Investor Presentation - January 2017

InvestorPresentationJanuary2017

CautionaryNoteNon-GAAPMeasuresThispresentationofPanAmericanSilverCorp.(the“Company”)referstovariousnon-GAAPmeasures,suchascashcostsperpayableounceofsilver,netofby-productcredits(“CashCosts”),all-insustainingcostpersilverouncesold(“AISCSOS”)andworkingcapital.ThesemeasuresdonothaveastandardizedmeaningprescribedbyIFRSasanindicatorofperformance,andmaydifferfrommethodsusedbyothercompanies.Readersshouldrefertothe“AlternativePerformance(non-GAAP)Measures”sectionintheCompany’sManagement’sDiscussionandAnalysisfortheperiodendedSeptember30,2016,availableatwww.sedar.com.ReportingCurrencyandFinancialInformationUnlesswehavespecifiedotherwise,allreferencestodollaramountsor$aretoUnitedStatesdollars.CautionaryNoteRegardingForwardLookingStatementsandInformationCertainofthestatementsandinformationinthispresentationconstitute“forward-lookingstatements”withinthemeaningofthe UnitedStatesPrivateSecuritiesLitigationReformActof1995and“forward-lookinginformation”withinthemeaningofapplicableCanadianprovincialsecuritieslaws.Allstatements,otherthanstatementsofhistoricalfact,areforward-lookingstatementsorinformation.Forward-lookingstatementsorinformationinthispresentationrelateto,amongotherthings:ourestimatedproductionofsilver,goldandothermetalsin2017,2018and2019;ourestimatedcashcostsperpayableounceofsilverandAISCSOSin2017,2018and2019;ourestimatedoperatingmarginsfor2017,2018and2019;ourestimatedcapitalinvestments,andsustainingcapitalfor2017,2018and2019;theabilityoftheCompanytosuccessfullycompleteanycapitalinvestmentprogramsandprojects,andtheimpactsofanysuchprogramsandprojectsontheCompany;theabilityoftheCompanytorealizevaluefromtransactions,includingwithrespecttotheJoaquinProjectandMaverix MetalsInc.;expectationswithrespecttofuturepricesofsilverorotherpreciousmetals,world-widesilverproduction,orglobaldemandonsilver,orothersimilarmetricsrelatingtosilver; andanyanticipatedleveloffinancialandoperationalsuccessin2017.ThesestatementsandinformationreflecttheCompany’scurrentviewswithrespecttofutureeventsandarenecessarilybaseduponanumberofassumptionsthat,whileconsideredreasonablebytheCompany,areinherentlysubjecttosignificantoperational,business,economicandregulatoryuncertaintiesandcontingencies.Theseassumptionsinclude:tonnageoforetobeminedandprocessed;oregradesandrecoveries;pricesforsilver,goldandbasemetalsremainingasestimated;currencyexchangerates remainingasestimated;capital,decommissioningandreclamationestimates;ourmineralreserveandrecourseestimatesandtheassumptionsuponwhichtheyarebased;pricesforenergyinputs,labour,materials,suppliesandservices(includingtransportation);nolabour-relateddisruptionsatanyofouroperations;nounplanneddelaysorinterruptionsinscheduledproduction;allnecessarypermits,licensesandregulatoryapprovalsforouroperationsarereceivedinatimelymanner;andourabilitytocomplywithenvironmental,healthandsafetylaws.Theforegoinglistofassumptionsisnotexhaustive.TheCompanycautionsthereaderthatforward-lookingstatementsandinformationinvolveknownandunknownrisks,uncertaintiesandotherfactorsthatmaycauseactualresultsanddevelopmentstodiffermateriallyfromthoseexpressedorimpliedbysuchforward-lookingstatementsorinformationcontainedin thispresentationandtheCompanyhasmadeassumptionsandestimatesbasedonorrelatedtomanyofthesefactors.Suchfactorsinclude,withoutlimitation:fluctuationsinsilver,goldandbasemetalprices;fluctuationsinpricesforenergyinputs,labour,materials,suppliesandservices(includingtransportation);fluctuationsincurrencymarkets(suchastheCanadianDollar,PeruvianSol,MexicanPeso,ArgentinePesoandBolivianBolivianoversustheU.S.Dollar);operationalrisksandhazardsinherentwiththebusinessofmining(includingenvironmentalaccidentsandhazards,industrialaccidents,equipmentbreakdown,unusualorunexpectedgeologicalorstructuralformations,cave-ins,floodingandsevereweather);risksrelatingtothecreditworthinessorfinancialconditionofsuppliers,refinersandotherpartieswithwhomtheCompanydoesbusiness;inadequateinsurance,orinabilitytoobtaininsurance,tocovertheserisksandhazards;employeerelations;relationshipswith,andclaimsby,localcommunitiesandindigenouspopulations;ourabilitytoobtainallnecessarypermits,licensesandregulatoryapprovalsinatimelymanner;changesinlaws,regulationsandgovernmentpracticesinthejurisdictionswhereweoperate,includingenvironmental,exportandimportlawsandregulations;diminishingquantitiesorgradesofmineralreservesaspropertiesaremined;increasedcompetitionintheminingindustryforequipmentandqualifiedpersonnel;andthosefactorsidentifiedunderthecaption“RisksRelatedtoPanAmerican’sBusiness”intheCompany’smostrecentform40-FandAnnualInformationFormfiledwiththeUnitedStatesSecuritiesandExchangeCommissionandCanadianprovincialsecuritiesregulatoryauthorities.AlthoughtheCompanyhasattemptedtoidentifyimportantfactorsthatcouldcauseactualresultstodiffermaterially,theremaybeotherfactorsthatcauseresultsnottobeasanticipated,estimated,describedorintended.Investorsarecautionedagainstunduerelianceonforward-lookingstatementsorinformation.Forward-lookingstatementsandinformationaredesignedtohelpreadersunderstandmanagement’scurrentviewsofournearandlongertermprospectsandmaynotbeappropriateforotherpurposes.TheCompanydoes notintend,nordoesitassumeanyobligationtoupdateorreviseforward-lookingstatementsorinformation,whetherasaresultofnewinformation,changesinassumptions,futureeventsorotherwise,excepttotheextentrequiredbyapplicablelaw.TechnicalInformationTechnicalinformationcontainedinthispresentationwithrespecttoPanAmericanSilverCorp.hasbeenreviewedandapprovedbyMartinWafforn,P.Eng.,SVPTechnicalServicesandProcessOptimization,whoistheCompany’squalifiedpersonforthepurposesofNationalInstrument43-101.Mineralreservesinthispresentationwerepreparedunderthesupervisionof,orwerereviewedby,MartinWafforn.ForadditionalinformationabouttheCompany’smaterialmineralproperties,pleaserefertotheCompany’sAnnualInformationFormdatedMarch24,2016,filedatwww.sedar.com.

2 January17,2017

CautionaryNoteAboutMineralReservesandResources

3 January17,2017

CautionaryNotetoUSInvestorsConcerningEstimatesofMineralReservesandResources

Thispresentationhasbeenprepared inaccordancewiththerequirementsofCanadiansecuritieslaws,whichdifferfromtherequirementsofU.S.securitieslaws.Unlessotherwise indicated,allmineral reserveandresourceestimatesincludedinthispresentationhavebeenprepared inaccordancewithCanadianNationalInstrument43-101–StandardsofDisclosureforMineralProjects (‘‘NI43-101’’)andtheCanadianInstituteofMining,MetallurgyandPetroleumclassificationsystem.NI43-101isaruledevelopedbytheCanadianSecuritiesAdministratorsthatestablishesstandardsforallpublicdisclosureanissuermakesofscientificand technicalinformationconcerningmineralprojects.

Canadianstandards,includingNI43-101,differsignificantlyfromtherequirementsoftheUnitedStatesSecuritiesandExchangeCommission(the“SEC”),andinformationconcerningmineralization,deposits,mineral reserveandresourceinformationcontainedorreferredtohereinmaynotbecomparable tosimilarinformationdisclosedbyU.S.companies.Inparticular,andwithoutlimiting thegenerality oftheforegoing,thispresentationusestheterms‘‘measuredresources’’, ‘‘indicatedresources’’and‘‘inferredresources’’.U.S. investorsareadvisedthat,while suchtermsarerecognizedandrequiredbyCanadiansecuritieslaws, theSECdoesnotrecognizethem.The requirementsofNI 43-101foridentificationof‘‘reserves’’arenotthesameasthoseoftheSEC,andreservesreportedbyPanAmericanincompliancewithNI 43-101maynotqualifyas‘‘reserves’’ underSECstandards.UnderU.S.standards,mineralizationmaynotbeclassifiedasa‘‘reserve’’unlessthedeterminationhasbeenmadethatthemineralizationcouldbeeconomicallyandlegallyproducedorextractedatthetime thereserve determination ismade.U.S. investorsarecautionednottoassumethatanypartofa“measuredresource”or“indicatedresource”willever beconvertedintoa“reserve”.U.S.investorsshouldalsounderstandthat“inferredresources”haveagreatamountofuncertaintyastotheirexistenceandgreatuncertaintyastotheireconomicandlegalfeasibility. Itcannotbeassumedthat alloranypartof“inferredresources”exist,areeconomicallyorlegally mineableorwilleverbeupgradedtoahighercategory.UnderCanadiansecuritieslaws,estimated“inferredresources”maynotformthebasisoffeasibilityorpre-feasibility studiesexceptinrarecases.Disclosureof“containedounces”inamineralresourceispermitted disclosureunderCanadiansecuritieslaws.However,theSECnormallyonlypermitsissuerstoreportmineralizationthatdoesnotconstitute“reserves”bySECstandardsasinplacetonnageandgrade,withoutreference tounitmeasures.Accordingly,informationconcerningmineraldepositssetforthhereinmaynotbecomparablewithinformationmadepublicbycompaniesthatreportinaccordancewithU.S. standards.

PAS– aninvestmentinsilver

ü 2ndlargestprimarysilverproducerintheworldü Portfolioofhigh-qualityassetsintheAmericasü Largereserves:provenandprobableof280Moz silver(1)

ü Solidproductionprofileü Significantexplorationpotentialü Experiencedmanagementteamü Strongbalancesheet

Ourstrategyisfocusedonextractingvaluefromourportfolioofassets,improvingoperatingmarginsanddeployingprovenexpertisetopursue

profitablegrowth.

4 January17,2017(1) Pleaserefer totheAppendix formoredetailedinformation ontheCompany’sreserves.

Ouroperations

5 January17,2017

MillionSilverOuncesProduced

Historyofproductiongrowth

6 January17,2017Pleaserefer totheCompany’snewsreleasedatedJan.12,2017formoreinformation onthe2016preliminary operatingresultsandthethree-yearoutlook.

0

5

10

15

20

25

30

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017F2018F2019F

Positionedforstrongsilverrevenue

5%5%

15%

24%

51%silver

Copper Lead Zinc Gold Silver

7 January17,2017

8% 4%

12%

27%

50%silver

Copper Lead Zinc Gold Silver

2016PreliminaryResults

2017Estimate

Basedon2016preliminary metalsalesandprices:Ag$17.35/oz,Au$1,251/oz, Zn$2,095/tonne,Cu$4,860/tonne, Pb $1,872/tonne)

Basedon2017estimatedmetalsalesandprices:Ag$17.00/oz, Au$1,200/oz, Zn$2,500/tonne, Cu$5,400/tonne,Pb $2,100/tonne

Pleaserefer totheCompany’snewsreleasedatedJan.12,2017formoreinformation onthe2016preliminary operatingresultsandthe2017forecast.

2016preliminaryoperatingresults

8

35%decreaseinCashCosts(1)from2015$6.29/oz ofsilver(netofby-productcredits)

25.4Mouncessilver

183,900ouncesgold

(1) Thispresentation referstomeasuresthatarenotgenerallyacceptedaccounting principle (“non-GAAP”)financialmeasures,including cashcostperpayableounce ofsilver,netofby-product credits (“CashCosts”).Pleasereferto“AlternativePerformance (non-GAAP)Measures”section oftheCompany’sManagement’sDiscussion &Analysisfortheperiod endedSept.30,2016.

Financialstrength

USDMillions

Cashandcashequivalentsandshort-term investments 245.3

Working capital(1) 434.2

Total debt(2) 47.0

Totalavailableliquidity (3) 509.1

AtSept.30,2016

9 January17,2017

(1) Workingcapitalisanon-GAAPmeasurecalculated ascurrent assetslesscurrent liabilities. TheCompanyandcertain investorsusethisinformation toevaluatewhether theCompanyisabletomeetitscurrent obligationsusingitscurrent assets.Referto“AlternativePerformance (non-GAAP)Measures”section oftheCompany’sManagement’sDiscussion &AnalysisfortheperiodendedSept.30,2016.(2) Inclusiveof$5.7million incapitalleases.(3) Includescashandcashequivalents, short-term investments, andtheundrawn portion oftheCompany’ssecuredlineofcredit.

Improvingoperatingmargins

10 January17,2017

By-product metalpricesassumptions usedforforecast CashCostscalculation: Au$1,200/oz, Zn$2,500/tonne, Pb $2,100/tonne, Cu$5,400/tonne. ExchangeratesrelativetoUS$assumed:Mexicanpeso20:1,Peruviansol3.3:1,Argentinepeso17.05:1,Bolivian boliviano7:1.CashCosts isanon-GAAPmeasure.Referto“AlternativePerformance (non-GAAP)Measures”section oftheCompany’sManagement’sDiscussion &AnalysisfortheperiodendedSept.30,2016.

Capitalexpenditureprofile(1)

11 January17,2017(1) Guidance asprovidedinPanAmerican’snewsreleasedatedJan.12,2017.

(inmillionsofUSD)

2017Guidance

2018Outlook

2019Outlook

Sustainingcapitaltotal 82- 88 75- 85 75- 90

Projectcapitaltotal 58- 62 N/A N/A

Consolidated total 140 - 150 75 - 85 75- 90

Capitalallocationpriorities

$361

$491

$542

$423

$330

$227$245

$0

$100

$200

$300

$400

$500

$600

2010 2011 2012 2013 2014 2015 YTDQ32016

MillionsUS$

Cash&STI

Financialdebt

Cumulativereturntoshareholders

$385Mintotalcumulativecashreturned toshareholders (dividends andsharebuy-backs)since2010inadditiontoinvesting$376Mincapitalprojects.

12 January17,2017

PanAmerican’sapproachtocapitalmanagementprioritizesinvestmentinprojectsthatgenerateahigh-rateofreturn,maintainingastrongbalancesheetandreturning cashtoshareholders.

TheCompany’s lastpublicequityfinancingwas in2009.

Cash & short term investments

0

50

100

150

200

250

300

350

400

450

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

2010 2011 2012 2013 2014 2015 2016

SilverGradeg/t

MillionTonnes

ProvenandProbableReserves2010-2016Probable(Mt)

Proven(Mt)

SilverGrade(g/t)

LaColoradareservesincrease300%

13 January17,2017

30.4MozAg

38.3MozAg

44.1MozAg

64.8MozAg

81.4MozAg

86MozAg91.2MozAg

ForLaColorada’s complete mineralreservedetails, pleaseseeAppendix.

Organicgrowth– LaColoradaexpansion

14 January17,2017

AtDec31,2015P&P3.8Mt*Ag 436g/t(53.7Moz)

Au0.33g/tPb 1.88%Zn3.47%

AtDec31,2015P&P2.8Mt*Ag 378g/t(34.0Moz)

Au0.31g/tPb 0.82%Zn1.47%

AtDec31,2015P&P0.4Mt*Ag 303g/t(3.5Moz)

Au0.30g/tPb 1.10%Zn1.44%

ForLaColorada’s complete mineralreservedetails, pleaseseeAppendix.

LaColorada expansion(1)

15 January17,2017

Highlights• 69%increaseexpectedinaverageannual

silverproductionto7.7Moz by2018• 137%and185%increaseexpectedinzinc

andleadproduction,respectively, by2018ProjectScope• New618-metredeepmineshaft– fully

commissionedinQ32016• Newsulphide processingplant– began

operatingQ32016• Undergrounddevelopmenttoopennew

productionareas– advancingonscheduleforcompletionin2017

• New115kVpowerline- targetedforcompletionin2017

(1) Foradditionalinformation,pleaserefertotheCompany’stechnicalreportentitled“TechnicalReport– PreliminaryEconomicAnalysisfortheExpansionoftheLaColorada Mine,Zacatecas,Mexico”,withaneffectivedateofDec.31,2013availableatwww.SEDAR.com.Theresultsofthispreliminaryeconomicassessmentarepreliminaryinnature,inthatitincludesinferredmineralresources thatareconsidered toogeologicallyspeculativetohavetheeconomicconsiderationsappliedtothemthatwouldenablethemtobecategorizedasmineralreserves,andthereisnocertaintythattheassessmentwillberealized.Mineralresourcesthatarenotmineralreserveshavenodemonstratedeconomicviability.

Original investmentof$163.8M,including sustainingcapital,generatedanIRRof22%atAg$19/ozNowexpectedtobe5-10%under budget

Organicgrowth– Doloresexpansion

16 January17,2017

N

SouthextensionundergroundresourcesatDecember31,2014:

Tonnes Agg/t Aug/tMeasured 146,000 101 0.74Indicated 2,907,000 56 1.59Total 3,054,000 58 1.55

Doloresexpansion(1)

17 January17,2017

Highlights

• Duringfirst5years,estimatedincreasesinaverageannualproductionof:

• Silverup40%• Goldup52%

• ReduceCashCosts throughoperationalefficiencies andhighergoldproduction

ProjectScope• New5,600tpd pulpagglomerationplant-

scheduled forstart-upinmid2017

• Newundergroundmine- scheduled toreach1,500tpd byendof2017

• New115kVpowerline- energizedinSeptember2016

(1) Foradditionalinformation,pleaserefertotheCompany’stechnicalreportentitled“TechnicalReportfortheDoloresProperty,Chihuahua,Mexico- PreliminaryEconomicAssessmentof aPulpAgglomerationTreatmentandUndergroundOption”,withaneffectivedateofMay31,2014availableatwww.SEDAR.com.Theresultsofthispreliminaryeconomicassessmentarepreliminaryinnature,inthatitincludesinferredmineralresourcesthatareconsideredtoogeologicallyspeculativetohavetheeconomicconsiderationsappliedtothemthatwouldenablethemtobecategorizedasmineralreserves,andthereisnocertaintythattheassessmentwillberealized.Mineralresourcesthatarenotmineralreserveshavenodemonstratedeconomicviability.

Estimatedcapitalinvestment~$132.4M(incl.powerline)IRR27%atAg$19/oz &Au$1,200/ozOnbudget

Productionbymine2017Guidance

20%

1%

24%

18%

14%

11%

12%

18 January17,2017

26%

1%

17%

15%

10%

18%

13%

SilverOunces SilverEquivalentOunces

Basedonthemid-point ofproduction estimatesfor2017(Agof24.5M– 26.0Mounces,Auof155,000 - 165,000ounces, Znof56,500tonnes- 58,500 tonnes,Pb of19,000tonnes - 20,000 tonnes, andCuof8,750 tonnes - 9,250tonnes).Silverequivalentounceshavebeencalculatedforgoldandthebasemetalby-products usingthefollowing metalprices:Ag$17.00/oz,Au$1,200/oz, Zn$2,500/tonne, Cu$5,400/tonne,andPb $2,100/tonne.

January17,2017

Explorationandproductiongrowth• 2017explorationbudgetofUS$21M,up45%from2016

• Solidperformanceonreplacingproduction withnewreservesduring theperiod2004- 2015(1)

• Added293Moz ofcontainedsilvertomineralreservesduringtheperiod• AveragereservereplacementcostofUS$0.44/oz (2)

• LaColorada continuestodeliverinbothnewreservesandextensiontominelife

• HighpotentialatPeruoperations;nearsiteandgreenfieldexploration

• KootenaySilverInc.optionbringsanadvancedsilverexplorationprojectintothepipelinewithexcellentregionalexplorationpotential

• 100%ownerofNavidad,oneofthelargestundeveloped silverdeposit intheworld:

19 (1) Mineralreserveandresource information atDec.31,2016isexpected tobereleasedinFebruary,2017(2) Overtheperiod 2004-2015(3) Estimatedusingapriceof$12.52/oz ofsilver

Silver Resources(3)AsofDec.31,2015

ContainedAg(Moz) Tonnes (Mt) Ag(g/t)

Measured (containedMoz) 67.8 15.4 137

Indicated(containedMoz) 564.5 139.8 126

Inferred(containedMoz) 119.4 45.9 81

StrategicinitiativestosurfacevalueMaverix (1)

• PanAmericanrealizedvalueforassetshiddenwithinitsportfoliothroughsaletoMaverixMetalsInc.(royalties,preciousmetalsstreams)

• Providesadditionalleveragetogoldandsilverprices• OpportunetimingforMaverix toattractnewgrowthprospects,asindicatedbyMaverix’s

recentacquisitionofadditionalroyaltiesfromGoldFieldsNetherlandsServicesBV• Maverix hasamarketcapofaboutCAD$232Mandisup149%sincetheacquisitionof

PanAmericanassetsclosed(2)

• PanAmericanholdsapproximately40%ofMaverix (43%fully-diluted)

Milpo Shalipayco JointVenture• PanAmericansold75%ofitssharesinCompania Minera Shalipayco SACtoVotorantim

Metais – Cajamarquilla SAforUS$15Mcashand1%NetSmelterReturn(soldtoMaverix)• PanAmericanreceivesfreecarryofitsremaining25%interesttocommercialproductionin

thislargezincdevelopmentprojectlocatedinPeru

20 January17,2017

(1) SeepressreleasesdatedJuly11,2016andDec.27,2016,availableatwww.sedar.com(2) BasedonMaverix (MMX)openingprice onTSX-VonJuly12,2016ofCAD$0.70/sharecomparedtoclosingprice onJan.12,2017ofCAD$1.75/share.

JoaquinProject(Argentina)

21

• PanAmericantoacquire100%ofCoeurMining’s Joaquinproject:

• US$25M(US$15McashandUS$10MinPAASshares)plus a2%NSR

• SynergieswithPanAmerican’sManantial Espejo operation

• Processing capacityavailableatManantial Espejo plant

• Joaquinwithintruckingdistance

• Potentialforfurtherexplorationsuccess

Joaquinislocatedabout145KmfromourManantial Espejomine

Addinghigh-gradesatellitedepositstorealizefurthervalueatManantial Espejo

Formoreinformation seethepressreleasedatedJan.17,2017

WhyinvestinPAAS

22 January17,2017

1. Strong leveragetosilverprices– acommoditywithdemandforindustrialusesandasa“safe-haven”investment

2. Low-costsilverproducerwithgrowing production overthenext3years

3. Increasingfreecashflowpotentialfollowing completionofexpansionsatLaColoradaandDolores

4. Pipelineoforganicgrowthopportunities

5. Prudent financialmanagementcreatesvaluethroughout thecommoditypricecycle

Appendix

23

Companyoverview

• Listings:NASDAQ (PAAS)andTSX (PAA)

• Marketcap:US$2.6B(1)

• Sharesoutstanding: approx.152.2M

• Averagedailyvolume:2.6M(1)

• Paiddividends since2010- Currentyield0.3%(2)

52%46%

2%

Ownership(3)

ReportedInstitutional Impliedretail Insiders

24 January17,2017

AlldataasofcloseJan.10,2017(1)BasedonNasdaqexchange(2)Basedondividend declaredNov.14,2016,annualized(3)Source:IPREO

Sustainabilityleadership

25 January17,2017

Recognizedasaleaderinsustainabilityintheminingindustry

Plan

• Toolkits• Program

development

Engage

• StakeholderEngagement

• GrievanceMechanisms

Environmental&SocialAudits

SustainabilityReporting

InternalCapacityBuilding

EvaluatePerformanceMetrics

Implement

• Programsandprojectscoveringsustainabilitypillars

SustainabilityReport&Pillars

Education&Health

SustainableDevelopmentPrograms

LocalProcurementDevelopment

Infrastructure&UrbanFootprint

WaterandEnergy

Stewardship

TailingsFacilitySafety

EmergencyResponse

PreparednessMineClosure

Policy

• CSR• Environmental• Healthand

Safety• Governance

Sustainabilityawards&recognitions

Corporate

• CorporateKnightsrankedPanAmericanSilver36thontheirFuture40ResponsibleCorporateLeadersinCanada.

• ThePeruvian-CanadianChamberofCommerceawardedPanAmericanSilverthe“BusinessoftheYear2015”awardforourcontributionstosustainabledevelopmentthroughourUQLLU/Alpacadelos Andesweavingproject.

Mexico

• AllmineswereawardedwiththeSociallyResponsibleCompany(ESR)AwardpresentedbytheCentroMexicano paralaFilantropía (CEMEFI).

• AllminesmaintainedtheCleanIndustryindependentenvironmentalcertificationbytheMexicanEnvironmentProtectionAgency(PROFEPA).

26 January17,2017

Viewsonthesilvermarket(1)

27 January17,2017(1)Sourcesinclude: BloombergMetalsFocusDecember, 2016andGFMS,ThomsonReuters /TheSilverInstitute2016

• RealinterestratesintheU.S.likelytoremainlowin2017,despite expectedmonetarytightening

• USGDPgrowthconstrainedbyhighgovernmentdebt,limitinggovernment’s scopefornewroundoffiscalstimulus

• Europe’s bankingsectorremainsvulnerable

• Inflationarypressures arestartingtobuild

• Industrialdemandrepresentsjustunderhalfofthetotaldemandforsilver• Growingdemandthroughtheuseoftechnology, electronicsandrenewablesourcesofpower• Silverdemandfromthephotovoltaics industry nowrepresents14%ofsilver’s industrial demand,

upfromonly 1%adecadeago.• Emergingmarketeconomies, especiallyinChina, arestabilizing,liftingindustrialcommodity

demand

• Littletonogrowthinsilver supply becausemanyexplorationcompanies havenotbeeninvestinginexplorationandnewprojects

• Silversupply deficitexpectedin2017

Factorssupportcontinueddemandforsilverforbothindustrialapplicationsandasasafehavenasset

Consolidatedpreliminary2016operatingresults

Q42016 FullYear2016

Silverproduction(millionounces) 6.3 25.4

Goldproduction(thousandounces) 43.9 183.9

Zincproduction(thousandtonnes) 13.2 51.9

Leadproduction(thousandtonnes) 5.5 20.2

Copperproduction(thousandtonnes)

3.1 14.4

CashCosts(1) ($/ounce) 6.66 6.29

28 January17,2017

Preliminary CashCostsperpayableounceofsilver,netofby-product credits.Averageby-productmetalpricesfor2016were:Au$1,251/oz, Zn$2,095/tonne, Pb $1,872/tonne, andCu$4,860/tonne. CashCostsisanon-GAAPmeasureandreadersshouldrefer tothe“Alternative Performance (non-GAAP)Measures"sectionofPanAmerican’sManagement’sDiscussion andAnalysisfortheperiodendedSept.30,2016 formoreinformation.

Preliminary2016operatingresultsbymine

Mine SilverProduction (millionounces)

GoldProduction (thousand ounces)

CashCosts($/ounce)(1)

LaColorada 5.80 2.93 6.15

Dolores 3.84 102.76 -1.08

AlamoDorado 1.86 8.38 16.02

Huaron 3.81 0.81 5.79

Morococha (92.3%)(2) 2.54 2.14 4.21

SanVicente(95%)(2) 4.43 n/a 11.95

Manantial Espejo 3.14 66.89 4.28

Total(3) 25.42 183.92 6.29

29 January17,2017

(1)Preliminary CashCostsperpayableounceofsilver,netofby-product credits.Averageby-product metalprices for2016were:Au$1,251/oz, Zn$2,095/tonne, Pb $1,872/tonne, andCu$4,860/tonne. CashCostsisanon-GAAPmeasureandreadersshouldrefer torefertothe“AlternativePerformance (non-GAAP)Measures"sectionofPanAmerican’sManagement’sDiscussion andAnalysisfortheperiodendedSept.30,2016formoreinformation.(2)Reflects PanAmerican’s ownership intheoperation.(3)Totalsmaynotaddupduetorounding.

2017GuidancebymineMine

SilverProduction (millionounces)

GoldProduction(thousand ounces)

CashCosts($/ounce)(1)

La Colorada 6.4- 6.9 3.3- 3.5 3.35- 3.95

Dolores 4.0- 4.5 109.1- 115.0 1.25- 2.25

AlamoDorado 0.3 1.4- 1.5 18.00- 20.00

Huaron 3.7- 3.8 0.3- 0.4 5.95- 6.95

Morococha (92.3%)(2) 2.5- 2.6 2.9- 3.1 3.15- 4.15

SanVicente (95%)(2) 4.4- 4.5 0.5- 0.6 10.90- 11.90

Manantial Espejo 3.3- 3.4 37.5- 41.0 15.35- 16.25

Total(3) 24.5- 26.0 155.0- 165.0 6.45- 7.45

30 January17,2017

(1)CashCostsisanon-GAAPmeasureandreadersshould refertothe“AlternativePerformance (non-GAAP)Measures"section ofPanAmerican’s Management’sDiscussion andAnalysisfortheperiodendedSept.30,2016formoreinformation.(2)Reflects PanAmerican’s ownership intheoperation.(3)Totalsmaynotaddupduetorounding.

Three-yearoutlook2017Guidance 2018Outlook 2019Outlook

Silver production (million ounces) 24.5– 26.0 26.0- 28.0 26.5– 29.5

Gold production (thousand ounces) 155- 165 170- 185 175- 200

Zinc production (thousand tonnes) 56.5- 58.5 59.0- 63.0 55.0- 65.0

Lead production (thousand tonnes) 19.0- 20.0 23.0- 26.0 23.0- 27.0

Copper production (thousand tonnes) 8.75- 9.25 6.00- 8.00 4.00- 4.20

Cash Costs(1)($/ounce) 6.45- 7.45 5.60- 7.10 5.20– 6.80

Sustaining capital ($ millions) 82- 88 75- 85 75- 90

AISCSOS(1) ($/ounce) 11.50- 12.90 10.00- 12.20 9.30- 11.60

31 January17,2017

(1)CashCostsandAISCSOSarenon-GAAPmeasures. Pleaserefertothe“AlternativePerformance (non-GAAP)Measures"section ofPanAmerican’s Management’sDiscussion andAnalysisfortheperiodendedSept.30,2016formoreinformation.

PanAmericanSilverProvenandProbableReservesatDecember31,2015(1)(2)

Property Location Category Tonnes(Mt)

Agg/t

ContainedAg(Moz)

Aug/t

ContainedAu (000’soz)

Cu%

Pb%

Zn%

Huaron Peru Proven 6.1 172 33.6 0.41 1.40 2.99Probable 3.7 167 19.9 0.27 1.58 3.17

Morococha (92.3%) (3) Peru Proven 2.3 176 13.0 0.78 1.18 3.57Probable 1.9 202 12.6 0.53 1.35 3.70

La Colorada Mexico Proven 3.3 474 49.6 0.35 36.2 1.69 3.15Probable 3.7 346 41.6 0.30 35.9 1.18 2.06

Dolores Mexico Proven 23.0 28 20.7 0.96 706.0Probable 29.2 34 32.4 0.92 864.0

Alamo Dorado Mexico Proven 1.6 55 2.9 0.23 12.2Probable 0.0 - -

La Bolsa Mexico Proven 9.5 10 3.1 0.67 203.0Probable 6.2 7 1.4 0.57 113.1

Manantial Espejo Argentina Proven 2.5 120 9.4 1.60 126.4Probable 0.3 262 2.4 3.90 35.6

SanVicente(95%)(3) Bolivia Proven 2.0 482 30.4 0.35 2.66Probable 0.4 511 6.9 0.48 2.24

Total (4) Proven+Probable 95.7 91 280.1 0.84 2132.4 0.45 1.30 2.97

32 January17,2017

(1) As of Dec. 31, 2015. Prices used to estimate mineral reserves for 2015 were $17/oz of silver, $1,180/oz of gold, $1,800/tonne of lead, $1,800/tonne of z inc,and $5,000/tonne of copper, except atManantial Espejo where $14.50/oz of silver and $1,100/oz of gold was used for planned 2016 production, revertingto the previously statedmetal prices thereafter, and Alamo Dorado stockpiles where metal prices of $15/oz of silver and $1,100/oz of gold were used due totheir planned processing in the short term. Metal prices used for La Bolsa were $14/oz of silver and $825/oz of gold.

(2) Mineral reserve estimates were prepared under the supervision of, or were reviewed by Martin G. Wafforn, P. Eng., Sr. Vice President Technical Services andProcess Optimization, who is the Qualified Person as that term is defined in National Instrument 43-101 (“NI 43-101). Please refer to the Company’s AnnualInformation Form date March 24, 2016, available atwww.sedar.com for further information on these properties, including with respect to mineral reserves.

(3) This information represents the portion of mineral reserves attributable to Pan American based on its ownership interest in the operating entity as indicated.(4) Totals may not add up due to rounding.

33 January17,2017

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