2021 Third Quarter Report

Suite 1500 - 625 Howe St.

Vancouver, BC

Canada, V6C 2T6

604-684-1175

THIRD QUARTER REPORT

TO SHAREHOLDERS

For the period ending

September 30, 2021

www.panamericansilver.com

Q3 2021 NEWS RELEASE

All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted.

Pan American Silver reports cash flow from operations of $157.0 million in Q3 2021

Vancouver, B.C. - November 9, 2021 - Pan American Silver Corp. (NASDAQ: PAAS) (TSX: PAAS) ("Pan American" or the "Company") today reported unaudited results for the quarter ended September 30, 2021 ("Q3 2021").

"Pan American generated record quarterly revenue of $460.3 million and operating cash flow of $157.0 million in Q3. Our cash and short term investments increased to $315.4 million," said Michael Steinmann, President and Chief Executive Officer. "We have continued to face challenges with availability of qualified labor and costs related to the COVID pandemic. Vaccination rates have been increasing at all our operations, and we expect to see an improvement in productivity and costs over the coming quarters, especially at La Colorada."

Q3 2021 Highlights:

• Consolidated silver production was 4.8 million ounces. La Colorada was largely responsible for increased production relative to the first and second quarters of 2021. With improved ventilation air volumes allowing accelerated mine development, mining rates increased by 21% relative to the previous quarter of 2021 and further increases are anticipated through the balance of 2021. We expect mine developmentsand mining rates to continue increasing over the coming quarters, with throughput rates increasing to approximately 2,000 tonnes per day by mid-2022. We also expect to increase underground exploration drilling rates, particularly for the Skarn deposit.
• Consolidated gold production was 142.6 thousand ounces. At Dolores, a delay in completing construction of leach pad 1 south has resulted in an in-heap gold inventory build-up of 8.1 thousand ounces in Q3 2021 and 37.0 thousand ounces year-to-date 2021 ("YTD 2021"). Loading of pad 1 south is expected to begin by the end of November 2021, which should allow inventory levels to normalize in 2022. At Shahuindo, an increase in pad inventories of 5.9 thousand ounces in Q3 2021 and 16.1 thousand ounces YTD 2021 was recorded.
• Revenue of $460.3 million benefited from the sale of dore and concentrate inventories built-up in prior periods, which was partially offset by the increase of on-pad inventories at Dolores and Shahuindo.
• Net income of $20.2 million ($0.10 basic income per share) was impacted by a non-cashmark-to-market loss on investment interests of $25.3 million ($0.12 per share) and an income tax expense of $50.4 million ($0.24 per share), partially offset by a $28.5 million gain ($0.14 per share) on the sale of a non-core exploration stage property.
• Adjusted income was $37.8 million ($0.18 basic adjusted income per share).
• Net cash generated from operations was $157.0 million and includes $23.0 million source of cash from working capital changes.
• Silver Segment Cash Costs and All-in Sustaining Costs ("AISC") per silver ounce were $11.92 and $16.30, respectively. Silver Segment costs were mainly impacted by increased mining costs at La Colorada for ventilation upgrades, extensive shotcrete ground support and investments in long-hole mining methods to benefit future operations. La Colorada AISC are expected to gradually decline, as throughput increases over the coming quarters.
• Gold Segment Cash Costs and AISC per gold ounce were $922 and $1,176, respectively.
• Capital expenditures of $66.2 million were comprised of $52.9 million of sustaining capital and $13.3 million of non-sustaining capital, which is mostly related to project capital. Project capital of $12.8 million was largely invested in advancing the exploration and development studies for the La Colorada Skarn project, including advancing construction of the new concrete-lined ventilation shaft and refrigeration plant, and the Wetmore exploration project at Timmins.
• 2021 Guidance revised. Full-year consolidated precious metals production is now estimated to be between 19.0 and 20.0 million ounces of silver and 560.0 to 588.0 thousand ounces of gold. The estimated

PAN AMERICAN SILVER CORP.

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Q3 2021 NEWS RELEASE

All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted.

ranges for Silver Segment Cash Costs and AISC have increased to $11.60 to $12.50 and $15.75 to $16.75, respectively. The Company has maintained its guidance for Gold Segment Cash Costs and AISC. The Company has reduced its estimates for sustaining capital to a range of $217.5 to $226.0 million and project capital to a range of $43.5 to $45.0 million. See the "2021 Guidance" section of this news release for further details, and the Company's Management's Discussion and Analysis for the three and nine months ended September 30, 2021.

• Strong financial position with working capital of $618.8 million, inclusive of cash and short-term investment balances of $315.4 million; an equity investment in Maverix Metals Inc. with a market value of $116.1 million; and $500.0 million available under Pan American's Sustainability-Linked Credit Facility, as at September 30, 2021. Total debt of $45.0 million was related to lease liabilities and construction loans.
• The Board of Directors has approved a cash dividend of $0.10 per common share, or approximately $21.0 million in aggregate cash dividends, payable on or about December 3, 2021, to holders of record of Pan American's common shares as of the close on November 22, 2021.

Pan American also reports that Mr. Robert Doyle, Chief Financial Officer, has decided to retire effective March 31, 2022 after 18 years of loyal service to the Company. The Company has a succession plan in place and is currently conducting an orderly process of transition.

Cash Costs, AISC, adjusted earnings, basic adjusted earnings per share, sustaining capital, project capital, working capital, and total debt are not generally accepted accounting principle ("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 unaudited Condensed Interim Consolidated Financial Statements and our Management's Discussion and Analysis for the three and nine months ended September 30, 2021. This material is available on Pan American's website at panamericansilver.com, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

Conference Call and Webcast

Date:	November 10, 2021
Time:	10:00 am ET (7:00 am PT)
Dial-in numbers:	1-800-319-4610(toll-free in Canada and the U.S.)
	[phone] (international participants)
Webcast:	panamericansilver.com

The live webcast, presentation slides and the Q3 2021 report will be available at panamericansilver.com. An archive of the webcast will also be available for three months.

PAN AMERICAN SILVER CORP.

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Q3 2021 NEWS RELEASE

All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted.

CONSOLIDATED RESULTS

		Three months	Twelve months
		ended		ended
Weighted average shares outstanding (millions)		210.3		210.1
		September 30,		December 31,
		2021		2020
Shares outstanding (millions)		210.3		210.3
		Three months ended
		September 30,
		2021		2020
FINANCIAL
Revenue	$	460,349	$	300,414
Mine operating earnings	$	98,887	$	124,561
Net income	$	20,219	$	65,260
Basic income per share(1)	$	0.10	$	0.31
Adjusted income(2)	$	37,779	$	59,059
Basic adjusted income per share(1)	$	0.18	$	0.28
Net cash generated from operating activities	$	157,017	$	114,943
Net cash generated from operating activities before changes in working capital(2)	$	134,010	$	105,959
Sustaining capital expenditures(2)	$	52,908	$	36,352
Non-sustaining capital expenditures(2)	$	13,277	$	5,359
Cash dividend per share	$	0.10	$	0.07
PRODUCTION
Silver (thousand ounces)		4,831		4,087
Gold (thousand ounces)		142.6		116.9
Zinc (thousand tonnes)		12.7		8.6
Lead (thousand tonnes)		4.2		3.4
Copper (thousand tonnes)		2.1		0.7
CASH COSTS(2) ($/ounce)
Silver Segment(3)		11.92		7.14
Gold Segment(4)		922		793
AISC(2) ($/ounce)
Silver Segment(3)		16.30		6.01
Gold Segment(4)		1,176		1,057
Consolidated per silver ounce sold(5)		(0.44)		(8.42)
Consolidated before NRV inventory adjustments		(0.95)		(2.56)
AVERAGE REALIZED PRICES(6)
Silver ($/ounce)		24.16		24.77
Gold ($/ounce)		1,782		1,914
Zinc ($/tonne)		2,989		2,189
Lead ($/tonne)		2,286		1,822
Copper ($/tonne)		9,399		6,463

1. Per share amounts are based on basic weighted average common shares.
2. Non-GAAPmeasure; please refer to the "Alternative Performance (non-GAAP) Measures" section of this news release for further information on these measures.
3. As of Q1 2021, Dolores was moved from the Silver Segment to the Gold Segment due to the expected mine sequencing into a higher gold zone of the mine. 2021 Silver Segment is comprised of the following operations: La Colorada, Huaron, Morococha, San Vicente and Manantial Espejo. The 2020 Silver Segment metrics include Dolores.
4. 2021 Gold Segment is comprised of the following operations: Dolores, Shahuindo, La Arena and Timmins. The 2020 Gold Segment metrics exclude Dolores.
5. Consolidated per silver ounce sold is based on total silver ounces sold and are net of by-product credits, including gold revenues. Corporate general and administrative expense and exploration and project development expense are included in Consolidated AISC, but not allocated amongst the operations and thus are not included in either the silver or gold segment totals.
6. Metal prices stated are inclusive of final settlement adjustments on concentrate sales.

PAN AMERICAN SILVER CORP.

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Q3 2021 NEWS RELEASE

All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted.

INDIVIDUAL MINE OPERATING PERFORMANCE

	Silver Production		Gold Production
	(ounces '000s)		(ounces '000s)
	Three months ended		Three months ended
	September 30,		September 30,
	2021		2020	2021		2020
La Colorada	1,424		1,445	0.7		1.0
Huaron	888		274	0.2		0.0
Morococha(1)	547		142	0.3		0.1
San Vicente(2)	606		655	0.1		0.1
Manantial Espejo	813		606	8.4		5.4
Dolores	486		871	39.6		22.7
Shahuindo	55		81	37.3		33.0
La Arena	9		9	22.9		21.6
Timmins	4		4	33.0		32.8
Total	4,831		4,087	142.6		116.9
(1) Morococha data represents Pan American 92.3% interest in the mine's production.
(2) San Vicente data represents Pan American 95.0% interest in the mine's production.
	Cash Costs(1)		AISC(1)
	($ per ounce)		($ per ounce)
	Three months ended		Three months ended
	September 30,		September 30,
	2021		2020	2021		2020
La Colorada	12.65		6.54	18.48		10.07
Dolores(2)	-		(5.12)	-		(22.92)
Huaron	4.69		(0.97)	7.63		5.78
Morococha	8.41		6.07	12.76		13.23
San Vicente	16.84		18.08	21.16		20.08
Manantial Espejo	19.33		14.03	22.71		12.22
Silver Segment Consolidated(2)(3)	11.92		7.14	16.30		6.01
Dolores(2)	767		-	1,026		-
Shahuindo	763		464	951		616
La Arena	930		837	1,240		1,409
Timmins	1,331		1,111	1,618		1,318
Gold Segment Consolidated(2)(3)	922		793	1,176		1,057
Consolidated AISC per silver ounce sold(4)				(0.44)		(8.42)
Consolidated AISC before NRV inventory adjustments				(0.95)		(2.56)

1. Cash Costs and AISC are non-GAAP measures. Please refer to the "Alternative Performance (Non-GAAP) Measures" section of the MD&A for the period ended September 30, 2021 for a detailed description of these measures and where appropriate a reconciliation of the measure to the Q3 2021 financial statements.
2. Due to the expected mine sequencing into a higher gold zone of the mine plan at Dolores, the Company has determined that the mine is better identified as a Gold Segment operation from 2021 onwards. Thus, as of Q1 2021, Cash Costs and AISC at Dolores are reported on a per ounce of gold basis and included as part of the Gold Segment Cash Costs and AISC calculations. Dolores Cash Costs and AISC in the 2020 comparable period were reported on a per ounce of silver basis and included as part of the Silver Segment Cash Costs and AISC calculations, as previously reported. For comparison purposes, had Dolores been reported in the Gold Segment in 2020, Gold Segment Cash Costs and AISC for Q3 2020 would have been $777 and $867, respectively, and Silver Segment Cash Costs and AISC for Q3 2020 would have been $9.18 and $12.48, respectively.
3. Silver Segment Cash Costs and AISC are calculated net of credits for realized revenues from all metals other than silver ("silver segment by-product credits"), and are calculated per ounce of silver sold. Gold Segment Cash Costs and AISC are calculated net of credits for realized silver revenues ("gold segment by-product credits"), and are calculated per ounce of gold sold.
4. Consolidated AISC is calculated per silver ounce sold with total gold revenues included within by-product credits. Corporate general and administrative expense and exploration and project development expense are included in Consolidated AISC, but not allocated amongst the operations and thus are not included in either the silver or gold segment totals.

PAN AMERICAN SILVER CORP.

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