United States dollar ("USD"); operational risks and hazards inherent with the business of mining (including environmental accidents and hazards, industrial accidents, equipment breakdown, unusual or unexpected geological or structural formations, cave-ins, flooding and severe weather); risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom Pan American does business; inadequate insurance, or inability to obtain insurance, to cover these risks and hazards; employee relations; relationships with, and claims by, local communities and indigenous populations; our ability to obtain all necessary permits, licenses and regulatory approvals in a timely manner; changes in laws, regulations and government practices in the jurisdictions where 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 where Pan American may carry on business, including legal restrictions relating to mining, risks relating to expropriation and risks relating to the constitutional court-mandated ILO 169 consultation process in Guatemala; unanticipated or excessive tax

assessments or reassessments in our operating jurisdictions; diminishing quantities or grades of mineral reserves as properties are mined; increased competition in the mining industry for equipment and qualified personnel; and those factors identified under the caption "Risks Related to Pan American's Business" in Pan American's most recent form 40-F and Annual Information Form filed with the United States Securities and Exchange Commission and Canadian provincial securities regulatory authorities, respectively.

Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Investors are cautioned against attributing undue certainty or reliance on forward-looking statements or information. Forward-looking statements and information are designed to help readers understand management's current views of our near- and longer-term prospects and may not be appropriate for other purposes. The Company does not intend, nor does it assume any obligation, to update or revise forward-looking statements or information to reflect changes in assumptions or in circumstances or any other events affecting such statements or information, other than as required by applicable law.

FOR THE THREE MONTHS ENDED MARCH 31, 2026 MAY 5, 2026

TABLE OF CONTENTS

Introduction 10

Core Business and Strategy 11

Q1 2026 Highlights 12

Operating Performance 14

Project Development Update 26

Financial Performance 27

Selected Quarterly Financial Information 31

Alternative Performance Measures (Non-GAAP) 32

Risks and Uncertainties 39

Material Accounting Policies, Standards and Judgements 43

Disclosure Controls and Procedures 43

Cautionary Note 44

‌INTRODUCTION

This Management's Discussion and Analysis ("MD&A") is intended to help the reader understand the significant factors that influence the performance of Pan American Silver Corp. and its subsidiaries (collectively "Pan American", "we", "us", "our" or the "Company") and such factors that may affect its future performance. This MD&A should be read in conjunction with the Company's audited consolidated financial statements for the year ended December 31, 2025 prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board ("IASB") (the "2025 Annual Financial Statements"), and the related notes contained therein, and the unaudited condensed interim consolidated financial statements for the three months ended March 31, 2026 prepared in accordance with IAS 34, Interim Financial Reporting ("IAS 34") (the "Q1 2026 Financial Statements"), and the related notes contained therein. All amounts in this MD&A, the 2025 Annual Financial Statements, and the Q1 2026 Financial Statements are expressed in United States dollars ("USD") unless identified otherwise.

This MD&A refers to various non-Generally Accepted Accounting Principles ("non-GAAP") measures, which are used by the Company to manage and evaluate operating performance at each of the Company's mines and are widely reported in the mining industry as benchmarks for performance, do not have standardized meanings under IFRS Accounting Standards, and the methodology by which these measures are calculated may differ from similar measures reported by other companies. To facilitate a better understanding of these non-GAAP measures as calculated by the Company, additional information has been provided in this MD&A. Please refer to the section of this MD&A entitled "Alternative Performance (Non-GAAP) Measures" for a detailed description of these measures, and a reconciliation, where appropriate, of these measures to the Q1 2026 Financial Statements.

Any reference to "Attributable" in this MD&A should be understood to reflect the Company's ownership share of results, which includes results from the operations that the Company has a 100% ownership interest in as well as from the operations, specifically the Juanicipio mine and the San Vicente mine, that the Company does not own a 100% interest in. Any reference to "AISC" in this MD&A should be understood to mean all-in sustaining costs per

silver or gold ounce sold, net of impact of by-product metals (respectively, the "Silver Segment AISC" or "Gold Segment AISC"), presented on an Attributable basis.

Except for historical information contained in this MD&A, the following disclosures are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian provincial securities laws, or are future oriented financial information and as such, are based on an assumed set of economic conditions and courses of action. Please refer to the cautionary note regarding forward-looking statements and information at the back of this MD&A, the "Risks Related to Our Business" contained in the Company's most recent Annual Information Form on file with the Canadian provincial securities regulatory authorities and Form 40-F on file with the U.S. Securities and Exchange Commission (the "SEC"). Additional information about Pan American and its business activities are available on SEDAR+ at https://www.sedarplus.ca and with the SEC on EDGAR at https://www.sec.gov/edgar.

‌CORE BUSINESS AND STRATEGY

Pan American engages in silver and gold mining and related activities, including exploration, mine development, extraction, processing, refining and reclamation. The Company's portfolio of assets is located in Chile, Peru, Brazil, Mexico, Canada, Argentina, Bolivia, and Guatemala. In addition, the Company is exploring for new silver and gold deposits and opportunities throughout the Americas. The Company is listed on the Toronto Stock Exchange (Symbol: PAAS) (the "TSX") and on the New York Stock Exchange (Symbol: PAAS) (the "NYSE").

Pan American's vision is to be the world's premier silver producer, with a reputation for excellence in discovery, engineering, innovation and sustainable development. Our strategy to achieve this vision is to:

Generate sustainable profits and superior returns on investments through the safe, efficient and environmentally sound development and operation of our assets.

Constantly replace and grow our mineral reserves and mineral resources through targeted near-mine exploration and global business development.

Foster positive long-term relationships with our employees, shareholders, communities and local governments through open and honest communication and ethical and sustainable business practices.

Continually search for opportunities to upgrade and improve the quality of our assets, both internally and through acquisition.

Encourage our employees to be innovative, responsive and entrepreneurial throughout our entire organization.

‌Q1 2026 OPERATIONAL AND FINANCIAL HIGHLIGHTS

Attributable silver production of 6.44 million ounces

Attributable silver production for the three months ended March 31, 2026 ("Q1 2026") was 6.44 million ounces,

1.44 million ounces higher than the 5.00 million ounces produced in the three months ended March 31, 2025 ("Q1 2025"), largely driven by the acquisition of the Juanicipio mine in September 2025.

Attributable gold production of 169.2 thousand ounces

Attributable gold production for Q1 2026 was 169.2 thousand ounces, 13.0 thousand ounces lower than the

182.2 thousand ounces produced in Q1 2025.

Silver Segment and Gold Segment AISC(1)

Silver Segment AISC for Q1 2026 of $6.63 per ounce were $7.25 per ounce lower than in Q1 2025. Gold Segment AISC for Q1 2026 of $1,851 per ounce were $366 per ounce higher than in Q1 2025. 2026 Operating Outlook

Q1 2026 production and Gold Segment AISC were in line with the Company's 2026 Quarterly Operating Outlook, while Silver Segment AISC were lower than expected. Based on production and costs to date, the Company reaffirms its 2026 Operating Outlook for silver and gold production, zinc, lead and copper ("base metal") production, Silver Segment and Gold Segment AISC, and sustaining capital expenditures, as provided in the Company's MD&A dated February 18, 2026. Following the release of a revised Preliminary Economic Assessment for the La Colorada Skarn Project in Q1 2026, the Company now anticipates spending between $92 to $95 million in 2026 to advance the La Colorada Skarn Project, an increase of $45 million from the original $47 to $50 million guidance, as described in the "Project Development Update" section, thus is increasing full year consolidated project capital expenditures to be between $240 and $255 million from the original $195 to $210 million guidance. Additionally, Management now expects gold production to be more heavily weighted to the fourth quarter of 2026 than originally indicated in its 2026 Quarterly Operating Outlook, as some production from the second quarter is expected to be deferred to the fourth quarter.

Income Statement, Cash Flow, Liquidity and Working Capital Position

Revenue in Q1 2026 of $1.2 billion was 49% higher than in 2025, primarily as a result of higher metal prices.

Attributable revenue(1) in Q1 2026 was $1.3 billion inclusive of the Company's 44% ownership share of revenue from Juanicipio, which was acquired in September 2025 as part of the MAG Silver Corp. ("MAG") acquisition ("MAG Acquisition").

Net earnings of $456 million, or $1.08 basic earnings per share, were recorded for Q1 2026, compared with net earnings of $169 million, or $0.47 basic earnings per share, in Q1 2025.

Adjusted earnings(1) of $459 million, or $1.09 basic adjusted earnings per share in Q1 2026, compared to adjusted earnings of $153 million, or $0.42 basic adjusted earnings per share, in 2025.

Cash flow from operations was $505 million in Q1 2026, compared to $177 million generated in Q1 2025.

Attributable cash flow from operations(1) was $582 million in Q1 2026, inclusive of the Company's 44% ownership share of cash flow from operations from Juanicipio, which was acquired in September 2025 as part of the MAG Acquisition.

Attributable free cash flow(1) generated was $488 million in Q1 2026, compared to $114 million in Q1 2025.

Liquidity and Working Capital: As at March 31, 2026, the Company had Working Capital(1) of $1,649 million, inclusive of cash and cash equivalents and short-term investments of $1,614 million, and $750.0 million available under its revolving Credit Facility ("Credit Facility"). Total Debt(1) of $845 million is primarily related to the Senior Notes (as defined in the section "Credit Facility, Senior Notes and Commitments"), as well as certain lease liabilities and construction loans.

AISC, Adjusted earnings, Attributable revenue, Attributable cash flow from operations, Attributable free cash flow, Working Capital and Total Debt are non-GAAP measures, and AISC is presented on an Attributable basis; please refer to the "Alternative Performance (Non-GAAP) Measures" section of this MD&A for a detailed reconciliation of these measures to the Q1 2026 Financial Statements.

Consolidated Financial and Operational Results

Three months ended March 31,

Unit

2026

2025

FINANCIAL

Revenue

$ 1,154

$ 773

Net earnings

$ 456

$ 169

Basic earnings per share(1)(2)

$/share

$ 1.08

$ 0.47

Adjusted earnings(2)

$ 459

$ 153

Basic adjusted earnings per share(1)(2)

$/share

$ 1.09

$ 0.42

Cash flow from operations

$ 505

$ 177

ATTRIBUTABLE FINANCIAL(3)

Revenue

$ 1,332

$ 771

Cash flow from operations

$ 582

$ 176

Sustaining capital expenditures(4)

$ (94)

$ (62)

Free cash flow(2)

$ 488

$ 114

ATTRIBUTABLE PRODUCTION(3)

Silver Production

koz

6,435

5,003

Gold Production

koz

169.2

182.2

Zinc Production

15.2

14.0

Lead Production

7.9

6.7

Copper Production

0.7

0.6

AISC(2)(3)

Silver Segment

$/Ag oz

$ 6.63

$ 13.88

Gold Segment

$/Au oz

$ 1,851

$ 1,485

AVERAGE REALIZED PRICES(5)

Silver

$/oz

$ 89.43

$ 31.25

Gold

$/oz

$ 4,859

$ 2,868

Zinc

$/t

$ 3,750

$ 2,819

Lead

$/t

$ 2,076

$ 1,974

Copper

$/t

$ 14,496

$ 9,287

Per share amounts are based on basic weighted average common shares.

Non-GAAP measure; please refer to the "Alternative Performance (non-GAAP) Measures" section of this MD&A for further information on these measures.

Metal prices stated are inclusive of final settlement adjustments on concentrate sales.

‌2026 OPERATING PERFORMANCE

Silver Production

Attributable silver production for Q1 2026 was 6.44 million ounces compared with 5.00 million ounces reported in Q1 2025. The increase is primarily attributable to: (i) 1.75 million ounces from the acquisition of a 44% interest in Juanicipio; and (ii) increases of 0.18 million ounces and 0.12 million ounces at La Colorada and Cerro Moro, respectively, owing to higher grades as a result of mine sequencing into higher grade silver ore zones and higher throughput. These increases were partially offset by: (i) a 0.24 million ounce decrease at Huaron from lower silver grades as a result of a higher proportion of development ore mined and increased dilution; and (ii) a 0.22 million ounce reduction at Dolores as the mine progresses into the later stages of residual heap leaching production.

Gold Production

Attributable gold production for Q1 2026 was 169.2 thousand ounces compared with 182.2 thousand ounces in Q1 2025. The decrease was primarily driven by: (i) a 9.2 thousand ounce decrease at Dolores due to the same factors impacting silver production; and (ii) a 7.0 thousand ounce reduction at El Peñon from mine sequencing into lower grade ore zones and a higher proportion of low grade stockpile ore processed. These decreases were partially offset by a 5.0 thousand ounce contribution from Juanicipio.

AISC

Silver Segment AISC for Q1 2026 of $6.63 per ounce were $7.25 per ounce lower than in Q1 2025, primarily due to:

(i) Cerro Moro, reflecting higher impact from gold by-product from higher gold prices; and, (ii) the contribution of low-AISC ounces from Juanicipio. These factors decreasing AISC were partially offset by: (i) La Colorada, reflecting higher royalty payments from the mining of a third party concession, reduced sales volumes due to availability of vessels and higher sustaining capital; (ii) Huaron, due to higher production costs per ounce and increased sustaining capital expenditures; and, (iii) San Vicente, owing to higher royalties reflecting higher metal prices and timing of exports, as well as lower impact from base metal by-products.

Gold Segment AISC for Q1 2026 of $1,851 per ounce were $366 per ounce higher than in Q1 2025, driven by:

(i) Timmins, primarily resulting from increased production costs, higher sustaining capital investments and increased royalties; (ii) Jacobina, reflecting increased sustaining capital expenditures, as well as higher production costs related to haulage, maintenance and ground support activities; (iii) Dolores, largely due to an increase in production costs per ounce reflecting higher cyanide consumption for leaching, ramp construction related to residual stockpile processing, and lower production from residual leaching; (iv) Minera Florida, predominately due to higher production costs reflecting increased consumables and ground support costs, as well as ore purchase expenditures increasing in line with metal prices; and, (vi) Shahuindo, mainly due to higher production costs per ounce reflecting increased haulage, maintenance and labour costs and lower grade ores mined, in addition to higher sustaining capital expenditures. These increases were partially offset by El Peñon, largely from higher impact of silver by-product from a higher ratio of silver-to-gold produced, as well as higher silver prices, partially offset by higher production costs.

Silver Segment Operations

La Colorada, Mexico

Summary of Operating and Financial Statistics

Three months ended March 31,

Unit

2026

2025

Ore mined(1)

172

173

Ore processed

172

164

Silver grade

g/t

302.2

279.6

Gold grade

g/t

0.31

0.34

Zinc grade

1.49

2.43

Lead grade

1.24

1.30

Silver produced

koz

1,567

1,389

Gold produced

koz

1.1

1.2

Zinc produced

2.6

3.4

Lead produced

1.4

1.9

AISC per ounce sold

$/Ag oz

$ 37.01

$ 19.72

Sustaining capital expenditures

$ 7

$ 3

Project capital expenditures(2)

$ -

$ 5

Ore mined at La Colorada in Q1 2026 includes 80 thousand tonnes, or 46% of the ore mined, at an average grade of 347 g/t Ag and 0.36 g/t Au that is subject to a net profit share agreement with a third party (Q1 2025: 29 thousand tonnes, or 17% of ore mined, at an average grade of 230 g/t Ag and 0.34 g/t Au).

Project capital expenditures exclude Skarn project capital. Please refer to the 'Project Development Update' section of the MD&A for a detailed description of the Skarn project.

Q1 2026 compared to Q1 2025

Silver production increased by 13%, mainly due to higher throughput and higher silver grades as a result of mine sequencing into higher silver grade and lower base metal grade ore zones, including a higher proportion of ore mined from adjacent third-party concessions.

AISC increased by $17.29 per ounce, driven by $14.53 per ounce higher royalties from net-profit-driven payments to an adjacent concession owner for undertaking increased mining activities on their concession at higher metal prices, reduced sales volumes due to availability of vessels and changes in shipping terms, and higher sustaining capital.

Sustaining capital expenditures increased by $4 million, mainly driven by higher investments on mine equipment and near-mine exploration.

Project capital expenditures decreased by $5 million as there was no project capital spend for the La Colorada Vein mine in the current period due to timing of payments. Please refer to the "Project Development Update" section of the MD&A for a detailed description of the Skarn project and related investment.

Juanicipio, Mexico (44% ownership interest)

Summary of Operating and Financial Statistics(1)

Three months ended March 31,

Unit

2026

Ore mined

154

Ore processed

150

Silver grade

g/t

389.5

Gold grade

g/t

1.35

Zinc grade

3.92

Lead grade

2.22

Silver produced

koz

1,746

Gold produced

koz

5.0

Zinc produced

4.7

Lead produced

3.0

AISC per ounce sold

$/Ag oz

$ (3.05)

Sustaining capital expenditures

$ 7

Project capital expenditures

$ 2

Data represents Pan American's 44% interest.

Q1 2026 Results

Attributable silver production was 1.75 million silver ounces in Q1 2026, in line with Management's expectations.

AISC were negative $3.05 per ounce in Q1 2026, in line with Management's expectations.

Sustaining capital expenditures were $7 million, mainly directed at underground development and mine equipment.

Project capital expenditures were $2 million, directed at advancing the conveyor haulage system.

Cerro Moro, Argentina

Summary of Operating and Financial Statistics

Three months ended March 31,

Unit

2026

2025

Ore mined

111

Waste mined

898

859

Ore processed

112

105

Silver grade

g/t

199.3

173.3

Gold grade

g/t

6.26

6.41

Silver produced

koz

668

545

Gold produced

koz

21.5

20.6

AISC per ounce sold

$/Ag oz

$ (70.40)

$ (4.40)

Sustaining capital expenditures

$ 3

$ 5

Project capital expenditures

$ 3

$ -

Q1 2026 compared to Q1 2025

Silver production increased by 23%, mainly due to mine sequencing into higher silver grade ores and higher throughput.

Gold production increased by 5%, mainly due to higher throughput.

AISC decreased by $66.00 per ounce, primarily due to higher impact of gold by-product as a result of higher gold prices, and lower production costs per ounce driven by the processing of higher grade ores.

Sustaining capital expenditures decreased by $2 million due to sustaining exploration capital being redirected to project capital aimed at extending the mine's operational life.

Project capital expenditures increased by $3 million for exploration initiatives aimed at extending the mine's operational life, as well as investments related to the tailings storage facility expansion.

Huaron, Peru

Summary of Operating and Financial Statistics

Three months ended March 31,

Unit

2026

2025

Ore mined

247

262

Ore processed

241

260

Silver grade

g/t

109.1

134.6

Zinc grade

2.20

2.98

Lead grade

1.47

1.89

Copper grade

0.33

0.27

Silver produced

koz

706

951

Zinc produced

4.1

6.3

Lead produced

2.7

4.1

Copper produced

0.4

AISC per ounce sold

$/Ag oz

$ 32.57

$ 13.09

Sustaining capital expenditures

$ 10

$ 5

Project capital expenditures

$ 2

$ 3

Q1 2026 compared to Q1 2025

Silver production decreased by 26%, primarily driven by lower silver grade ores processed as a result of a higher proportion of development ore mined and increased dilution from overbreak, as well as lower throughput.

AISC increased by $19.48 per ounce, mainly driven by higher production costs per ounce from higher labour, mine maintenance and dry stack tailings costs and the impact of mining lower grade ore, as well as increased sustaining capital expenditures.

Sustaining capital expenditures increased by $5 million, mainly due to higher investments for capitalized development, mine equipment and plant upgrades.

Project capital expenditures decreased by $1 million, as residual payments for the construction of the dry-stack tailings storage facility in Q1 2025 were largely offset by increased investments for developments to establish a higher inventory of stopes for mine flexibility and increased production.

San Vicente, Bolivia (95% ownership interest)

Summary of Operating and Financial Statistics(1)

Three months ended March 31,

Unit

2026

2025

Ore mined

Ore processed

Silver grade

g/t

272.7

246.7

Zinc grade

3.19

3.33

Lead grade

0.29

0.38

Copper grade

0.21

Silver produced

koz

637

643

Zinc produced

2.1

2.6

Lead produced

0.2

0.3

Copper produced

0.1

AISC per ounce sold

$/Ag oz

$ 49.61

$ 19.70

Sustaining capital expenditures

$ 2

$ -

Data represents Pan American's 95.0% interest.

Q1 2026 compared to Q1 2025

Attributable silver production was largely consistent, as lower throughput from scheduled plant maintenance was offset by higher silver grade ores from mine sequencing into higher silver and lower base metal ore zones.

AISC increased by $29.91 per ounce, driven by $18.75 per ounce higher royalties as a result of higher metal prices and timing of exports, and a lower impact of base metal by-products from lower zinc sales due to the timing of zinc concentrate shipments.

Sustaining capital expenditures increased by $2 million, resulting from increased investments for plant upgrades as part of the plant maintenance.

Disclaimer

Pan American Silver Corporation published this content on May 05, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 05, 2026 at 22:52 UTC.