FOR THE THREE MONTHS ENDING MARCH 31, 2026

APPROVED BY THE BOARD ON MAY 5, 2026

Supplemental cash flow information (Note 15).

Pan American Silver Corp. is the ultimate parent company of its subsidiary group (collectively, the “Company”, or “Pan American”). Pan American is a British Columbia corporation domiciled in Canada, and its office is at Suite 2100 – 733 Seymour Street, Vancouver, British Columbia, V6B 0S6. The Company is listed on the Toronto Stock Exchange (TSX: PAAS) (the "TSX"), and the New York Stock Exchange (NYSE: PAAS) (the "NYSE").

Pan American engages in silver and gold mining and related activities, including exploration, mine development, extraction, processing, refining and reclamation. The Company's portfolio of assets is located in Chile, Peru, Brazil, Mexico, Canada, Argentina, Bolivia and Guatemala. In addition, the Company is exploring for new silver and gold deposits and opportunities throughout the Americas.

These unaudited condensed interim consolidated financial statements ("Interim Financial Statements") have been prepared in accordance with IAS 34 - Interim Financial Reporting as issued by the International Accounting Standards Board (“IASB”) and have been condensed with certain disclosures from the Company's audited consolidated financial statements for the year ended December 31, 2025 (the "2025 Annual Financial Statements") omitted. Accordingly, these Interim Financial Statements should be read in conjunction with the 2025 Annual Financial Statements.

On May 11, 2025, the Company entered into a definitive agreement with MAG Silver Corp. ("MAG") to acquire all of the issued and outstanding common shares of MAG pursuant to a plan of arrangement under the Business Corporations Act (British Columbia). MAG was a silver-focused mining company whose primary asset was a 44% interest in the Juanicipio mine ("Juanicipio") in Zacatecas, Mexico, operated by Fresnillo plc ("Fresnillo"), who holds the remaining 56% interest in Juanicipio. MAG's portfolio also included 100% ownership of the Larder exploration project.

On September 4, 2025, the MAG Acquisition ("MAG Acquisition") was completed. The Company paid total consideration of $2,042 million, which is comprised of the components summarized in the following table:

The purchase price was allocated based on the relative fair value of the assets acquired and liabilities assumed as follows:

a)Financial assets and liabilities by categories

(1)Included in Trade and other receivables.

(2)Included in Other Non-current assets.

(3)Included in Other assets.

b)Fair Value Information

i) Fair Value Measurement

The categories of the fair value hierarchy that reflect the inputs to valuation techniques used to measure fair value are as follows:

Level 1:    Quoted prices in active markets for identical assets or liabilities;

Level 2:    Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and

Level 3:    Inputs for the asset or liability based on unobservable market data.

The levels in the fair value hierarchy into which the Company’s financial assets and liabilities that are measured and recognized on the Interim Financial Statements at fair value on a recurring basis were categorized as follows:

The methodology and assessment of inputs for determining the fair value of financial assets and liabilities as well as the levels of hierarchy for the Company’s financial assets and liabilities measured at fair value remain unchanged from that at December 31, 2025.

ii) Valuation Techniques

The Company’s investments are valued using quoted market prices in active markets and as such are classified within Level 1 of the fair value hierarchy and are primarily equity securities. The fair value of the equity securities is calculated using the quoted market price multiplied by the quantity of shares held by the Company.

The Company’s derivative assets and liabilities were comprised of foreign currency and commodity contracts, which are classified within Level 2 of the fair value hierarchy and valued using observable market prices.

A portion of the Company’s trade receivables arose from provisional concentrate sales and are classified within Level 2 of the fair value hierarchy and valued using quoted market prices based on the forward London Metal Exchange for copper, zinc and lead and the London Bullion Market Association P.M. fix for gold and silver.

The Contingent consideration receivable from the disposition of La Arena S.A. is contingent upon successful commencement of commercial production at the La Arena II project and is classified within Level 3 of the fair value hierarchy and valued using a discounted future cash flow model ("DCF"). The key unobservable inputs, which are not materially sensitive, include the estimated time to commercial production and the risk-adjusted weighted average cost of capital ("WACC"). During the three months

ended March 31, 2026, there were no changes to the DCF assumptions, and the increase of $1 million (2025 - $1 million) was related to unwinding of the discount.

(1)Includes $23 million (December 31, 2025 - $22 million) in supplies at the Escobal mine, which have been classified as non-current pending the restart of operations.

Total inventories held at net realizable value ("NRV") amounted to $47 million at March 31, 2026 (December 31, 2025 – $48 million). The following table summarizes NRV recoveries included in production costs and depreciation and amortization:

(1)Excludes $2 million of depreciation and amortization related to the NRV recoveries on inventories (Note 5).

The Company has significant influence over its investment in Juanicipio due to its 44% ownership interest, therefore accounts for the investment using the equity method in accordance with IAS 28 - Investments in Associates and Joint Ventures.

Juanicipio is governed by a shareholders’ agreement and by corporate by-laws. All costs relating to Juanicipio that are not covered by operating cash flows generated by Juanicipio are required to be shared by the Company and Fresnillo pro-rata based on the ownership interests in Juanicipio, and if either party does not fund pro-rata, their ownership interest will be diluted in accordance with the shareholders’ agreement and by-laws.

Changes during the period in the Company’s investment in Juanicipio are detailed as follows:

A summary of the statement of financial position of Juanicipio is as follows:

A summary of the statement of earnings of Juanicipio is as follows:

A summary of the statement of cash flows of Juanicipio is as follows:

(1)No interest is charged on trade accounts payable ranging from 30 to 60 days from the invoice date. The Company has policies in place to ensure that all payables are paid within the credit terms.

The Company has the following senior notes (the "Senior Notes"): $283 million in aggregate principal with a 4.63% coupon and maturing in December 2027; and $500 million in aggregate principal with a 2.63% coupon and maturing in August 2031. These Senior Notes are unsecured with interest payable semi-annually. Each series of Senior Notes is redeemable, in whole or in part, at the Company's option, at any time prior to maturity, subject to make-whole provisions. The Senior Notes are accreted to the face value over their respective terms and were recorded at fair value upon acquisition using an effective interest rate of 5.52%.

The Credit Facility (the "Credit Facility") has a limit of $750 million plus an accordion feature for up to an additional $250 million, which is available at the discretion of the lenders. As of March 31, 2026, the Company was in compliance with all financial covenants under the Credit Facility, which was undrawn. The borrowing costs under the Credit Facility are based on the Company's credit ratings from Moody's and S&P Global at either: (i) SOFR plus 1.25% to 2.40% or; (ii) The Bank of Nova Scotia's Base Rate on U.S. dollar denominated commercial loans plus 0.15% to 1.30%. Under the ratings based pricing, undrawn amounts under the Credit Facility are subject to a stand-by fee of 0.23% to 0.46% per annum, dependent on the Company's credit rating and subject to pricing adjustments based on sustainability performance ratings and scores. The Credit Facility matures on November 24, 2028.

In June 2021 and May 2022, the Company entered into USD denominated five-year loans with a Peruvian financial institution for construction financing. The June 2021 loan bears a 3.60% interest rate per annum and requires quarterly repayments while the May 2022 loan bears 2.15% interest per annum and requires monthly repayments.

As at March 31, 2026, the carrying value of all construction loans was $4 million (2025 - $6 million).

For the three months ended March 31, 2026, the Company recorded the following share-based compensation expense included as a component of general and administrative expense:

The following table summarizes the changes in stock options and RSUs to be settled in equity for the three months ended March 31, 2026:

As at March 31, 2026, the following PSUs, RSUs intended to be settled in cash, and DSUs were outstanding:

The Company is authorized to issue 800 million common shares without par value.

The Company declared the following dividends for the three months ended March 31, 2026 and for the year ended December 31, 2025:

As part of the acquisition of Tahoe Resources Inc. on February 22, 2019, the Company issued 313.9 million CVRs, with a term of 10 years, which are convertible into 15.6 million common shares upon the first commercial shipment of concentrate following the restart of operations at the Escobal mine.

As at March 31, 2026 and 2025, there were 313.9 million CVRs outstanding that are convertible into 15.6 million common shares.

For the three months ended March 31, 2026, 460,200 (2025 - 909,012) common shares were repurchased for cancellation under the NCIB at an average price of $54.04 per share for a total consideration of $25 million (2025 - average price of $22.00 per share for total consideration of $20 million).

(1)Includes NRV adjustments to inventories to reduce production costs by $3 million during the three months ended March 31, 2026 (2025 - $4 million).

Income tax recognized in net earnings is comprised of the following:

						Three months ended March 31,
									2026			2025
Current income tax expense									$	197		$	64
Deferred income tax recovery									(12)			(19)
Income tax expense									$	185		$	45

Income tax expense differs from the amounts that would result from applying the Canadian federal and provincial income tax rates to earnings before income taxes. These differences result from the items shown on the following table, which result in effective tax rates that vary considerably from the comparable period. The main factors that impacted the effective tax rate for the three months ended March 31, 2026 and the comparable period for 2025 were changes in the recognition of certain deferred tax assets, foreign exchange rate fluctuations, mining taxes paid, and withholding taxes remitted on payments from foreign subsidiaries. The Company expects that these and other factors will continue to cause fluctuations in effective tax rates in the future.