Pan American Silver Corp. announced an updated mineral resource estimate for its 100% owned La Colorada Skarn deposit in Zacatecas, Mexico. The estimated indicated mineral resource totals 95.9 million tonnes containing 94.4 million ounces of silver, 2.7 million tonnes of zinc and 1.2 million tonnes of lead.

In addition, the estimated inferred mineral resource now totals 147.8 million tonnes containing 132.9 million ounces of silver, 3.4 million tonnes of zinc and 1.5 million tonnes of lead. The updated mineral resource estimate is a significant increase relative to company's previous mineral resource. The mineral resource estimate is based on a USD 45 per tonne unit cut-off value and an underground sub-level cave (SLC) mining method followed by processing through a selective flotation beneficiation plant that generates zinc and lead concentrates.

The La Colorada Skarn is a large underground mineral deposit, and a range of mining methods is being considered for its extraction. The mineral resource estimate provided in this news release considers using the bulk SLC method throughout the deposit. Applying some combination of these mining methods to the mineral resource may prove economically and technically optimal, depending on geometric, geographic and geotechnical factors specific to different areas of the deposit.

Mineral Resource Highlights: The current mineral resource estimate is based on 190,000 metres of drilling to a drill cut-off date of April 30, 2022. An additional 44,000 metres of drilling has been completed since the resource cut-off date. The extensions and high-grade results that were reported in company's news release dated July 21, 2022 have not been included in this mineral resource estimate; The initial discovery of the La Colorada Skarn deposit was announced on October 23, 2018, and a total of 234,000 metres of exploration drilling has been completed on the deposit to date; The polymetallic skarn mineralisation is concentrated in three zones, which cover an area of 1,500 metres by 1,100 metres laterally, and a depth of between 600 metres and 1,900 metres below surface.

The deposit is oriented in a north-northwest to south-southeast direction and is below the currently active Candelaria mine workings. The geological model used for the resource estimate is based on 235 diamond drillholes with drill spacing ranging from 50 metres to 80 metres. The mineral resource classification has been based on geological criteria, estimation confidence and density of data for the indicated and inferred mineral resource categries; Geological interpretation, resource modeling and mineral resource estimation were carried out using Leapfrog Geo and Datamine software.

The block model and mineral resource estimation methodology were validated by third party consultants. Deswik mine planning software was used to define the SLC mining shapes, in particular the "Deswik.Caving" and "Pseudoflow" functions were integral in defining the constraining shapes. Deswik.Caving utilizes PGCA (Power Geotechnical Cellular Automata) particle-based flow modelling techniques and software; Comminution, selective flotation (rougher, cleaners, kinetics and locked cycle tests), mineralogical analysis, sedimentation and filtration testing have shown the mineral to be amenable to conventional crushing, grinding, flotation, thickening and filtration unit processing.

The projected Zn and Pb contents of the flotation concentrates that could be produced are expected to be readily marketable. Further geo-metallurgical sample collection and testing is in progress, as the deposit size continues to expand and as mining methods are being considered that affect the expected plant head grade, and therefore potentially impact metallurgical recovery and concentrate quality estimates; The SLC mining method was chosen to develop mining shapes that constrain the mineral resource volume. The reported mineral resource is the in-situ tonnage and metals contained within a mining shape developed at a USD 45 per tonne operating cost, and honours practical cavability geometry and layouts that are at a suitable level of detail for mineral resource estimation purposes.

The mineral resource inventory does not have mining recovery or dilution factors applied beyond the mining shape; Geotechnical drilling, laboratory testing and studies have been conducted with the assistance of internal and third-party geotechnical experts to make an initial positive caveability assessment in support of the SLC mining method; and the Qualified Persons, as identified in the "General Notes with Respect to Technical Information" section below, are satisfied that applying SLC parameters is practical and satisfies the test of reasonable prospects of eventual economic extraction. It is acknowledged that additional resource definition drilling, geotechnical studies and metallurgical testing may change the mining approach as the project progresses and further extents of the mineralisation are defined.