6-K - PAAS - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________

FORM 6-K

_____________________

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT of 1934

August 10, 2022

_____________________

Pan American Silver Corp.

(Exact name of registrant as specified in its charter)

1500-625 HOWE STREET

VANCOUVER BC CANADA V6C 2T6

(Address of principal executive offices)

000-13727

(Commission File Number)

_____________________

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F	Form 40-F	X

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1). _____

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): _____

EXHIBIT LIST

Exhibit	Description
99.1	Interimpaas06-30x2022financialsex.htmFinancial Statements for the Period Ended June 30, 2022
99.2	Management’s Discussion and Analysis for the Period Ended June 30 , 2022
99.3	CEO Certificate
99.4	CFO Certificate
99.5	Pan American Silver reports Q 2 2022results

Exhibits 99.1 and 99.2 of this report on Form 6-K is incorporated by reference into the Registrant’s registration statements on Form S-8 (Nos. 333-180494, 333-180495, 333-206162 and 333-229795) that have been filed with the Securities and Exchange Commission.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Pan American Silver Corp.
	(Registrant)
Date: August 10, 2022	By:	/s/ "Delaney Fisher"
		Delaney Fisher
		Senior Vice President, Associate General Counsel and Corporate Secretary

Document

Unaudited Condensed Interim Consolidated Financial Statements and Notes

FOR THE THREE AND SIX MONTHS ENDING JUNE 30, 2022

| Condensed Interim Consolidated Statements of Financial Position (unaudited, in thousands of U.S. dollars) | | --- || | June 30, | | December 31, | | | --- | --- | --- | --- | --- | | | 2022 | | 2021 | | | Assets | | | | | | Current assets | | | | | | Cash and cash equivalents (Note 21) | $ | 194,829 | $ | 283,550 | | Short-term investments (Note 5) | 46,430 | | 51,723 | | | Trade and other receivables | 135,233 | | 128,150 | | | Income tax receivables | 42,736 | | 20,282 | | | Inventories (Note 6) | 435,362 | | 500,462 | | | Derivative assets (Note 4a) | 6,905 | | 3,995 | | | Prepaid expenses and other current assets | 10,805 | | 13,007 | | | | 872,300 | | 1,001,169 | | | Non-current assets | | | | | | Mineral properties, plant and equipment (Note 7) | 2,243,142 | | 2,344,551 | | | Long-term inventories (Note 6) | 26,773 | | 25,644 | | | Long-term tax receivables | 8,809 | | 8,711 | | | Deferred tax assets | 54,740 | | 55,953 | | | Long-term investment (Note 9) | 112,472 | | 77,410 | | | Goodwill & other assets | 5,332 | | 5,146 | | | Total assets | $ | 3,323,568 | $ | 3,518,584 | | Liabilities | | | | | | Current liabilities | | | | | | Accounts payable and accrued liabilities (Note 10) | $ | 301,692 | $ | 306,087 | | Derivative liabilities (Note 4a) | 245 | | 351 | | | Provisions (Note 11) | 12,132 | | 8,041 | | | Lease obligations (Note 12) | 13,555 | | 10,663 | | | Debt (Note 13) | 7,371 | | 3,400 | | | Income tax payables | 23,384 | | 59,133 | | | | 358,379 | | 387,675 | | | Non-current liabilities | | | | | | Long-term provisions (Note 11) | 244,690 | | 240,111 | | | Deferred tax liabilities | 159,665 | | 184,785 | | | Long-term lease obligations (Note 12) | 18,968 | | 19,898 | | | Long-term debt (Note 13) | 23,329 | | 11,900 | | | Deferred revenue (Note 14) | 14,637 | | 12,516 | | | Other long-term liabilities (Note 15) | 26,280 | | 25,691 | | | Total liabilities | 845,948 | | 882,576 | | | Equity (Note 16) | | | | | | Issued capital | 3,137,457 | | 3,136,214 | | | Share option reserve | 93,266 | | 93,375 | | | Investment revaluation reserve (Note 4c) | (12,205) | | — | | | Deficit | (746,016) | | (598,035) | | | Total equity attributable to Company shareholders | 2,472,502 | | 2,631,554 | | | Non-controlling interests | 5,118 | | 4,454 | | | Total equity | 2,477,620 | | 2,636,008 | | | Total liabilities and equity | $ | 3,323,568 | $ | 3,518,584 |

Contingencies (Note 24)

See accompanying notes to the condensed interim consolidated financial statements

APPROVED BY THE BOARD ON AUGUST 10, 2022

"signed"	Gillian Winckler, Director	"signed"	Michael Steinmann, Director
PAN AMERICAN SILVER CORP.	1
---	---
Condensed Interim Consolidated Statements of<br><br>Earnings and Comprehensive Earnings<br><br>(unaudited, in thousands of U.S. dollars)
---			Three months ended <br>June 30,				Six months ended <br>June 30,
---	---	---	---	---	---	---	---	---
	2022		2021		2022		2021
Revenue (Note 22)	$	340,469	$	382,132	$	780,357	$	750,231
Cost of sales (Note 22)
Production costs (Note 17)	(288,282)		(199,429)		(567,110)		(392,609)
Depreciation and amortization	(74,327)		(68,540)		(158,853)		(143,633)
Royalties	(9,512)		(11,115)		(19,291)		(20,977)
	(372,121)		(279,084)		(745,254)		(557,219)
Mine operating (loss) earnings (Note 22)	(31,652)		103,048		35,103		193,012
General and administrative	(8,315)		(9,465)		(19,208)		(17,517)
Exploration and project development	(4,175)		(2,103)		(6,974)		(4,583)
Mine care and maintenance (Note 18)	(12,291)		(7,757)		(21,959)		(15,023)
Foreign exchange losses	(5,135)		(2,241)		(8,189)		(4,650)
Impairment charges (Note 8)	(99,064)		—		(99,064)		—
Gains on derivatives (Note 4d)	3,693		3,120		8,055		5,490
(Losses) gains on sale of mineral properties, plant and equipment	(522)		4,146		(699)		4,256
Gains and income from associates (Note 9)	—		3,320		45,033		3,518
Other income	3,650		1,704		4,731		2,558
(Loss) earnings from operations	(153,811)		93,772		(63,171)		167,061
Investment (loss) income (Note 4b)	(7,654)		10,644		(4,828)		(28,389)
Interest and finance expense (Note 19)	(5,299)		(3,579)		(10,494)		(7,420)
(Loss) earnings before income taxes	(166,764)		100,837		(78,493)		131,252
Income tax expense (Note 23)	(6,868)		(29,596)		(18,308)		(67,573)
Net (loss) earnings	$	(173,632)	$	71,241	$	(96,801)	$	63,679
Net (loss) earnings attributable to:
Equity holders of the Company	$	(173,982)	$	70,939	$	(97,465)	$	63,141
Non-controlling interests	350		302		664		538
	$	(173,632)	$	71,241	$	(96,801)	$	63,679
Other comprehensive (loss) earnings, net of taxes
Items that will not be reclassified to net earnings:
Unrealized loss on long-term investment (Note 4c)	$	(12,205)	$	—	$	(12,205)	$	—
Total comprehensive (loss) earnings	$	(185,837)	$	71,241	$	(109,006)	$	63,679
Total comprehensive (loss) earnings attributable to:
Equity holders of the Company	$	(186,187)	$	70,939	$	(109,670)	$	63,141
Non-controlling interests	350		302		664		538
	$	(185,837)	$	71,241	$	(109,006)	$	63,679
(Loss) earnings per share attributable to common shareholders (Note 20)
Basic (loss) earnings per share	$	(0.83)	$	0.34	$	(0.46)	$	0.30
Diluted (loss) earnings per share	$	(0.83)	$	0.34	$	(0.46)	$	0.30
Weighted average shares outstanding (in 000’s) Basic	210,514		210,284		210,489		210,273
Weighted average shares outstanding (in 000’s) Diluted	210,514		210,438		210,489		210,436

See accompanying notes to the condensed interim consolidated financial statements.

PAN AMERICAN SILVER CORP.	2
Condensed Interim Consolidated Statements of Cash Flows<br><br>(unaudited, in thousands of U.S. dollars)
---			Three months ended <br>June 30,				Six months ended <br>June 30,
---	---	---	---	---	---	---	---	---
	2022		2021		2022		2021
Operating activities
Net (loss) earnings for the period	$	(173,632)	$	71,241	$	(96,801)	$	63,679
Income tax expense (Note 23)	6,868		29,596		18,308		67,573
Depreciation and amortization	74,327		68,540		158,853		143,633
Gains and income from associates (Note 9)	—		(3,320)		(45,033)		(3,518)
Impairment charges (Note 8)	99,064		—		99,064		—
Accretion on closure and decommissioning provision (Notes 11,19)	3,710		1,869		7,420		3,738
Unrealized foreign exchange losses	3,544		1,608		5,872		3,775
Interest expense (Note 19)	1,014		782		1,909		1,825
Investment income (loss) (Note 4b)	7,654		(10,644)		4,828		28,389
Interest paid	(1,389)		(1,245)		(2,759)		(2,460)
Interest received	722		12		740		129
Income taxes paid	(42,446)		(21,019)		(100,719)		(82,352)
Other operating activities (Note 21)	60,910		(13,262)		72,480		(23,005)
Net change in non-cash working capital items (Note 21)	(19,511)		(37,015)		(34,569)		(84,413)
	$	20,835	$	87,143	$	89,593	$	116,993
Investing activities
Payments for mineral properties, plant and equipment	$	(71,800)	$	(63,170)	$	(133,253)	$	(111,141)
Proceeds from disposition of mineral properties, plant and equipment	65		14,026		7,764		14,796
Proceeds from short-term investments	315		633		1,019		888
Net proceeds from derivatives	3,062		2,584		5,040		5,068
	$	(68,358)	$	(45,927)	$	(119,430)	$	(90,389)
Financing activities
Proceeds from common shares issued	$	361	$	296	$	684	$	335
Distributions to non-controlling interests	—		(322)		—		(635)
Dividends paid	(25,261)		(14,720)		(50,516)		(29,438)
Proceeds from debt (Note 13)	800		—		800		—
Repayment of debt (Note 13)	(1,111)		—		(1,961)		—
Payment of equipment leases	(3,471)		(2,853)		(6,890)		(5,835)
	$	(28,682)	$	(17,599)	$	(57,883)	$	(35,573)
Effects of exchange rate changes on cash and cash equivalents	(842)		11		(1,001)		(1,019)
(Decrease) increase in cash and cash equivalents	(77,047)		23,628		(88,721)		(9,988)
Cash and cash equivalents at the beginning of the period	271,876		133,497		283,550		167,113
Cash and cash equivalents at the end of the period	$	194,829	$	157,125	$	194,829	$	157,125

Supplemental cash flow information (Note 21).

See accompanying notes to the condensed interim consolidated financial statements.

PAN AMERICAN SILVER CORP.	3
Condensed Interim Consolidated Statements of Changes in Equity<br><br>(unaudited, in thousands of U.S. dollars, except for number of shares)
---			Attributable to equity holders of the Company
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Issued<br>shares	Issued<br>capital		Share option reserve		Investment<br>revaluation<br>reserve		Deficit		Total		Non-<br>controlling<br>interests		Total<br>equity
Balance, December 31, 2020	210,258,667	$	3,132,140	$	93,409	$	—	$	(623,030)	$	2,602,519	$	3,320	$	2,605,839
Total comprehensive earnings
Net earnings for the year	—	—		—		—		97,428		97,428		1,134		98,562
Shares issued on the exercise of stock options	65,780	762		(143)		—		—		619		—		619
Shares issued as compensation	133,077	3,312		—		—		—		3,312		—		3,312
Share-based compensation on option grants	—	—		109		—		—		109		—		109
Distributions by subsidiaries to non-controlling interests	—	—		—		—		(933)		(933)		—		(933)
Dividends paid	—	—		—		—		(71,500)		(71,500)		—		(71,500)
Balance, December 31, 2021	210,457,524	$	3,136,214	$	93,375	$	—	$	(598,035)	$	2,631,554	$	4,454	$	2,636,008
Total comprehensive loss
Net loss for the period	—	—		—		—		(97,465)		(97,465)		664		(96,801)
Other comprehensive loss	—	—		—		(12,205)		—		(12,205)		—		(12,205)
	—	—		—		(12,205)		(97,465)		(109,670)		664		(109,006)
Shares issued on the exercise of stock options	53,695	916		(232)		—		—		684		—		684
Shares issued as compensation	14,745	327		—		—		—		327		—		327
Share-based compensation on option grants	—	—		123		—		—		123		—		123
Dividends paid	—	—		—		—		(50,516)		(50,516)		—		(50,516)
Balance, June 30, 2022	210,525,964	$	3,137,457	$	93,266	$	(12,205)	$	(746,016)	$	2,472,502	$	5,118	$	2,477,620	Attributable to equity holders of the Company
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Issued<br>shares	Issued<br>capital		Share option reserve		Investment<br>revaluation<br>reserve		Deficit		Total		Non-<br>controlling<br>interests		Total<br>equity
Balance, December 31, 2020	210,258,667	$	3,132,140	$	93,409	$	—	$	(623,030)	$	2,602,519	$	3,320	$	2,605,839
Total comprehensive earnings
Net earnings for the period	—	—		—		—		63,141		63,141		538		63,679
Shares issued on the exercise of stock options	31,072	405		(70)		—		—		335		—		335
Shares issued as compensation	9,646	325		—		—		—		325		—		325
Share-based compensation on option grants	—	—		54		—		—		54		—		54
Distributions by subsidiaries to non-controlling interests	—	—		—		—		(635)		(635)		—		(635)
Dividends paid	—	—		—		—		(29,438)		(29,438)		—		(29,438)
Balance, June 30 2021	210,299,385	$	3,132,870	$	93,393	$	—	$	(589,962)	$	2,636,301	$	3,858	$	2,640,159

See accompanying notes to the condensed interim consolidated financial statements.

PAN AMERICAN SILVER CORP.	4
	Notes to the Condensed Interim Consolidated Financial Statements
---	---
As at June 30, 2022 and December 31, 2021, and for the <br>three and six months ended June 30, 2022 and 2021<br>(unaudited with tabular amounts in thousands of U.S. dollars except number of<br>shares, options, warrants, and per share amounts, unless otherwise noted)

NATURE OF OPERATIONS

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 1440 – 625 Howe Street, Vancouver, British Columbia, V6C 2T6.

The Company is engaged in the production and sale of silver, gold, zinc, lead and copper as well as other related activities, including exploration, extraction, processing, refining and reclamation. The Company’s major products are produced from mines in Canada, Peru, Mexico, Argentina and Bolivia. Additionally, the Company has project development activities in Canada, Peru, Mexico and Argentina, and exploration activities throughout South America, Canada and Mexico. As at June 30, 2022, the Company's Escobal mine in Guatemala continues to be on care and maintenance pending satisfactory completion of a consultation process led by the Ministry of Energy and Mines in Guatemala. In late February 2022, the Company's Morococha mine in Peru was placed on care and maintenance due to a requirement to move the processing facilities to allow for the expansion of a neighboring mine.

Principal subsidiaries:

The principal subsidiaries of the Company and their geographic locations at June 30, 2022 were as follows:

Location	Subsidiary	Ownership<br>Interest	Accounting	Operations and Development<br>Projects Owned
Canada	Lake Shore Gold Corp.	100%	Consolidated	Bell Creek and Timmins West mines (together "Timmins mine"
Mexico	Plata Panamericana S.A. de C.V.	100%	Consolidated	La Colorada mine
	Compañía Minera Dolores S.A. de C.V.	100%	Consolidated	Dolores mine
Peru	Pan American Silver Huaron S.A.	100%	Consolidated	Huaron mine
	Compañía Minera Argentum S.A.	92%	Consolidated	Morococha mine
	Shahuindo S.A.C.	100%	Consolidated	Shahuindo mine
	La Arena S.A.	100%	Consolidated	La Arena mine
Bolivia	Pan American Silver (Bolivia) S.A.	95%	Consolidated	San Vicente mine
Guatemala	Pan American Silver Guatemala S.A.	100%	Consolidated	Escobal mine
Argentina	Minera Tritón Argentina S.A.	100%	Consolidated	Manantial Espejo & Cap-Oeste Sur Este mines
	Minera Joaquin S.R.L.	100%	Consolidated	Joaquin mine
	Minera Argenta S.A.	100%	Consolidated	Navidad project

BASIS OF PREPARATION

These unaudited condensed interim consolidated financial statements have been prepared in accordance with International Accounting Standard ("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, 2021 (the "2021 Annual Financial Statements") omitted. Accordingly, these unaudited condensed interim consolidated financial statements should be read in conjunction with the 2021 Annual Financial Statements.

PAN AMERICAN SILVER CORP.	5
	Notes to the Condensed Interim Consolidated Financial Statements
---	---
As at June 30, 2022 and December 31, 2021, and for the <br>three and six months ended June 30, 2022 and 2021<br>(unaudited with tabular amounts in thousands of U.S. dollars except number of<br>shares, options, warrants, and per share amounts, unless otherwise noted)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, STANDARDS, AND JUDGEMENTS

a)Changes in accounting policies

The accounting policies applied in the preparation of these unaudited condensed interim consolidated financial statements are consistent with those applied and disclosed in the 2021 Annual Financial Statements.

b)Future changes in accounting standards

Certain new accounting standards and interpretations have been published that are not mandatory for the current period and have not been early adopted. Management is still evaluating and does not expect any such pronouncements to have a material impact on the Company’s consolidated financial statements upon adoption.

c)Significant judgements

In preparing the Company’s unaudited condensed interim consolidated financial statements for the three and six months ended June 30, 2022, the Company applied the critical judgements and estimates disclosed in Note 5 of its 2021 Annual Financial Statements.

FINANCIAL INSTRUMENTS

a)Financial assets and liabilities by categories

June 30, 2022	Amortized cost		FVTPL		FVTOCI		Total
Financial Assets:
Cash and cash equivalents	$	194,829	$	—	$	—	$	194,829
Trade receivables from provisional concentrates sales(1)	—		31,423		—		31,423
Receivables not arising from sale of metal concentrates(1)	86,859		—		—		86,859
Short-term investments	—		46,430		—		46,430
Long-term investment(2)	—		—		112,472		112,472
Derivative assets	—		6,905		—		6,905
	$	281,688	$	84,758	$	112,472	$	478,918
Financial Liabilities:
Derivative liabilities	$	—	$	245	$	—	$	245
Debt	$	30,700	$	—	$	—	$	30,700

(1)Included in Trade and other receivables.

(2)Comprised of the Company's investment in Maverix Metals Inc. ("Maverix") (Note 9).

December 31, 2021	Amortized cost		FVTPL		FVTOCI		Total
Financial Assets:
Cash and cash equivalents	$	283,550	$	—	$	—	$	283,550
Trade receivables from provisional concentrates sales(1)	—		40,020		—		40,020
Receivables not arising from sale of metal concentrates(1)	76,902		—		—		76,902
Short-term investments	—		51,723		—		51,723
Derivative assets	—		3,995		—		3,995
	$	360,452	$	95,738	$	—	$	456,190
Financial Liabilities:
Derivative liabilities	$	—	$	351	$	—	$	351
Debt	$	15,300	$	—	$	—	$	15,300

(1)Included in Trade and other receivables.

| PAN AMERICAN SILVER CORP. | 6 | | --- | --- || | Notes to the Condensed Interim Consolidated Financial Statements | | --- | --- | | As at June 30, 2022 and December 31, 2021, and for the three and six months ended June 30, 2022 and 2021 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) | |

b)Short-term investments recorded at fair value through profit or loss ("FVTPL")

The Company’s short-term investments are recorded at FVTPL. The (losses) gains from short-term investments for the three and six months ended June 30, 2022 and 2021 were as follows:

	Three months ended <br>June 30,				Six months ended <br>June 30,
	2022		2021		2022		2021
Unrealized (losses) gains on short-term investments	$	(7,981)	$	10,329	$	(5,524)	$	(28,704)
Realized gains on short-term investments	327		315		696		315
	$	(7,654)	$	10,644	$	(4,828)	$	(28,389)

c)Financial assets recorded at fair value through other comprehensive income ("FVTOCI")

The Company’s long-term investments are recorded at fair value through other comprehensive income. The (losses) gains from long-term investments for the three and six months ended June 30, 2022 and 2021 were as follows:

	Three months ended <br>June 30,				Six months ended <br>June 30,
	2022		2021		2022		2021
Unrealized loss on long-term investment	$	(12,205)	$	—	$	(12,205)	$	—

d)Derivative instruments

The Company's derivatives are comprised of foreign currency and commodity contracts. The gains on derivatives for the three and six months ended June 30, 2022 and 2021 were comprised of the following:

	Three months ended <br>June 30,				Six months ended <br>June 30,
	2022		2021		2022		2021
Gains on derivatives
Realized gains on derivatives	$	3,061	$	2,591	$	5,040	$	5,068
Unrealized gains on derivatives	632		529		3,015		422
	$	3,693	$	3,120	$	8,055	$	5,490

e)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.

| PAN AMERICAN SILVER CORP. | 7 | | --- | --- || | Notes to the Condensed Interim Consolidated Financial Statements | | --- | --- | | As at June 30, 2022 and December 31, 2021, and for the three and six months ended June 30, 2022 and 2021 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) | |

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

	At June 30, 2022				At December 31, 2021
	Level 1		Level 2		Level 1		Level 2
Assets and Liabilities:
Short-term investments	$	46,430	$	—	$	51,723	$	—
Long-term investment(1)	112,472		—		—		—
Trade receivables from provisional concentrate sales	—		31,423		—		40,020
Derivative assets	—		6,905		—		3,995
Derivative liabilities	—		(245)		—		(351)
	$	158,902	$	38,083	$	51,723	$	43,664

(1)Comprised of the Company's investment in Maverix (Note 9).

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 remains unchanged from that at December 31, 2021.

ii) Valuation Techniques

Short-term and long-term investments

The Company’s short-term and long-term 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.

Derivative assets and liabilities

The Company’s derivative assets and liabilities were comprised of foreign currency and commodity contracts which are valued using observable market prices.

Receivables from provisional concentrate sales

A portion of the Company’s trade receivables arose from provisional concentrate sales and are 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.

f)Financial Instruments and related risks

The Company has exposure to risks of varying degrees of significance which could affect its ability to achieve its strategic objectives for growth and shareholder returns. The principal financial risks to which the Company is exposed are:

i)Credit risk

ii)Liquidity risk

iii)Market risk

Currency risk
Interest rate risk
Price risk

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework and reviews the Company’s policies on an ongoing basis.

i) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Company’s trade receivables. The carrying value of trade receivables represents the maximum credit exposure.

| PAN AMERICAN SILVER CORP. | 8 | | --- | --- || | Notes to the Condensed Interim Consolidated Financial Statements | | --- | --- | | As at June 30, 2022 and December 31, 2021, and for the three and six months ended June 30, 2022 and 2021 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) | |

The Company has concentrate contracts to sell the zinc, lead, copper and silver concentrates produced by the Huaron, San Vicente and La Colorada mines. Concentrate contracts are a common business practice in the mining industry. The terms of the concentrate contracts may require the Company to deliver concentrate that has a value greater than the payment received at the time of delivery, thereby introducing the Company to credit risk of the buyers of concentrates. Should any of these counterparties not honour purchase arrangements, or should any of them become insolvent, the Company may incur losses for products already shipped and be forced to sell its concentrates on the spot market or it may not have a market for its concentrates and therefore its future operating results may be materially adversely impacted. At June 30, 2022, the Company had receivable balances associated with buyers of its concentrates of $31.4 million (December 31, 2021 - $40.0 million). The vast majority of the Company’s concentrate is sold to a limited number of concentrate buyers.

Doré production from La Colorada, Dolores, Manantial Espejo, Shahuindo, La Arena, and Timmins is refined under long-term agreements with fixed refining terms at seven separate refineries worldwide. The Company generally retains the risk and title to the precious metals throughout the process of refining and therefore is exposed to the risk that the refineries will not be able to perform in accordance with the refining contract and that the Company may not be able to fully recover precious metals in such circumstances. At June 30, 2022, the Company had approximately $25.6 million (December 31, 2021 - $52.3 million) of value contained in precious metal inventory at refineries. The Company maintains insurance coverage against the loss of precious metals at the Company’s mine sites, in-transit to refineries and while at the refineries. Risk is transferred to the refineries upon delivery.

The Company maintains trading facilities with several banks and bullion dealers for the purposes of transacting the Company’s metal sales. None of these facilities are subject to margin arrangements. The Company’s trading activities can expose the Company to the credit risk of its counterparties to the extent that the trading positions have a positive mark-to-market value. However, the Company maintains an active credit management and monitoring program to minimize the risk of excessive credit risk concentration with any single counterparty.

Refined silver and gold are sold in the spot market to various bullion traders and banks. Credit risk may arise from these activities if the Company is not paid for metal at the time it is delivered, as required by spot sale contracts.

Supplier advances for products and services yet to be provided are a common practice in some jurisdictions in which we operate. These advances represent a credit risk to us to the extent that suppliers do not deliver products or perform services as expected. As at June 30, 2022, we had made $17.0 million of supplier advances (December 31, 2021 - $11.2 million), which are reflected in “Trade and other receivables” on the consolidated statements of financial position.

Management constantly monitors and assesses the credit risk resulting from its refining arrangements, concentrate sales and commodity contracts with its refiners, trading counterparties and customers. Furthermore, management carefully considers credit risk when allocating prospective sales and refining business to counterparties. In making allocation decisions, management attempts to avoid unacceptable concentration of credit risk to any single counterparty.

The Company invests its cash and cash equivalents, which also has credit risk, with the objective of maintaining safety of principal and providing adequate liquidity to meet all current payment obligations.

ii) Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they come due. The Company manages its liquidity risk by continuously monitoring forecasted and actual cash flows. The Company has in place a rigorous planning and budgeting process to help determine the funds required to support the Company’s normal operating requirements on an ongoing basis and its expansion plans. The Company strives to maintain sufficient liquidity to meet its short-term business requirements, taking

| PAN AMERICAN SILVER CORP. | 9 | | --- | --- || | Notes to the Condensed Interim Consolidated Financial Statements | | --- | --- | | As at June 30, 2022 and December 31, 2021, and for the three and six months ended June 30, 2022 and 2021 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) | |

into account its anticipated cash flows from operations, its holdings of cash and short-term investments, and its committed loan facilities.

There was no significant change to the Company’s exposure to liquidity risk during the three and six months ended June 30, 2022.

iii) Market Risk

1.Currency Risk

The Company reports its financial statements in USD; however, the Company operates in jurisdictions that utilize other currencies. As a consequence, the financial results of the Company’s operations as reported in USD are subject to changes in the value of the USD relative to local currencies. Since the Company’s sales are denominated in USD and a portion of the Company’s operating costs and capital spending are in local currencies, the Company is negatively impacted by strengthening local currencies relative to the USD and positively impacted by the inverse.

At June 30, 2022, the Company had outstanding positions on its foreign currency exposure of Mexican peso ("MXN"), Peruvian sol ("PEN") and Canadian dollar ("CAD") purchases. The Company recorded losses of $0.1 million, $0.4 million, and $0.6 million, respectively, on MXN, PEN and CAD derivative contracts for the three months ended June 30, 2022 (2021 - gains of $0.8 million, losses of $1.3 million and gains of $0.4 million, respectively). The Company recorded gains of $0.4 million, gains of $1.7 million, and losses of $0.4, respectively, on MXN, PEN and CAD derivative contracts for the six months ended June 30, 2022 (2021 - losses of $0.1 million, losses of $2.2 million and gains of $0.9 million, respectively).

2.Interest Rate Risk

Interest rate risk is the risk that the fair values and future cash flows of the Company will fluctuate because of changes in market interest rates. The average interest rate earned by the Company during the three and six months ended June 30, 2022 on its cash and short-term investments was 0.55% and 0.23% (2021 - 0.37% and 0.16%, respectively).

On August 10, 2021 the Company entered into a Sustainability-Linked Credit Facility which replaced the Company's revolving credit facility (the "Credit Facility") (Note 13). There were no amounts drawn during the three and six months ended June 30, 2022 and June 30, 2021 on either the Sustainability-Linked Credit Facility or the Credit Facility.

In June 2021 and May 2022, a wholly-owned Peruvian subsidiary of the Company entered into loan agreements (the "Loans") for the purpose of certain construction financing (Note 13). The Loans incurred an average interest rate of 3.5% during the three and six months ended June 30, 2022 (2021 - 3.6%).

At June 30, 2022, the Company had $32.5 million in lease obligations (December 31, 2021 - $30.6 million) that are subject to an annualized interest rate of 10.7% (2021 - 10.8%).

3.Price Risk

Metal price risk is the risk that changes in metal prices will affect the Company’s income or the value of its related financial instruments. The Company derives its revenue from the sale of silver, gold, lead, copper, and zinc. The Company’s sales are directly dependent on metal prices that have shown significant volatility and are beyond the Company’s control. Consistent with the Company’s mission to provide equity investors with exposure to changes in precious metal prices, the Company’s current policy is to not hedge the price of precious metals.

The Company mitigates the price risk associated with its base metal production by committing some of its forecasted base metal production from time to time under forward sales and option contracts. The

| PAN AMERICAN SILVER CORP. | 10 | | --- | --- || | Notes to the Condensed Interim Consolidated Financial Statements | | --- | --- | | As at June 30, 2022 and December 31, 2021, and for the three and six months ended June 30, 2022 and 2021 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) | |

Board of Directors continually assesses the Company’s strategy towards its base metal exposure, depending on market conditions.

At June 30, 2022, the Company had outstanding zinc sales contracts to manage exposure to fluctuation in prices. The Company recorded gains of $2.9 million and $1.8 million on these positions during the three and six months ended June 30, 2022. The Company did not enter into zinc contracts during the comparable periods in 2021.

During the three and six months ended June 30, 2021, the Company entered into collars made up of put and call contracts for its exposure to copper but did not enter into copper contracts during the comparable periods in 2022. The Company recorded losses of $0.6 million and $1.2 million during the three and six months ended June 30, 2021.

At June 30, 2022, the Company had outstanding positions of diesel swap contracts designated to fix or limit the Company’s exposure to higher fuel prices (the “Diesel fuel swaps”). The Company recorded gains of $2.0 million and $4.8 million on Diesel fuel swaps during the three and six months ended June 30, 2022 (2021 - gains of $3.8 million and $8.0 million, respectively).

SHORT-TERM INVESTMENTS

	June 30, 2022						December 31, 2021
	Fair<br>Value		Cost		Accumulated<br>unrealized<br>holding gains		Fair Value		Cost		Accumulated<br>unrealized<br>holding gains
Short-term investments	$	46,430	$	20,781	$	25,649	$	51,723	$	20,419	$	31,304

INVENTORIES

Inventories consist of:

	June 30,<br>2022		December 31,<br>2021
Concentrate inventory	$	26,932	$	30,647
Stockpile ore	31,111		43,216
Heap leach inventory and in process	241,578		286,266
Doré and finished inventory	69,540		81,448
Materials and supplies	92,974		84,529
Total inventories	$	462,135	$	526,106
Less: current portion of inventories	$	(435,362)	$	(500,462)
Non-current portion of inventories(1)	$	26,773	$	25,644

(1)Inventories at Escobal mine, which include $19.5 million (December 31, 2021 - $18.3 million) in supplies with the remainder attributable to metals, have been classified as non-current pending the restart of operations.

Total inventories held at net realizable value amounted to $156.7 million at June 30, 2022 (December 31, 2021 – $203.7 million). The Company recorded write-downs of $62.8 million and $77.2 million for the three and six months ended June 30, 2022 (2021 – recoveries of $7.2 million and $15.4 million, respectively) and were included in cost of sales.

PAN AMERICAN SILVER CORP.	11
	Notes to the Condensed Interim Consolidated Financial Statements
---	---
As at June 30, 2022 and December 31, 2021, and for the <br>three and six months ended June 30, 2022 and 2021<br>(unaudited with tabular amounts in thousands of U.S. dollars except number of<br>shares, options, warrants, and per share amounts, unless otherwise noted)

MINERAL PROPERTIES, PLANT AND EQUIPMENT

Mineral properties, plant and equipment consist of:

	June 30, 2022						December 31, 2021
	Cost		Accumulated<br>Depreciation <br>and <br>Impairment		Carrying<br>Value		Cost		Accumulated<br>Depreciation <br>and <br>Impairment		Carrying<br> Value
Producing properties:
Huaron, Peru	$	227,490	$	(143,068)	$	84,422	$	224,700	$	(141,902)	$	82,798
Morococha, Peru (4)	256,126		(175,852)		80,274		277,105		(188,821)		88,284
Shahuindo, Peru	606,268		(150,768)		455,500		590,096		(132,727)		457,369
La Arena, Peru	235,258		(121,360)		113,898		208,306		(105,006)		103,300
La Colorada, Mexico	386,125		(195,864)		190,261		355,471		(185,684)		169,787
Dolores, Mexico(1)	1,764,127		(1,512,905)		251,222		1,738,040		(1,350,908)		387,132
Manantial Espejo, Argentina (2)	522,484		(511,574)		10,910		518,931		(500,244)		18,687
San Vicente, Bolivia	155,879		(115,064)		40,815		151,045		(110,829)		40,216
Timmins, Canada	346,926		(118,460)		228,466		335,488		(103,903)		231,585
Other	29,542		(20,554)		8,988		29,804		(19,664)		10,140
	$	4,530,225	$	(3,065,469)	$	1,464,756	$	4,428,986	$	(2,839,688)	$	1,589,298
Non-Producing Properties:
Land	$	6,373	$	(871)	$	5,502	$	6,373	$	(871)	$	5,502
Navidad, Argentina(3)	566,577		(376,101)		190,476		566,577		(376,101)		190,476
Escobal, Guatemala	260,103		(2,542)		257,561		257,390		(1,842)		255,548
Timmins, Canada	64,508		—		64,508		63,018		—		63,018
Shahuindo, Peru	3,549		—		3,549		3,549		—		3,549
La Arena, Peru	117,000		—		117,000		117,005		—		117,005
Minefinders, Mexico	76,449		(37,453)		38,996		78,443		(36,975)		41,468
La Colorada, Mexico	77,504		—		77,504		55,370		—		55,370
Morococha, Peru (4)	2,981		—		2,981		2,981		—		2,981
Other	32,690		(12,381)		20,309		32,426		(12,090)		20,336
	$	1,207,734	$	(429,348)	$	778,386	$	1,183,132	$	(427,879)	$	755,253
Total	$	5,737,959	$	(3,494,817)	$	2,243,142	$	5,612,118	$	(3,267,567)	$	2,344,551

(1)Includes previously recorded impairment charges of $672.3 million at June 30, 2022 (December 31, 2021 - $573.3 million).

(2)Includes previously recorded impairment charges of $173.3 million at June 30, 2022 (December 31, 2021 - $173.3 million).

(3)Includes previously recorded impairment charges of $376.1 million at June 30, 2022 (December 31, 2021 - $376.1 million).

(4)Morococha was placed on care and maintenance in February 2022.

Dispositions

On March 29, 2022, the Company received a $7.0 million payment from an arm's length party to be applied to certain costs associated with the closure and reclamation of the Morococha mine processing facility. This payment was included in proceeds from disposition of mineral properties, plant and equipment.

PAN AMERICAN SILVER CORP.	12
	Notes to the Condensed Interim Consolidated Financial Statements
---	---
As at June 30, 2022 and December 31, 2021, and for the <br>three and six months ended June 30, 2022 and 2021<br>(unaudited with tabular amounts in thousands of U.S. dollars except number of<br>shares, options, warrants, and per share amounts, unless otherwise noted)

IMPAIRMENT

The Company's impairment expense in respect of the following CGUs for the three and six months ended June 30, 2022 were as follows:

	Three months ended <br>June 30,				Six months ended <br>June 30,
	2022		2021		2022		2021
Dolores impairment expense	$	99,064	$	—	$	99,064	$	—

Impairment testing

The Company reviews each of its cash generating units ("CGU"), represented by its principal producing mining properties and significant development projects, for indicators of impairment each period end. The CGU carrying amount for purposes of this assessment includes the carrying value of the mineral properties plant and equipment and goodwill less deferred tax liabilities and closure and decommissioning liabilities related to each CGU.

As at June 30, 2022 the Company identified an impairment indicator in the Dolores Mine CGU due to the year-to-date 2022 silver and gold production being less than that expected by management driven by an ore reconciliation shortfall experienced in a recent higher-grade phase of the open pit which is expected to affect Dolores production for the remainder of the year combined with inflationary pressures which have particularly affected this short-life asset. Accordingly, management completed a recoverable value assessment of the Dolores Mine CGU. As a result, the Company recognized an impairment expense of $99.1 million, against the carrying value of the CGU at June 30, 2022, and recorded an NRV adjustment of $55.4 million (Note 6) (Collectively, the "Dolores Impairment").

The recoverable amount was determined applying a fair value less cost to sell methodology based on future after-tax cash flows expected to be derived from Dolores Mine discounted with a 6% weighted average cost of capital, a Level 3 fair value measurement. The projected cash flows used in impairment testing are significantly affected by changes in assumptions for metal prices, changes in the amount of recoverable reserves, production costs estimates and capital expenditures estimates. For the three and six months ended June 30, 2022, the Company's impairment testing incorporated the following key assumptions:

a)Pricing Assumptions

Metal pricing included in the cash flow projections is based on consensus analyst pricing. The metal price assumptions used in the impairment assessment was the following:

	At June 30, 2022
	2022-2025<br>Average		2026 and<br>long-term
Gold (per ounce)	$	1,802	$	1,651
Silver (per ounce)	23.56		21.77

b)Additional Dolores-specific assumptions affecting the recoverable amount assessment

In 2022, the recoverable amount of the Dolores Mine CGU was negatively impacted by the following:

i) the updated mineral resource and remaining life of mine plan has a reduction in the assumed grades for a certain phase to be mined in 2022, this was informed by 2022 year-to-date silver and gold production being less than expected due to lower than expected grades encountered in this certain section of the open pit;

ii) inflationary pressures, which have particularly affected this shorter-life asset where most of the mining will be completed in the next two years;

iii) the suspension of underground mining operations in Q2 2022 due to inflationary cost pressures, and the subsequent reclassification of underground mineral reserves to mineral resources; and,

iv) a reduction in the expected duration of economic leaching to the year 2030.

PAN AMERICAN SILVER CORP.	13
	Notes to the Condensed Interim Consolidated Financial Statements
---	---
As at June 30, 2022 and December 31, 2021, and for the <br>three and six months ended June 30, 2022 and 2021<br>(unaudited with tabular amounts in thousands of U.S. dollars except number of<br>shares, options, warrants, and per share amounts, unless otherwise noted)

LONG-TERM INVESTMENT

The following table shows a continuity of the Company's long-term investment, classified as financial assets measured at FVTOCI and equity investees:

	FVTOCI		Investment in Associate
	Maverix		Maverix		Total
At December 31, 2020	$	—	$	71,560	$	71,560
Acquisition of shares in associate	—		2,616		2,616
Equity pick-up from equity investees	—		4,510		4,510
Dilution losses	—		(34)		(34)
Adjustment for change in ownership interest	—		(22)		(22)
Dividends received	—		(1,220)		(1,220)
At December 31, 2021	$	—	$	77,410	$	77,410
Equity pick-up from equity investees	$	—	$	413	$	413
Dividends received	—		(325)		(325)
Loss of significant influence	124,677		(77,498)		47,179
Investment revaluation reserve fair value adjustment	(12,205)		—		(12,205)
At June 30, 2022	$	112,472	$	—	$	112,472

Investment in Maverix:

On March 31, 2022, the Company determined that it no longer held significant influence over Maverix due to declining to exercise its right to nominate a representative to serve as a director on Maverix’s Board of Directors and accordingly the Company no longer has the power to participate in the financial and operating policy decisions of Maverix. As a result, the Company recorded a $44.6 million gain concurrent with the redesignation of its investment in Maverix from Investment in Associate, accounted using the "equity method" whereby the Company's recorded into income its ownership proportion of Maverix estimated earnings, into a long-term financial asset recorded at FVTOCI.

The Company's share of Maverix income or loss was recorded based on its 17% interest up until March 31, 2022, representing the Company’s fully diluted ownership.

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Accounts payable and accrued liabilities consist of:

	June 30,<br>2022		December 31,<br>2021
Trade account payables(1)	$	65,079	$	77,461
Royalty payables	27,911		24,113
Other accounts payable and accrued liabilities	134,207		107,207
Payroll and severance liabilities	53,809		64,968
Value added tax liabilities	9,583		12,006
Other tax payables	11,103		20,332
	$	301,692	$	306,087

(1)No interest is charged on the 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.

PAN AMERICAN SILVER CORP.	14
	Notes to the Condensed Interim Consolidated Financial Statements
---	---
As at June 30, 2022 and December 31, 2021, and for the <br>three and six months ended June 30, 2022 and 2021<br>(unaudited with tabular amounts in thousands of U.S. dollars except number of<br>shares, options, warrants, and per share amounts, unless otherwise noted)

PROVISIONS

	2022
Closure and decommissioning, December 31, 2021	$	242,861
Revisions in estimates and obligations incurred	2,437
Reclamation expenditures	(1,768)
Accretion expense (Note 19)	7,420
Closure and decommissioning, June 30, 2022	$	250,950
Litigation	5,872
Total provisions, June 30, 2022	$	256,822		Provision classification:	June 30,<br>2022	December 31,<br>2021
---	---	---	---	---
Current	$	12,132	$	8,041
Non-Current	244,690		240,111
	$	256,822	$	248,152

LEASES

Right-of-use Assets ("ROU")

The following table summarizes changes in ROU Assets for the six months ended June 30, 2022 which have been recorded in mineral properties, plant and equipment on the condensed interim consolidated statements of financial position:

	Six months ended June 30, 2022
Opening net book value	$	29,496
Additions	8,962
Depreciation	(6,824)
Other	(1,187)
Closing net book value	$	30,447

Lease obligations

The following table presents a reconciliation of the Company's undiscounted cash flows at June 30, 2022 and December 31, 2021 to their present value for the Company's lease obligations:

	June 30,<br>2022		December 31,<br>2021
Within one year	$	14,400	$	11,690
Between one and five years	16,743		16,676
Beyond five years	15,622		16,934
Total undiscounted lease obligations	46,765		45,300
Less future interest charges	(14,242)		(14,739)
Total discounted lease obligations	32,523		30,561
Less current portion of lease obligations	(13,555)		(10,663)
Non-current portion of lease obligations	$	18,968	$	19,898	PAN AMERICAN SILVER CORP.	15
---	---
	Notes to the Condensed Interim Consolidated Financial Statements
---	---
As at June 30, 2022 and December 31, 2021, and for the <br>three and six months ended June 30, 2022 and 2021<br>(unaudited with tabular amounts in thousands of U.S. dollars except number of<br>shares, options, warrants, and per share amounts, unless otherwise noted)

DEBT

Debt consists of:

	June 30,<br>2022		December 31,<br>2021
Loans	$	30,700	$	15,300
Less: current portion of Loans	(7,371)		(3,400)
Non-current portion of Loans	$	23,329	$	11,900

In June 2021 and May 2022, a wholly-owned Peruvian subsidiary of the Company entered into five-year, USD denominated, term Loans with a local financial institution for the purpose of certain construction financing. The June 2021 loan bears a 3.6% interest rate per annum and requires quarterly repayments while the May 2022 loan bears 2.2% interest per annum and requires monthly repayments.

On August 10, 2021, Pan American entered into an amendment agreement to amend and extend its $500 million Credit Facility, with a maturity date of February 1, 2023, into a $500 million Sustainability-Linked Credit Facility. The Sustainability-Linked Credit Facility features a pricing mechanism allowing for pricing adjustments on drawn and undrawn balances based on the Company's sustainability performance ratings and scores published by MSCI and S&P Global, leaders in ESG and Corporate Governance research and ratings. The Sustainability-Linked Credit Facility matures on August 8, 2025. In addition, the financial covenants include the requirement for the Company to maintain: (i) a leverage ratio less than or equal to 3.5:1; and (ii) an interest coverage ratio more than or equal to 3.0:1. The Sustainability-Linked Credit Facility and Credit Facility, respectively, were undrawn at June 30, 2022 and December 31, 2021. As of June 30, 2022, the Company was in compliance with all covenants required by the Sustainability-Linked Credit Facility.

The Sustainability-Linked Credit Facility can be drawn down at any time to finance the Company’s working capital requirements, acquisitions, investments and for general corporate purposes. Subject to pricing adjustment based on sustainability performance ratings and scores, any amounts drawn under the Sustainability-Linked Credit Facility will incur interest at LIBOR plus 1.825% to 2.80%. Undrawn amounts are subject to a stand-by fee of 0.41% to 0.63% per annum, dependent on the Company's leverage ratio and subject to pricing adjustments based on sustainability performance ratings and scores.

The Company did not draw from these credit facilities during the three and six months ended June 30, 2022 and 2021 and incurred $0.5 million and $1.1 million for the three and six months ended June 30, 2022 (2021 - $0.5 million and $1.0 million, respectively) in standby charges on undrawn amounts.

DEFERRED REVENUE

On July 11, 2016 the Company recognized a deferred revenue liability after it sold precious metal streams to Maverix whereby the Company will sell 100% of the future gold production from La Colorada and 5% of the future gold production from La Bolsa, which is in the exploration stage, respectively (the "Streams").

The deferred revenue related to the Streams will be recognized as revenue by Pan American as the gold ounces are delivered to Maverix and increased by $2.5 million during the three months ended March 31, 2022 to record the deferred revenue previously not recognized while using the equity method of accounting after concluding that it no longer held significant influence of Maverix. The deferred revenue liability was $14.6 million at June 30, 2022 (December 31, 2021 - $12.5 million).

PAN AMERICAN SILVER CORP.	16
	Notes to the Condensed Interim Consolidated Financial Statements
---	---
As at June 30, 2022 and December 31, 2021, and for the <br>three and six months ended June 30, 2022 and 2021<br>(unaudited with tabular amounts in thousands of U.S. dollars except number of<br>shares, options, warrants, and per share amounts, unless otherwise noted)

OTHER LONG-TERM LIABILITIES

Other long-term liabilities consist of:

	June 30,<br>2022		December 31,<br>2021
Deferred credit(1)	$	20,788	$	20,788
Other tax payables	13		16
Severance liabilities	5,479		4,887
	$	26,280	$	25,691

(1)Represents the obligation to deliver future silver production of Navidad pursuant to a silver stream contract.

SHARE CAPITAL AND EMPLOYEE COMPENSATION PLANS

a.Stock options and common shares issued as compensation ("Compensation Shares")

For the three and six months ended June 30, 2022, the total share-based compensation expense relating to stock options and compensation shares was $1.3 million and $2.6 million (2021 - $1.3 million and $2.1 million, respectively) and is presented as a component of general and administrative expense.

•Stock options

The Company did not grant any stock options during the three and six months ended June 30, 2022 or the comparative periods in 2021.

During the three and six months ended June 30, 2022, the Company issued 26,765 and 53,695 common shares in connection with the exercise of options (2021 – 28,204 and 31,072 common shares, respectively).

•Compensation Shares

During the three and six months ended June 30, 2022, The Company issued 14,745 common shares to Directors in lieu of Directors’ fees of $0.3 million (2021 – 9,646 common shares in lieu of fees of $0.3 million).

The following table summarizes changes in stock options for the six months ended June 30, 2022 and year ended December 31, 2021:

	Stock Options
	Options	WeightedAverage ExercisePrice CAD
As at December 31, 2020	317,417
Granted	53,115	30.70
Exercised	(65,780)	11.77
Expired	(2,162)	41.62
Forfeited	(23,587)	32.27
As at December 31, 2021	279,003
Exercised	(53,695)	16.05
Expired	(4,324)	41.62
Forfeited	(697)	39.48
As at June 30, 2022	220,287

All values are in US Dollars.

| PAN AMERICAN SILVER CORP. | 17 | | --- | --- || | Notes to the Condensed Interim Consolidated Financial Statements | | --- | --- | | As at June 30, 2022 and December 31, 2021, and for the three and six months ended June 30, 2022 and 2021 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) | |

The following table summarizes information about the Company's stock options outstanding at June 30, 2022:

	Options Outstanding			Options Exercisable
Range of Exercise Prices<br>CAD$	Number Outstanding as at June 30, 2022	Weighted Average<br>Remaining<br>Contractual Life<br>(years)	WeightedAverageExercise PriceCAD	Number Outstanding as at June 30, 2022	WeightedAverageExercisePrice CAD
$9.76 - $17.11	25,847	0.3		25,847
$17.12 - $24.46	113,367	3.0		113,367
$24.47 - $31.81	74,165	5.9		21,050
$31.82 - $39.48	6,908	5.4		3,455
	220,287	3.7		163,719

All values are in US Dollars.

b.PSUs

The Company recorded a recovery of $0.2 million and an expense of $0.5 million for PSUs for the three and six months ended June 30, 2022 (2021 - $0.4 million and $0.6 million, respectively) and is presented as a component of general and administrative expense.

At June 30, 2022, the following PSUs were outstanding:

PSU	Number Outstanding	Fair Value
As at December 31, 2020	255,559	$	8,870
Granted	79,417	2,049
Paid out	(117,328)	(4,539)
Change in value	—	(901)
As at December 31, 2021	217,648	$	5,479
Granted	11,614	228
Change in value	—	(1,085)
As at June 30, 2022	229,262	$	4,622

c.RSUs

The Company recorded a recovery of $0.2 million and an expense of $1.1 million for RSUs for the three and six months ended June 30, 2022 (2021 - $0.8 million and $1.4 million, respectively) and is presented as a component of general and administrative expense.

At June 30, 2022, the following RSUs were outstanding:

RSU	Number Outstanding	Fair Value
As at December 31, 2020	396,572	$	13,730
Granted	240,366	5,818
Paid out	(197,320)	(4,829)
Forfeited	(13,218)	(329)
Change in value	—	(3,699)
As at December 31, 2021	426,400	$	10,691
Forfeited	(8,308)	(164)
Change in value	—	(2,144)
As at June 30, 2022	418,092	$	8,383

d.Issued share capital

The Company is authorized to issue 400,000,000 common shares without par value.

| PAN AMERICAN SILVER CORP. | 18 | | --- | --- || | Notes to the Condensed Interim Consolidated Financial Statements | | --- | --- | | As at June 30, 2022 and December 31, 2021, and for the three and six months ended June 30, 2022 and 2021 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) | |

e.Dividends

The Company declared the following dividends for August 10, 2022 and the six months ended June 30, 2022 and 2021:

Declaration Date	Record Date	Dividend per common share
August 10, 2022(1)	August 22, 2022	$	0.11
May 11, 2022	May 24, 2022	$	0.12
February 23, 2022	March 7, 2022	$	0.12
November 9, 2021	November 22, 2021	$	0.10
August 10, 2021	August 23, 2021	$	0.10
May 12, 2021	May 25, 2021	$	0.07
February 17, 2021	March 1, 2021	$	0.07

(1)These dividends were declared subsequent to the quarter ended June 30, 2022 and have not been recognized as distributions to owners during the period presented.

f.CVRs

As part of the acquisition of Tahoe Resources Inc. on February 22, 2019, the Company issued 313,887,490 Contingent Value Rights ("CVRs"), with a term of 10 years, which are convertible into 15,600,208 common shares upon the first commercial shipment of concentrate following the restart of operations at the Escobal mine. As of June 30, 2022, there were 313,883,990 CVRs outstanding which were convertible into 15,600,034 common shares (December 31, 2021 - 313,883,990 CVRs convertible into 15,600,034 common shares).

PRODUCTION COSTS

Production costs are comprised of the following:

	Three months ended <br>June 30,				Six months ended <br>June 30,
	2022		2021		2022		2021
Materials and consumables	$	104,792	$	95,376	$	199,867	$	183,440
Salaries and employee benefits	72,459		83,581		152,463		165,442
Contractors	52,997		46,408		107,541		93,251
Utilities	13,981		11,165		30,041		22,975
Other expense	4,126		13,630		8,897		25,650
Changes in inventories	39,927		(50,731)		68,301		(98,149)
	$	288,282	$	199,429	$	567,110	$	392,609

MINE CARE AND MAINTENANCE

	Three months ended <br>June 30,				Six months ended <br>June 30,
	2022		2021		2022		2021
Escobal	$	6,205	$	6,012	$	12,917	$	11,874
Morococha	$	4,877	$	—	$	6,889	$	—
Navidad	$	1,209	$	1,745	$	2,153	$	3,149
	$	12,291	$	7,757	$	21,959	$	15,023	PAN AMERICAN SILVER CORP.	19
---	---
	Notes to the Condensed Interim Consolidated Financial Statements
---	---
As at June 30, 2022 and December 31, 2021, and for the <br>three and six months ended June 30, 2022 and 2021<br>(unaudited with tabular amounts in thousands of U.S. dollars except number of<br>shares, options, warrants, and per share amounts, unless otherwise noted)

INTEREST AND FINANCE EXPENSE

	Three months ended <br>June 30,				Six months ended <br>June 30,
	2022		2021		2022		2021
Interest expense	$	1,014	$	782	$	1,909	$	1,825
Finance fees	575		928		1,165		1,857
Accretion expense (Note 11)	3,710		1,869		7,420		3,738
	$	5,299	$	3,579	$	10,494	$	7,420

EARNINGS PER SHARE (BASIC AND DILUTED)

For the three months ended June 30,			2022			2021
	Earnings(1)<br><br>(Numerator)		Shares (000’s)<br>(Denominator)	Per-Share<br>Amount		Earnings(1)<br><br>(Numerator)		Shares (000’s)<br>(Denominator)	Per-Share<br>Amount
Net (loss) earnings for the period	$	(173,982)				$	70,939
Basic (loss) earnings per share	$	(173,982)	210,514	$	(0.83)	$	70,939	210,284	$	0.34
Effect of Dilutive Securities:
Stock Options	—		—			—		154
Diluted (loss) earnings per share	$	(173,982)	210,514	$	(0.83)	$	70,939	210,438	$	0.34

(1)Net earnings attributable to equity holders of the Company.

For the six months ended June 30,			2022			2021
	Earnings(1)<br><br>(Numerator)		Shares (000’s)<br>(Denominator)	Per-Share<br>Amount		Earnings(1)<br><br>(Numerator)		Shares (000’s)<br>(Denominator)	Per-Share<br>Amount
Net earnings for the period	$	(97,465)				$	63,141
Basic earnings per share	$	(97,465)	210,489	$	(0.46)	$	63,141	210,273	$	0.30
Effect of Dilutive Securities:
Stock Options	—		—			—		163
Diluted earnings per share	$	(97,465)	210,489	$	(0.46)	$	63,141	210,436	$	0.30

(1)Net earnings attributable to equity holders of the Company.

Potentially dilutive securities excluded in the diluted earnings per share calculation for the three and six months ended June 30, 2022 were 60,023 out-of-the-money options and CVRs potentially convertible into 15,600,034 common shares (2021 – 11,929 out-of-the-money options and CVRs potentially convertible into 15,600,034 common shares).

Antidilutive securities which are potentially dilutive in the future but were excluded from diluted earnings per share included 160,264 options for the three months ended June 30, 2022 with no securities excluded for the six months ended June 30, 2022.

SUPPLEMENTAL CASH FLOW INFORMATION

The following tables summarize other adjustments for non-cash income statement items, changes in operating working capital items and significant non-cash items:

		Three months ended <br>June 30,				Six months ended <br>June 30,
Other operating activities		2022		2021		2022		2021
Adjustments for non-cash income statement items:
	Net realizable value adjustment for inventories	$	62,770	$	(7,246)	$	77,213	$	(15,389)
	Gains on derivatives (Note 4d)	(3,693)		(3,120)		(8,055)		(5,490)
	Share-based compensation expense	1,311		1,250		2,623		2,130
	Losses (gains) on sale of mineral properties, plant and equipment	522		(4,146)		699		(4,256)
		$	60,910	$	(13,262)	$	72,480	$	(23,005)		PAN AMERICAN SILVER CORP.	20
---	---			Notes to the Condensed Interim Consolidated Financial Statements
---	---
As at June 30, 2022 and December 31, 2021, and for the <br>three and six months ended June 30, 2022 and 2021<br>(unaudited with tabular amounts in thousands of U.S. dollars except number of<br>shares, options, warrants, and per share amounts, unless otherwise noted)				Three months ended <br>June 30,				Six months ended <br>June 30,
---	---	---	---	---	---	---	---	---
Changes in non-cash operating working capital items:	2022		2021		2022		2021
Trade and other receivables	$	3,817	$	(9,793)	$	(8,560)	$	(8,570)
Inventories	(26,420)		(38,429)		(16,085)		(78,363)
Prepaid expenses	3,625		4,426		2,631		2,246
Accounts payable and accrued liabilities	360		7,548		(11,368)		1,133
Provisions	(893)		(767)		(1,187)		(859)
	$	(19,511)	$	(37,015)	$	(34,569)	$	(84,413)		Cash and Cash Equivalents	June 30,<br>2022		December 31,<br>2021
---	---	---	---	---
Cash in banks	$	194,829	$	283,550

SEGMENTED INFORMATION

The Company reviews its segment reporting to ensure it reflects the operational structure of the Company and enables the Company's Chief Operating Decision Maker ("CODM") to review operating segment performance. We have determined that each producing mine and significant development property represents an operating segment. The Company has organized its reportable and operating segments by significant revenue streams and geographic regions.

Significant information relating to the Company’s reportable operating segments is summarized in the table below:

For the three months ended June 30, 2022
Segment/Country	Operation	Revenue		Production costs and royalties		Depreciation		Mine operating earnings		Capital expenditures(1)
Silver Segment:
Mexico	La Colorada	$	34,626	$	21,953	$	4,869	$	7,804	$	22,678
Peru	Huaron	30,522		23,175		2,818		4,529		3,085
	Morococha (2)	(339)		(1,024)		24		661		309
Bolivia	San Vicente	26,071		20,168		3,112		2,791		3,376
Argentina	Manantial Espejo	27,428		32,546		6,957		(12,075)		1,562
Guatemala	Escobal	—		—		—		—		517
Total Silver Segment		118,308		96,818		17,780		3,710		31,527
Gold Segment:
Mexico	Dolores	74,884		107,854		31,716		(64,686)		11,575
Peru	Shahuindo	57,196		32,511		9,231		15,454		7,463
	La Arena	25,197		15,843		5,204		4,150		13,942
Canada	Timmins	64,884		44,768		9,795		10,321		10,127
Total Gold Segment		222,161		200,976		55,946		(34,761)		43,107
Other segment:
Canada	Pas Corp	—		—		105		(105)		89
Argentina	Navidad	—		—		—		—		14
Other	Other	—				496		(496)		534
Total		$	340,469	$	297,794	$	74,327	$	(31,652)	$	75,271

(1)Includes payments for mineral properties, plant and equipment and payment of equipment leases.

(2)Morococha was placed on care and maintenance in February 2022.

| PAN AMERICAN SILVER CORP. | 21 | | --- | --- || | Notes to the Condensed Interim Consolidated Financial Statements | | --- | --- | | As at June 30, 2022 and December 31, 2021, and for the three and six months ended June 30, 2022 and 2021 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) | || For the three months ended June 30, 2021 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Segment/Country | Operation | Revenue | | Production costs and royalties | | Depreciation | | Mine operating earnings | | Capital expenditures(1) | | | Silver Segment: | | | | | | | | | | | | | Mexico | La Colorada | $ | 34,441 | $ | 15,506 | $ | 5,026 | $ | 13,909 | $ | 14,383 | | Peru | Huaron | 35,672 | | 20,805 | | 2,564 | | 12,303 | | 2,549 | | | | Morococha | 28,805 | | 19,612 | | 3,449 | | 5,744 | | 2,365 | | | Bolivia | San Vicente | 22,393 | | 16,778 | | 2,421 | | 3,194 | | 833 | | | Argentina | Manantial Espejo (2) | 23,425 | | 19,642 | | 2,388 | | 1,395 | | 2,271 | | | Guatemala | Escobal | — | | — | | — | | — | | 264 | | | Total Silver Segment | | 144,736 | | 92,343 | | 15,848 | | 36,545 | | 22,665 | | | Gold Segment: | | | | | | | | | | | | | Mexico | Dolores | 92,994 | | 37,859 | | 25,843 | | 29,292 | | 8,337 | | | Peru | Shahuindo | 42,459 | | 18,739 | | 6,921 | | 16,799 | | 8,889 | | | | La Arena | 43,158 | | 17,595 | | 9,653 | | 15,910 | | 12,507 | | | Canada | Timmins | 58,785 | | 44,008 | | 9,911 | | 4,866 | | 13,312 | | | Total Gold Segment | | 237,396 | | 118,201 | | 52,328 | | 66,867 | | 43,045 | | | Other segment: | | | | | | | | | | | | | Canada | Pas Corp | — | | — | | 119 | | (119) | | 84 | | | Argentina | Navidad | — | | — | | — | | — | | 18 | | | Other | Other (2) | — | | — | | 245 | | (245) | | 211 | | | Total | | $ | 382,132 | $ | 210,544 | $ | 68,540 | $ | 103,048 | $ | 66,023 |

(1)Includes payments for mineral properties, plant and equipment and payment of equipment leases.

(2)Recast comparative to be consistent with current presentation.

For the six months ended June 30, 2022
Segment/Country	Operation	Revenue		Production costs and royalties		Depreciation		Mine operating earnings		Capital expenditures(1)
Silver Segment:
Mexico	La Colorada	$	79,348	$	46,416	$	10,145	$	22,787	$	35,093
Peru	Huaron	73,655		46,051		5,849		21,755		6,234
	Morococha (2)	21,966		21,157		2,332		(1,523)		660
Bolivia	San Vicente	42,973		33,008		5,099		4,866		6,277
Argentina	Manantial Espejo	60,578		59,295		12,621		(11,338)		2,651
Guatemala	Escobal	—		—		—		—		821
Total Silver Segment		278,520		205,927		36,046		36,547		51,736
Gold Segment:
Mexico	Dolores	167,002		175,362		66,205		(74,565)		25,928
Peru	Shahuindo	123,336		65,556		19,850		37,930		14,150
	La Arena	80,215		44,679		15,566		19,970		26,901
Canada	Timmins	131,284		94,877		20,065		16,342		20,452
Total Gold Segment		501,837		380,474		121,686		(323)		87,431
Other segment:
Canada	Pas Corp	—		—		210		(210)		175
Argentina	Navidad	—		—		—		—		29
Other	Other	—		—		911		(911)		772
Total		$	780,357	$	586,401	$	158,853	$	35,103	$	140,143

(1)Includes payments for mineral properties, plant and equipment and payment of equipment leases.

(2)Morococha was placed on care and maintenance in February 2022.

| PAN AMERICAN SILVER CORP. | 22 | | --- | --- || | Notes to the Condensed Interim Consolidated Financial Statements | | --- | --- | | As at June 30, 2022 and December 31, 2021, and for the three and six months ended June 30, 2022 and 2021 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) | || For the six months ended June 30, 2021 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Segment/Country | Operation | Revenue | | Production costs and royalties | | Depreciation | | Mine operating earnings | | Capital expenditures(1) | | | Silver Segment: | | | | | | | | | | | | | Mexico | La Colorada | $ | 39,771 | $ | 19,710 | $ | 7,390 | $ | 12,671 | $ | 23,851 | | Peru | Huaron | 74,174 | | 42,511 | | 5,439 | | 26,224 | | 4,161 | | | | Morococha | 53,162 | | 37,776 | | 6,999 | | 8,387 | | 4,756 | | | Bolivia | San Vicente | 47,044 | | 32,687 | | 5,357 | | 9,000 | | 1,391 | | | Argentina | Manantial Espejo (2) | 52,527 | | 46,038 | | 6,361 | | 128 | | 3,649 | | | Guatemala | Escobal | — | | — | | — | | — | | 296 | | | Total Silver Segment | | 266,678 | | 178,722 | | 31,546 | | 56,410 | | 38,104 | | | Gold Segment: | | | | | | | | | | | | | Mexico | Dolores | 165,487 | | 66,699 | | 54,424 | | 44,364 | | 17,255 | | | Peru | Shahuindo | 100,796 | | 44,511 | | 16,079 | | 40,206 | | 11,711 | | | | La Arena | 99,111 | | 36,658 | | 20,904 | | 41,549 | | 27,226 | | | Canada | Timmins | 118,159 | | 86,996 | | 19,951 | | 11,212 | | 22,178 | | | Total Gold Segment | | 483,553 | | 234,864 | | 111,358 | | 137,331 | | 78,370 | | | Other segment: | | | | | | | | | | | | | Canada | Pas Corp | — | | — | | 238 | | (238) | | 165 | | | Argentina | Navidad | — | | — | | — | | — | | 79 | | | Other | Other (2) | — | | — | | 491 | | (491) | | 258 | | | Total | | $ | 750,231 | $ | 413,586 | $ | 143,633 | $ | 193,012 | $ | 116,976 |

(1)Includes payments for mineral properties, plant and equipment and payment of equipment leases.

(2)Recast comparative to be consistent with current presentation.

At June 30, 2022
Segment/Country	Operation	Assets		Liabilities		Net assets
Silver Segment:
Mexico	La Colorada	$	345,413	$	63,244	$	282,169
Peru	Huaron	124,021		52,277		71,744
	Morococha	112,440		35,712		76,728
Bolivia	San Vicente	85,556		47,604		37,952
Argentina	Manantial Espejo	55,651		26,318		29,333
Guatemala	Escobal	292,097		21,097		271,000
Total Silver Segment		1,015,178		246,252		768,926
Gold Segment:
Mexico	Dolores	491,066		155,405		335,661
Peru	Shahuindo	601,263		196,783		404,480
	La Arena	320,869		109,075		211,794
Canada	Timmins	409,161		69,396		339,765
Total Gold Segment		1,822,359		530,659		1,291,700
Other segment:
Canada	Pas Corp	202,843		20,599		182,244
Argentina	Navidad	194,784		2,529		192,255
	Other	88,404		45,909		42,495
Total		$	3,323,568	$	845,948	$	2,477,620	PAN AMERICAN SILVER CORP.	23
---	---			Notes to the Condensed Interim Consolidated Financial Statements
---	---
As at June 30, 2022 and December 31, 2021, and for the <br>three and six months ended June 30, 2022 and 2021<br>(unaudited with tabular amounts in thousands of U.S. dollars except number of<br>shares, options, warrants, and per share amounts, unless otherwise noted)			At December 31, 2021
---	---	---	---	---	---	---	---
Segment/Country	Operation	Assets		Liabilities		Net assets
Silver Segment:
Mexico	La Colorada	$	299,038	$	52,934	$	246,104
Peru	Huaron	117,514		59,975		57,539
	Morococha	124,607		40,494		84,113
Bolivia	San Vicente	88,924		53,264		35,660
Argentina	Manantial Espejo (1)	78,240		29,155		49,085
Guatemala	Escobal	287,811		19,833		267,978
Total Silver Segment		996,134		255,655		740,479
Gold Segment:
Mexico	Dolores	750,220		193,638		556,582
Peru	Shahuindo	591,164		199,450		391,714
	La Arena	317,371		106,799		210,572
Canada	Timmins	419,106		62,196		356,910
Total Gold Segment		2,077,861		562,083		1,515,778
Other segment:
Canada	Pas Corp	176,006		16,492		159,514
Argentina	Navidad	193,077		—		193,077
	Other (1)	75,506		48,346		27,160
Total		$	3,518,584	$	882,576	$	2,636,008

(1)Recast comparative to be consistent with current presentation.

	Three months ended <br>June 30,				Six months ended <br>June 30,
Product Revenue	2022		2021		2022		2021
Refined silver and gold	$	250,007	$	264,579	$	567,404	$	543,504
Zinc concentrate	28,203		33,216		56,484		58,501
Lead concentrate	36,402		35,878		85,324		53,735
Copper concentrate	11,648		29,613		40,053		59,447
Silver concentrate	14,209		18,846		31,092		35,044
Total	$	340,469	$	382,132	$	780,357	$	750,231

INCOME TAXES

Components of Income Tax Expense

	Three months ended <br>June 30,				Six months ended <br>June 30,
	2022		2021		2022		2021
Current income tax expense	$	11,738	$	25,893	$	42,224	$	52,469
Deferred income tax (recovery) expense	(4,870)		3,703		(23,916)		15,104
Income tax expense	$	6,868	$	29,596	$	18,308	$	67,573

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 results in effective tax rates that vary considerably from the comparable period. The main factors that impacted the effective tax rate for the three and six months ended June 30, 2022 and the comparable periods for 2021 were changes in the recognition of certain deferred tax assets primarily due to the Dolores impairment, 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.

| PAN AMERICAN SILVER CORP. | 24 | | --- | --- || | Notes to the Condensed Interim Consolidated Financial Statements | | --- | --- | | As at June 30, 2022 and December 31, 2021, and for the three and six months ended June 30, 2022 and 2021 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) | |

Reconciliation of Effective Income Tax Rate

	Three months ended <br>June 30,						Six months ended <br>June 30,
	2022			2021			2022			2021
Earnings (loss) before taxes and non-controlling interest	$	(166,764)		$	100,837		$	(78,493)		$	131,252
Statutory Canadian income tax rate	27.00		%	27.00		%	27.00		%	27.00		%
Income tax (recovery) expense based on above rates	$	(45,026)		$	27,226		$	(21,193)		$	35,438
Increase (decrease) due to:
Non-deductible expenditures	605			1,380			2,611			2,747
Foreign tax rate differences	(11,143)			3,921			(9,642)			7,836
Change in net deferred tax assets not recognized	8,877			(7,296)			(2,808)			7,294
Derecognition of deferred tax assets previously recognized (1)	50,356			—			50,356			—
Effect of other taxes paid (mining and withholding)	3,196			5,633			7,811			14,007
Effect of foreign exchange on tax expense	(134)			(5,179)			(11,596)			2,483
Non-taxable impact of foreign exchange	1,186			4,043			3,679			1,497
Change in non-deductible portion of reclamation liabilities	(787)			1,802			596			(1,441)
Other	(262)			(1,934)			(1,506)			(2,288)
Income tax expense	$	6,868		$	29,596		$	18,308		$	67,573

(1)Attributable to the loss of tax attributes as a result of the Dolores Impairment (Note 8).

CONTINGENCIES

The Company is subject to various legal, tax, environmental and regulatory matters that arise in the ordinary course of business activities. Each of these matters is subject to various uncertainties and it is possible that some of these matters may be resolved unfavorably to the Company. In the opinion of management none of these matters are expected to have a material adverse effect on the results of operations or financial conditions of the Company. Since December 31, 2021, there have been no significant changes to these contractual obligations and commitments.

RELATED PARTY TRANSACTIONS

The Company’s related parties include its subsidiaries, associates over which it exercises significant influence, and key management personnel. Transactions with the Company's subsidiaries have been eliminated on consolidation. Maverix ceased to be a related party after March 31, 2022 after the Company determined that it no longer held significant influence (Note 9). There were no other related party transactions for the three and six months ended June 30, 2022 and 2021.

PAN AMERICAN SILVER CORP.	25

Document

Management’s Discussion and Analysis

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2022

	Management Discussion and Analysis
For the three and six months ended June 30, 2022 and 2021<br>(tabular amounts are in thousands of U.S. dollars except number of shares, options,<br>warrants, per share amounts, and per ounce amounts, unless otherwise noted)
TABLE OF CONTENTS
---	---
Introduction	2
Core Business and Strategy	3
Q2 2022 Highlights	4
Environmental, Social, and Governance	6
Operating Performance	8
2022 Annual Operating Outlook	17
Project Development Update	19
Overview of Q22022 Financial Results	19
Liquidity Position and Capital Resources	28
Closure and Decommissioning Cost Provision	30
Related Party Transactions	30
Alternative Performance Measures (Non-GAAP)	30
Risks and Uncertainties	40
Summary of Significant Accounting Policies, Standards and Judgements	45
Disclosure Controls and Procedures and Technical Information	45
Cautionary Note	47	PAN AMERICAN SILVER CORP.	1
---	---
	Management Discussion and Analysis
---	---
For the three and six months ended June 30, 2022 and 2021<br>(tabular amounts are in thousands of U.S. dollars except number of shares, options,<br>warrants, per share amounts, and per ounce amounts, unless otherwise noted)

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

August 10, 2022

INTRODUCTION

This Management’s Discussion and Analysis (“MD&A”) is intended to help the reader understand the significant factors that influence the performance of Pan American Silver Corp. and its subsidiaries (collectively “Pan American”, “we”, “us”, “our” or the “Company”) and such factors that may affect its future performance. This MD&A should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2021 (the “2021 Annual Financial Statements”), and the related notes contained therein, and the unaudited condensed interim consolidated financial statements for the three and six months ended June 30, 2022 (the “Q2 2022 Financial Statements”), and the related notes contained therein. All amounts in this MD&A, the 2021 Annual Financial Statements, and the Q2 2022 Financial Statements are expressed in United States dollars (“USD”) unless identified otherwise. The Company reports its financial position, financial performance and cash flows in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”). Pan American’s significant accounting policies are set out in Note 3 of the 2021 Annual Financial Statements.

This MD&A refers to various non-Generally Accepted Accounting Principles (“non-GAAP”) measures, such as “all-in sustaining costs per ounce sold”, “cash costs per ounce sold”, “adjusted earnings” and “basic adjusted earnings per share”, “cash mine operating earnings”, “total debt”, “capital”, and “working capital”, which are used by the Company to manage and evaluate operating performance at each of the Company’s mines and are widely reported in the mining industry as benchmarks for performance, do not have standardized meanings under IFRS, and the methodology by which these measures are calculated may differ from similar measures reported by other companies. To facilitate a better understanding of these non-GAAP measures as calculated by the Company, additional information has been provided in this MD&A. Please refer to the section of this MD&A entitled “Alternative Performance (Non-GAAP) Measures” for a detailed description of “all-in sustaining cost per ounce sold”, “cash costs per ounce sold”, “adjusted earnings” and “basic adjusted earnings per share”, “cash mine operating earnings”, “total debt”, “capital”, and “working capital” as well as details of the Company’s by-product credits and a reconciliation, where appropriate, of these measures to the Q2 2022 Financial Statements.

Any reference to “cash costs” in this MD&A should be understood to mean cash costs per ounce of silver or gold sold, net of by-product credits. Any reference to “AISC” in this MD&A should be understood to mean all-in sustaining costs per silver or gold ounce sold, net of by-product credits.

Except for historical information contained in this MD&A, the following disclosures are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian provincial securities laws, or are future oriented financial information and as such, are based on an assumed set of economic conditions and courses of action. Please refer to the cautionary note regarding forward-looking statements and information at the back of this MD&A and the “Risks Related to Pan American’s Business” contained in the Company’s most recent Annual Information Form on file with the Canadian provincial securities regulatory authorities and Form 40-F on file with the U.S. Securities and Exchange Commission (the “SEC”). Additional information about Pan American and its business activities, including its Annual Information Form, is available on SEDAR at www.sedar.com.

PAN AMERICAN SILVER CORP.	2
	Management Discussion and Analysis
---	---
For the three and six months ended June 30, 2022 and 2021<br>(tabular amounts are in thousands of U.S. dollars except number of shares, options,<br>warrants, per share amounts, and per ounce amounts, unless otherwise noted)

CORE BUSINESS AND STRATEGY

Pan American engages in silver and gold mining and related activities, including exploration, mine development, extraction, processing, refining and reclamation. The Company owns and operates silver and gold mines located in Peru, Mexico, Argentina, Bolivia, and Canada. We also own the Escobal mine in Guatemala that is currently not operating. In addition, the Company is exploring for new silver deposits and opportunities throughout the Americas. The Company is listed on the Toronto Stock Exchange (Symbol: PAAS) and on the Nasdaq Global Select Market in New York (Symbol: PAAS).

Pan American’s vision is to be the world’s premier silver mining company, with a reputation for excellence in discovery, engineering, innovation and sustainable development. To achieve this vision, we base our business on the following strategy:

•Generate sustainable profits and superior returns on investments through the safe, efficient and environmentally sound development and operation of our assets.

•Constantly replace and grow our mineral reserves and mineral resources through targeted near-mine exploration and global business development.

•Foster positive long-term relationships with our employees, shareholders, communities and local governments through open and honest communication and ethical and sustainable business practices.

•Continually search for opportunities to upgrade and improve the quality of our assets, both internally and through acquisition.

•Encourage our employees to be innovative, responsive and entrepreneurial throughout our entire organization.

To execute this strategy, Pan American has assembled a sector-leading team of mining professionals with a depth of knowledge and experience in all aspects of our business, which enables the Company to confidently advance early stage projects through construction and into operation.

PAN AMERICAN SILVER CORP.	3
	Management Discussion and Analysis
---	---
For the three and six months ended June 30, 2022 and 2021<br>(tabular amounts are in thousands of U.S. dollars except number of shares, options,<br>warrants, per share amounts, and per ounce amounts, unless otherwise noted)

Q2 2022 HIGHLIGHTS

Operations

Dolores Update

Management identified the following impairment indicators at the Dolores Mine as part of our quarterly review of impairment indicators:

i.Year-to-date 2022 silver and gold production being less than that expected, driven by lower grades in Phase 9B of the open pit. The exploration drilling originally conducted for Phase 9B of the open pit had some high-grade intercepts that were to be mined during the first half of 2022. These high grades were not fully realized during mining. Management now believes that these high-grade intercepts contributed to a localized overestimation of the contained ounces within Phase 9B. The updated mineral resource and production plan for the life of mine adjusts for this overestimation on the remainder of Phase 9B;

ii.inflationary pressures, which have particularly affected this shorter-life asset where most of the mining will be completed in the next two years;

iii.the suspension of underground mining operations in Q2 2022 due to inflationary cost pressures, and the subsequent reclassification of underground mineral reserves to mineral resources; and,

iv.a reduction in the expected duration of economic leaching to the year 2030.

These factors resulted in an impairment to the mineral property, plant and equipment, as well as a net realizable value ("NRV") inventory adjustment, largely related to the heap inventory.

i.a pre-tax impairment charge of $99.1 million; and,

ii.an NRV adjustment of $55.4 million.

Considering the shortfall in grades from Phase 9B, and while Phase 10 production is thus far according to expectations, the Company reaffirms its original annual forecast for silver and gold production but expects to come in at the low end of the 2022 operating outlook. Further, the Company now expects the Gold Segment AISC to exceed the high end of the 2022 operating outlook, as shown in the "2022 Annual Operating Outlook" section of this MD&A.

Silver production of 4.54 million ounces

Consolidated silver production for Q2 2022 of 4.54 million ounces was comparable with the 4.48 million ounces produced in the three months ended June 30, 2021 ("Q2 2021"), primarily reflecting higher production at La Colorada and San Vicente in Q2 2022 offset by Morococha being placed on care and maintenance in February 2022. The production variances for each of Pan American's mines are further described in the "Individual Mine Performance" section of this MD&A.

Gold production of 128.3 thousand ounces

Consolidated gold production for Q2 2022 of 128.3 thousand ounces was 10% lower than the 142.3 thousand ounces produced in Q2 2021, primarily reflecting lower production at Dolores, La Arena, and Manantial Espejo, which was partially offset by higher production at Shahuindo and Timmins, as further described in the "Individual Mine Performance" section of this MD&A.

Base metal production

Zinc, lead and copper ("base metal") production in Q2 2022 of 9.0 thousand tonnes, 4.6 thousand tonnes, and 1.3 thousand tonnes, respectively, was lower than Q2 2021, primarily as a result of Morococha being placed on care and maintenance in late February 2022.

The Company reaffirms its 2022 original annual forecast for zinc, lead and copper production, as presented in the Company's 2021 Annual MD&A dated February 23, 2022.

| PAN AMERICAN SILVER CORP. | 4 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

Financial

Cash Flow, liquidity and working capital position

Cash flow from operations: in Q2 2022 totaled $20.8 million, $66.3 million less than the $87.1 million generated in Q2 2021. The decrease was primarily driven by:

i.a $58.9 million decrease in cash mine operating earnings(1) due to lower gold grades and sequencing into higher waste-to-ore zones at the Company's three open pit mines, which impacted margins, as well as inflationary pressures across the asset portfolio; and,

ii.a $21.4 million increase in income tax cash payments due to timing of payments at Dolores and Huaron, which incurred final adjustments on filed 2021 tax returns and associated catch-up in installments.

These factors were partially offset by a $17.5 million decrease in cash used in working capital changes, as further described in the statement of cash flows analysis included in the "Overview of Q2 2022 Financial Results" section of this MD&A.

As at June 30, 2022, the Company had working capital of $513.9 million, inclusive of cash and short-term investment balances of $241.3 million; a long-term investment in Maverix Metals Inc. ("Maverix") of $112.5 million; and $500.0 million available under its Sustainability-Linked Credit Facility. Total debt of $63.2 million was related to lease liabilities and construction loans.

Revenue and net income

Revenue in Q2 2022 of $340.5 million was 11% lower than in Q2 2021 as a result of lower quantities of metal sold, negative settlement adjustments on open concentrate shipments which reduced revenue by $9.3 million as a result of the decline in metal prices late in June 2022, and lower silver prices. The decrease in quantities sold was largely from lower gold production, due to lower grades, and lower base metals production from the cessation of mining at Morococha.

Net loss of $173.6 million ($0.83 basic loss per share) was recorded for Q2 2022, compared with net earnings of $71.2 million ($0.34 basic earnings per share) in Q2 2021. The $244.9 million quarter-over-quarter decrease is mainly due to:

i.a $99.1 million impairment charge to the Dolores mine assets as described in the "Dolores Update" section above.

ii.a $134.7 million decrease in mine operating earnings from the previously described lower revenue and higher production costs, as well as increased depreciation. Included in higher production costs is a $70.0 million negative variation in quarter-over-quarter NRV inventory adjustments, largely related to a write-down of inventory on the heap as part of the new life of mine update for Dolores;

iii.an $18.3 million negative investment loss variance, reflecting a Q2 2022 loss of $7.7 million compared with income of $10.6 million in Q2 2021, primarily due to the fair value mark-to-market adjustments on short-term investments in equity securities, largely New Pacific Metals Corp.; and,

iv.a $10.9 million negative variance from lower gains and income from associates, lower gains on sale of mineral properties, plant and equipment, and higher foreign exchange losses.

These factors were partially offset by a $22.7 million decrease in income tax expense, primarily due to the quarter-over-quarter decrease in income before tax of $267.6 million.

See the "Overview of Q2 2022 Financial Results" section of this MD&A for further information.

Adjusted loss(1) of $6.5 million ($0.03 loss per share) was recorded in Q2 2022, compared to the Q2 2021 adjusted earnings of $46.6 million ($0.22 earnings per share).

| PAN AMERICAN SILVER CORP. | 5 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

Cash Costs(1)

During Q2 2022, all operations were negatively impacted by inflationary pressures, particularly from increased diesel prices and certain consumables, including cyanide, explosives, and steel products (such as grinding media), as well as supply-chain shortages. Further, we are experiencing cost increases in services and other supplies indirectly due to the inflationary impact of consumables on their input costs, particularly diesel. These challenges are collectively referred to as "Inflationary and Supply Chain Cost Increases" throughout the report.

Despite the Inflationary and Supply Chain Cost Increases described above, Silver Segment Cash Costs per ounce in Q2 2022 of $12.10 were $0.61 lower than the $12.71 in Q2 2021. The decrease in quarter-over-quarter Cash Costs is driven primarily by San Vicente due to improved silver grades and zinc by-product credits from mine sequencing, partially offset by lower zinc sales at La Colorada in Q2 2022 relative to Q2 2021 largely from prior period sales benefiting from the reduction in zinc concentrate stockpiles built-up in Q1 2021 from transportation delays.

Gold Segment Cash Costs per ounce in Q2 2022 were $1,132, $275 higher than in Q2 2021, reflecting increases at all Gold Segment mines, except Timmins, largely driven by: lower mined grades due to mine sequencing at Shahuindo and La Arena, the Dolores grade reconciliation shortfall to Phase 9B previously noted, and the previously described Inflationary and Supply Chain Cost Increases.

The Company reaffirms its 2022 operating outlook for silver and gold segment Cash Costs, as further described in the "2022 Annual Operating Outlook" section of this MD&A.

All-In Sustaining Costs (“AISC”)(1)

Silver Segment AISC for Q2 2022 of $17.30 per ounce were $0.94 higher than Q2 2021. The increase primarily reflects negative NRV inventory adjustments at Manantial Espejo, which led to a $2.27 per ounce increase in quarter-over-quarter Silver Segment AISC. This increase was only partially offset by the previously described factors decreasing Cash Costs, and a $0.54 per ounce decrease in sustaining capital from a higher amount of ounces sold.

Gold Segment AISC for Q2 2022 of $2,051 per ounce were $888 higher than Q2 2021. This largely reflects the impact of $57.7 million in NRV adjustments at Dolores previously described, which led to a $547 per ounce increase in quarter-over-quarter Gold Segment AISC. Gold Segment AISC excluding NRV adjustments was $1,540, impacted by the same factors affecting Cash Costs described above and higher sustaining capital.

The Company reaffirms its 2022 operating outlook for Silver Segment AISC, but is increasing its Gold Segment AISC guidance to between $1,400 and $1,550 per ounce (exclusive of NRV inventory adjustments), as a result of increased capital spending at the open pit mines in Peru and the grade reconciliation shortfalls at Dolores. The increase in Gold Segment AISC and capital spending is further described in the "2022 Annual Operating Outlook" section of this MD&A.

(1) Adjusted earnings, Cash Costs, AISC and Cash Mine Operating Earnings are non-GAAP measures, please refer to the “Alternative Performance (Non-GAAP) Measures” section of this MD&A for a detailed reconciliation of these measures to the Q2 2022 Financial Statements.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG)

Pan American is committed to conducting its business in a responsible and sustainable manner. Our ESG values include: caring for the environment in which we operate; contributing to the long-term development of our host communities; ensuring safe and secure workplaces for our employees; contributing to the welfare of our employees, local communities and governments; and, operating transparently.

The following describes our progress during the first six months of 2022 relative to the 2022 ESG goals described in the “Goals and Performance” section of the Company’s 2021 Sustainability Report, which is available on the Company’s website at www.panamericansilver.com.

On the environmental front, we are on track to meet seven of our nine environmental goals with the following progress:

| PAN AMERICAN SILVER CORP. | 6 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

•no significant environmental incidents at our operations;

•Year-to-date reductions of 5% and 8% in water use and energy use, respectively, compared to the 2022 base case(1);

•Year-to-date reduction of 13% in GHG emissions compared to the 2022 base case(1), largely due to the Company's ability to procure a renewable energy source for 100% of the purchased electricity for our operations in Mexico; and,

•achieving our targets for post closure and reclamation activities and reduction in non-rock waste generation.

However, the waste recycling target is behind target and may not be achieved by year-end. We also do not expect to meet our biodiversity goal of 100 hectares of reforestation or revegetation across all our sites, mainly due to delays in defining areas for reclamation with local communities.

In Health and Safety, despite achieving better than targeted Lost Time Injury Frequency (LTIF) and Lost Time Injury Severity (LTIS) rates, we did not meet our most important goal of zero fatalities, as Huaron experienced one fatality during the first six months of 2022. Our focus continues to be on preventing workplace fatalities and injuries. We are currently in the process of designing and rolling out a Fatal Risk Management program.

We are on track to meet all our social goals and have not experienced any new significant social disputes at our operations during the first six months of 2022. We continue to expand our socio-economic programs and projects in the communities near our mines and have deployed close to $6 million of our community investment budget as of June 30, 2022. We are also on track with our Inclusion & Diversity initiatives, with approximately 80% of our workforce having completed the second module of our "Building Respect Together" program.

Progress on our governance goals is on plan with an Anti-Corruption training program for our employees and a supplier due diligence system for critical suppliers.

Additional details on our progress on the 2022 ESG Goals will be discussed during our third annual "ESG Investor Update Conference Call" on September 22, 2022, and will be further disclosed in the Company's 2022 Sustainability Report.

(1) The 2022 base case is our projected 2022 water use, energy use, GHG emissions, and waste generation, as calculated using our life of mine plans adjusted for annual production guidance.

PAN AMERICAN SILVER CORP.	7
	Management Discussion and Analysis
---	---
For the three and six months ended June 30, 2022 and 2021<br>(tabular amounts are in thousands of U.S. dollars except number of shares, options,<br>warrants, per share amounts, and per ounce amounts, unless otherwise noted)

OPERATING PERFORMANCE

Silver and Gold Production

The following table provides silver and gold production at each of Pan American’s operations for the three and six months periods ended June 30, 2022 and 2021. Each operation’s production variances are further discussed in the “Individual Mine Performance” section of this MD&A.

	Silver Production<br>(ounces ‘000s)				Gold Production<br>(ounces ‘000s)
	Three months ended <br>June 30,		Six months ended <br>June 30,		Three months ended <br>June 30,		Six months ended <br>June 30,
	2022	2021	2022	2021	2022	2021	2022	2021
La Colorada	1,675	1,099	3,095	2,164	1.0	0.7	1.6	1.2
Huaron	882	903	1,780	1,787	0.2	0.3	0.4	0.6
Morococha(1)	—	568	324	1,089	—	0.3	0.1	0.4
San Vicente(2)	646	601	1,122	1,302	—	0.1	0.1	0.2
Manantial Espejo	693	635	1,595	1,333	5.2	8.1	11.3	14.0
Dolores	572	612	1,090	1,246	35.2	43.3	69.7	80.3
Shahuindo	59	54	125	119	31.6	30.3	65.8	59.8
La Arena	5	9	16	20	17.4	23.7	40.8	56.9
Timmins	4	4	8	8	37.8	35.6	69.5	66.6
Total	4,537	4,484	9,156	9,067	128.3	142.3	259.4	280.0
Total Payable Production(3)	4,255	4,143	8,567	8,413	127.9	141.6	258.3	278.5

(1)Morococha data represents Pan American's 92.3% interest in the mine's production. Morococha was placed on care and maintenance in February 2022.

(2)San Vicente data represents Pan American's 95.0% interest in the mine's production.

(3)Payable production reflects sellable metal after deducting commercial contract metal payable deductions.

Base Metal Production

The following table provides the Company’s base metal production for the three and six months ended June 30, 2022 and 2021:

		Base Metal Production
	Three months ended <br>June 30,				Six months ended <br>June 30,
	2022		2021		2022		2021
Zinc – kt		9.0		12.4		19.2		25.4
Lead – kt		4.6		4.8		9.3		9.8
Copper – kt		1.3		2.1		3.1		4.1
		Base Metal Payable Production
---	---	---	---	---	---	---	---	---
	Three months ended <br>June 30,				Six months ended <br>June 30,
	2022		2021		2022		2021
Zinc – kt		7.5		10.4		16.0		21.3
Lead – kt		4.3		4.5		8.7		9.2
Copper – kt		1.1		1.7		2.7		3.3

Cash Costs and AISC

The quantification of both Cash Costs and AISC measures is described in detail, and where appropriate reconciled to the Q2 2022 Financial Statements, in the "Alternative (Non-GAAP) Performance Measures" section of this MD&A.

| PAN AMERICAN SILVER CORP. | 8 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

The following table reflects the Cash Costs and AISC net of by-product credits at each of Pan American’s operations for the three and six months ended June 30, 2022, as compared to the same periods in 2021:

		Cash Costs(1) ( per ounce)							AISC(1)( per ounce)
	Three months ended <br>June 30,			Six months ended <br>June 30,				Three months ended <br>June 30,			Six months ended <br>June 30,
	2022			2022		2021		2022			2022		2021
La Colorada		9.40	4.52		9.58		6.78		13.33	12.42		12.72		18.54
Huaron		4.73	5.11		1.71		3.63		9.53	9.47		6.43		6.98
Morococha		N/A	11.35		5.68		12.60		N/A	15.42		7.08		16.42
San Vicente		11.97	19.76		15.47		16.47		16.66	21.06		20.09		17.54
Manantial Espejo		22.57	25.30		18.95		22.50		30.61	24.47		24.41		24.45
Silver Segment Consolidated(2)		12.10	12.71		11.10		12.52		17.30	16.36		15.21		16.65
Silver Segment Consolidated (Excl. NRV Adjustments)		12.10	12.71		11.10		12.52		15.90	17.23		14.39		16.89
Dolores(3)		1,066	602		1,017		652		3,138	716		2,344		719
Shahuindo		1,032	762		970		756		1,333	1,160		1,237		975
La Arena		1,123	720		1,014		651		2,178	1,244		1,665		1,147
Timmins		1,288	1,352		1,352		1,322		1,556	1,676		1,626		1,621
Gold Segment Consolidated(2)		1,132	857		1,097		851		2,051	1,163		1,747		1,109
Gold Segment Consolidated (Excl. NRV Adjustments)		1,132	857		1,097		851		1,540	1,199		1,467		1,165

All values are in US Dollars.

(1)Cash Costs and AISC are non-GAAP measures. Please refer to the “Alternative Performance (Non-GAAP) Measures” section of this MD&A for a detailed description of these measures and where appropriate a reconciliation of the measure to the Q2 2022 Financial Statements.

(2)Silver Segment Cash Costs and AISC are calculated net of credits for realized revenues from all metals other than silver ("silver segment by-product credits"), and are calculated per ounce of silver sold. Gold segment Cash Costs and AISC are calculated net of credits for realized silver revenues ("gold segment by-product credits"), and are calculated per ounce of gold sold.

(3)AISC excluding NRV Adjustments is $1,446 and $1,400 per ounce for Q2 2022 and H1 2022, respectively, (Q2 2021 and H1 2021: $821 and $910, respectively). NRV adjustments included in AISC increased costs by $1,692 and $944 for Q2 2022 and H1 2022, respectively, (Q2 2021 and H1 2021: $105 and $191, respectively, decrease in costs).

PAN AMERICAN SILVER CORP.	9
	Management Discussion and Analysis
---	---
For the three and six months ended June 30, 2022 and 2021<br>(tabular amounts are in thousands of U.S. dollars except number of shares, options,<br>warrants, per share amounts, and per ounce amounts, unless otherwise noted)

Individual Mine Performance

An analysis of performance at each operation in Q2 2022 compared with Q2 2021 follows. The project capital amounts invested in Q2 2022 are further discussed in the "Project Development Update" section of this MD&A.

La Colorada Operation

	Three months ended <br>June 30,		Six months ended <br>June 30,
	2022	2021	2022	2021
Ore tonnes mined – kt	168.5	125.0	306.9	255.4
Tonnes milled – kt	168.8	127.4	307.3	260.9
Average silver grade – grams per tonne	338	298	343	287
Average zinc grade - %	1.93	2.51	1.89	2.24
Average lead grade - %	1.07	1.28	1.05	1.16
Production:
Silver – koz	1,675	1,099	3,095	2,164
Gold – koz	0.96	0.67	1.58	1.20
Zinc – kt	2.78	2.77	4.93	5.02
Lead – kt	1.51	1.38	2.70	2.55
Payable Production
Silver – koz	1,585	1,032	2,936	2,041
Gold – koz	0.82	0.55	1.33	0.97
Zinc – kt	2.36	2.35	4.19	4.27
Lead – kt	1.41	1.29	2.52	2.37
Cash Costs - $ per ounce(1)	9.40	4.52	9.58	6.78
Sustaining capital - $ thousands(2)	5,278	6,282	9,134	11,668
AISC - $ per ounce(1)	13.33	12.42	12.72	18.54
Payable silver sold - koz	1,374	879	2,994	1,104

(2)Sustaining capital expenditures exclude $17.4 million and $26.0 million of investing activity cash outflows for Q2 2022 and during the six months ended June 30, 2022 ("H1 2022"), respectively, (Q2 2021 and the six months ended June 30, 2021 ("H1 2021"): $8.1 million and $12.2 million, respectively) related to investment capital incurred on the La Colorada projects, as disclosed in the “Project Development Update” section of this MD&A.

Q2 2022 vs. Q2 2021

Production:

•Silver: 52% increase, largely from higher grades and throughput, both of which benefited from improved ventilation rates that allowed an increase in mining rates and access to high-grade zones. The refrigeration plant project began operating early in the third quarter of 2022 and will further benefit ventilation conditions in the mine going forward.

•By-products: 9% increase in lead production, as a result of higher throughput, partially offset by mine sequencing into lower base metal grade areas of the mine.

Cash Costs: increased by $4.88 per ounce, primarily driven by: (i) lower by-product credits per ounce due to the timing of sales in Q2 2021, which benefited from higher zinc concentrate sales relative to silver-rich lead concentrate sales as a result of the transportation delays in Q1 2021; (ii) a $4.7 million non-recurring production tax credit that was accrued in Q2 2021; and, (iii) Inflationary and Supply Chain Cost Increases. This was partially offset by lower smelting and refining charges and operating costs per ounce due to higher quantities of silver sold.

Sustaining Capital: capital cash outflows decreased relative to Q2 2021 due to the timing of payments with a build-up of payables on capital commitments made in the quarter. Capital commitments were higher in Q2 2022 than in the prior year due to increased spending on mine deepening, tailings storage facility expansion, improvements in

| PAN AMERICAN SILVER CORP. | 10 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

ventilation infrastructure, equipment replacements, lease payments for equipment, and near-mine exploration activities.

AISC: were $0.91 per ounce higher, as a result of the same factors that affected Cash Costs, partially offset by lower sustaining capital per ounce.

Huaron Operation

	Three months ended <br>June 30,		Six months ended <br>June 30,
	2022	2021	2022	2021
Ore tonnes mined – kt	238.2	238.3	476.0	474.0
Tonnes milled – kt	233.9	237.3	468.8	475.1
Average silver grade – grams per tonne	141	144	142	142
Average zinc grade - %	2.11	2.10	2.16	2.42
Average lead grade - %	1.51	1.15	1.46	1.22
Average copper grade - %	0.65	0.74	0.68	0.80
Production:
Silver – koz	882	903	1,780	1,787
Gold – koz	0.21	0.32	0.44	0.60
Zinc – kt	3.79	3.71	7.83	8.83
Lead – kt	2.89	2.01	5.47	4.31
Copper – kt	1.11	1.31	2.33	2.87
Payable Production:
Silver – koz	745	744	1,485	1,483
Gold – koz	0.06	0.06	0.11	0.08
Zinc – kt	3.11	3.04	6.44	7.26
Lead – kt	2.73	1.89	5.16	4.05
Copper – kt	1.03	1.05	2.13	2.29
Cash Costs - $ per ounce(1)	4.73	5.11	1.71	3.63
Sustaining capital - $ thousands	3,085	2,550	6,234	4,161
AISC-$ per ounce(1)	9.53	9.47	6.43	6.98
Payable silver sold – koz	684	617	1,404	1,325

Q2 2022 vs. Q2 2021

Production:

•Silver: 2% lower, primarily from lower grades due to mine sequencing.

•By-products: lead and zinc production were 44% and 2% higher, respectively, while copper was 15% lower, all due to mine sequencing.

Cash Costs: decreased $0.38 per ounce, primarily from higher base metal prices and higher lead production, partially offset by Inflationary and Supply Chain Cost Increases and higher smelting and refining charges per ounce.

Sustaining Capital: was higher than Q2 2021 due to an increased spending on mine deepening and near-mine exploration. The balance of Q2 2022 capital spending related to equipment and facility leases, and tailings storage facility expansions.

AISC: comparable quarter-over-quarter as a result of the same factors that affected Cash Costs, offset by higher sustaining capital per ounce.

PAN AMERICAN SILVER CORP.	11
	Management Discussion and Analysis
---	---
For the three and six months ended June 30, 2022 and 2021<br>(tabular amounts are in thousands of U.S. dollars except number of shares, options,<br>warrants, per share amounts, and per ounce amounts, unless otherwise noted)

Dolores Operation

	Three months ended <br>June 30,		Six months ended <br>June 30,
	2022	2021	2022	2021
Ore tonnes mined – kt	1,236.1	2,896.5	2,768.7	5,830.6
Waste tonnes mined – kt	7,036.7	5,131.4	13,353.7	11,628.9
Tonnes placed – kt	1,989.7	1,962.4	3,991.9	3,822.3
Average silver grade – grams per tonne	15	15	15	17
Average gold grade – grams per tonne	0.55	1.16	0.59	1.11
Production:
Silver – koz	572	612	1,090	1,246
Gold – koz	35.2	43.3	69.7	80.3
Payable Production:
Silver – koz	571	611	1,088	1,244
Gold – koz	35.1	43.3	69.6	80.2
Cash Costs - $ per gold ounce(1)	1,066	602	1,017	652
Sustaining capital - $ thousands	11,575	8,335	25,928	17,255
AISC - $ per gold ounce(1)	3,138	716	2,344	719
Payable gold sold - koz	34.1	41.6	74.9	73.1

(1)Cash Costs and AISC are non-GAAP measures. Please refer to the “Alternative Performance (Non-GAAP) Measures” section of this MD&A for a detailed reconciliation of these measures to cost of sales. Previously reported Cash Costs and AISC on a per silver ounce basis are disclosed in the Cash Costs and AISC section.

(2)AISC excluding NRV Adjustments is $1,446 and $1,400 per ounce for Q2 2022 and H1 2022, respectively, (Q2 2021 and H1 2021: $821 and $910, respectively). NRV adjustments included in AISC increased costs by $1,692 and $944 for Q2 2022 and H1 2022, respectively, (Q2 2021 and H1 2021: $105 and $191, respectively, decrease in costs).

Q2 2022 vs. Q2 2021

Production:

•Silver: 7% lower, largely from leaching in a constrained area of the leach pad, which limited primary leach cycle time, thereby reducing the ratio of recovered to stacked ounces in Q2 2022.

•Gold: 19% lower, primarily from mine sequencing into lower gold grade ores and the negative grade reconciliation related to Phase 9B of the open pit, partially offset by a higher ratio of gold ounces produced to ounces stacked given the reduction of gold grades from Q1 2022 to Q2 2022.

Cash Costs: increased $464 per ounce, primarily due to the grade reconciliation shortfall at Phase 9B, lower grades from mine sequencing, Inflationary and Supply Chain Cost Increases, and lower silver by-product credits.

Sustaining Capital: was higher than Q2 2021, primarily driven by greater capitalized waste mining, partially offset by decreased heap leach pad expansion expenses in Q2 2022.

AISC: increased $2,422 per ounce, primarily due to the impact of NRV inventory adjustments, the factors affecting quarter-over-quarter Cash Costs, and higher sustaining capital. The NRV inventory adjustments increased costs by $57.7 million, or $1,692 per ounce, in Q2 2022, as previously described, compared with a cost-reducing $4.4 million, or $105 per ounce, adjustment in Q2 2021.

PAN AMERICAN SILVER CORP.	12
	Management Discussion and Analysis
---	---
For the three and six months ended June 30, 2022 and 2021<br>(tabular amounts are in thousands of U.S. dollars except number of shares, options,<br>warrants, per share amounts, and per ounce amounts, unless otherwise noted)

Shahuindo Operation

	Three months ended <br>June 30,		Six months ended <br>June 30,
	2022	2021	2022	2021
Ore tonnes mined – kt	3,771.5	3,690.9	6,983.0	6,832.6
Waste tonnes mined – kt	5,563.6	4,674.4	9,877.8	8,185.8
Tonnes placed – kt	3,709.5	2,834.2	7,036.7	5,640.6
Average silver grade – grams per tonne	4	6	5	6
Average gold grade – grams per tonne	0.40	0.56	0.41	0.51
Production:
Silver – koz	59	54	125	119
Gold – koz	31.6	30.3	65.8	59.8
Payable Production:
Silver – koz	58	54	124	118
Gold – koz	31.5	30.2	65.8	59.7
Cash Costs - $ per ounce(1)	1,032	762	970	756
Sustaining capital - $ thousands(2)	8,425	8,750	15,806	11,431
AISC - $ per ounce(1)	1,333	1,160	1,237	975
Payable gold sold - koz	30.1	22.7	64.0	54.4

(2)Sustaining capital expenditures exclude $0.1 million and $0.3 million of investing activity cash outflows for Q2 2022 and H1 2022, respectively, (Q2 2021 and H1 2021: $0.1 million and $0.3 million, respectively) related to lease payments for the crushing and agglomeration plant, and is included in Other Projects, as disclosed in the “Project Development Update” section of this MD&A.

Q2 2022 vs. Q2 2021

Production:

•Gold: 4% higher, primarily from higher tonnes stacked due to improved ore blending availabilities between fine and coarse ore, partially offset by lower grades due to mine sequencing.

Cash Costs: were $270 per ounce higher, primarily due to higher operating costs per ounce from Inflationary and Supply Chain Cost Increases, lower gold grades, and higher waste-to-ore mining rates.

Sustaining Capital: comparable quarter-over-quarter, as higher Q2 2022 expenditures for engineering of a mine water treatment plant, waste dump preparation and mine equipment replacements were offset by lower expenditures for heap leach pad expansions.

AISC: were $173 per ounce higher, largely due to the same factors affecting Cash Costs, partially offset by lower sustaining capital per ounce due to timing of gold ounces sold.

PAN AMERICAN SILVER CORP.	13
	Management Discussion and Analysis
---	---
For the three and six months ended June 30, 2022 and 2021<br>(tabular amounts are in thousands of U.S. dollars except number of shares, options,<br>warrants, per share amounts, and per ounce amounts, unless otherwise noted)

La Arena Operation

	Three months ended <br>June 30,		Six months ended <br>June 30,
	2022	2021	2022	2021
Ore tonnes mined – kt	2,224.7	2,062.9	4,259.7	4,103.7
Waste tonnes mined – kt	6,722.8	7,151.0	13,592.5	15,154.7
Tonnes placed – kt	2,224.7	2,062.9	4,259.7	4,103.7
Average silver grade – grams per tonne	0.67	0.69	0.61	0.66
Average gold grade – grams per tonne	0.33	0.41	0.33	0.40
Production:
Silver – koz	5	9	16	20
Gold – koz	17.4	23.7	40.8	56.9
Payable Production:
Silver – koz	5	9	16	20
Gold – koz	17.4	23.7	40.7	56.8
Cash Costs - $ per ounce(1)	1,123	720	1,014	651
Sustaining capital - $ thousands	13,943	12,507	26,901	27,226
AISC - $ per ounce(1)	2,178	1,244	1,665	1,147
Payable gold sold - koz	13.9	24.2	43.6	55.5

Q2 2022 vs. Q2 2021

Production:

•Gold: 26% lower as a result of lower grades due to mine sequencing, as expected, and a decrease in the ratio of ounces recovered from the timing of contained ounces stacked.

Cash Costs: increased by $403 per ounce, primarily reflecting higher operating costs per ounce due to lower gold grades and Inflationary and Supply Chain Cost Increases.

Sustaining Capital: higher than Q2 2021, largely as a result of higher expenditures for waste storage facility preparation. Expenditures in Q2 2022 were comprised mainly of capitalized deferred stripping, waste storage facility preparation, and heap leach pad expansions.

AISC: increased by $934 per ounce, largely from the same factors affecting quarter-over-quarter Cash Costs, as well as higher sustaining capital per ounce. The increase in sustaining capital per ounce is impacted by the timing of ore production, which is back-end loaded in 2022, resulting in higher AISC during the deferred stripping phase of the annual mine plan.

PAN AMERICAN SILVER CORP.	14
	Management Discussion and Analysis
---	---
For the three and six months ended June 30, 2022 and 2021<br>(tabular amounts are in thousands of U.S. dollars except number of shares, options,<br>warrants, per share amounts, and per ounce amounts, unless otherwise noted)

Timmins Operation

	Three months ended <br>June 30,		Six months ended <br>June 30,
	2022	2021	2022	2021
Ore tonnes mined – kt	416.0	417.0	831.7	814.1
Tonnes milled – kt	410.0	415.6	819.4	815.6
Average silver grade – grams per tonne	—	—	—	—
Average gold grade – grams per tonne	2.96	2.65	2.74	2.64
Production:
Silver – koz	4	4	8	8
Gold – koz	37.8	35.6	69.5	66.6
Payable Production:
Silver – koz	4	4	8	8
Gold – koz	37.7	35.6	69.5	66.5
Cash Costs - $ per ounce(1)	1,288	1,352	1,352	1,322
Sustaining capital - $ thousands(2)	9,269	9,623	19,193	17,845
AISC - $ per ounce(1)	1,556	1,676	1,626	1,621
Payable gold sold - koz	34.8	32.5	70.2	65.7

(2)Sustaining capital expenditures exclude $0.9 million and $1.3 million of investing activity cash outflows for Q2 2022 and H1 2022, respectively, (Q2 2021 and H1 2021: $3.7 million and $4.3 million, respectively) related to investment capital incurred on the Timmins projects, as disclosed in the “Project Development Update” section of this MD&A.

Q2 2022 vs. Q2 2021

Production:

•Gold: 6% higher, largely from higher grades, partially offset by lower mill recoveries due to in-process inventory increases.

Cash Costs: decreased $64 per ounce, primarily as a result of the higher grades resulting in lower operating costs per ounce, as Inflationary and Supply Chain Cost Increases were offset by improved productivity with the implementation of enhanced ground control measures at Bell Creek.

Sustaining Capital: comparable quarter-over-quarter. Expenditures in both periods largely consisted of mine equipment replacements and refurbishments, tailings storage facility expansions, and near-mine exploration.

AISC: the $120 per ounce decrease reflects the same factors that affected Cash Costs, as well as lower sustaining capital per ounce.

PAN AMERICAN SILVER CORP.	15
	Management Discussion and Analysis
---	---
For the three and six months ended June 30, 2022 and 2021<br>(tabular amounts are in thousands of U.S. dollars except number of shares, options,<br>warrants, per share amounts, and per ounce amounts, unless otherwise noted)

Other Operations(1)

	Three months ended <br>June 30, 2022			Three months ended <br>June 30, 2021
	Morococha	San Vicente	Manantial Espejo		Morococha	San Vicente	Manantial Espejo
Tonnes milled – kt	—	84.8	168.5		154.1	85.0	171.3
Average silver grade – grams per tonne	—	258	142		128	239	136
Average gold grade – grams per tonne			1.13				1.63
Average zinc grade - %	—	3.49			3.20	2.45
Average lead grade - %	—	0.29			1.06	0.10
Average copper grade - %	—	0.22			0.49	0.28
Production:
Silver – koz	—	646	693		568	601	635
Gold – koz	—	0.03	5.21		0.27	0.09	8.14
Zinc – kt	—	2.43			4.22	1.69
Lead – kt	—	0.20			1.34	0.07
Copper – kt	—	0.16			0.55	0.19
Cash Costs - $ per ounce(2)	N/A	11.97	22.57		11.35	19.76	25.30
AISC - $ per ounce(2)	N/A	16.66	30.61		15.42	21.06	24.47	Six months ended <br>June 30, 2022	Six months ended <br>June 30, 2021
---	---	---	---	---	---
	Morococha	San Vicente	Manantial Espejo		Morococha	San Vicente	Manantial Espejo
Tonnes milled – kt	100.5	159.9	303.3		303.3	174.0	328.5
Average silver grade – grams per tonne	112	241	183		125	252	146
Average gold grade – grams per tonne			1.32				1.47
Average zinc grade - %	3.12	2.87			3.04	2.52
Average lead grade - %	0.96	0.29			1.11	0.12
Average copper grade - %	0.60	0.22			0.44	0.26
Production:
Silver – koz	324	1,122	1,595		1,089	1,302	1,333
Gold – koz	0.15	0.05	11.27		0.43	0.17	14.02
Zinc – kt	2.67	3.77			7.94	3.65
Lead – kt	0.73	0.39			2.77	0.19
Copper – kt	0.47	0.28			0.92	0.36
Cash Costs - $ per ounce(2)	5.68	15.47	18.95		12.60	16.47	22.50
AISC - $ per ounce(2)	7.08	20.09	24.41		16.42	17.54	24.45

(1)Production figures reflect Pan American’s 92.3% share of Morococha and 95% share of San Vicente, unless otherwise noted. Morococha was placed on care and maintenance in February 2022.

(2)Cash Costs and AISC are non-GAAP measures. Please refer to the “Alternative Performance (Non-GAAP) Measures” section of this MD&A for a detailed reconciliation of these measures to cost of sales.

Q2 2022 vs. Q2 2021

Morococha: the mine was placed on care and maintenance during Q1 2022 to complete the previously agreed closure of the Amistad processing plant while the Company evaluates strategic alternatives for the future of the operation.

San Vicente: silver and zinc grades improved during the quarter, leading to better cost performance in Q2 2022 relative to Q2 2021.

Manantial Espejo: the quarter-over-quarter silver production increase and gold production decrease is due to higher silver grade and lower gold grade ores processed, largely reflecting the contribution from the COSE mine during the quarter. The Company completed mining operations at COSE in April 2022, as anticipated and incorporated in the Company's 2022 guidance issued on February 23, 2022.

PAN AMERICAN SILVER CORP.	16
	Management Discussion and Analysis
---	---
For the three and six months ended June 30, 2022 and 2021<br>(tabular amounts are in thousands of U.S. dollars except number of shares, options,<br>warrants, per share amounts, and per ounce amounts, unless otherwise noted)

2022 ANNUAL OPERATING OUTLOOK

All 2022 forecast amounts in this section refer to the 2022 Original Operating Outlook, as provided in the Company's 2021 MD&A dated February 23, 2022, except as otherwise stated. These estimates are forward-looking statements and information that are subject to the cautionary note associated with forward-looking statements and information at the end of this MD&A.

Actual Relative to 2022 Original Operating Outlook:

The following table summarizes the metal production during H1 2022 compared to the 2022 Operating Outlook:

	2022 Original Operating Outlook	H1 2022 Actual
Silver – Moz	19.00 - 20.50	9.16
Gold – koz	550.0 - 605.0	259.4
Zinc – kt	35.0 - 40.0	19.2
Lead – kt	15.0 - 17.0	9.3
Copper – kt	5.5 - 6.5	3.1
Silver Segment Cash Costs	10.70 - 12.20	11.10
Silver Segment AISC	14.50 - 16.00	15.21
Gold Segment Cash Costs	970 - 1,070	1,097
Gold Segment AISC	1,240 - 1,365	1,747

2022 Original Operating Outlook for Silver & Gold Production:

Management provides the following breakdown for our 2022 Original Operating Outlook by quarter ("2022 Original Quarterly Expectations").

		2022 Quarterly Operating Outlook
	Q1		Q2		Q3		Q4		FY 2022
Silver Production (million ounces)		4.49 - 4.87		4.69 - 5.07		4.89 - 5.27		4.94 - 5.30		19.00 - 20.50
Gold Production (thousand ounces)		133.0 - 146.4		124.9 - 137.7		135.2 - 148.8		157.0 - 172.2		550.0 - 605.0
Silver Segment Cash Costs (1)		11.10 - 12.75		11.20 - 12.80		10.55 - 12.00		9.80 - 11.30		10.70 - 12.20
Silver Segment AISC (1)		17.00 - 18.50		16.00 - 17.50		13.00 - 14.50		12.00 - 13.50		14.50 - 16.00
Gold Segment Cash Costs (1)		980 - 1,080		990 - 1,090		995 - 1,095		915 - 1,005		970 - 1,070
Gold Segment AISC (1)		1,365 - 1,465		1,390 - 1,490		1,240 - 1,340		1,025 - 1,115		1,240 - 1,365

(1)Cash Costs and AISC are non-GAAP measures. Please refer to the “Alternative Performance (Non-GAAP) Measures” section of this MD&A for a detailed description of these calculations and a reconciliation of these measures to the Q2 2022 Financial Statements. The cash costs and AISC forecasts assume was prepared with the following assumptions: of $22.50/oz for silver, $3,000/tonne ($1.36/lb) for zinc, $2,200/tonne ($1.00/lb) for lead, $9,200/tonne ($4.17/lb) for copper, and $1,750/oz for gold; and average annual exchange rates relative to 1 USD of 20.00 for the Mexican peso ("MXN"), 4.10 for the Peruvian sol ("PEN"), 122.17 for the Argentine peso ("ARS"), 7.00 for the Bolivian boliviano ("BOB"), and $1.25 for the Canadian dollar ("CAD").

H1 2022 results were largely in line with our 2022 Original Quarterly Expectations, with most variances related to misses at Dolores as well as timing of capital spending and higher by-product prices.

Based on H1 2022 production results and the expected production for the remainder of the year, Management expects full-year 2022 production to be at the low end of the production guidance for 2022. The primary driver for this is production shortfalls at Dolores due to the negative grade reconciliation on Phase 9B of the open pit.

Based on H1 2022 Cash Costs and AISC results, Management reaffirms the 2022 Operating Outlook for Silver Segment Cash Costs and AISC.

Given the production shortfalls at Dolores noted above, Management anticipates to be on the high end of Gold Segment Cash Costs, as shown in the table above.

| PAN AMERICAN SILVER CORP. | 17 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

Given the impacts from the Dolores grade reconciliation shortfalls, global inflationary pressures and an increase in estimated consolidated sustaining capital spending, as described in the following section, Management is revising its full-year Gold Segment AISC, excluding NRV adjustments, to between $1,450 and $1,550 per ounce. The revised guidance for the second half and full-year 2022 is broken out by mine in the following table.

		August 2022 Revised Operating Outlook Gold Segment AISC (1)
	H2 2022		FY 2022
Dolores		1,275 - 1,375		1,300 - 1,400
Shahuindo		1,400 - 1,500		1,325 - 1,425
La Arena		1,600 - 1,700		1,550 - 1,650
Timmins		1,450 - 1,550		1,615 - 1,695
Total		1,450 - 1,550		1,450 - 1,550

Capital Expenditures Relative to Forecast:

The following table summarizes the H1 2022 capital expenditures compared to the 2022 Operating Outlook, and provides the August 2022 Revised Operating Outlook:

	2022 Capital Expenditures ( millions)
	2022 Operating Outlook	August 2022 Revised Operating Outlook
La Colorada	28.0 - 29.0	28.0 - 29.0
Huaron	16.0 - 19.0	16.0 - 19.0
Morococha	n/a	n/a
San Vicente	7.0 - 8.0	7.0 - 8.0
Manantial Espejo	2.0 - 3.0	2.0 - 3.0
Dolores	33.0 - 34.0	33.0 - 34.0
Shahuindo	37.0 - 38.0	57.0 - 58.0
La Arena	39.0 - 40.0	59.0 - 60.0
Timmins	38.0 - 39.0	38.0 - 39.0
Sustaining Capital Sub-total	200.0 - 210.0	240.0 - 250.0
La Colorada Skarn projects	68.0 - 81.0	50.0 - 55.0
Timmins projects	12.0 - 14.0	5.0
Other	n/a	n/a
Project Capital Sub-total	80.0 - 95.0	55.0 - 60.0
Total Capital	280.0 - 305.0	295.0 - 310.0

All values are in US Dollars.

Management was anticipating to enter into construction loan agreements for a portion of our capital investments at La Arena and Shahuindo. This would have spread out the cash outflows required for the construction of leach pads, waste dumps, and other infrastructure over the lives of those assets, rather than having the outlay of cash at the time of construction. Due to delays in obtaining the necessary documentation to secure the financing arrangements for these projects, Management has determined it necessary to fund these projects directly rather than through construction loans, which has increased the expected cash outflows in 2022, and decreased future expected cash outflows. As such, Management has increased guidance for sustaining capital in 2022 to between $240.0 million and $250.0 million. Further, Management has decreased its outlook for project capital in 2022 to between $55.0 million and $60.0 million based on expected delays in spending at both the La Colorada Skarn and Timmins projects. The decrease in capital for the La Colorada Skarn project is due to delaying the design and initiation of the access ramp developments to optimize alignments with the highly efficient bulk mining method

| PAN AMERICAN SILVER CORP. | 18 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

designs being considered. The revisions bring the total capital expenditures anticipated for the year to between $295.0 million and $310.0 million.

PROJECT DEVELOPMENT UPDATE

The following table reflects the amounts spent on each of Pan American’s major projects in Q2 2022 compared with Q2 2021, and H1 2022 compared to H1 2021.

Project Development Capital				Six months ended <br>June 30,
(thousands of )
		2021		2022		2021
La Colorada projects		8,101		25,960		12,183
Timmins projects		3,689		1,260		4,333
Other projects		87		311		312
Total	18,407	$	11,877	$	27,531	$	16,828

All values are in US Dollars.

During Q2 2022, the Company invested $18.4 million, largely on exploration and development of the La Colorada Skarn project, including advancing construction of the new concrete-lined ventilation shaft and completion of a refrigeration plant.

OVERVIEW OF Q2 2022 FINANCIAL RESULTS

Selected Annual and Quarterly Information

The following tables set out selected quarterly results for the past ten quarters as well as selected annual results for the past two years. The dominant factors affecting results in the quarters and years presented below are the volatility of realized metal prices and the timing of sales, which vary with the timing of shipments and impairment charges.

2022	Quarter Ended
(In thousands of USD, other than per share amounts)	Mar 31		Jun 30
Revenue	$	439,888	$	340,469
Mine operating earnings	$	66,755	$	(31,652)
Earnings (loss) for the period attributable to equity holders	$	76,517	$	(173,982)
Basic (loss) earnings per share	$	0.36	$	(0.83)
Diluted (loss) earnings per share	$	0.36	$	(0.83)
Cash flow from operating activities	$	68,758	$	20,835
Cash dividends paid per share	$	0.12	$	0.11
Other financial information
Total assets	$	3,540,297	$	3,323,568
Total long-term financial liabilities(1)	$	303,984	$	313,267
Total attributable shareholders’ equity	$	2,683,201	$	2,472,502

(1)Total long-term financial liabilities are comprised of non-current liabilities excluding deferred tax liabilities, and deferred revenue.

| PAN AMERICAN SILVER CORP. | 19 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | || 2021 | Quarter Ended | | | | | | | | Year Ended | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | (In thousands of USD, other than per share amounts) | Mar 31 | | Jun 30 | | Sep 30 | | Dec 31 | | Dec 31 | | | Revenue | $ | 368,099 | $ | 382,132 | $ | 460,349 | $ | 422,170 | $ | 1,632,750 | | Mine operating earnings | $ | 89,964 | $ | 103,048 | $ | 98,887 | $ | 76,039 | $ | 367,938 | | (Loss) earnings for the period attributable to equity holders | $ | (7,798) | $ | 70,939 | $ | 20,251 | $ | 14,036 | $ | 97,428 | | Basic (loss) earnings per share | $ | (0.04) | $ | 0.34 | $ | 0.10 | $ | 0.06 | $ | 0.46 | | Diluted (loss) earnings per share | $ | (0.04) | $ | 0.34 | $ | 0.10 | $ | 0.06 | $ | 0.46 | | Cash flow from operating activities | $ | 29,850 | $ | 87,143 | $ | 157,017 | $ | 118,098 | $ | 392,108 | | Cash dividends paid per share | $ | 0.07 | $ | 0.07 | $ | 0.10 | $ | 0.10 | $ | 0.34 | | Other financial information | | | | | | | | | | | | Total assets | | | | | | | | | $ | 3,518,584 | | Total long-term financial liabilities(1) | | | | | | | | | $ | 297,600 | | Total attributable shareholders’ equity | | | | | | | | | $ | 2,631,554 |

(1)Total long-term financial liabilities are comprised of non-current liabilities excluding deferred tax liabilities and deferred revenue.

2020	Quarter Ended								Year<br>Ended
(In thousands of USD, other than per share amounts)	Mar 31		Jun 30		Sep 30		Dec 31		Dec 31
Revenue	$	358,428	$	249,509	$	300,414	$	430,461	$	1,338,812
Mine operating earnings	$	50,058	$	48,386	$	124,561	$	137,172	$	360,177
(Loss) earnings for the period attributable to equity holders	$	(76,807)	$	20,063	$	65,741	$	168,885	$	177,882
Basic (loss) earnings per share	$	(0.37)	$	0.10	$	0.31	$	0.80	$	0.85
Diluted (loss) earnings per share	$	(0.37)	$	0.10	$	0.31	$	0.80	$	0.85
Cash flow from operating activities	$	114,051	$	62,750	$	114,943	$	170,571	$	462,315
Cash dividends paid per share	$	0.05	$	0.05	$	0.05	$	0.07	$	0.22
Other financial information
Total assets									$	3,433,875
Total long-term financial liabilities(1)									$	277,696
Total attributable shareholders’ equity									$	2,602,519

(1)Total long-term financial liabilities are comprised of non-current liabilities excluding deferred tax liabilities and deferred revenue.

| PAN AMERICAN SILVER CORP. | 20 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

Income Statement: Q2 2022 vs. Q2 2021

Net loss of $173.6 million was recorded in Q2 2022 compared to net earnings of $71.2 million in Q2 2021, which corresponds to a basic loss per share of $0.83 and basic earnings of $0.34 per share, respectively.

The following table highlights the differences between the Q2 2021 and Q2 2022 net earnings:

Net earnings, three months ended June 30, 2021			$	71,241	Note
Revenue:
Decreased realized metal prices	$	(8,542)
Lower quantities of metal sold	(24,388)
Decreased direct selling costs	3,358
Increased negative settlement adjustments	(12,091)
Total decrease in revenue			$	(41,663)	(1)
Cost of sales:
Increased production costs and decreased royalty charges	$	(87,250)			(2)
Increased depreciation and amortization	(5,787)				(3)
Total increase in cost of sales			$	(93,037)
Decreased income tax expense			22,728		(5)
Increased other income			1,946
Decreased general and administrative expense			1,150
Increased impairment charges			(99,064)		(4)
Increased investment loss			(18,298)		(6)
Increased care and maintenance costs			(4,534)
Increased net loss on asset sales, and derivatives			(4,095)
Decreased gains and income from associates			(3,320)
Increased foreign exchange loss			(2,894)
Increased exploration and project development expense			(2,072)
Increased interest and finance expense			(1,720)
Net loss, three months ended June 30, 2022			$	(173,632)

1)Revenue for Q2 2022 was $41.7 million lower than in Q2 2021, from decreased quantities of metal sold and lower metal prices. The quarter-over-quarter decrease in quantities of metal sold was driven mainly by gold, zinc and copper sales, with decreases of 5%, 33% and 35%, respectively (see table below). The reduced gold sales resulted from grade-driven production decreases at Dolores and La Arena, as described in the "Operating Performance" section of this MD&A. Base metal sales declined as a result of Morococha being placed on care and maintenance in February 2022.

In addition to the decrease in quantities of metal sold, realized metal prices for silver decreased 18% from Q2 2021, which more than offset higher realized metal prices for all other metals. In addition, Q2 2022 was impacted by concentrate settlement adjustments on open shipments due to the decline in metal prices at the end of the quarter, which led to $9.3 million negative price adjustments on concentrate sales awaiting final settlement.

| PAN AMERICAN SILVER CORP. | 21 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

The following table reflects the metal prices realized by the Company and the quantities of metal sold during each quarter:

	Realized Metal Prices (1)				Quantities of Metal Sold (2)
	Three months ended <br>June 30,				Three months ended <br>June 30,
	2022		2021		2022	2021
Silver	$	22.03	$	26.88	4,252	4,044
Gold	$	1,850	$	1,809	119.3	126.2
Zinc	$	3,811	$	2,935	8.0	11.9
Lead	$	2,162	$	2,151	4.0	4.3
Copper	$	9,731	$	9,679	1.1	1.6

(1)Metal price stated as dollars per ounce for silver and gold, and dollars per tonne for zinc, lead and copper, inclusive of final settlement adjustments on concentrate sales.

(2)Metal quantities stated as koz for silver and gold and kt for zinc, lead and copper.

2)Production and royalty costs in Q2 2022 were $87.3 million higher than in Q2 2021 as a result of a $88.9 million, or 45%, increase in production costs, marginally offset by a $1.6 million decrease in royalty costs. All operations were affected by Inflationary and Supply Chain Cost Increases, as noted in the "Operating Performance" section. The largest factors that increased quarter-over-quarter production costs, which include this inflationary impact, are described below:

i.$70.0 million from NRV inventory adjustments, which increased costs by $62.8 million in Q2 2022 compared to a $7.2 million decrease to costs in Q2 2021. The increase in NRV inventory adjustments largely reflects the write-down of inventory on the heap as part of the new life of mine plan for Dolores where higher costs shortened the residual leach curve to 2030, as well as the general inflationary pressures and lower prices relative to Q2 2021;

ii.$18.2 million at the Silver Segment mines (exclusive of Morococha and NRV), also reflecting higher quantities sold;

iii.$13.8 million at Shahuindo also due to higher quantities sold; and,

iv.$8.0 million at Dolores (exclusive of NRV), also reflecting higher waste-to-ore ratios in the current section of the mine plan.

These factors increasing production costs were offset by a net $20.6 million decrease in costs at Morococha, as the mine was placed in care and maintenance during Q1 2022.

3)Depreciation and amortization ("D&A") expense was $5.8 million higher than in Q2 2021. The increase was largely from Dolores where depreciation is calculated on a per tonne stacked basis, which increased the depreciation per ounce as a result of decreased grades. The quarter-over-quarter increase in depreciation also reflects higher sales volumes at Shahuindo and accelerated depreciation at Manantial Espejo due to its short remaining mine life. D&A is predominantly recorded on a units-of-production basis.

4)Impairment charge of $99.1 million was recorded on the Dolores mine in Q2 2022 with consideration for the impairment indicators discussed in the Dolores Update in the "Q2 2022 Highlights" section of this MD&A.

The Company estimated the recoverable amount of Dolores using a a fair value less cost to sell methodology based on future after-tax cash flows expected to be derived from Dolores Mine discounted with a 6%

| PAN AMERICAN SILVER CORP. | 22 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

weighted average cost of capital. The metal price assumptions used in the Company’s impairment assessments were as follows:

	At June 30, 2022
	2022-2025<br>Average		2026 and<br>long-term
Gold (per ounce)	$	1,802	$	1,651
Silver (per ounce)	23.56		21.77

5)Income tax expense in Q2 2022 was $6.9 million compared to $29.6 million in Q2 2021. The $22.7 million reduction in tax expense is primarily due to decreased income before tax of $267.6 million, partially offset by some of these losses being incurred by non-operating entities with no tax benefit. The tax recovery associated with the impairment of assets at Dolores was largely offset by a valuation allowance on the remaining tax attributes of the Dolores mine.

6)Investment loss of $7.7 million in Q2 2022 was an $18.3 million negative change relative to investment income of $10.6 million in Q2 2021, both driven primarily by fair value mark-to-market adjustments on the Company's equity investment in New Pacific Metals Corp.

Statement of Cash Flows: Q2 2022 vs. Q2 2021

Cash flow from operations in Q2 2022 totaled $20.8 million, $66.3 million less than the $87.1 million generated in Q2 2021. The decrease was primarily driven from a $58.9 million decrease in cash mine operating earnings and a $21.4 million increase in income tax cash payments, which offset a $17.5 million decrease in cash used in working capital changes.

Working capital changes in Q2 2022 resulted in a $19.5 million use of cash compared with a $37.0 million use of cash in Q2 2021. The Q2 2022 use of cash was mainly driven by a $26.4 million increase in inventories, largely from the Dolores, Shahuindo and La Arena heap leach operations, which was only partially offset by a decrease in trade receivables and prepaid expenses. The Q2 2021 use of cash was mainly driven by a $38.4 million build-up in inventories, largely the result of in-heap inventory build-ups at the three open pit mines.

Investing activities used $68.4 million in Q2 2022, primarily related to the $71.8 million spent on mineral properties, plant and equipment ("MPP&E") at the Company’s mines and projects, as previously described in the “Operating Performance” section of this MD&A, which was partially offset by $3.1 million in proceeds from the settlement of the Company's derivatives comprised of commodity and FX hedging contracts. In Q2 2021, investing activities used $45.9 million, primarily from the $63.2 million spent on mineral properties, plant and equipment, which offset $14.0 million in proceeds from the cash consideration on the sale of a package of royalties on third-party properties and the deposits on the Waterloo exploration property sale that completed on July 12, 2021, and $2.6 million in proceeds from the Company's commodity and FX hedging programs.

Financing activities in Q2 2022 used $28.7 million compared to $17.6 million used in Q2 2021. Cash used in Q2 2022 primarily consisted of $25.3 million in dividends and $3.5 million of lease repayments. The net cash used in Q2 2021 consisted primarily of $14.7 million paid as dividends to shareholders and $2.9 million of lease payments. The increase in dividend payments reflects the Company's new dividend policy announced on February 24, 2022, as described in the Annual Information Form published on February 23, 2022.

Adjusted Earnings: Q2 2022 vs Q2 2021

Adjusted earnings is a non-GAAP measure. Please refer to the “Alternative Performance (Non-GAAP) Measures” section of this MD&A for a detailed description of “adjusted earnings”, and a reconciliation of these measures to the Q2 2022 Financial Statements.

Adjusted Loss in Q2 2022 was $6.5 million, representing basic adjusted loss per share of $0.03, compared to Q2 2021 adjusted earnings of $46.6 million, and basic adjusted earnings per share of $0.22. A reconciliation of

| PAN AMERICAN SILVER CORP. | 23 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

adjusted earnings or loss for the three and six months ended June 30, 2022 and 2021, to the net earnings or loss for each period is included in the “Alternative Performance (Non-GAAP) Measures” section of this MD&A.

The following chart illustrates the key factors leading to the change in adjusted earnings from Q2 2021 to Q2 2022:

| PAN AMERICAN SILVER CORP. | 24 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

Income Statement: H1 2022 vs. H1 2021

Net earnings of $96.8 million were recorded in H1 2022 compared to net earnings of $63.7 million in H1 2021, which corresponds to basic earnings per share of $(0.46) and $0.30, respectively.

The following table highlights the difference between net earnings in H1 2022 compared with H1 2021:

Net earnings, six months ended June 30, 2021			$	63,679	Note
Revenue:
Increased realized metal prices	$	4,394
Higher quantities of metal sold	28,200
Decreased direct selling costs	5,258
Increased negative settlement adjustments	(7,726)
Total increase in revenue			30,126		(1)
Cost of sales:
Increased production costs and decreased royalty charges	$	(172,815)			(2)
Increased depreciation and amortization	(15,220)				(3)
Total increase in cost of sales			(188,035)
Decreased income tax expense			49,265		(5)
Increased gains and income from associates			41,515		(6)
Decreased investment loss			23,561		(7)
Decreased other expense			2,173
Increased impairment charges			(99,064)		(4)
Increased care and maintenance costs			(6,936)
Increased foreign exchange loss			(3,539)
Increased interest and finance expense			(3,074)
Increased exploration and project development expense			(2,391)
Decreased net gain on asset sales, and derivatives			(2,390)
Increased general and administrative expense			(1,691)
Net loss, six months ended June 30, 2022			$	(96,801)

1)Revenue in H1 2022 was $30.1 million higher than in H1 2021 as a result of the increase in both quantities of metal sold and realized metal prices. H1 2022 quantities of metal sold were $28.2 million higher than in H1 2021, primarily driven by increased quantities of silver and gold sold, which offset the decrease in quantities of zinc sold. The increase in silver quantities sold is largely attributable to La Colorada where in H1 2021 transportation and shipping delays affected the timing of sales. Higher gold sold reflects the timing of sales due to large inventory build-ups in H1 2021. Lower zinc sold in H1 2022 reflects Morococha being placed on care and maintenance, and lower zinc grades at Huaron and La Colorada due to mine sequencing. Additionally, higher prices for all metals except silver contributed $4.4 million to the increase in revenue in H1 2022. Gold, zinc, lead and copper prices increased 4%, 33%, 8%, and 7%, respectively, and silver prices decreased 13%, relative to H1 2021.

| PAN AMERICAN SILVER CORP. | 25 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

The following table reflects the metal prices realized by the Company and the quantities of metal sold during each period:

	Realized Metal Prices (1)				Quantities of Metal Sold (2)
	Six months ended <br>June 30,				Six months ended <br>June 30,
	2022		2021		2022	2021
Silver	$	23.10	$	26.66	9,142	7,534
Gold	$	1,867	$	1,798	267.4	262.2
Zinc	$	3,802	$	2,849	16.0	23.0
Lead	$	2,261	$	2,096	8.9	8.2
Copper	$	9,753	$	9,076	2.8	3.4

(1)Metal price stated as dollars per ounce for silver and gold, and dollars per tonne for zinc, lead and copper, inclusive of final settlement adjustments on concentrate sales.

(2)Metal quantities stated as koz for silver and gold and kt for zinc, lead and copper.

2)Production and royalty costs in H1 2022 were $172.8 million higher than in H1 2021. The increase was the result of a $174.5 million, or 44%, increase in production costs offset marginally by a $1.7 million decrease in royalty costs. The increase in production costs reflects the impact of Inflationary and Supply Chain Cost Increases at all operations. The largest quarter over quarter variances are as follows which include this inflationary impact, in addition to additional drivers identified below:

i.$92.6 million increase in costs from NRV inventory adjustments, which increased costs by $77.2 million in H1 2022 compared to a $15.4 million decrease to costs in H1 2021. Increased NRV inventory adjustment costs are consistent with the drivers affecting the quarter-over-quarter increase in NRV adjustments;

ii.$35.9 million increase in costs from the Silver Segment mines (exclusive of Morococha and NRV), largely reflecting higher quantities sold;

iii.$24.0 million increase in costs at Dolores (exclusive of NRV) and $8.0 million increase at La Arena, reflecting higher waste-to-ore ratios in the current section of the mine plan; and,

iv.$21.0 million increase in costs at Shahuindo and $7.9 million increase at Timmins, reflecting higher quantities sold.

These factors increasing costs were partially offset by a net $16.6 million decrease in costs at Morococha, as the mine was placed in care and maintenance during Q1 2022.

3)D&A expense was $15.2 million higher than H1 2021, primarily from Dolores where depreciation is calculated on a per tonne stacked basis, which increased the depreciation per ounce as a result of decreased grades, higher sales volumes at Shahuindo and accelerated depreciation at Manantial Espejo due to decreasing mine life.

4)Impairment charge of $99.1 million ($114.8 million, net of tax) was recorded on the Dolores mine in Q2 2022, with no such impairments recorded in 2021. The 2022 impairment related to the previously discussed impairment of the Dolores mine assets.

5)Income tax expense of $18.3 million in H1 2022 was $49.3 million lower than the $67.6 million in H1 2021, largely as a result of the $209.7 million decrease in income before tax, which also reduced mining and withholding taxes by $6.2 million. The H1 2022 tax expense was further reduced by the appreciation of the Mexican Peso and Peruvian Sol, which increased the foreign denominated deductible tax attributes in those countries (the largest being mineral property plant and equipment).

6)Gains and income from associates in H1 2022 was $45.0 million compared to gains of $3.5 million in H1 2021. The H1 2022 gains and income resulted from the March 21, 2022 re-designation of the Company's investment in Maverix from an "Investment in Associate" accounted for using the "equity method" (the Company's

| PAN AMERICAN SILVER CORP. | 26 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

ownership proportion of Maverix's estimated earnings was recorded into income) to a "long-term financial asset" recorded at fair value beginning on March 31, 2022. The H1 2021 gains were attributable to the Company accounting for Maverix using the equity method.

7)Investment losses were $4.8 million in H1 2022, a $23.6 million positive variance relative to H1 2021 investment losses of $28.4 million. Both periods reflect "mark-to-market" adjustments on the Company's equity investments with H1 2021 investment losses driven largely by the Company's investment in New Pacific Metals Corp. compared to H1 2022 investment losses resulting primarily from the Company's investment in Anacortes Mining Corp.

Statement of Cash Flows: H1 2022 vs. H1 2021

Cash flow from operations in H1 2022 was $89.6 million, $27.4 million less than the $117.0 million generated in H1 2021. The decrease was mostly related to a $50.1 million decrease in cash mine operating earnings, largely from an increase in production costs and an $18.4 million increase in income taxes paid, partially offset by a $49.8 million decrease in cash used in working capital.

Working capital changes in H1 2022 resulted in a $34.6 million use of cash, primarily reflecting a $16.1 million build-up in inventories, an $11.4 million reduction in accounts payables balances, and a $8.6 million increase in trade receivables. The inventory build-up was largely the result of increased inventories contained in leach pads, particularly at La Arena and Shahuindo. H1 2021 working capital changes were a use of cash of $84.4 million, which largely reflected inventory build-ups of $78.4 million, largely the result of in-heap inventory build-ups at the three open pit operations.

Investing activities utilized $119.4 million in H1 2022, primarily related to the $133.3 million spent on mineral properties, plant and equipment at the Company’s mines and projects, which was partially offset by the $7.8 million received from a third-party as partial compensation for the closure and reclamation of the Morococha mine processing facility.

In H1 2021, investing activities utilized $90.4 million, largely from the $111.1 million spent on mineral properties, plant and equipment at the Company’s mines and projects, which was partially offset by $14.8 million in proceeds from the sale of certain non-core exploration properties and deposits on the Waterloo sale.

Financing activities in H1 2022 utilized $57.9 million compared to a $35.6 million use of cash in H1 2021. Financing activities in H1 2022 were primarily related to $50.5 million in dividends to shareholders, and $6.9 million of lease repayments. Financing activities in H1 2021 primarily consisted of $29.4 million paid as dividends to shareholders and $5.8 million of lease repayments.

Adjusted Earnings: H1 2022 vs H1 2021

Adjusted Earnings in H1 2022 were $25.5 million, representing basic adjusted earnings per share of $0.12, which was $58.6 million, or $0.28 per share, lower than revised H1 2021 adjusted earnings of $84.1 million, and basic adjusted earnings per share of $0.40.

| PAN AMERICAN SILVER CORP. | 27 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

The following chart illustrates the key factors leading to the change in adjusted earnings from H1 2021 to H1 2022:

LIQUIDITY AND CAPITAL POSITION

Liquidity and Capital Measures (in $000s)	June 30, 2022		March 31, 2022		Dec. 31, 2021		Q2 2022<br>Change		H1 2022<br> Change
Cash and cash equivalents ("Cash")	$	194,829	$	271,876	$	283,550	$	(77,047)	$	(88,721)
Short-term Investments	$	46,430	$	54,410	$	51,723	$	(7,980)	$	(5,293)
Cash and Short-term investments	$	241,259	$	326,286	$	335,273	$	(85,027)	$	(94,014)
Working Capital	$	513,921	$	620,663	$	613,494	$	(106,742)	$	(99,573)
Credit Facility committed amount	$	500,000	$	500,000	$	500,000	$	—	$	—
Credit Facility amounts drawn	$	—	$	—	$	—	$	—	$	—
Shareholders' equity	$	2,472,502	$	2,683,201	$	2,631,554	$	(210,699)	$	(159,052)
Total debt (1)	$	63,223	$	47,046	$	45,861	$	16,177	$	17,362
Capital (1)	$	2,294,466	$	2,403,961	$	2,342,142	$	(109,495)	$	(47,676)

(1)Total debt is a non-GAAP measure calculated as the total of amounts drawn on the Sustainability-Linked Credit Facility, finance lease liabilities and loans payable. Capital is a non-GAAP measure and consists of shareholders’ equity and debt net of cash and cash equivalents and short term investments. Please refer to the “Alternative Performance (Non-GAAP) Measures” section of this MD&A for a detailed description of the calculations.

Liquidity and Capital Resources

The Company's cash and short term investments decreased by $85.0 million during Q2 2022. The decrease was driven by a $77.0 million decrease in cash and cash equivalents from the previously described investments in MPP&E additions, a build-up in non-cash working capital during the quarter, and dividend payments, which were partially offset by operating cash flows from cash mine operating earnings. Cash mine operating earnings of $105.4 million in Q2 2022 was sufficient to fund corporate overhead, exploration, care and maintenance expenses, and tax payments. Investing and Financing activities were funded from corporate treasury balances.

| PAN AMERICAN SILVER CORP. | 28 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

Pan American’s investment objectives for its cash balances are to preserve capital, to provide liquidity and to maximize returns. The Company’s strategy to achieve these objectives is to invest excess cash balances in a portfolio of primarily fixed income instruments with specified credit rating targets established by the Board of Directors, and by diversifying the currencies in which it maintains its cash balances. The Company does not own any asset-backed commercial paper or other similar, known, at-risk investments in its investment portfolio.

Working capital of $513.9 million at June 30, 2022 was $99.6 million lower than working capital of $613.5 million at December 31, 2021. The Company also maintains a long term investment in Maverix that was valued at $112.5 million at June 30, 2022.

As of June 30, 2022, the Company was in compliance with all financial covenants under the $500 million revolving Sustainability-Linked Credit Facility, which was undrawn. The borrowing costs under the Company's Sustainability-Linked Credit Facility are based on the Company's leverage ratio subject to pricing adjustments based on the Company's sustainability performance ratings and scores at either (i) LIBOR plus 1.825% to 2.80% or; (ii) The Bank of Nova Scotia's Base Rate on U.S. dollar denominated commercial loans plus 0.825% to 1.80%. Undrawn amounts under the Sustainability-Linked Credit Facility are subject to a stand-by fee of 0.41% to 0.63% per annum, dependent on the Company's leverage ratio and subject to pricing adjustments based on sustainability performance ratings and scores. The Company's Sustainability-Linked Credit Facility matures on August 8, 2025.

The net cash generated from the sales of metal production provides our primary source of cash flows, and we do not currently expect to experience payment delinquencies from our metal sales counterparties during the COVID-19 pandemic, though the impact of COVID-19 on the credit risk associated with our counterparties cannot be determined with any degree of certainty.

The Company’s financial position at June 30, 2022, and the operating cash flows that are expected over the next 12 months, lead Management to believe that the Company’s liquid assets are sufficient to satisfy our 2022 working capital requirements, fund currently planned capital expenditures, and to discharge liabilities as they come due. The Company remains well positioned to take advantage of strategic opportunities as they become available. Liquidity risks are discussed further in the “Risks and Uncertainties” section of this MD&A.

In the normal course of business, the Company enters into contracts that give rise to commitments for future minimum payments, details of which are described in Note 8(e)(ii) of the 2021 Annual Financial Statements, and in the "Liquidity and Capital Position" section of the Company's annual 2021 Management Discussion and Analysis (the "2021 Annual MD&A"). Since December 31, 2021, there have been no significant changes to these contractual obligations and commitments.

The impact of inflation on the Company’s financial position, operational performance, or cash flows over the next 12 months cannot be determined with any degree of certainty due to a number of uncertainties, including those related to the COVID-19 pandemic.

Outstanding Share Amounts

As at June 30, 2022, the Company had approximately 0.2 million stock options outstanding (each exercisable for one common share of the Company), with exercise prices in the range of CAD $9.76 to CAD $39.48 and a weighted average life of 3.7 years. Approximately 0.2 million of the stock options were vested and exercisable at June 30, 2022, with an average weighted exercise price of CAD $19.12 per share.

The following table sets out the common shares and options outstanding as at the date of this MD&A:

	Outstanding as at August 10, 2022
Common shares	210,525,964
Options	220,287
Total	210,746,251

As part of the acquisition of Tahoe Resources Inc. ("Tahoe") on February 22, 2019, the Company issued 313,887,490 Contingent Value Rights ("CVRs"), with a term of 10 years, which are convertible into 15,600,208

| PAN AMERICAN SILVER CORP. | 29 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

common shares upon the first commercial shipment of concentrate following the restart of operations at the Escobal mine. As of June 30, 2022, there were 313,883,990 CVRs outstanding which were convertible into 15,600,034 common shares.

CLOSURE AND DECOMMISSIONING COST PROVISION

The estimated future closure and decommissioning costs are based principally on the requirements of relevant authorities and the Company’s environmental policies. The provision is measured using management’s assumptions and estimates for future cash outflows. The Company accrues these costs, which are determined by discounting costs using rates specific to the underlying obligation. Upon recognition of a liability for the closure and decommissioning costs, the Company capitalizes these costs to the related mine and amortizes such amounts over the life of each mine on a unit-of-production basis except in the case of exploration projects for which the offset to the liability is expensed. The accretion of the discount due to the passage of time is recognized as an increase in the liability and a finance expense.

The total inflated and undiscounted amount of estimated cash flows required to settle the Company’s estimated future closure and decommissioning costs as of June 30, 2022 was $464.0 million (December 31, 2021 - $413.0 million) using inflation rates of between 1% and 7% (December 31, 2021 - between 1% and 5%). The inflated and discounted provision on the statement of financial position as at June 30, 2022 was $250.9 million (December 31, 2021 - $242.9 million), using discount rates between 3% and 11% (December 31, 2021 - between 1% and 9%). Spending with respect to decommissioning obligations at Alamo Dorado and Manantial Espejo began in 2016, while the remainder of the obligations are expected to be paid through 2047, or later if the mine lives are extended. Revisions made to the reclamation obligations in Q2 2022 were primarily a result of increased inflation rates, increased discount rates from higher government debt yields, increased site disturbance from the ordinary course of operations at the mines, reclamation activities, and revisions to the estimates based on periodic reviews of closure plans and related costs, actual expenditures incurred, and closure activities completed. These obligations will be funded from operating cash flows, reclamation deposits, and cash on hand.

The accretion of the discount charged in Q2 2022 and H1 2022 as finance expense was $3.7 million and $7.4 million, respectively (Q2 2021 and H1 2021 - $1.9 million and $3.7 million, respectively). Reclamation expenditures incurred during Q2 2022 and H1 2022 were $0.8 million and $1.8 million, respectively (Q2 2021 and H1 2021 - $1.0 million and $1.8 million, respectively).

RELATED PARTY TRANSACTIONS

The Company’s related parties include its subsidiaries, associates over which it exercises significant influence, and key management personnel. Transactions with the Company's subsidiaries have been eliminated on consolidation. Maverix ceased to be a related party after March 31, 2022 after the Company determined that it no longer held significant influence. There were no other related party transactions for the three and six months ended June 30, 2022 and 2021.

ALTERNATIVE PERFORMANCE (NON-GAAP) MEASURES

Per Ounce Measures

Cash Costs and AISC are non-GAAP financial measures that do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies.

Pan American produces by-product metals incidentally to our silver and gold mining activities. We have adopted the practice of calculating a performance measure with the net cost of producing an ounce of silver and gold, our primary payable metals, after deducting revenues gained from incidental by-product production. This performance measurement has been commonly used in the mining industry for many years and was developed as a relatively simple way of comparing the net production costs of the primary metal for a specific period against the prevailing market price of that metal.

| PAN AMERICAN SILVER CORP. | 30 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

Silver segment Cash Costs and AISC are calculated net of credits for realized revenues from all metals other than silver ("silver segment by-product credits"), and are calculated per ounce of silver sold. Gold segment Cash Costs and AISC are calculated net of credits for realized silver revenues ("gold segment by-product credits"), and are calculated per ounce of gold sold.

Cash costs per ounce metrics, net of by-product credits, is used extensively in our internal decision making processes. We believe the metric is also useful to investors because it facilitates comparison, on a mine-by-mine basis, notwithstanding the unique mix of incidental by-product production at each mine, of our operations’ relative performance on a period-by-period basis, and against the operations of our peers in the silver industry. Cash costs per ounce is conceptually understood and widely reported in the mining industry.

We believe that AISC, also calculated net of by-products, is a comprehensive measure of the full cost of operating our consolidated business, given it includes the cost of replacing silver and gold ounces through exploration, the cost of ongoing capital investments (sustaining capital), as well as other items that affect the Company’s consolidated cash flow.

To facilitate a better understanding of these measure as calculated by the Company, the following table provides the detailed reconciliation of these measure to the applicable cost items, as reported in the consolidated financial statements for the respective periods.

PAN AMERICAN SILVER CORP.	31
	Management Discussion and Analysis
---	---
For the three and six months ended June 30, 2022 and 2021<br>(tabular amounts are in thousands of U.S. dollars except number of shares, options,<br>warrants, per share amounts, and per ounce amounts, unless otherwise noted)				Silver Segment				Gold Segment
---	---	---	---	---	---	---	---	---
(In thousands of USD, except as noted)	Three months ended <br>June 30, 2022		Three months ended <br>June 30, 2021		Three months ended <br>June 30, 2022		Three months ended <br>June 30, 2021
Production costs(1)	$	92,805	$	86,222	$	194,381	$	113,207
Purchase Price Allocation Inventory Fair Value Adjustment	—		—		—		(103)
NRV inventory adjustments	(5,093)		2,890		(57,678)		4,355
On-site direct operating costs	87,712		89,113		136,703		117,459
Royalties	5,036		6,121		4,476		4,993
Smelting, refining and direct selling charges(2)	13,664		17,014		43		48
Cash cost of sales before by-product credits	106,413		112,248		141,221		122,500
Silver segment by-product credits(2)	(62,392)		(69,805)		—		—
Gold segment by-product credits(2)	—		—		(13,393)		(18,846)
Cash Costs	$	44,021	$	42,443	$	127,829	$	103,654
NRV inventory adjustments	5,093		(2,890)		57,678		(4,355)
Sustaining capital	13,300		14,010		43,212		39,215
Exploration and project development(3)	—		587		—		980
Reclamation cost accretion(4)	528		504		2,812		1,129
All-in sustaining costs	$	62,942	$	54,654	$	231,530	$	140,623
Silver segment silver ounces sold (koz)	3,639		3,340		—		—
Gold segment gold ounces sold (koz)	—		—		113		121
Cash costs per ounce sold	$	12.10	$	12.71	$	1,132	$	857
AISC per ounce sold	$	17.30	$	16.36	$	2,051	$	1,163
AISC per ounce sold (excluding NRV inventory adjustments)	$	15.90	$	17.23	$	1,540	$	1,199
PAN AMERICAN SILVER CORP.	32
---	---
	Management Discussion and Analysis
---	---
For the three and six months ended June 30, 2022 and 2021<br>(tabular amounts are in thousands of U.S. dollars except number of shares, options,<br>warrants, per share amounts, and per ounce amounts, unless otherwise noted)				Silver Segment				Gold Segment
---	---	---	---	---	---	---	---	---
(In thousands of USD, except as noted)	Six months ended <br>June 30, 2022		Six months ended <br>June 30, 2021		Six months ended <br>June 30, 2022		Six months ended <br>June 30, 2021
Production costs(1)	$	190,394	$	166,821	$	368,764	$	225,788
Purchase Price Allocation Inventory Fair Value Adjustment	—		—		—		(430)
NRV inventory adjustments	(6,446)		1,449		(70,768)		13,940
On-site direct operating costs	183,948		168,270		297,996		239,298
Royalties	9,701		11,901		9,590		9,076
Smelting, refining and direct selling charges(2)	29,934		35,168		78		98
Cash cost of sales before by-product credits	223,583		215,339		307,663		248,472
Silver segment by-product credits(2)	(136,642)		(138,334)		—		—
Gold segment by-product credits(2)	—		—		(30,396)		(36,715)
Cash Costs	$	86,941	$	77,005	$	277,267	$	211,756
NRV inventory adjustments	6,446		(1,449)		70,768		(13,940)
Sustaining capital	24,640		24,679		87,828		73,756
Exploration and project development(3)	—		1,153		—		1,983
Reclamation cost accretion(4)	1,178		1,009		5,623		2,258
All-in sustaining costs	$	119,205	$	102,397	$	441,486	$	275,814
Silver segment silver ounces sold (koz)	7,835		6,150		—		—
Gold segment gold ounces sold (koz)	—		—		253		249
Cash costs per ounce sold	$	11.10	$	12.52	$	1,097	$	851
AISC per ounce sold	$	15.21	$	16.65	$	1,747	$	1,109
AISC per ounce sold (excluding NRV inventory adjustments)	$	14.39	$	16.89	$	1,467	$	1,165

(1)Silver Segment production costs exclude amounts relating to mine operation severance payments and other accruals at Morococha, which reduced Production Costs by $1.0 million and increased Production Costs by $5.8 million for Q2 2022 and H1 2022, respectively. Gold Segment production costs exclude amounts relating to mine operations severance payments and other accruals at Dolores related to the closure of the underground mine, which increased production costs by $2.1 million in both Q2 2022 and H1 2022.

(2)Included in the revenue line of the consolidated income statements. By-product credits are reflective of realized metal prices for the applicable periods.

(3)Exploration and project development expenditures exclude $4.2 million and $7.0 million for Q2 2022 and H1 2022, respectively, (Q2 2021 and H1 2021: $0.5 million and $1.4 million, respectively) of exploration expenditures related to non-operating properties.

(4)Reclamation cost accretion excludes $0.4 million and $0.6 million for Q2 2022 and H1 2022, respectively, (Q2 2021 and H1 2021: $0.2 million and $0.5 million, respectively) of accretion related to non-operating properties.

| PAN AMERICAN SILVER CORP. | 33 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

Sustaining capital is included in AISC, while capital related to growth projects or acquisitions (referred to by the Company as project or investment capital) is not. Inclusion of only sustaining capital in the AISC measure reflects the capital costs associated with current ounces sold as opposed to project capital, which is expected to increase future production. The project capital excluded in the reconciliation below is further described in the "Project Development Update" section of this MD&A.

Reconciliation of payments for mineral properties,<br>plant and equipment and sustaining capital	Three months ended <br>June 30,				Six months ended <br>June 30,
(in thousands of USD)	2022		2021		2022		2021
Payments for mineral properties, plant and equipment(1)	$	71,800	$	63,170	$	133,253	$	111,141
Add/(Subtract)
Lease Payments(1)	3,471		2,853		6,890		5,835
Repayment of loans(2)	1,111		—		1,961		—
Investment (non-sustaining) capital	(19,871)		(12,799)		(29,636)		(18,543)
Sustaining Capital	$	56,511	$	53,225	$	112,467	$	98,435

(1)As presented on the consolidated statements of cash flows.

(2)As presented on the consolidated statements of cash flows. Related to repayments of construction loans for leach pad expansions in Peru.

PAN AMERICAN SILVER CORP.	34
	Management Discussion and Analysis
---	---
For the three and six months ended June 30, 2022 and 2021<br>(tabular amounts are in thousands of U.S. dollars except number of shares, options,<br>warrants, per share amounts, and per ounce amounts, unless otherwise noted)

Silver Segment Cash Costs and AISC by mine:

SILVER SEGMENT	Three months ended June 30, 2022
(In thousands of USD, except as noted)	La Colorada		Huaron		Morococha		San<br>Vicente		Manantial<br>Espejo		Consolidated<br>Silver Segment
Production Costs	$	21,787	$	23,175	$	—	$	16,116	$	31,727	$	92,805
NRV inventory adjustments	—		—		—		—		(5,093)		(5,093)
On-site direct operating costs	21,787		23,175		—		16,116		26,634		87,712
Royalties	166		—		—		4,051		819		5,036
Smelting, refining & direct selling costs	3,277		5,614		—		2,674		2,099		13,664
Cash Costs before by-product credits	25,230		28,789		—		22,841		29,552		106,413
Silver segment by-product credits	(12,312)		(25,555)		—		(14,016)		(10,508)		(62,392)
Cash Costs	$	12,918	$	3,234	$	—	$	8,825	$	19,044	$	44,021
NRV inventory adjustments	—		—		—		—		5,093		5,093
Sustaining capital	5,278		3,085		—		3,375		1,562		13,300
Exploration and project development	—		—		—		—		—		—
Reclamation cost accretion	127		199		—		80		122		528
All-in sustaining costs	$	18,323	$	6,517	$	—	$	12,280	$	25,821	$	62,942
Silver segment silver ounces sold (koz)	1,374		684		—		737		844		3,639
Cash cost per ounce sold	$	9.40	$	4.73	N/A		$	11.97	$	22.57	$	12.10
AISC per ounce sold	$	13.33	$	9.53	N/A		$	16.66	$	30.61	$	17.30
AISC per ounce sold (excluding NRV inventory adjustments)	$	13.33	$	9.53	N/A		$	16.66	$	24.57	$	15.90
SILVER SEGMENT	Three months ended June 30, 2021
---	---	---	---	---	---	---	---	---	---	---	---	---
(In thousands of USD, except as noted)	La Colorada		Huaron		Morococha		San<br>Vicente		Manantial<br>Espejo		Consolidated<br>Silver Segment
Production Costs	$	15,422	$	20,780	$	19,612	$	11,419	$	18,990	$	86,222
NRV inventory adjustments	—		—		—		—		2,890		2,890
On-site direct operating costs	15,422		20,780		19,612		11,419		21,880		89,113
Royalties	85		25		—		5,359		652		6,121
Smelting, refining & direct selling costs	3,590		4,728		5,738		1,187		1,772		17,014
Cash Costs before by-product credits	19,096		25,533		25,350		17,965		24,304		112,248
Silver segment by-product credits	(15,125)		(22,384)		(19,253)		(4,267)		(8,776)		(69,805)
Cash Costs	$	3,971	$	3,149	$	6,097	$	13,698	$	15,527	$	42,443
NRV inventory adjustments	—		—		—		—		(2,890)		(2,890)
Sustaining capital	6,282		2,550		2,074		833		2,271		14,010
Exploration and project development	551		—		36		—		—		587
Reclamation cost accretion	113		139		75		65		112		504
All-in sustaining costs	$	10,916	$	5,838	$	8,282	$	14,597	$	15,020	$	54,654
Silver segment silver ounces sold (koz)	879		617		537		693		614		3,340
Cash cost per ounce sold	$	4.52	$	5.11	$	11.35	$	19.76	$	25.30	$	12.71
AISC per ounce sold	$	12.42	$	9.47	$	15.42	$	21.06	$	24.47	$	16.36
AISC per ounce sold (excluding NRV inventory adjustments)	$	12.42	$	9.47	$	15.42	$	21.06	$	29.18	$	17.23	PAN AMERICAN SILVER CORP.	35
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	Management Discussion and Analysis
---	---
For the three and six months ended June 30, 2022 and 2021<br>(tabular amounts are in thousands of U.S. dollars except number of shares, options,<br>warrants, per share amounts, and per ounce amounts, unless otherwise noted)			SILVER SEGMENT	Six months ended June 30, 2022
---	---	---	---	---	---	---	---	---	---	---	---	---
(In thousands of USD, except as noted)	La Colorada		Huaron		Morococha		San Vicente		Manantial Espejo		Consolidated Silver Segment
Production Costs	$	45,949	$	46,051	$	15,325	$	25,772	$	57,297	$	190,394
NRV inventory adjustments	—		—		—		—		(6,446)		(6,446)
On-site direct operating costs	45,949		46,051		15,325		25,772		50,851		183,948
Royalties	467		—		—		7,236		1,999		9,701
Smelting, refining & direct selling costs	6,728		11,562		3,575		3,925		4,143		29,934
Cash Costs before by-product credits	53,144		57,613		18,900		36,933		56,993		223,583
Silver segment by-product credits	(24,455)		(55,211)		(17,005)		(15,378)		(24,593)		(136,642)
Cash Costs	$	28,689	$	2,402	$	1,895	$	21,555	$	32,400	$	86,941
NRV inventory adjustments	—		—		—		—		6,446		6,446
Sustaining capital	9,134		6,234		345		6,277		2,651		24,640
Exploration and project development											—
Reclamation cost accretion	255		398		122		160		243		1,178
All-in sustaining costs	$	38,077	$	9,033	$	2,363	$	27,992	$	41,740	$	119,205
Silver segment silver ounces sold (koz)	2,994		1,404		334		1,393		1,710		7,835
Cash cost per ounce sold	$	9.58	$	1.71	$	5.68	$	15.47	$	18.95	$	11.10
AISC per ounce sold	$	12.72	$	6.43	$	7.08	$	20.09	$	24.41	$	15.21
AISC per ounce sold (excluding NRV inventory adjustments)	$	12.72	$	6.43	$	7.08	$	20.09	$	20.64	$	14.39	SILVER SEGMENT	Six months ended June 30, 2021
---	---	---	---	---	---	---	---	---	---	---	---	---
(In thousands of USD, except as noted)	La Colorada		Huaron		Morococha		San Vicente		Manantial Espejo		Consolidated Silver Segment
Production Costs	$	19,511	$	42,511	$	37,776	$	22,238	$	44,785	$	166,821
NRV inventory adjustments	—		—		—		—		1,449		1,449
On-site direct operating costs	19,511		42,511		37,776		22,238		46,234		168,270
Royalties	199		—		—		10,449		1,253		11,901
Smelting, refining & direct selling costs	3,797		11,117		10,783		5,777		3,695		35,168
Cash Costs before by-product credits	23,507		53,628		48,558		38,463		51,182		215,339
Silver segment by-product credits	(16,019)		(48,815)		(35,320)		(14,997)		(23,183)		(138,334)
Cash Costs	$	7,488	$	4,814	$	13,238	$	23,466	$	27,998	$	77,005
NRV inventory adjustments	—		—		—		—		(1,449)		(1,449)
Sustaining capital	11,668		4,161		3,810		1,391		3,649		24,679
Exploration and project development	1,090		—		63		—		—		1,153
Reclamation cost accretion	226		279		149		131		224		1,009
All-in sustaining costs	$	20,473	$	9,254	$	17,260	$	24,988	$	30,422	$	102,397
Silver segment silver ounces sold (koz)	1,104		1,325		1,051		1,425		1,244		6,150
Cash cost per ounce sold	$	6.78	$	3.63	$	12.60	$	16.47	$	22.50	$	12.52
AISC per ounce sold	$	18.54	$	6.98	$	16.42	$	17.54	$	24.45	$	16.65
AISC per ounce sold (excluding NRV inventory adjustments)	$	18.54	$	6.98	$	16.42	$	17.54	$	25.61	$	16.89
PAN AMERICAN SILVER CORP.	36
---	---
	Management Discussion and Analysis
---	---
For the three and six months ended June 30, 2022 and 2021<br>(tabular amounts are in thousands of U.S. dollars except number of shares, options,<br>warrants, per share amounts, and per ounce amounts, unless otherwise noted)

Gold Segment Cash Costs and AISC by mine:

GOLD SEGMENT	Three months ended June 30, 2022
(In thousands of USD, except as noted)	Dolores		Shahuindo		La Arena		Timmins		Consolidated Gold Segment
Production Costs	$	103,070	$	32,511	$	15,844	$	42,956	$	194,381
Purchase Price Allocation Inventory Fair Value Adjustment	—		—		—		—		—
NRV inventory adjustments	(57,678)		—		—		—		(57,678)
On-site direct operating costs	45,393		32,511		15,844		42,956		136,703
Royalties	2,662		—		—		1,814		4,476
Smelting, refining & direct selling costs	8		—		—		35		43
Cash Costs before by-product credits	48,063		32,511		15,844		44,804		141,221
Gold segment by-product credits	(11,711)		(1,417)		(225)		(40)		(13,393)
Cash Costs of Sales	$	36,352	$	31,094	$	15,619	$	44,764	$	127,829
NRV inventory adjustments	57,678		—		—		—		57,678
Sustaining capital	11,575		8,425		13,943		9,269		43,212
Exploration and project development	—		—		—		—		—
Reclamation cost accretion	1,382		645		741		43		2,812
All-in sustaining costs	$	106,986	$	40,165	$	30,302	$	54,076	$	231,530
Gold segment gold ounces sold	34,092		30,128		13,911		34,750		112,882
Cash cost per ounce sold	$	1,066	$	1,032	$	1,123	$	1,288	$	1,132
AISC per ounce sold	$	3,138	$	1,333	$	2,178	$	1,556	$	2,051
AISC per ounce sold (excluding NRV inventory adjustments)	$	1,446	$	1,333	$	2,178	$	1,556	$	1,540
GOLD SEGMENT	Three months ended June 30, 2021
---	---	---	---	---	---	---	---	---	---	---
(In thousands of USD, except as noted)	Dolores		Shahuindo		La Arena		Timmins		Consolidated Gold Segment
Production Costs	$	34,599	$	18,739	$	17,595	$	42,274	$	113,207
Purchase Price Allocation Inventory Fair Value Adjustment	—		(103)		—		—		(103)
NRV inventory adjustments	4,355		—		—		—		4,355
On-site direct operating costs	38,954		18,636		17,595		42,274		117,459
Royalties	3,260		—		—		1,734		4,993
Smelting, refining & direct selling costs	12		—		—		36		48
Cash Costs before by-product credits	42,226		18,636		17,595		44,044		122,500
Gold segment by-product credits	(17,184)		(1,353)		(201)		(107)		(18,846)
Cash Costs of Sales	$	25,042	$	17,282	$	17,394	$	43,936	$	103,654
NRV inventory adjustments	(4,355)		—		—		—		(4,355)
Sustaining capital	8,335		8,750		12,507		9,623		39,215
Exploration and project development	77		—		—		903		980
Reclamation cost accretion	701		263		150		15		1,129
All-in sustaining costs	$	29,800	$	26,295	$	30,051	$	54,478	$	140,623
Gold segment gold ounces sold	41,613		22,677		24,159		32,500		120,949
Cash cost per ounce sold	$	602	$	762	$	720	$	1,352	$	857
AISC per ounce sold	$	716	$	1,160	$	1,244	$	1,676	$	1,163
AISC per ounce sold (excluding NRV inventory adjustments)	$	821	$	1,160	$	1,244	$	1,676	$	1,199
PAN AMERICAN SILVER CORP.	37
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For the three and six months ended June 30, 2022 and 2021<br>(tabular amounts are in thousands of U.S. dollars except number of shares, options,<br>warrants, per share amounts, and per ounce amounts, unless otherwise noted)			GOLD SEGMENT	Six months ended June 30, 2022
---	---	---	---	---	---	---	---	---	---	---
(In thousands of USD, except as noted)	Dolores		Shahuindo		La Arena		Timmins		Consolidated Gold Segment
Production Costs	$	167,329	$	65,556	$	44,679	$	91,199	$	368,764
Purchase Price Allocation Inventory Fair Value Adjustment	—		—		—		—		—
NRV inventory adjustments	(70,768)		—		—		—		(70,768)
On-site direct operating costs	96,562		65,556		44,679		91,199		297,996
Royalties	5,911		—		—		3,679		9,590
Smelting, refining & direct selling costs	14		—		—		64		78
Cash Costs before by-product credits	102,486		65,556		44,679		94,942		307,663
Gold segment by-product credits	(26,281)		(3,521)		(465)		(129)		(30,396)
Cash Costs of Sales	$	76,205	$	62,035	$	44,215	$	94,813	$	277,267
NRV inventory adjustments	70,768		—		—		—		70,768
Sustaining capital	25,928		15,806		26,901		19,193		87,828
Exploration and project development									—
Reclamation cost accretion	2,764		1,291		1,482		87		5,623
All-in sustaining costs	$	175,665	$	79,131	$	72,598	$	114,092	$	441,486
Gold segment gold ounces sold	74,934		63,956		43,604		70,150		252,644
Cash cost per ounce sold	$	1,017	$	970	$	1,014	$	1,352	$	1,097
AISC per ounce sold	$	2,344	$	1,237	$	1,665	$	1,626	$	1,747
AISC per ounce sold (excluding NRV inventory adjustments)	$	1,400	$	1,237	$	1,665	$	1,626	$	1,467	GOLD SEGMENT	Six months ended June 30, 2021
---	---	---	---	---	---	---	---	---	---	---
(In thousands of USD, except as noted)	Dolores		Shahuindo		La Arena		Timmins		Consolidated Gold Segment
Production Costs	$	60,930	$	44,511	$	36,658	$	83,690	$	225,788
Purchase Price Allocation Inventory Fair Value Adjustment	—		(425)		(6)		—		(430)
NRV inventory adjustments	13,940		—		—		—		13,940
On-site direct operating costs	74,869		44,086		36,652		83,690		239,298
Royalties	5,770		—		—		3,306		9,076
Smelting, refining & direct selling costs	25		—		—		73		98
Cash Costs before by-product credits	80,664		44,086		36,652		87,070		248,472
Gold segment by-product credits	(33,013)		(2,968)		(506)		(229)		(36,715)
Cash Costs of Sales	$	47,651	$	41,118	$	36,147	$	86,841	$	211,756
NRV inventory adjustments	(13,940)		—		—		—		(13,940)
Sustaining capital	17,255		11,431		27,226		17,845		73,756
Exploration and project development	176		—		—		1,807		1,983
Reclamation cost accretion	1,402		526		300		30		2,258
All-in sustaining costs	$	52,544	$	53,075	$	63,672	$	106,523	$	275,814
Gold segment gold ounces sold	73,090		54,413		55,509		65,700		248,713
Cash cost per ounce sold	$	652	$	756	$	651	$	1,322	$	851
AISC per ounce sold	$	719	$	975	$	1,147	$	1,621	$	1,109
AISC per ounce sold (excluding NRV inventory adjustments)	$	910	$	975	$	1,147	$	1,621	$	1,165
PAN AMERICAN SILVER CORP.	38
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	Management Discussion and Analysis
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For the three and six months ended June 30, 2022 and 2021<br>(tabular amounts are in thousands of U.S. dollars except number of shares, options,<br>warrants, per share amounts, and per ounce amounts, unless otherwise noted)

Adjusted Earnings

Adjusted earnings and basic adjusted earnings per share are non-GAAP measures that the Company considers to better reflect normalized earnings because it eliminates items that in management's judgment are subject to volatility as a result of factors that are unrelated to operations in the period, and/or relate to items that will settle in future periods. Certain items that become applicable in a period may be adjusted for, with the Company retroactively presenting comparable periods with an adjustment for such items and conversely, items no longer applicable may be removed from the calculation. The Company adjusts certain items in the periods that they occurred, but does not reverse or otherwise unwind the effect of such items in future periods. Neither adjusted earnings nor basic adjusted earnings per share have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other companies.

The following table shows a reconciliation of adjusted earnings for the three and six months ended June 30, 2022 and 2021, to the net earnings for each period.

	Three months ended <br>June 30,				Six months ended <br>June 30,
(In thousands of USD, except as noted)	2022		2021		2022		2021
Net (loss) earnings for the period	$	(173,632)	$	71,241	$	(96,801)	$	63,679
Adjust for:
Impairment charges on mineral properties	99,064		—		99,064		—
Unrealized foreign exchange losses	3,544		1,608		5,872		3,775
Heap inventory net realizable value charge (recovery)	62,909		(3,973)		77,652		(9,687)
Unrealized gains on derivatives	(632)		(536)		(3,015)		(422)
Gains and income from associates	—		(3,320)		(45,033)		(3,518)
Mine operation severance payments	1,133		—		7,989		—
Losses (gains) on sale of mineral properties, plant and equipment	522		(4,146)		699		(4,256)
Investment loss (income)	7,654		(10,644)		4,828		28,389
Effect of taxes on adjusting items	(6,917)		1,575		(14,170)		3,616
Effect of foreign exchange on taxes	(134)		(5,179)		(11,596)		2,483
Total adjustments	$	167,143	$	(24,615)	$	122,290	$	20,380
Adjusted (loss) earnings for the period	$	(6,489)	$	46,626	$	25,489	$	84,059
Weighted average shares for the period	210,514		210,284		210,489		210,273
Adjusted (loss) earnings per share for the period	$	(0.03)	$	0.22	$	0.12	$	0.40

Total Debt

Total debt is a non-GAAP measure calculated as the total current and non-current portions of: long-term debt (including amounts drawn on the Credit Facility), lease liabilities, and loans payable. Total debt does not have any standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other companies. The Company and certain investors use this information to evaluate the financial debt leverage of the Company.

Capital

Capital is a non-GAAP measure and is calculated as total equity plus total debt less cash and cash equivalents and short term investments. Capital does not have any standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other companies. The Company and certain investors use this information to evaluate the enterprise value of the Company.

Working Capital

Working capital is a non-GAAP measure calculated as current assets less current liabilities. Working capital does not have any standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar

| PAN AMERICAN SILVER CORP. | 39 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

measures presented by other companies. The Company and certain investors use this information to evaluate whether the Company is able to meet its current obligations using its current assets.

Cash Mine Operating Earnings

Cash mine operating earnings is a non-GAAP measure calculated as mine operating earnings excluding depreciation and amortization expense and NRV inventory adjustments included in production costs. Cash mine operating earnings does not have any standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other companies. The Company excludes these significant non-cash items to arrive at cash mine operating earnings for the purpose of analyzing and explaining periodic cash flow from operations and changes thereto.

Reconciliation of cash mine operating earnings	Three months ended <br>June 30,				Six months ended <br>June 30,
(in thousands of USD)	2022		2021		2022		2021
Mine operating earnings(1)	$	(31,652)	$	103,048	$	35,103	$	193,012
Add/(Subtract)
Depreciation and amortization(1)	74,327		68,540		158,853		143,633
Net realizable value adjustment for inventories(2)	62,770		(7,246)		77,213		(15,389)
Cash mine operating earnings	$	105,445	$	164,342	$	271,169	$	321,256

(1)As presented on the consolidated statements of earnings and comprehensive earnings.

(2)As presented in Note 21 to the Company's Q2 2022 Financial Statements.

RISKS AND UNCERTAINTIES

The Company is exposed to many risks in conducting its business, including but not limited to: metal price risk as the Company derives its revenue from the sale of silver, gold, zinc, lead, and copper; trading and credit risk in the normal course of dealing with other companies; foreign exchange risk as the Company reports its financial statements in USD whereas the Company operates in jurisdictions that utilize other currencies; risks relating to cyber security; the inherent risk of uncertainties in estimating mineral reserves and mineral resources; political, economic and social risks related to conducting business in jurisdictions such as Canada, Peru, Mexico, Argentina, Bolivia and Guatemala; environmental risks; risks related to its relations with employees and local communities where we operate, and risks relating to the spread of COVID-19, which has to date resulted in profound health and economic impacts globally and which presents future risks and uncertainties that are largely unknown at this time. Certain of these risks are described below, and are more fully described in Pan American’s Annual Information Form (available on SEDAR at www.sedar.com) and Form 40-F filed with the SEC, and in the Financial Instruments and related risks section of the 2021 Annual Financial Statements. Readers are encouraged to refer to these documents for a more detailed description of some of the risks and uncertainties inherent to Pan American’s business.

Financial Risk Exposure

The Company is exposed to financial risks, including metal price risk, credit risk, interest rate risk, foreign currency exchange rate risk, and liquidity risk. The Company's exposures and management of each of those risks is described in the 2021 Annual Financial Statements under Note 8 "Financial Instruments", along with the financial statement classification, the significant assumptions made in determining the fair value, and amounts of income, expenses, gains and losses associated with financial instruments. Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. There were no significant changes to those risks or to the Company's management of exposure to those risks during the three months ended June 30, 2022.

The following provides a description of the risks related to financial instruments and how management manages these risks:

| PAN AMERICAN SILVER CORP. | 40 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

Price Risk

A decrease in the market price of commodities such as silver, gold and other metals and increase in the price of consumables could affect our profitability, along with the commercial viability of our mines and production from some of our mining properties. From time to time, Pan American mitigates the price risk associated with its base metal production by committing some of its future production under forward sales or option contracts. However, decisions relating to hedging may have material adverse effects on our financial performance, financial position, and results of operations. The Board of Directors continually assesses Pan American’s strategy towards our base metal exposure.

As at June 30, 2022, the Company had outstanding collars made up of put and call contracts for its exposure to zinc (1,800 tonnes); as well as an outstanding forward contract for its exposure to zinc (1,800 tonnes) with settlement dates on those positions between July 2022 and December 2022. The outstanding collars have respective weighted average floor and cap prices per tonne of $3,150 and $4,000. The outstanding forward contract has a fixed price of $4,065. The Company recorded gains of $2.9 million and $1.8 million during the three and six months ended June 30, 2022. The Company did not have any zinc contracts outstanding during the comparable periods in 2021.

As at June 30, 2021, the Company had outstanding collars made up of put and call contracts for its exposure to copper (900 tonnes) with settlement dates on those positions between July 2021 and December 2021, and recorded losses of $0.6 million and $1.2 million during the three and six months ended June 30, 2021, respectively, on these positions. There were no copper positions outstanding during the comparable periods in 2022.

During 2020, the Company entered into diesel swap contracts designed to fix or limit the Company’s exposure to higher fuel prices. At June 30, 2022, the Company had outstanding positions on its diesel exposure with a notional amount of 1.8 million gallons, with a weighted average fixed price of $1.42 per gallon. The Company recorded gains of $2.0 million and $4.8 million for the three and six months ended June 30, 2022, respectively. (2021 - gains of $3.8 million and $8.0 million for the three and six months ended June 30, 2021, respectively).

Trading Activities and Credit Risk

The zinc, lead, and copper concentrates produced by us are sold through long-term supply arrangements to metal traders or integrated mining and smelting companies. The terms of the concentrate contracts may require us to deliver concentrate that has a value greater than the payment received at the time of delivery, thereby introducing us to credit risk of the buyers of our concentrates. Should any of these counterparties not honour our contractual arrangements, or should any of them become insolvent, we may incur losses for products already shipped and be forced to sell our concentrates in the spot market or we may not have a market for our concentrates and therefore our future operating results may be materially adversely impacted.

As at June 30, 2022, we had receivable balances associated with buyers of our concentrates of $31.4 million (December 31, 2021 - $40.0 million). The vast majority of our concentrate is sold to a limited number of concentrate buyers.

Doré production is refined under long term agreements with fixed refining terms at seven separate refineries worldwide. We generally retain the risk and title to the precious metals throughout the process of refining and therefore are exposed to the risk that the refineries will not be able to perform in accordance with the refining contract and that we may not be able to fully recover our precious metals in such circumstances. As at June 30, 2022, we had approximately $25.6 million (December 31, 2021 - $52.3 million) contained in precious metal inventory at refineries. We maintain insurance coverage against the loss of precious metals at our mine sites and in-transit to refineries. Risk is transferred to the refineries upon delivery.

Refined silver and gold is sold in the spot market to various bullion traders and banks. Credit risk may arise from these activities if we are not paid for metal at the time it is delivered, as required by spot sale contracts.

| PAN AMERICAN SILVER CORP. | 41 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

We maintain trading facilities with several banks and bullion dealers for the purposes of transacting our trading activities. None of these facilities are subject to margin arrangements. Our trading activities can expose us to our counterparties’ credit risk to the extent that our trading positions have a positive mark-to-market value.

Supplier advances for products and services yet to be provided are a common practice in some jurisdictions in which we operate. These advances represent a credit risk to us to the extent that suppliers do not deliver products or perform services as expected. As at June 30, 2022, we had made $17.0 million of supplier advances (December 31, 2021 - $11.2 million), which are reflected in Trade and other receivables on the consolidated statements of financial position.

Management constantly monitors and assesses the credit risk resulting from our concentrate sales, refining arrangements and commodity contracts. Furthermore, management carefully considers credit risk when allocating prospective sales and refining business to counterparties. In making allocation decisions, management attempts to avoid unacceptable concentration of credit risk to any single counterparty.

From time to time, we may invest in equity securities of other companies. Just as investing in Pan American is inherent with risks such as those set out in this MD&A, by investing in other companies we will be exposed to the risks associated with owning equity securities and those risks inherent in the investee companies.

Foreign currency exchange rate risk

We report our financial statements in USD; however we operate in jurisdictions that utilize other currencies. As a consequence, the financial results of our operations, as reported in USD, are subject to changes in the value of the USD relative to local currencies. Since our sales are denominated in USD and a portion of our operating costs and capital spending are in local currencies, we are negatively impacted by strengthening local currencies relative to the USD and positively impacted by the inverse. From time to time, we mitigate part of this currency exposure by accumulating local currencies, entering into contracts designed to fix or limit our exposure to changes in the value of local currencies relative to the USD, or assuming liability positions to offset financial assets subject to currency risk.

Pan American held cash and short-term investments of $58.0 million in CAD, $4.9 million in MXN, $4.3 million in PEN, $7.0 million in ARS, $3.2 million in BOB, and $0.2 million in Guatemalan quetzales as at June 30, 2022.

At June 30, 2022, Pan American had outstanding positions on $18.0 million in foreign currency exposure of MXN purchases. The MXN positions had weighted average USD put and call exchange rates of $20.50 and $26.08, respectively, expiring between July 2022 and December 2023. The Company recorded losses of $0.1 million and gains of $0.4 million on MXN derivative contracts for the three and six months ended June 30, 2022, respectively (2021 - gains of $0.8 million and losses of $0.1 million for the three and six months ended June 30, 2021, respectively).

At June 30, 2022, Pan American had outstanding positions on $8.4 million in foreign currency exposure of PEN purchases. The PEN positions had a weighted average USD fixed exchange rate of $4.13, expiring between July 2022 and December 2022. The Company recorded losses of $0.4 million and gains of $1.7 million on PEN derivative contracts for the three and six months ended June 30, 2022, respectively (2021 - losses of $1.3 million and $2.2 million for the three and six months ended June 30, 2021, respectively).

At June 30, 2022, Pan American had outstanding positions on $48.0 million in foreign currency exposure of CAD purchases. The CAD collar positions ($36.0 million of CAD purchases) had weighted average USD put and call exchange rates of $1.26 and 1.32, respectively, expiring between July 2022 and December 2023. The CAD forward contract ($12.0 million of CAD purchases) had a weighted average USD fixed exchange rate of $1.29, expiring between July 2022 and December 2022. The Company recorded losses of $0.6 million and $0.4 million on CAD derivative contracts for the three and six months ended June 30, 2022, respectively (2021 - gains of $0.4 million and $0.9 million for the three and six months ended June 30, 2021, respectively).

| PAN AMERICAN SILVER CORP. | 42 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

Claims and Legal Proceedings

Pan American is subject to various claims and legal proceedings covering a wide range of matters that arise in the ordinary course of business activities , including matters relating to employees or former employees, commercial relationships, and claims by local communities, Indigenous stakeholders, and private land owners. Some of these claims or proceedings may seek sizeable monetary damages against us and/or the return of surface or mineral rights or revocation of permits and licenses that are valuable to us and which may impact our operations and profitability if lost. Further information on the nature, assessment and management of such claims are described in this section, the Risks and Uncertainties section of the 2021 Annual MD&A, and in Note 28 to the Company's 2021 Annual Financial Statements. There were no significant changes to those risks or to the Company's management of exposure to those risks during the three and six months ended June 30, 2022.

In early May 2021, the Company’s subsidiary in Guatemala and the Ministry of Energy and Mines of Guatemala were served with legal proceedings that were originated in the Constitutional Court of Guatemala by a small group of residents and landowners, or alleged residents and landowners, from the La Cuchilla community near the Escobal mine claiming that prior mining activities damaged their lands. Currently, operations at Escobal are suspended pending the completion of the government-led ILO 169 consultation process. Nevertheless, the action seeks injunctive relief to prevent future mining activities at Escobal. While the Company believes the claims are procedurally and substantively flawed and without merit, the outcome of these proceedings cannot be determined at this time.

As reported in our Annual Information Form dated February 23, 2022, certain individuals have asserted community rights and land ownership over a portion of the La Colorada mine’s surface lands in the Agrarian Courts of Mexico. They have also initiated a process before the Secretariat of Agrarian, Territorial and Urban Development (“SEDATU”) in Zacatecas to declare such lands as national property. In 2019, we filed a legal challenge (amparo) against this process and obtained an injunction to protect our ownership of these surface rights pending the outcome of the challenge and a further review by SEDATU. Our challenge was dismissed on October 25, 2021, primarily on the basis that no final declaration of national lands had yet been made by SEDATU that would affect our property rights. We have appealed this dismissal and we will continue to oppose the SEDATU process. During Q2 2022, we learned that in 2017 a number of those same individuals had also made a petition to the Mexican Mines Bureau, a branch of the Secretaria de Economia, requesting the suspension of the exploration and exploitation work on our mining concessions at La Colorada. We are not aware of any legal basis for the petition or any response from the Secretaria de Economia. While we are confident that we hold proper title to the mining concessions and surface rights in question, if we are unable to maintain, or maintain access to, the concessions and surface rights, there could be material adverse impacts on the La Colorada mine’s future mining operations.

In mid-2017, Tahoe, which was acquired by us in late February 2019, and certain of its former directors and officers became the subject of three purported class action lawsuits filed in the United States that center primarily around alleged misrepresentations. These U.S. class action lawsuits were later consolidated into one class action suit that is ongoing in Nevada. In October 2018, Tahoe learned that a similar lawsuit had been filed against Tahoe and its former chief executive officer in the Superior Court of Ontario. These lawsuits seek significant damages. We have disputed the allegations made in these suits, however the outcomes are not determinable at this time.

Legal proceedings are subject to various uncertainties and it is possible that some of the matters in which we are involved may be resolved unfavourably against us and may result in a material adverse effect on our financial position, cash flow and results of operations. We establish provisions for matters that are probable and can be reasonably estimated. We also carry liability insurance coverage, however such insurance does not cover all risks to which we might be exposed and in other cases, may only partially cover losses incurred by us.

| PAN AMERICAN SILVER CORP. | 43 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

COVID-19 and Other Pandemics

Since the outbreak of COVID-19 in late 2019, it has spread into areas where we have operations and where our offices are located. During 2020, Government efforts to curtail the spread of COVID-19 resulted in temporary suspensions of our operations in Mexico, Peru, Argentina and Bolivia, and we reduced throughput at our Timmins operation in Canada in order to enhance physical distancing and protect our personnel and the community. The spread of COVID-19 has impacted our employees and contractors, not only as it relates to potential health concerns, but also in terms of limitations on movement, availability of food and other goods, and personal well-being, among others. Our suppliers and service providers have also been impacted.

While COVID-19 has already had significant, direct impacts on our operations, our business, our workforce, and our production, the extent to which COVID-19 will continue to impact our operations will depend on future developments which are highly uncertain and cannot be predicted with confidence. These future developments include, but are not limited to, the duration of any outbreak, new information that may emerge concerning the severity of COVID-19 or its variants, and the actions taken to contain COVID-19 or treat it. The impact of governmental restrictions and health and safety protocols could improve or worsen relative to our assumptions, depending on how each jurisdiction manages potential outbreaks of COVID-19 and the efficacy of vaccines and other measures. We assume operations will continue to be impacted by comprehensive COVID-19 protocols in 2022, which would increase costs and restrict throughput levels, especially at our underground mines. Our ability to continue with our operations should the situation worsen, or to successfully maintain our operations on care and maintenance if so required, or to restart or ramp-up any such operations efficiently or economically, or at all, is unknown and the financial and operating impacts could be significant.

Moreover, the continued presence of, the spread, or increase in the severity of COVID-19 and its variants, and any future emergence and spread of similar pathogens, globally would likely have material adverse effect on both global and regional economies, including those in which we operate, as we have seen already. Such effects would not only affect our business and results of operations, but also the operations of our suppliers, contractors and service providers, including smelter and refining service providers, and the demand for our production. COVID-19 and the spread of similar pathogens could also negatively impact stock markets, including the trading price of our shares, adversely impact our ability to raise capital, cause continued interest rate volatility and movements that could make obtaining financing or refinancing our debt obligations more challenging or more expensive (if such financing is available at all), and result in any operations affected by coronavirus becoming subject to quarantine or shut down. Any of these developments, and others, could have a material adverse effect on our business and results of operations.

Climate Change

There is significant evidence of the effects of climate change on our planet and an intensifying focus on addressing these issues. The Company recognizes that climate change is a global challenge that can impact our business in a range of possible ways. Mining and processing operations are energy intensive and result in a carbon footprint either directly or through the purchase of fossil-fuel based electricity. As such, the Company is impacted by current and emerging policy and regulation relating to greenhouse gas emission levels, energy efficiency, and reporting of climate-change related risks. While some of the costs associated with reducing emissions may be offset by increased energy efficiency, technological innovation, or the increased demand for our metals as part of technological innovations, the current regulatory trend may result in additional transition costs at some of our operations. Governments are introducing climate change legislation and treaties at the international, national, and local levels, and regulations relating to emission levels and energy efficiency are evolving and becoming more rigorous. Current laws and regulatory requirements are not consistent across the jurisdictions in which we operate, and regulatory uncertainty is likely to result in additional complexity and cost in our compliance efforts. Public perception of mining is, in some respects, negative and there is increasing pressure to curtail mining in many jurisdictions as a result, in part, of perceived adverse effects of mining on the environment.

Concerns around climate change may also affect the market price of our shares as institutional investors and others may divest interests in industries that are thought to have more environmental impacts. While we are committed to operating responsibly and reducing the negative effects of our operations on the environment, our ability to reduce emissions, energy and water usage by increasing efficiency and by adopting new innovation is

| PAN AMERICAN SILVER CORP. | 44 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

constrained by technological advancement, operational factors and economics. Adoption of new technologies, the use of renewable energy, and infrastructure and operational changes necessary to reduce water usage may also increase our costs significantly. Concerns over climate change, and our ability to respond to regulatory requirements and societal expectations, may have significant impacts on our operations and on our reputation, and may even result in reduced demand for our products.

The physical risks of climate change could also adversely impact our operations. These risks include, among other things, extreme weather events, resource shortages, changes in rainfall and in storm patterns and intensities, water shortages, changing sea levels and extreme temperatures. Climate-related events such as mudslides, floods, droughts and fires can have significant impacts, directly and indirectly, on our operations and could result in damage to our facilities, disruptions in accessing our sites with labour and essential materials or in shipping products from our mines, risks to the safety and security of our personnel and to communities, shortages of required supplies such as fuel and chemicals, inability to source enough water to supply our operations, and the temporary or permanent cessation of one or more of our operations. There is no assurance that we will be able to successfully anticipate, respond to, or manage the risks associated with physical climate change events and impacts, and this may result in material adverse consequences to our business and to our financial results.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, STANDARDS AND JUDGEMENTS

Changes in accounting policies

The accounting policies applied in the preparation of the unaudited condensed interim consolidated financial statements are consistent with those applied and disclosed in the Company’s audited consolidated financial statements for the year ended December 31, 2021.

Future changes in accounting standards

Significant judgements

In preparing financial statements in accordance with IFRS, Management is required to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. These critical accounting estimates represent Management's estimates and judgments that are uncertain and any changes in these could materially impact the Company’s financial statements. Management continuously reviews its estimates, judgments, and assumptions using the most current information available.

Readers should also refer to Note 3 of the 2021 Annual Financial Statements, for the Company’s summary of significant accounting policies.

DISCLOSURE CONTROLS AND PROCEDURES AND INTERNAL CONTROL OVER FINANCIAL REPORTING

Pan American’s management considers the meaning of internal control to be the processes established by management to provide reasonable assurance about the achievement of the Company’s objectives regarding operations, reporting and compliance. Internal control is designed to address identified risks that threaten any of these objectives.

Disclosure controls and procedures (“DC&P”)

Our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) are responsible for establishing and maintaining adequate DC&P. Under the supervision and with the participation of our CEO and CFO, we evaluated the effectiveness of the design and operation of our DC&P in accordance with requirements of National Instrument 52-109 of the Canadian Securities Commission (“NI 52-109”) and the Sarbanes Oxley Act of 2002 (as adopted by the US Securities and Exchange Commission).

| PAN AMERICAN SILVER CORP. | 45 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

As of December 31, 2021, based on the evaluation, our CEO and CFO concluded that our DC&P were effective to ensure that information required to be disclosed by us in reports we file or submit is recorded, processed, summarized and reported within the time periods specified in securities legislation and is accumulated and communicated to our management, including our CEO and CFO.

Internal control over financial reporting (“ICFR”)

Our CEO and CFO are responsible for establishing and maintaining adequate ICFR. Under the supervision and with the participation of our CEO and CFO, we evaluated the effectiveness of our ICFR as of December 31, 2021 based upon the Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on the evaluation, our CEO and CFO concluded that our ICFR was effective as of December 31, 2021. Management reviewed the results of management’s evaluation with the Audit Committee of the Board.

The effectiveness of the Company’s ICFR as of December 31, 2021 has been audited by Deloitte LLP, Independent Registered Public Accounting Firm as stated in their report immediately preceding the Company’s audited consolidated financial statements for the year ended December 31, 2021.

Changes in ICFR

There has been no change in the Company’s ICFR during the three and six month periods ended June 30, 2022 that has materially affected, or is reasonably likely to materially affect, its ICFR.

Inherent limitations of controls and procedures

All internal control systems, no matter how well designed, have inherent limitations. As a result, even systems determined to be effective may not prevent or detect misstatements on a timely basis, as systems can provide only reasonable assurance that the objectives of the control system are met. In addition, projections of any evaluation of the effectiveness of ICFR to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may change.

TECHNICAL INFORMATION

Scientific and technical information contained in this MD&A has been reviewed and approved by Martin Wafforn, P.Eng., Senior Vice President Technical Services and Processing Optimization, and Christopher Emerson, FAusIMM, Vice President Business Development and Geology, each of whom are Qualified Persons, as the term is defined in NI 43-101.

For more detailed information regarding the Company’s material mineral properties and technical information related thereto, including a complete list of current technical reports applicable to such properties, please refer to the Company’s Annual Information Form dated February 23, 2022, filed at www.sedar.com or the Company’s most recent Form 40-F filed with the SEC.

PAN AMERICAN SILVER CORP.	46
	Management Discussion and Analysis
---	---
For the three and six months ended June 30, 2022 and 2021<br>(tabular amounts are in thousands of U.S. dollars except number of shares, options,<br>warrants, per share amounts, and per ounce amounts, unless otherwise noted)

Cautionary Note Regarding Forward-Looking Statements and Information

Certain of the statements and information in this MD&A constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian provincial securities laws relating to the Company and its operations. All statements, other than statements of historical fact, are forward-looking statements. When used in this MD&A, the words, “will”, “believes”, “expects”, “intents”, “plans”, “forecast”, “objective”, “guidance”, “outlook”, “potential”, “anticipated”, “budget”, and other similar words and expressions, identify forward-looking statements or information. These forward-looking statements or information relate to, among other things: future financial or operational performance and forecasts for 2022, including our estimated production of silver, gold and other metals forecasted and anticipated timing for the same, including expectations with respect to production being weighted to the latter half of 2022 and the timing and amount of any future sales related to inventory build-ups; our estimated Cash Costs and AISC; our estimated capital, exploration, mine operation, general and administrative, and care and maintenance expenditures, as well as the timing and amount of cash flows and cash outflows; future anticipated prices for gold, silver and other metals and assumed foreign exchange rates; estimated recoverable amounts of cash generating units; expectations with respect to mineral grades and the impact of any variations relative to actual grades encountered; expectations with respect to the future anticipated impact of COVID-19 on our operations, the lessening or increase in pandemic-related restrictions and protocols, and the anticipated timing for the same; the ability of Pan American to continue with its operations, or to successfully maintain our operations on care and maintenance, should the situation related to COVID-19 not be as anticipated; the impacts of inflation, disruptions to supply chain, and regional and global economic conditions on Pan American and its operations; whether Pan American is able to maintain a strong financial condition and have sufficient capital, or have access to capital through the Sustainability-Linked Credit Facility or otherwise, to sustain our business and operations; the timing and outcome of legal proceedings, including the claims relating to La Cuchilla, the claims in respect of the La Colorada mine and the related processes with the SEDATU and the Mexican Mines Bureau, and the Tahoe-related class action lawsuits, and the impact that any such legal proceedings may have on Pan American; the duration and effect of the suspensions of operations of the Escobal mine, as well as the nature of and continuation of the constitutional court-mandated ILO 169 consultation process in Guatemala, and the timing and, if applicable, completion thereof; certain legal proceedings that were originated in the Constitutional Court of Guatemala relating to the Escobal mine; the timing and success of site infrastructure upgrades at the La Colorada mine; our ability to meet our social, governance, and environmental and climate-related goals and the impacts that any inability to meet such goals might have on Pan American; the ability of and timing for Pan American to successfully complete any capital projects, including with respect to the La Colorada and the Timmins projects, the expected economic or operational results derived from those projects, and the impacts of any such projects on Pan American; the future results of our exploration activities, including with respect to the skarn exploration program at La Colorada; and the Company’s plans and expectations for its properties and operations.

These forward-looking statements and information reflect the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant operational, business, economic, competitive, political, regulatory, and social uncertainties and contingencies. These assumptions, some of which are described in the “Risks and Uncertainties” section of this MD&A, include: the impact of inflation and disruptions to the global, regional and local supply chain; the world-wide economic and social impact of COVID-19 is managed and the duration and extent of the coronavirus pandemic is minimized or not long-term; the management of COVID-19 in each jurisdiction; the assumptions related to the global supply and availability of COVID-19 vaccines and the effectiveness and results of any vaccines; the presence and impact of COVID-19 on our workforce, suppliers and other essential resources and the effect those impacts have on our business; if necessary, continuation of operations following shutdowns or reductions in production, our ability to manage reduced operations efficiently and economically, including to maintain necessary staffing; our assumptions related to the determination of impairments and our conclusions in respect thereof; our ability to implement environmental, social and governance activities and achieve goals related thereto; tonnage of ore to be mined and processed; ore grades and recoveries; prices for silver, gold and base metals remaining as estimated; currency exchange rates remaining as estimated; capital, decommissioning and reclamation estimates; our mineral reserve and mineral resource estimates and the assumptions upon which they are based; prices for energy inputs, labour, materials, supplies

| PAN AMERICAN SILVER CORP. | 47 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

and services (including transportation); no labour-related disruptions at any of our operations; no unplanned delays or interruptions in scheduled production; protection of our interests against claims and legal proceedings; all necessary permits, licenses and regulatory approvals for our operations are received in a timely manner and can be maintained; and our ability to comply with environmental, health and safety laws, particularly given the potential for modifications and expansion of such laws. The foregoing list of assumptions is not exhaustive.

Pan American cautions the reader that forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements or information contained in this MD&A and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: the duration and effects of inflationary factors on local, regional and global economies; the duration and effects of the coronavirus and COVID-19 variants, and any other epidemics or pandemics on our operations and workforce, and their effects on global economies and society; fluctuations in silver, gold, and base metal prices; fluctuations in prices for energy inputs; fluctuations in currency markets (such as the PEN, MXN, ARS, BOL, GTQ and CAD versus the USD); risks related to the technological and operational nature of the Company’s business; changes in national and local government, legislation, taxation, controls or regulations and political, legal or economic developments in Canada, the United States, Mexico, Peru, Argentina, Bolivia, Guatemala or other countries where the Company may carry on business, some of which might prevent or cause the suspension or discontinuation of mining activities, including the risk of expropriation related to certain of our operations, particularly in Argentina and Bolivia and risks related to the constitutional court-mandated ILO 169 consultation process in Guatemala; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected geological or structural formations, pressures, cave-ins and flooding); risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom the Company does business; inadequate insurance, or inability to obtain insurance, to cover these risks and hazards; employee relations; relationships with and claims by the local communities and indigenous populations; availability and increasing costs associated with mining inputs and labour; the Company’s ability to secure our mine sites or maintain access to our mine sites due to criminal activity, violence, or civil and labour unrest; the speculative nature of mineral exploration and development, including the risk of obtaining or retaining necessary licenses and permits; challenges to, or difficulty in maintaining, the Company’s title to properties and continued ownership thereof; diminishing quantities or grades of mineral reserves as properties are mined; global financial conditions; the Company’s ability to complete and successfully integrate acquisitions and to mitigate other business combination risks; the actual results of current exploration activities, conclusions of economic evaluations, and changes in project parameters to deal with unanticipated economic or other factors; increased competition in the mining industry for properties, equipment, qualified personnel, and their costs; having sufficient cash to pay obligations as they come due; and those factors identified under the caption “Risks Related to Pan American’s Business” in the Company’s most recent Form 40-F and Annual Information Form filed with the United States Securities and Exchange Commission and Canadian provincial securities regulatory authorities, respectively. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described, or intended. Investors are cautioned against attributing undue certainty or reliance on forward-looking statements or information. Forward-looking statements and information are designed to help readers understand Management's current views of our near and longer term prospects and may not be appropriate for other purposes. The Company does not intend, and does not assume any obligation, to update or revise forward-looking statements or information to reflect changes in assumptions or in circumstances or any other events affecting such statements or information, other than as required by applicable law.

| PAN AMERICAN SILVER CORP. | 48 | | --- | --- || | Management Discussion and Analysis | | --- | --- | | For the three and six months ended June 30, 2022 and 2021 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) | |

Cautionary Note to U.S. Investors Concerning Estimates of Mineral Reserves and Mineral Resources

This MD&A has been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all references to mineral reserve and mineral resource estimates included in the MD&A have been disclosed in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian standards, including NI 43-101, differ significantly from the requirements of the SEC, and information concerning mineralization, deposits, mineral reserve and mineral resource information contained or referred to herein may not be comparable to similar information disclosed by U.S. companies.

PAN AMERICAN SILVER CORP.	49

Document

Form 52-109F2

Certification of Interim Filings

Full Certificate

I, Michael Steinmann, Chief Executive Officer of Pan American Silver Corp., certify the following:

1.Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Pan American Silver Corp. (the “issuer”) for the interim period ended June 30, 2022.

2.No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3.Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4.Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.

5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a)designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i)material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(ii)information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b)designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.

5.1Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.

5.2Not applicable.

5.3Not applicable.

6.Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2022 and ended on June 30, 2022 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: August 10, 2022
/s/ “Michael Steinmann”
Michael Steinmann
Chief Executive Officer

Document

Form 52-109F2

Certification of Interim Filings

Full Certificate

I, Ignacio Couturier, Chief Financial Officer of Pan American Silver Corp., certify the following:

5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(1)designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(a)material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(b)information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(2)designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.

5.2Not applicable.

5.3Not applicable.

Date: August 10, 2022
/s/ “Ignacio Couturier”
Ignacio Couturier
Chief Financial Officer

Document

Q2 2022 NEWS RELEASE<br><br>All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted.

Pan American Silver reports Q2 2022 results

Vancouver, B.C. - August 10, 2022 - Pan American Silver Corp. (NASDAQ: PAAS) (TSX: PAAS) ("Pan American" or the "Company") today reported unaudited results for the quarter ended June 30, 2022 ("Q2 2022").

“Operations at our flagship asset, La Colorada, have improved significantly, with silver production rising to approximately 1.7 million ounces in Q2," said Michael Steinmann, President and Chief Executive Officer. "However, Pan American's Q2 results were markedly impacted by the underperformance at Dolores and our determination that recording an impairment of this asset was required. The remaining operations performed largely in line with our expectations, recovering well from the impact of the COVID-19 Omicron wave in the first quarter of 2022. We continue to expect consolidated production to be weighted to the back half of 2022, especially for the Gold Segment due to mine sequencing at Shahuindo and La Arena. Our financial position remains solid with cash and short-term investments of $241.3 million and an undrawn line of credit of $500 million."

Consolidated Q2 2022 Highlights:

•Silver production of 4.5 million ounces and gold production of 128.3 thousand ounces.

•Revenue was $340.5 million, inclusive of a negative $9.3 million adjustment on open concentrate shipments, largely related to the decline in metal prices towards the end of Q2 2022. Revenue in Q2 2022 excluded inventory build-ups of 34.2 thousand ounces of silver and 8.5 thousand ounces of gold.

•Net loss of $173.6 million ($0.83 basic loss per share), impacted by a pre-tax impairment charge of $99.1 million recorded for Dolores and $62.8 million in net realizable value (NRV) inventory adjustments, primarily at Dolores.

•Adjusted loss of $6.5 million ($0.03 basic adjusted loss per share) excludes the impact from the Dolores impairment and the heap inventory write-down.

•Operations generated $20.8 million of cash flow, net of $42.4 million in tax payments and a $19.5 million build-up in working capital.

•Silver Segment Cash Costs and All-in Sustaining Costs ("AISC") per silver ounce were $12.10 and $17.30, respectively. Excluding NRV inventory adjustments, Silver Segment AISC was $15.90 per ounce.

•Gold Segment Cash Costs and AISC per gold ounce were $1,132 and $2,051, respectively. Excluding NRV inventory adjustments, Gold Segment AISC was $1,540 per ounce.

•As at June 30, 2022, Pan American had working capital of $513.9 million, inclusive of cash and short-term investment balances of $241.3 million; a long-term investment in Maverix Metals Inc. ("Maverix") with a fair value of $112.5 million; and $500.0 million available under our sustainability-linked credit facility. Total debt of $63.2 million was related to lease liabilities and construction loans.

•A cash dividend of $0.11 per common share has been declared, payable on or about September 2, 2022, to holders of record of Pan American’s common shares as of the close on August 22, 2022. Aligned with the Company's dividend policy, the dividend is comprised of a base dividend of $0.10 per common share and a variable dividend component of $0.01 per common share. The dividends are eligible dividends for Canadian income tax purposes.

•Management has updated its Guidance for 2022. See the "2022 Guidance" section of this news release for further details, and the Company's Management's Discussion and Analysis for the three and six months ended June 30, 2022.

PAN AMERICAN SILVER CORP.	1
Q2 2022 NEWS RELEASE<br><br>All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted.
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Dolores Update

Management identified the following impairment indicators at the Dolores Mine as part of our quarterly review of impairment indicators:

i) Year-to-date 2022 silver and gold production being less than that expected, driven by lower grades in Phase 9B of the open pit. The exploration drilling originally conducted for Phase 9B of the open pit had some high-grade intercepts that were to be mined during the first half of 2022. These high grades were not fully realized during mining. Management now believes that these high-grade intercepts contributed to a localized overestimation of the contained ounces within Phase 9B. The updated mineral resource and production plan for the life of mine adjusts for this overestimation on the remainder of Phase 9B;

ii) inflationary pressures, which have particularly affected this shorter-life asset where most of the mining will be completed in the next two years;

iii) the suspension of underground mining operations in Q2 2022 due to inflationary cost pressures, and the subsequent reclassification of underground mineral reserves to mineral resources; and,

iv) a reduction in the expected duration of economic leaching to the year 2030.

These factors resulted in an impairment to the mineral property, plant and equipment, as well as a net realizable value ("NRV") inventory adjustment, largely related to the heap inventory.

i.a pre-tax impairment charge of $99.1 million; and,

ii.an NRV adjustment of $55.4 million.

ILO 169 Consultation Process for Escobal Advances to Next Phase

The final meeting of the pre-consultation phase of the ILO 169 consultation process for the Escobal mine in Guatemala was held on July 20, 2022, and was formally announced at a joint news conference held by the Xinka Parliament and the Guatemalan Ministry of Energy and Mines. A total of eight meetings were held during the pre-consultation. The process has now advanced to the consultation phase, with the first meeting scheduled for August 21, 2022. For a description of the ILO 169 consultation process for Escobal, please see our website at https://www.panamericansilver.com/operations/north-and-central-america/escobal/.

PAN AMERICAN SILVER CORP.	2
Q2 2022 NEWS RELEASE<br><br>All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted.
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CONSOLIDATED RESULTS

	Three months ended<br>June 30, 2022		Twelve months ended <br>Dec. 31, 2021
Weighted average shares during period (millions)	210.5		210.3
Shares outstanding end of period (millions)	210.5		210.5

	2022		2021
FINANCIAL
Revenue	$	340,469	$	382,132
Mine operating (loss) earnings	$	(31,652)	$	103,048
Net (loss) earnings	$	(173,632)	$	71,241
Basic (loss) earnings per share(1)	$	(0.83)	$	0.34
Adjusted (loss) earnings(2)	$	(6,489)	$	46,626
Basic adjusted (loss) earnings per share(1)	$	(0.03)	$	0.22
Net cash generated from operating activities	$	20,835	$	87,143
Net cash generated from operating activities before changes in working capital(2)	$	40,346	$	124,158
Sustaining capital expenditures(2)	$	56,512	$	53,225
Non-sustaining capital expenditures(2)	$	19,871	$	12,799
Cash dividend paid per share	$	0.12	$	0.07
PRODUCTION
Silver (thousand ounces)	4,537		4,484
Gold (thousand ounces)	128.3		142.3
Zinc (thousand tonnes)	9.0		12.4
Lead (thousand tonnes)	4.6		4.8
Copper (thousand tonnes)	1.3		2.1
CASH COSTS(2) (/ounce)
Silver Segment	12.10		12.71
Gold Segment	1,132		857
AISC(2) (/ounce)
Silver Segment	17.30		16.36
Gold Segment	2,051		1,163
AVERAGE REALIZED PRICES(3)
Silver (/ounce)	22.03		26.88
Gold (/ounce)	1,850		1,809
Zinc (/tonne)	3,811		2,935
Lead (/tonne)	2,162		2,151
Copper (/tonne)	9,731		9,679

All values are in US Dollars.

(1)Per share amounts are based on basic weighted average common shares.

(2)Non-GAAP measure; please refer to the "Alternative Performance (non-GAAP) Measures" section of this news release for further information on these measures.

(3)Metal prices stated are inclusive of final settlement adjustments on concentrate sales.

Cash Costs, AISC, adjusted earnings, basic adjusted earnings per share, sustaining and non-sustaining capital, working capital, total debt and net cash are not generally accepted accounting principle ("non-GAAP") financial measures. Please refer to the "Alternative Performance (non-GAAP) Measures" section of this news release for further information on these measures.

This news release should be read in conjunction with Pan American's unaudited Condensed Interim Consolidated Financial Statements and our Management's Discussion and Analysis for the three and six months ended June 30, 2022. This material is available on Pan American’s website at panamericansilver.com, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

PAN AMERICAN SILVER CORP.	3
Q2 2022 NEWS RELEASE<br><br>All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted.
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2022 GUIDANCE

Based on results for the first six months of 2022 and the expected results for the remainder of the year, Management provides the following update to the 2022 Operating Outlook included in the Company's 2021 MD&A dated February 23, 2022:

•The estimates for silver and gold production have been reaffirmed, but are expected to be at the low end of the ranges, primarily due to the production shortfall at Dolores.

•The estimates for Silver Segment Cash Costs and AISC have been reaffirmed.

•The estimate for Gold Segment Cash Costs is expected to be at the high end of the original guidance range and the estimate for AISC, excluding NRV adjustments, has been revised from between $1,240 and $1,365 per ounce to between $1,450 and $1,550 per ounce. The revision reflects the production shortfall at Dolores, global inflationary pressures and an increase in estimated consolidated sustaining capital spending.

•The estimate for sustaining capital has been increased from between $200.0 million and $210.0 million to between $240.0 million and $250.0 million due to a change in the financing of certain planned sustaining capital investments (funding projects directly rather than entering construction loans), which will decrease future expected cash outflows and loan obligations. The estimate for project capital has been decreased from between $80.0 million and $95.0 million to between $55.0 million and $60.0 million, based on expected delays in spending at both the La Colorada Skarn and Timmins projects. The decrease in capital for the La Colorada Skarn project is due to delaying the design and initiation of the access ramp developments to optimize alignments with the highly efficient bulk mining method designs being considered. The revisions bring the total capital expenditures anticipated for the year to between $295.0 million and $310.0 million.

These estimates are forward-looking statements and information that are subject to the cautionary note associated with forward-looking statements and information at the end of this news release. The following tables provide Management's 2022 Guidance forecasts, as at August 10, 2022, including revised Gold Segment AISC and revised capital expenditures.

Annual Production

Silver – Moz	19.0 - 20.5
Gold – koz	550.0 - 605.0
Zinc – kt	35.0 - 40.0
Lead – kt	15.0 - 17.0
Copper – kt	5.5 - 6.5

Cash Costs and AISC

	Cash Costs(1)(2)<br><br>($ per ounce)	AISC(1)(2)<br><br>($ per ounce)
Silver Segment Total		10.70 - 12.20	14.50 - 16.00
Gold Segment Total, excluding NRV adjustments		970 - 1,070	1,450 - 1,550

(1)Cash Costs and AISC are non-GAAP measures. Please refer to the "Alternative Performance (non-GAAP) Measures" section of this news release for further information on these measures.

(2)The Cash Costs and AISC forecasts assume average metal prices of $22.50/oz for silver, $1,750/oz for gold, $3,000/tonne ($1.36/lb) for zinc, $2,200/tonne ($1.00/lb) for lead, and $9,200/tonne ($4.17/lb) for copper; and average annual exchange rates relative to 1 USD of 20.00 for the Mexican peso ("MXN"), 4.10 for the Peruvian sol ("PEN"), 122.17 for the Argentine peso ("ARS"), 7.00 for the Bolivian boliviano ("BOB"), and $1.25 for the Canadian dollar ("CAD").

PAN AMERICAN SILVER CORP.	4
Q2 2022 NEWS RELEASE<br><br>All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted.
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Capital Expenditures

	(in millions of USD)
Sustaining Capital	240.0 - 250.0
Project Capital	55.0 - 60.0
Total Capital	295.0 - 310.0

Conference Call and Webcast

Date:	August 11, 2022
Time:	11:00 am ET (8:00 am PT)
Dial-in numbers:	1-800-319-4610 (toll-free in Canada and the U.S.)<br>+1-604-638-5340 (international participants)
Webcast:	panamericansilver.com (https://services.choruscall.ca/links/panamericansilver20220811.html)

The live webcast, presentation slides and the Management's Discussion and Analysis for the period ended June 30, 2022 will be available at panamericansilver.com. An archive of the webcast will also be available for three months.

About Pan American Silver

Pan American owns and operates silver and gold mines located in Mexico, Peru, Canada, Argentina and Bolivia. We also own the Escobal mine in Guatemala that is currently not operating. Pan American provides enhanced exposure to silver through a large base of silver reserves and resources, as well as major catalysts to grow silver production. We have a 28-year history of operating in Latin America, earning an industry-leading reputation for sustainability performance, operational excellence and prudent financial management. We are headquartered in Vancouver, B.C. and our shares trade on NASDAQ and the Toronto Stock Exchange under the symbol "PAAS".

Learn more at panamericansilver.com.

For more information contact:

Siren Fisekci

VP, Investor Relations & Corporate Communications

Ph: 604-806-3191

Email: [email protected]

Technical Information

Scientific and technical information contained in this news release have been reviewed and approved by Martin Wafforn, P.Eng., Senior Vice President Technical Services and Process Optimization, and Christopher Emerson, FAusIMM, Vice President Business Development and Geology, each of whom are Qualified Persons, as the term is defined in Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

For additional information about Pan American's material mineral properties, please refer to Pan American’s Annual Information Form dated February 23, 2022, filed at www.sedar.com, or the Company's most recent Form 40-F filed with the Securities and Exchange Commission.

Alternative Performance (Non-GAAP) Measures

In this news release, we refer to measures that are not generally accepted accounting principle ("non-GAAP") financial measures. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning as prescribed by IFRS as an indicator of performance, and may differ from methods used by other companies with similar descriptions. These non-GAAP financial measures include:

•Cash Costs. Pan American's method of calculating cash costs may differ from the methods used by other entities and, accordingly, Pan American's Cash Costs may not be comparable to similarly titled measures used by other entities. Investors are cautioned that Cash Costs should not be construed as an alternative to production costs, depreciation and amortization, and royalties determined in accordance with IFRS as an indicator of performance.

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•Adjusted earnings and basic adjusted earnings per share. Pan American believes that these measures better reflect normalized earnings as they eliminate items that in management's judgment are subject to volatility as a result of factors, which are unrelated to operations in the period, and/or relate to items that will settle in future periods.

•All-in Sustaining Costs per silver or gold ounce sold, net of by-product credits ("AISC"). Pan American has adopted AISC as a measure of its consolidated operating performance and its ability to generate cash from all operations collectively, and Pan American believes it is a more comprehensive measure of the cost of operating our consolidated business than traditional cash costs per payable ounce, as it includes the cost of replacing ounces through exploration, the cost of ongoing capital investments (sustaining capital), general and administrative expenses, as well as other items that affect Pan American's consolidated earnings and cash flow.

•Total debt is calculated as the total current and non-current portions of: long-term debt, finance lease liabilities and loans payable. Total debt does not have any standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other companies. Pan American and certain investors use this information to evaluate the financial debt leverage of Pan American.

•Net cash is calculated as cash and cash equivalents plus short-term investments, other than equity securities less total debt.

•Working capital is calculated as current assets less current liabilities. Working capital does not have any standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other companies. Pan American and certain investors use this information to evaluate whether Pan American is able to meet its current obligations using its current assets.

•Total available liquidity is calculated as the sum of Cash and cash equivalents, Short-term Investments, and the amount available on the Credit Facility. Total available liquidity does not have any standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other companies. Pan American and certain investors use this information to evaluate the liquid assets available to Pan American.

Readers should refer to the "Alternative Performance (non-GAAP) Measures" section of Pan American’s Management's Discussion and Analysis for the period ended December 31, 2021, for a more detailed discussion of these and other non-GAAP measures and their calculation.

Cautionary Note Regarding Forward-Looking Statements and Information

Certain of the statements and information in this news release constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian provincial securities laws. All statements, other than statements of historical fact, are forward-looking statements or information. Forward-looking statements or information in this news release relate to, among other things: future financial or operational performance, including our estimated production of silver, gold and other metals forecasted for 2022, our estimated Cash Costs and AISC, and our sustaining and project capital expenditures in 2022; the anticipated timing for metals production and sales, including the expectation with respect to production being weighted to the latter half of 2022 and the timing and amount of any future sales related to inventory build-ups; estimated recoverable amounts of cash generating units; expectations with respect to mineral grades and the impact of any variations relative to actual grades experienced; the impact of inflationary pressures on our operations and business, particularly for diesel and certain consumables, as well as the impacts related to disruptions in the supply chain; future anticipated prices for gold, silver and other metals and assumed foreign exchange rates; expectations with respect to the future anticipated impact of COVID-19 on our operations and the assumptions that the impact of COVID-19, including the Omicron variant, will be such that we will be able to maintain our workforce at near normal levels throughout 2022; whether Pan American is able to maintain a strong financial condition and have sufficient capital, or have access to capital through our corporate sustainability-linked credit facility or otherwise, to sustain our business and operations; and the ability of Pan American to successfully complete any capital projects, including, but not limited to, the La Colorada Skarn project, the expected economic or operational results derived from those projects, and the impacts of any such projects on Pan American; and Pan American’s plans and expectations for its properties and operations.

These forward-looking statements and information reflect Pan American’s current views with respect to future events and are necessarily based upon a number of assumptions that, while considered reasonable by Pan American, are inherently subject to significant operational, business, economic and regulatory uncertainties and contingencies. These assumptions include: the impact of inflation and disruptions to the global, regional and local supply chains; the world-wide economic and social impact of COVID-19 and the duration and extent of the COVID-19 pandemic and related restrictions, and the presence and impact of COVID-19 and COVID-19 related restrictions on our workforce, suppliers and other essential resources and what effect those

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impacts, if they change, would have on our business; the effect that the COVID-19 pandemic may have on our financial and operational results; the ability of Pan American to continue with its operations, or to successfully maintain our operations on care and maintenance, should the situation related to COVID-19 not be as anticipated; tonnage of ore to be mined and processed; future anticipated prices for gold, silver and other metals and assumed foreign exchange rates; the timing and impact of planned capital expenditure projects, including anticipated sustaining, project, and exploration expenditures; the ongoing impact and timing of the court-mandated ILO 169 consultation process in Guatemala; ore grades and recoveries; capital, decommissioning and reclamation estimates; our mineral reserve and mineral resource estimates and the assumptions upon which they are based; prices for energy inputs, labour, materials, supplies and services (including transportation); no labour-related disruptions at any of our operations; no unplanned delays or interruptions in scheduled production; all necessary permits, licenses and regulatory approvals for our operations are received in a timely manner; our ability to secure and maintain title and ownership to mineral properties and the surface rights necessary for our operations; and our ability to comply with environmental, health and safety laws. The foregoing list of assumptions is not exhaustive.

Pan American cautions the reader that forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements or information contained in this news release and Pan American has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: the duration and effect of local and world-wide inflationary pressures and the potential for economic recessions; the duration and effects of COVID-19, and any other pandemics on our operations and workforce, and the effects on global economies and society; fluctuations in silver, gold and base metal prices; fluctuations in prices for energy inputs, labour, materials, supplies and services (including transportation); fluctuations in currency markets (such as the PEN, MXN, ARS, BOB, GTQ and CAD versus the USD); operational risks and hazards inherent with the business of mining (including environmental accidents and hazards, industrial accidents, equipment breakdown, unusual or unexpected geological or structural formations, cave-ins, flooding and severe weather); risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom Pan American Silver does business; inadequate insurance, or inability to obtain insurance, to cover these risks and hazards; employee relations; relationships with, and claims by, local communities and indigenous populations; our ability to obtain all necessary permits, licenses and regulatory approvals in a timely manner; changes in laws, regulations and government practices in the jurisdictions where we operate, including environmental, export and import laws and regulations; changes in national and local government, legislation, taxation, controls or regulations and political, legal or economic developments in Canada, the United States, Mexico, Peru, Argentina, Bolivia, Guatemala or other countries where Pan American Silver may carry on business, including risks relating to expropriation and risks relating to the constitutional court-mandated ILO 169 consultation process in Guatemala; diminishing quantities or grades of mineral reserves as properties are mined; increased competition in the mining industry for equipment and qualified personnel; and those factors identified under the caption “Risks Related to Pan American's Business" in Pan American Silver's most recent form 40-F and Annual Information Form filed with the United States Securities and Exchange Commission and Canadian provincial securities regulatory authorities, respectively. Although Pan American has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Investors are cautioned against undue reliance on forward-looking statements or information. Forward-looking statements and information are designed to help readers understand management's current views of our near and longer term prospects and may not be appropriate for other purposes. Pan American does not intend, nor does it assume any obligation to update or revise forward-looking statements or information, whether as a result of new information, changes in assumptions, future events or otherwise, except to the extent required by applicable law.

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