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8/12/2019 Exploration_Analyst Day FINAL
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Geology and Exploration
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Organizational Chart
2
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Our Assets
3
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Exploration Highlights
4
2004-2011 Proven and probable reserve replacement of 120%
Reserve addition of 198.2M oz
Reserve replacement cost of US$0.32 per ounce
2012
Exploration budget of US$ 35.2 M (incl. Minefinders portfolio), total drillprogram of 198,400 meters
Brownfield program to explore large exploration potential at our currentproducing assets and development projects ($19.1 M)
Greenfield program to explore portfolio of Greenfield and Joint Ventureprojects ($16.1 M)
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2011 Silver Reserves Replacement*
5
PropertyReservesend 2010(Moz Ag)
Mined2011
(Moz Ag)
Gained /Lost
(Moz Ag)
Reservesend 2011(Moz Ag)(1)
AdditionVariation
11/12
Morococha 37.6 (2.0) 1.5 37.1 4% (1%)
Huaron 59.3 (3.5) 5.1 60.9 9% 3%
Quiruvilca 3.9 (1.1) 1.3 4.2 33% 6%
La Colorada 38.3 (4.8) 10.6 44.1 28% 15%
AlamoDorado
27.2 (5.7) 4.3 25.8 16% (5%)
San Vicente 28.0 (3.5) 9.5 34.1 34% 22%
ManantialEspejo
36.3 (4.2) (3.0) 29.1 (8%) (20%)
Total (2) 230.7 (24.7) 29.3 235.3 13% 2.0%
Proven & Probable Silver Mineral Reserves Replacement
(1) Unless otherwise noted, the December 31, 2011 Proven and Probable Mineral Reserves were estimated using appropriate cut-off grades basedon assumed metal prices of Ag: $25.00/oz, Au: $1,350/oz, Pb: $1,850/tonne, Zn: $1,750/tonne, Cu: $6,500/tonne(2) Totals may not add up due to rounding
* For complete silver and gold Mineral Reserves and Resources information please refer to the Operations / Reserves & Resourcessection of PAAS website (www.panamericansilver.com).
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2011 Proven & ProbableSilver Mineral Reserves
6
(1) Unless otherwise noted, the December 31, 2011 Proven and Probable Mineral Reserves for the Alamo Dorado, La Colorada, Huaron, Morococha, Quiruvilca, SanVicente and Manantial Espejo mines were estimated using appropriate cut-off grades based on assumed metal prices of Ag: $25.00/oz, Au: $1,350/oz, Pb:$1,850/tonne, Zn: $1,750/tonne, Cu: $6,500/tonne(2) Dolores Reserves as stated by Minefinders at December 31, 2010
* For complete silver and gold Mineral Reserves and Resources information please refer to the Operations / Reserves & Resour ces section ofPAAS website (www.panamericansilver.com).
MillionTonnes
AgGrams/Tonne
AgMillionOunces
AuGrams/Tonne
Au000s
Ounces
AgEq *Grams/Tonne
AgEq *MillionOunces
PAS Reserves (1) 39.9 184 235.3 0.96 618 210 266.8
DoloresReserves (2)
107.6 33 114.5 0.58 2,024 63 216.9
Total 147.5 74 349.8 0.68 2,642 103 483.7
DoloresContribution
(increase)
- - 49% - 428% - 81%
The Dolores Effect
* Silver-equivalent ounces calculated using equivalence of 51:1
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Relative Positioning of Diversified Silver
Mining Companies
Enterprise Value / AgEq Proven & Probable Reserves1
Enterprise Value / AgEq Measured & Indicated Resources1,2
1 Silver Equivalent includes Gold and Silver only. Gold converted to silver equivalent using silver to gold price ratio implied by long-term analyst consensus prices (58:1).2 Measured & Indicated Mineral Resources inclusive of Proven and Probable Mineral Reserves.Source: Bloomberg Financial Markets and company reports.
$4 /oz
$4 /oz
$4 /oz
$4 /oz
$5 /oz
$8 /oz
$10 /oz
$11 /oz
$17 /oz
$22 /oz
$22 /oz
$31 /oz
Pan American
Primero
Coeur d'Alene
Silver Standard
Hecla
Fortuna
Silver Wheaton
Silvercorp
First Majestic
Fresnillo
Hochschild
Endeavour
Great Panther $49/oz
$1/oz
$2/oz
$2/oz
$3/oz
$4/oz
$4/oz
$6/oz
$6/oz
$7/oz
$9/oz
$9/oz
$19/oz
$19/oz
Silver Standard
Coeur d'Alene
Pan American
Hecla
Primero
Hochschild
Silvercorp
Fortuna
Silver Wheaton
First Majestic
Endeavour
Fresnillo
Great Panther
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Brownfield Exploration
8
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Exploration Highlights - La Colorada
9* net smelter return per ton (Ag $25.00/oz, Cu $6,500/t, Pb $1,850/t, Zn $1,750/t)
Exceptional results from NC2 and NC2 split veins with up to 2,734 g/t Ag and from the
Amolillo vein with up to 2.41 m @ 1,750 g/t Ag and high base metal values
April drilling at NC2 sulphides returned 0.60m @ 378g/t Ag, 0.63 g/t Au, 6.80%
Pb, 6.71% Zn at level 1008 (540 meters below current mine workings)!
Estrella vein (Amolillo) discovered high grade sulphide zone at depth and to the West(April drilling returned 2.62 m @ 1,096 g/t Ag, 1.38 g/t Au, 2.75% Pb, 4.17% Zn)
Vein Width m g/t Ag g/t Au Pb % Zn %
Amolillo split 1.15 419 0.37 N/A N/A
Amolillo split 1.25 666 0.05 1.46 369.00
Estrella vein, Amolillo 2.41 1,750 0.63 3.01 6.70
Estrella vein, Amolillo 4.50 329 0.29 1.04 3.11
Estrella, sulphides 2.34 389 0.33 1.38 5.47
Estrella, sulphides 3.21 246 0.32 3.14 4.91
Estrella, sulphides 2.90 396 0.56 2.06 3.31
HW sulphides 1.17 704 0.45 5.59 3.67HW sulphides 1.85 155 0.05 0.53 2.20
HW sulphides 1.41 365 0.18 0.46 0.61
NC2 1.52 996 0.55 8.30 20.90
NC2 3.25 446 1.47 4.49 10.08
NC2 split 0.85 2,734 0.98 4.45 9.00
NC2 split 1.55 300 0.10 3.87 4.55
NC2 split 0.45 918 0.97 1.92 6.20
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La Colorada NC2 Sulphides
10
540metres
An 2.98
Ag 77
Au 0.12
Pb 5.28
Zn 2.61
An (width m)
Ag g/t
Au g/t
Pb %
Zn %
An 0.60
Ag 378
Au 0.63
Pb 6.80
Zn 6.71
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La Colorada Estrella vein (Amolillo mine)
11
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Dolores Exploration
13
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Brownfield Exploration Budget
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Exploration (Drilling andDevelopment)- USD Drilling cost- USD DDH (m)
Explorationdevelopment
Morococha 3,300,000 2,865,000 35,000 435,000Huaron 2,400,000 2,400,000 22,650 -
San Vicente 1,056,600 1,056,600 8,560 -
La Colorada 2,630,000 1,999,200 21,150 630,800
Alamo Dorado 1,260,000 1,260,000 4,500 -
Manantial Espejo 4,897,200 4,897,200 24,200 -
Dolores 3,588,300 3,588,300 22,400 -
Total Brownfield 19,132,100 18,066,300 138,460 1,065,800
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Greenfield Exploration
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La Virginia core
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Greenfield Exploration projects Mexico
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La Virginia Project
17
Ag/Au ratio of 60:1 used forAuEq calculation
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La Virginia drill results
18
Lots of smoke, but still
very early stage
Continuing drilling andeventual development ofresource
DDH Location From To Length Au g/t Ag g/t
LV10-4C Las Huatas Oeste 113 115 2.00 12.17 52
LV10-7C Con Virginia 146 147.5 1.50 3.13 225
LV10-8C Con Virginia 181.9 183 1.10 5.75 434LV10-13C Las Huatas 291.3 294.3 3.00 5.25 330
LV10-25C Con Virginia 178.3 184.7 6.40 4.60 283
LV10-25C Con Virginia 184 184.7 0.70 14.06 1,195
LV11-28C Las Huatas 192 193 1.00 5.07 369
LV11-29C Con Virginia 232.8 234 1.20 4.44 363
LV11-30C Las Huatas 122.5 125.6 3.10 7.77 475
LV11-30C Las Huatas 132.5 138.5 6.00 2.14 192
LV11-30C Las Huatas 270 272 2.00 2.69 215
LV11-30C Las Huatas 321.5 323 1.50 2.39 212
LV11-33C Las Huatas 222.5 225.5 3.00 4.21 99
LV11-33C Las Huatas 253.5 256.45 2.95 2.85 274
LV11-33C Las Huatas 295 296 1.00 2.98 250
LV11-33C Las Huatas 366.8 368.45 1.65 4.58 103LV11-33C Las Huatas 480 482 2.00 6.51 226
LV11-35C Las Huatas 162 165 3.00 4.02 332
LV11-36C Las Huatas 196.6 200.1 3.50 3.58 1,348
LV11-36C Las Huatas 219.2 224 4.80 7.89 547
LV11-36C Las Huatas 232 237 5.00 8.52 730
LV11-40C Las Huatas 84 87 3.00 3.84 202
LV11-40C Las Huatas 170.5 171.6 1.10 3.52 205
LV11-44C Campo Santo 153 155 2.00 6.39 9
LV11-46C Las Huatas 92 93 1.00 2.23 310
LV11-47C Las Huatas 121 125 4.00 41.01 1,818
LV11-47C Las Huatas 397 398 1.00 4.97 269
LV11-49C Las Huatas 172 174 2.00 3.51 279
LV11-49C Las Huatas 195.8 196.8 1.00 2.69 195LV11-49C Las Huatas 226.5 233.2 6.70 2.74 158
LV11-50C Las Huatas 243.3 244.8 1.50 3.50 399
LV11-50C Las Huatas 250.8 255.3 4.50 9.01 544
LV11-53C Las Huatas 272.5 274 1.50 6.52 625
LV11-56C Las Huatas 259 260 1.00 2.55 185
LV11-57C Las Huatas 241.7 242.85 1.15 9.67 658
LV11-57C Las Huatas 335.85 336.85 1.00 5.05 282
LV11-59C Las Huatas 315.3 318 2.70 3.93 259
LV11-63C Las Huatas 155.2 157 1.80 0.05 768
LV12-78C Con Virginia 245 246 1.00 3.27 196
LV12-86C Con Virginia 228.9 230.6 1.70 18.27 794
LV12-90C Las Huatas 272 274 2.00 2.64 197
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19
Located 60km south of Ing. Jacobacci in theprovince of Rio Negro
Land package of 56,660 hectares
Low sulphidation epithermal Gold/Silver deposit
Calcatreu, Rio Negro, Argentina
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Calcatreu Rio Negro, Argentina
20
Work planned:
Infill drilling, metallurgical test work and new resource estimation in progress
CALCATREU RESOURCE ESTIMATE - IndicatedExtraction
MethodTonnes Au g/t Ag g/t
ContainedOz Au
ContainedOz Ag
AuEq g/t AuEq oz
Open Pit 4,081,000 4.1 37.7 537,960 4,946,590 4.69 615,790Leach 2,959,000 0.46 7.3 43,760 694,490 0.57 54,410
Underground 955,000 3.09 31.1 94,880 954,910 3.58 110,020Grand Total 7,995,000 2.63 25.7 676,040 6,606,160 3.04 780,220
CALCATREU RESOURCE ESTIMATE - InferredExtraction
MethodTonnes Au g/t Ag g/t
ContainedOz Au
ContainedOz Ag
AuEq g/t AuEq oz
Open Pit 2,244,000 2.56 19 184,700 1,370,800 2.86 206,310Leach 909,000 0.56 8.3 16,370 242,570 0.69 20,110
Underground 260,000 3.04 25 25,410 208,980 3.44 28,720Grand Total 3,413,000 2.06 16.6 226,050 1,821,550 2.33 255,140
Resource estimation done by Miocon for Aquiline Resources in 2008 based on $650/oz Au and $12.50/oz Ag .The table above reflects three cutoff grade categories, namely 1) open pittable 2) recoverable by heap leach and 3) underground mineable. The principal optimization parameters for the openpittable ore were mining costs of $1.45/ tonne of rock, processing at $16.63/tonne, G&A at $2.92/ tonne and pit slopes of 55 degrees. Updated gold and silver prices of $650/oz Au and$12.50/oz Ag were used ($US). A Whittle pit optimization was completed therefore no specific cutoff grade was used for the whole pit, but the internal cutoff grade calculated was 1.04 g/t Au.The heap leachable ounces (which need to be mined to access the ore, but will not meet milling cutoff grades) were assumed at a marginal cutoff of 0.34 g/t Au. The underground cutoff gradewas assumed to be 2.1 g/t AuEq. The gold/ silver ratio for gold equivalency is derived from the respective metal prices and recoveries as follows: ($650/$12.50)(74%/90%) = 63.2ThereforeAuEq= Au + (Ag/63.2)
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Waterloo, USA
21
Location 10 miles from Barstow, SanBernardino County, California
Land Package 1,009 hectares
Deposit type: Ag-BaSO4
Work plan: Geology, Geochemistry and +
3,500 meters of drilling
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Waterloo, USA
22
Historic Resources (Asarco 1968, reviewed in 1994)
The historical estimate for Waterloo was initially estimated by Asarco Inc. in 1968. In September 1994 RobertJ. Rodger, P.Eng., reviewed the Asarco reports and prepared a Technical Evaluation Report on the Waterlooproperty, prior to the implementation of NI 43-101. The Technical Evaluation Report confirmed that thehistorical estimate was based on reverse circulation drilling and underground sampling, and concluded the
estimate was based on sound methodology. The historical estimate at Waterloo was prepared using a silverprice of $5.00 per ounce (the relevant price at the time of the calculation). Michael Steinmann, P.Geo., QP forthe Company, has reviewed the Technical Evaluation Report and believes the historic estimate wasconducted in a professional and competent manner and is relevant for purposes of the Company's decision tomaintain its interest in the property. The Company believes that the historical estimate category of 37,235,000tons (at 2.71 ounces per ton silver) of "measured and indicated reserves" most closely correspond to33,758,000 tonnes in the NI 43-101 category of "indicated resource." However, the Company has notcompleted the work necessary to verify the historical estimate. Accordingly, the Company is not treating thehistorical estimate as NI 43-101 compliant categories of mineral resources based on information prepared byor under the supervision of a QP. These historical estimates should not be relied upon.
Property Location Classification Tonnes (Mt) AgContained
Ag(g/t) (Moz)
Waterloo USA Historical 33.8 93 100.9
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Greenfiled Exploration Budget
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Focus on: Drilling and resource estimation for La Virgina Review of all other Minefinders projects and make decisions for farm-outs or
sales etc.
Greenfield exploration Cost Drilling meters
Peru greenfield $ 3,143,900 12,500Argentina greenfield projects $ 1,073,000 2,000Navidad $ 1,305,000 9,000Mexico greenfield projects $ 1,418,460 5,300
Waterloo $ 500,000 3,500La Virginia $ 6,816,740 27,700
Sonora properties (ex Minefinders) $ 1,859,420 0
Grand Total: $ 16,116,520 60,000
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PAS Mining claims
24
Brownfield (hectares) Greenfield (hectares)TOTAL
Operations and Advanced Projects Early Stage Exploration
Mexico 45,481 102,937 148,418
Peru 23,833 76,065 99,898
Argentina 43,621 417,271 460,892
USA 3,470 - 3,470
TOTAL 116,405 596,273 712,678
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Summary
25
Excellent potential at La Virginia for resource development
Exciting results from deep drilling at La Colorada and potential extension ofmine life
Great upside potential at Dolores for open pit expansion and underground
operation
Unrecognized portfolio of small to mid size gold assets (Pico Machay, LaBolsa, Calcatreu)1.4 million ounces measured & indicated and 0.9 millionounces inferred
Very large portfolio of early and mid stage silver exploration projects
Outstanding track record of reserve replacement
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Cautionary Statements
26
CAUTIONARY NOTE REGARDING MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES
Mineral resources that are not mineral reserves have no demonstrated economic viability. PAA is required to describemineral resources associated with their properties utilizing Canadian Institute of Mining, Metallurgy and Petroleum("CIM") definitions of "indicated" or "inferred", which categories of resource are recognized by Canadian regulations butare not recognized by the United States Securities Exchange Commission (the "SEC"). The definitions of proven andprobable mineral reserves used in National Instrument 43-101 Standards of Disclosure for Mineral Projects adopted byCanadian Securities Administrators ("NI 43-101") differ from the definitions in the SEC Industry Guide 7. In addition,the terms "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineralresource" are defined in and required to be disclosed by NI 43-101; however, these terms are not defined terms underSEC Industry Guide 7 and normally are not permitted to be used in reports filed with the SEC. Investors are cautioned
not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves."Inferred mineral resources" have a great amount of uncertainty as to their existence and as to their economic andlegal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to ahigher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility orpre-feasibility studies, except in rare cases.
Disclosure of contained ouncesin a mineral resource is permitted disclosure under Canadian regulations. However,the SEC normally only permits issuers to report mineralization that does not constitute reservesby SEC standards asin place tonnage and grade, without reference to unit measures. The requirements of NI 43-101 for identification ofreservesare also not the same as those of the SEC, and mineral reserves reported by the Company in compliancewith NI 43-101 may not qualify as reservesunder SEC standards.
Accordingly, information contained in this investor presentation containing descriptions of mineral deposits may not becomparable to similar information made public by U.S. companies subject to the reporting and disclosurerequirements under the United States federal securities laws and the rules and regulations hereunder.
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Endnotes andCautionary Statements
Michael Steinmann, P.Geo. Executive Vice President, Geology and Exploration of PAA and Martin Wafforn, P. Eng., VicePresident, Technical Services of PAA are the Qualified Personswithin the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101) who supervised the preparation of the scientific andtechnical information of PAA included in this presentation. For more information on PAAs projects, readers shouldrefer to the PAAs Annual Information Form for the year ended December 31, 2011, dated March 22, 2011 and thetechnical reports referenced therein and PAAs Annual Report for the year ended December 31, 2011, each of which isavailable on SEDAR at www.sedar.com.
The scientific and technical information related to the Navidad project resources included in this investor presentation
are derived from the technical report for the Navidad Project prepared by Snowden Mining Industry Consultants(Snowden), under the supervision of Pamela De Mark, BSc (App Geo), MAusIMM., which is available on SEDAR atwww.sedar.com.
http://www.sedar.com/http://www.sedar.com/