Cosmos Chiu

Ovais Habib

Don DeMarco

Fahad Tariq

Lawson Winder

Adrian Day

- **Pan American Silver Corp.** is divesting its **Pico Machay Gold Project** in Central Peru to Xali Gold Corp. via a Share Purchase Agreement.  **[771992_e03f5db677184c55b9213362d161dc15_0]** **[771992_e03f5db677184c55b9213362d161dc15_1]** 
- The total deferred payments for the acquisition are **$17.5 million**, comprising **$15 million** paid over five years for the known historic gold resource and an additional **$2.5 million** contingent on delineating a minimum of **1.25 million ounces of gold** in a compliant resource or reserve.  **[771992_e03f5db677184c55b9213362d161dc15_1]** **[771992_e03f5db677184c55b9213362d161dc15_2]** 
- Xali Gold will assume all existing and future liabilities (environmental, tax, labor, etc.) of the Project through a Purchaser's Special Indemnity.  **[771992_e03f5db677184c55b9213362d161dc15_1]** 
- The Pico Machay project has a historic Measured and Indicated Resource of **264,600 ounces of gold** and an additional Historic Inferred Resource of **446,000 ounces of gold**.  **[771992_e03f5db677184c55b9213362d161dc15_0]**

Pan American Silver Divests Pico Machay Gold Project to Xali Gold

- **Xali Gold Corp.** entered a Share Purchase Agreement on **October 23, 2025**, to acquire **Minera Calipuy S.A.C.**, which wholly owns the **Pico Machay Gold Project** in Central Peru, from **Pan American Silver Corp.** and its subsidiary.  **[771992_15c237f29fae44af851808190f51efeb_0]** 
- The Pico Machay Gold Project has a Historic Measured and Indicated Resource of **264,600 ounces** of gold and an additional Historic Inferred Resource of **446,000 ounces** of gold.  **[771992_15c237f29fae44af851808190f51efeb_0]** 
- The terms of the agreement include total cash payments of **$17.5 million** USD, with payments scheduled over five years and an additional payment of **$2.5 million** USD upon delineating a minimum of **1.25 million ounces** of gold.  **[771992_15c237f29fae44af851808190f51efeb_3]**

Pan American Silver sells Pico Machay Gold Project to Xali Gold

- Pan American Silver recently acquired **44% of the Juanicipio mine** through the MAG Silver transaction, adding **54 million ounces** to its proven and probable silver reserves and expecting immediate cash flow contributions.  **[771992_2170696_3]** **[771992_2170696_4]** 
- The company has monetized approximately **$1 billion** through divestitures, including **MARA** for **$475 million** and **La Reina** for **$245 million**, while retaining royalties on some assets.  **[771992_2170696_2]** **[771992_2170696_4]** 
- Pan American Silver maintains a strong balance sheet with **$1.5 billion** in total available liquidity as of **June 30** and has returned over **$1.1 billion** to shareholders since 2010, including an increased dividend of **$0.12 per share** in **Q2 2025**.  **[771992_2170696_5]** 
- Significant growth catalysts include the discovery of **50 million ounces of silver** in high-grade veins at La Colorada Skarn, with an updated PEA expected in **2026**, and ongoing optimization studies at the Jacobina gold asset.  **[771992_2170696_5]** **[771992_2170696_6]**  The Escobal mine also offers substantial optionality for future silver production.  **[771992_2170696_7]**

Pan American Silver Details Strategic Portfolio Optimization and Growth Initiatives

- Pan American Silver reported its estimated mineral reserves and resources as of **June 30, 2025**.  **[771992_0000771992-25-000077_nr2025reserves.htm:0]**  **Proven and probable mineral reserves** are estimated at approximately **452.3 million ounces of silver** and **6.3 million ounces of gold**.  **[771992_0000771992-25-000077_nr2025reserves.htm:0]** 
- **Measured and indicated mineral resources** (excluding P&P reserves) total approximately **1,130.6 million ounces of silver** and **9.9 million ounces of gold**.  **[771992_0000771992-25-000077_nr2025reserves.htm:0]** 
- **Inferred mineral resources** are estimated at approximately **405.6 million ounces of silver** and **8.6 million ounces of gold**.  **[771992_0000771992-25-000077_nr2025reserves.htm:0]** 
- These estimates **do not include** mineral reserves and resources from the acquisition of MAG Silver Corp., which was completed on **September 4, 2025**, and added a **44% joint venture interest** in the Juanicipio silver mine.  **[771992_0000771992-25-000077_nr2025reserves.htm:0]**  Consolidated M&I gold mineral resources **decreased** from **15.5 million ounces** to **9.9 million ounces** for the 12-months ended June 30, 2025, largely due to the sale of the La Arena mine and Joaquin property.  **[771992_0000771992-25-000077_nr2025reserves.htm:2]**

Pan American Silver Reports Mineral Reserves and Resources as of June 30, 2025

- The Mexican Federal Economic Competition Commission (COFECE) has approved Pan American Silver's acquisition of MAG Silver Corp.  **[771992_0000771992-25-000068_cofeceapprovalnr.htm:0]** 
- All required regulatory, shareholder, and court approvals have been received, and the Arrangement is anticipated to be completed on or about **September 4, 2025**.  **[771992_0000771992-25-000068_cofeceapprovalnr.htm:0]** 
- Registered MAG shareholders must make their election by **2:00 p.m. (Vancouver time) on August 27, 2025**, to receive either **$20.54 in cash** or a default of **$0.0001 in cash and 0.755 of a Pan American common share** for each MAG Share.  **[771992_0000771992-25-000068_cofeceapprovalnr.htm:0]** 
- The aggregate consideration for the acquisition will consist of **$500 million in cash** and the remaining consideration paid in Pan American shares, subject to proration.  **[771992_0000771992-25-000068_cofeceapprovalnr.htm:0]**

PAN AMERICAN SILVER (PAAS)