New Pacific Metals Corp. reported on the status and plan for the ongoing work on the preliminary economic assessment ("PEA") study for its wholly owned Silver Sand Project in south-central Bolivia: A Mineral Resource Estimate ("MRE") update is underway as detailed below; The Company plans to select an additional PEA study specialist by the end of February to supplement and complete certain remaining aspects of the PEA report; and Once the MRE update is finalized, the PEA study is expected to be completed by the end of 2022. The MRE update, that has been initiated will reflect new drill results since the 2020 MRE and the results of an ongoing mineral resource infill and expansion drill program.

There are currently 135 drill hole results (see Table 1) received since the last MRE prepared for the 2020 Technical Report, as referenced below. The MRE update will include Silver Sand, the Snake Hole area (32 holes, many of which have intercepted significant silver intervals) and selected properties covered by the Mining Production Contract ("MPC") surrounding the Silver Sand Project. Recently, a revised MPC was signed with the Bolivian State-owned Corporación Minera de Bolivia ("COMIBOL") for the properties immediately surrounding the Silver Sand Project.

While the Company works with COMIBOL to receive the required approvals for the MPC from Bolivia's Ministry of Mining and Metallurgy and the Plurinational Legislative Assembly, COMIBOL desires that the Company drill and yield an initial mineral resource in limited and selected MPC properties by granting a special temporary permit for the Company. Accordingly, the Company plans to complete a further 15,000 metres ("m") of exploration and in-fill drilling, including 2,500 m within the MPC properties and 12,500 m at the Silver Sand Project. With this drilling, the Company may push part of the potential open-pit boundary onto the MPC ground to include Silver Sand MRE and MPC MRE in a total combined MRE.

Drilling on the Silver Sand Project has started with one rig and an additional two rigs are expected to arrive on site by mid-February. The 15,000 m drill program is expected to be completed by the end of April, with all assays expected to be received by the end of June, and a mineral resource estimate updated by September 2022 to be included in the planned PEA. Once the MRE update is completed, the planned PEA is expected to be completed by the end of 2022.

The Silver Sand deposit is one of the more significant new global primary silver discoveries in the last decade. Measured and indicated mineral resources of 35.39 million tonnes at a grade of 137 g/t silver (155.86 million contained ounces silver) have been delineated, with an additional inferred mineral resource of 9.84 million tonnes at a grade of 112 g/t silver (35.55 million contained ounces silver). Mineralization, which remains open to the north and south and at depth, starts at or near-surface and is amenable to potential open-pit mining extraction.

Approximately 70% of the resources are within 200 m of the conceptual open pit surface.