New Pacific Metals Corp. reported the inaugural independent National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") mineral resource estimate (the "MRE") for its 98%-controlled Carangas silver-gold polymetallic deposit (the "Carangas Project") in Bolivia. The MRE was completed by RPMGlobal (Canada) Ltd. ("RPM").

The effective date of the MRE is August 25, 2023. Below the conceptual pit constraint exists gold-dominated mineralized material of similar size and grade to the reported mineral resources of the Lower Gold Zone within the conceptual pit. This mineralized material has the potential to be converted to mineral resources amendable to underground mining pending further evaluation for reasonable prospects of eventual economic extraction.

Gold mineralization remains open to the north and northeast at depth. The Company also completed a 3D Bipole-Dipole IP-MT survey in an area of approximately 29 square kilometers over the entire Carangas caldera basin in early 2023. This survey demonstrated that the known gold mineralization system overlays a strong chargeability anomaly in the Central Valley area.

In addition, multiple strong IP chargeability anomalies were identified beyond the drilled areas. The Company believes that these anomalies may host mineralization similar to what has been drilled thus far, underscoring the potential for mineral resource growth through additional drilling campaigns. The MRE is based on a geological model that incorporated assay results received by New Pacific for the Carangas Project up to June 1, 2023.

This included assay results from all 189 drill holes completed from June 2021 to April 2023. The MRE is reported inside the Carangas Project's property boundary and constrained by potential open pit mining scenarios and uses a cut-off grade of 40 grams per tonne of AgEq. A mineralization wireframe was constructed by New Pacific and validated by RPM as a reproducibility/materiality protocol.

The domain was reviewed by the QP and no major biases were identified in the model. The model was used for sample constraint and block model construction. RPM completed an Inverse Distance Squared (ID2) estimate on these domains.

Prior to estimation, drill hole data were submitted into exploratory data analysis to domain verification and then composited to 1.5 m long intervals and samples were capped for all variables within each domain where required. Silver values were capped at 7,000 g/t Ag, and gold values were capped at 40 g/t Au. The parent block size was 5m E x 5m N x 5m RL with no sub-blocking employed.

A total of 14,953,680 blocks were generated to cover the entire mineralized area. The model origin is 538.490 E, 7.904.850 N, 4.100 RL, and there is no rotation in the model. As mineralization is hosted in various types of volcanic rocks, the densities of mineralized materials are estimated using the ID2 method.

The number of samples used to estimate density varies from 1 to 4 samples. Density values vary between 1.2 to 3.48 in the block model. Mineral resources grade was completed using the ID2 method for each variable in each domain.

As an example, Table 2 shows the search parameters and number of samples used for grades in the Upper Silver Zone. No records of historical mining are available. Compared to the size of the mineralization system, the estimated mined tonnage is minimal; hence no depletion has been applied in the MRE.

The QP determined sample preparation, analytical, and security protocols employed by New Pacific to be acceptable. The QP reviewed the quality assurance and quality control ("QA/QC") procedures used by New Pacific including certified reference materials, blank, duplicate, and umpire data, and identified no major bias. The QP determined that the assay database was adequate for mineral resource estimation.

The QP determined that the use of a reasonable number of different control samples is robust and returns a good variety of verification throughout the whole process, and the umpire lab check analysis gives a good level of reproducibility of the database. The QP found that the insertion ratio of control samples is 24%, which is higher than the industry benchmark (15-20%). The QP is of the opinion that the results are acceptable and accomplished within industry standards and recommended that New Pacific maintain a continuous QA/QC program for new exploration drill campaign to maintain the database quality.