Unaudited Condensed Interim Consolidated Financial Statements and Notes

 

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026

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			Condensed Interim Consolidated Statements of Financial Position (unaudited, in millions of U.S. dollars)

			June 30,			December 31,
			2026			2025
Assets
Current assets
Cash and cash equivalents (Note 15)			$	1,566		$	1,215
Investments			139			104
Trade and other receivables			222			232
Income tax receivables			45			24
Inventories (Note 5)			644			588
Other assets			45			33
			2,661			2,196
Non-current assets
Mineral properties, plant and equipment (Note 6)			5,301			5,338
Investment in Juanicipio (Note 7)			1,892			1,921
Inventories (Note 5)			55			52
Income tax receivables			42			33
Deferred tax assets			73			83
Other assets			133			119
Total assets			$	10,157		$	9,742
Liabilities
Current liabilities
Accounts payable and accrued liabilities (Note 8)			$	585		$	549
Derivative liabilities (Note 4)			1			—
Provisions (Note 9)			65			46
Lease obligations			50			53
Debt (Note 10)			3			5
Income tax payables			202			164
			906			817
Non-current liabilities
Provisions (Note 9)			566			589
Lease obligations			74			85
Debt (Note 10)			714			709
Other liabilities			109			106
Deferred tax liabilities			428			435
Total liabilities			$	2,797		$	2,741
Equity
Issued capital			7,362			7,448
Share-based compensation reserve			96			94
Investment revaluation reserve			(32)			(32)
Deficit			(68)			(513)
Total equity attributable to equity holders			7,358			6,997
Non-controlling interests			2			4
Total equity			7,360			7,001
Total liabilities and equity			$	10,157		$	9,742

See accompanying notes to the condensed interim consolidated financial statements.

APPROVED BY THE BOARD ON AUGUST 12, 2026

"signed"

Gillian Winckler, Director

"signed"

Michael Steinmann, Director

			PAN AMERICAN SILVER CORP.			1

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			Condensed Interim Consolidated Statements of Earnings and Comprehensive Earnings (unaudited, in millions of U.S. dollars and thousands of shares)

			Three months ended June 30,						Six months ended June 30,
			2026			2025			2026			2025
Revenue (Note 16)			$	1,124		$	812		$	2,278		$	1,585
Cost of sales (Note 16)
Production costs (Note 12)			(473)			(396)			(854)			(776)
Depreciation and amortization (Note 6)			(120)			(123)			(233)			(242)
Royalties			(74)			(20)			(126)			(43)
			(667)			(539)			(1,213)			(1,061)
Mine operating earnings (Note 16)			457			273			1,065			524
General and administrative			(18)			(21)			(57)			(46)
Income from investment in Juanicipio (Note 7)			75			—			163			—
Exploration and project development			(6)			(2)			(12)			(6)
Mine care and maintenance			(8)			(7)			(15)			(15)
Foreign exchange losses			(6)			(4)			(2)			(4)
Derivative (losses) gains			(1)			13			(1)			29
Mineral properties, plant and equipment gains (losses)			2			1			(7)			—
Change in asset retirement obligations			1			—			6			(2)
Other income (expense)			1			(9)			—			(7)
Earnings from operations			497			244			1,140			473
Investment income			9			12			31			17
Interest and finance expense			(22)			(21)			(46)			(41)
Earnings before income taxes			484			235			1,125			449
Income tax expense (Note 13)			(179)			(45)			(364)			(90)
Net earnings			$	305		$	190		$	761		$	359
Net earnings attributable to:
Equity holders of the Company			$	304		$	189		$	761		$	358
Non-controlling interests			1			1			—			1
			$	305		$	190		$	761		$	359
Total comprehensive earnings attributable to:
Equity holders of the Company			$	304		$	189		$	761		$	358
Non-controlling interests			1			1			—			1
			$	305		$	190		$	761		$	359
Earnings per share attributable to equity holders (Note 14)
Basic earnings per share			$	0.72		$	0.52		$	1.81		$	0.99
Diluted earnings per share			$	0.72		$	0.52		$	1.81		$	0.99
Weighted average number of common shares outstanding:
Basic			420,271			362,011			421,056			362,208
Diluted			420,345			362,121			421,133			362,320

See accompanying notes to the condensed interim consolidated financial statements.

			PAN AMERICAN SILVER CORP.			2

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			Condensed Interim Consolidated Statements of Cash Flows (unaudited, in millions of U.S. dollars)

			Three months ended June 30,						Six months ended June 30,
			2026			2025			2026			2025
Operating activities
Net earnings			$	305		$	190		$	761		$	359
Items not affecting cash:
Income tax expense (Note 13)			179			45			364			90
Depreciation and amortization (Note 6)			120			123			233			242
Income from investment in Juanicipio (Note 7)			(75)			—			(163)			—
Net realizable value inventory recovery (Note 12)			—			(3)			(3)			(7)
Accretion on reclamation obligations (Note 9)			9			6			17			13
Change in asset retirement obligations			(1)			—			(6)			2
Investment income			(9)			(12)			(31)			(17)
Interest expense			10			12			26			24
Other operating activities (Note 15)			9			(5)			23			(13)
Income taxes paid			(205)			(68)			(340)			(163)
Reclamation paid (Note 9)			(5)			(4)			(10)			(7)
Net change in working capital (Note 15)			(17)			10			(46)			(52)
Net cash provided by operating activities			$	320		$	294		$	825		$	471
Investing activities
Payments for mineral properties, plant and equipment			$	(99)		$	(60)		$	(204)		$	(128)
Dividends received from Juanicipio (Note 7)			192			—			192			—
Net purchase of investments			(34)			—			(35)			—
Net proceeds from derivatives			1			4			2			4
Interest received			11			7			20			14
Proceeds from dispositions of mineral property, plant and equipment			2			4			3			4
Net cash provided by (used in) investing activities			$	73		$	(45)		$	(22)		$	(106)
Financing activities
Proceeds from common shares issued			$	1		$	1		$	1		$	2
Distributions to non-controlling interests			—			—			(2)			(1)
Dividends paid			(76)			(36)			(152)			(72)
Shares repurchased under Normal Course Issuer Bid (Note 11)			(224)			(11)			(249)			(31)
Repayment of construction loans (Note 10)			(1)			(1)			(3)			(3)
Interest paid			(10)			(10)			(20)			(19)
Payment of equipment leases			(13)			(13)			(28)			(25)
Net cash used in financing activities			$	(323)		$	(70)		$	(453)		$	(149)
Effects of exchange rate changes on cash and cash equivalents			1			2			1			2
Increase in cash and cash equivalents			71			181			351			218
Cash and cash equivalents at the beginning of the period			1,495			900			1,215			863
Cash and cash equivalents at the end of the period			$	1,566		$	1,081		$	1,566		$	1,081

Supplemental cash flow information (Note 15).

See accompanying notes to the condensed interim consolidated financial statements.

			PAN AMERICAN SILVER CORP.			3

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			Condensed Interim Consolidated Statements of Changes in Equity (unaudited, in millions of U.S. dollars and thousands of shares)

			Attributable to equity holders of the Company
			Issued shares			Issued capital			Share-based compensation reserve			Investment revaluation reserve			Deficit			Total			Non-controlling interests			Total equity
Balance, December 31, 2025			421,847			$	7,448		$	94		$	(32)		$	(513)		$	6,997		$	4		$	7,001
Total comprehensive earnings
Net earnings for the period			—			—			—			—			761			761			—			761
Other comprehensive earnings			—			—			—			—			—			—			—			—
			—			—			—			—			761			761			—			761
Shares issued on the exercise of stock options (Note 11)			40			1			—			—			—			1			—			1
Shares repurchased (Note 11)			(4,813)			(87)			—			—			(164)			(251)			—			(251)
Share-based compensation			—			—			2			—			—			2			—			2
Distributions to non-controlling interests			—			—			—			—			—			—			(2)			(2)
Dividends paid			—			—			—			—			(152)			(152)			—			(152)
Balance, June 30, 2026			417,074			$	7,362		$	96		$	(32)		$	(68)		$	7,358		$	2		$	7,360

See accompanying notes to the condensed interim consolidated financial statements.

			Attributable to equity holders of the Company
			Issued shares			Issued capital			Share-based compensation reserve			Investment revaluation reserve			Deficit			Total			Non-controlling interests			Total equity
Balance, December 31, 2024			363,041			$	5,940		$	94		$	(31)		$	(1,299)		$	4,704		$	13		$	4,717
Total comprehensive earnings
Net earnings for the period			—			—			—			—			358			358			1			359
Other comprehensive earnings			—			—			—			—			—			—			—			—
			—			—			—			—			358			358			1			359
Shares issued on the exercise of stock options			103			2			—			—			—			2			—			2
Shares repurchased (Note 11)			(1,368)			(23)			—			—			(9)			(32)			—			(32)
Share-based compensation			—			—			1			—			—			1			—			1
Distributions to non-controlling interests			—			—			—			—			(1)			(1)			—			(1)
Dividends paid			—			—			—			—			(72)			(72)			—			(72)
Balance, June 30, 2025			361,776			$	5,919		$	95		$	(31)		$	(1,023)		$	4,960		$	14		$	4,974

See accompanying notes to the condensed interim consolidated financial statements.

			PAN AMERICAN SILVER CORP.			4

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			Notes to the Condensed Interim Consolidated Financial Statements
			As at June 30, 2026 and December 31, 2025, and for the three and six months ended June 30, 2026 and 2025 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted)

1. 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 2100 – 733 Seymour Street, Vancouver, British Columbia, V6B 0S6. The Company is listed on the Toronto Stock Exchange (TSX: PAAS) (the "TSX"), and the New York Stock Exchange (NYSE: PAAS) (the "NYSE").

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

2. BASIS OF PREPARATION

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

3. MAG ACQUISITION

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

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

Total purchase price:

Nature of consideration			Shares			Consideration
Cash			—			$	500
Pan American common shares			60,219			1,530
Transaction costs			—			12
Total purchase price			60,219			$	2,042

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

Allocation of the purchase price:

Assets acquired
Cash and cash equivalents			$	102
Exploration properties			52
Property, plant and equipment			2
Investment in Juanicipio			1,888
Other current assets			3
Liabilities assumed
Accounts payable and accrued liabilities			(2)
Other liabilities			(3)
Net assets acquired			$	2,042

			PAN AMERICAN SILVER CORP.			5

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			Notes to the Condensed Interim Consolidated Financial Statements
			As at June 30, 2026 and December 31, 2025, and for the three and six months ended June 30, 2026 and 2025 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted)

4. FINANCIAL INSTRUMENTS

a)Financial assets and liabilities by categories

June 30, 2026			Amortized cost			FVTPL			FVTOCI			Total
Financial Assets:
Cash and cash equivalents			$	1,566		$	—		$	—		$	1,566
Trade receivables from provisional concentrates sales (1)			—			85			—			85
Receivables not arising from sale of metal concentrates (1)			124			—			—			124
Investments			52			86			1			139
Contingent consideration (2)			—			38			—			38
Galleon Credit Facility (2)			8			—			—			8
Non-current assets			22			—			—			22
Derivative assets (3)			—			2			—			2
			$	1,772		$	211		$	1		$	1,984
Financial Liabilities:
Derivative liabilities			$	—		$	1		$	—		$	1
Debt			717			—			—			717
Accounts payable and accrued liabilities			585			—			—			585
			$	1,302		$	1		$	—		$	1,303

December 31, 2025			Amortized cost			FVTPL			FVTOCI			Total
Financial Assets:
Cash and cash equivalents			$	1,215		$	—		$	—		$	1,215
Trade receivables from provisional concentrates sales (1)			—			112			—			112
Receivables not arising from sale of metal concentrates (1)			112			—			—			112
Investments			28			75			1			104
Contingent consideration (2)			—			36			—			36
Galleon Credit Facility (2)			8			—			—			8
Non-current assets			12			—			—			12
Derivative assets (3)			—			4			—			4
			$	1,375		$	227		$	1		$	1,603
Financial Liabilities:
Debt			$	714		$	—		$	—		$	714
Accounts payable and accrued liabilities			549			—			—			549
			$	1,263		$	—		$	—		$	1,263

(1)Included in Trade and other receivables.

(2)Included in Other Non-current assets.

(3)Included in Other assets.

b)Fair Value Information

i) Fair Value Measurement

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

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

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

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

			PAN AMERICAN SILVER CORP.			6

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			Notes to the Condensed Interim Consolidated Financial Statements
			As at June 30, 2026 and December 31, 2025, and for the three and six months ended June 30, 2026 and 2025 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except 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 Interim Financial Statements at fair value on a recurring basis were categorized as follows:

			At June 30, 2026									At December 31, 2025
			Level 1			Level 2			Level 3			Level 1			Level 2			Level 3
Assets and Liabilities:
Investments			$	87		$	—		$	—		$	76		$	—		$	—
Trade receivables from provisional concentrate sales			—			85			—			—			112			—
Derivative assets			—			2			—			—			4			—
Contingent consideration			—			—			38			—			—			36
Derivative liabilities			—			(1)			—			—			—			—
			$	87		$	86		$	38		$	76		$	116		$	36

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

ii) Valuation Techniques

Investments

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

Derivative assets and liabilities

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

Receivables from provisional concentrate sales

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

Contingent consideration

The Contingent consideration receivable from the disposition of La Arena S.A. is contingent upon successful commencement of commercial production at the La Arena II project and is classified within Level 3 of the fair value hierarchy and valued using a discounted future cash flow model ("DCF"). The key unobservable inputs, which are not materially sensitive, include the estimated time to commercial production and the risk-adjusted weighted average cost of capital ("WACC"). During the three and six months ended June 30, 2026, there were no changes to the DCF assumptions and the increase of $1 million and $1 million (2025 - $1 million and $1 million) was related to unwinding of the discount.

			PAN AMERICAN SILVER CORP.			7

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			Notes to the Condensed Interim Consolidated Financial Statements
			As at June 30, 2026 and December 31, 2025, and for the three and six months ended June 30, 2026 and 2025 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted)

5. INVENTORIES

			June 30, 2026			December 31, 2025
Stockpile ore			$	70		$	70
Concentrate inventory			41			27
Heap leach and in process inventory			271			241
Doré and finished inventory			110			105
Materials and supplies			207			197
Total inventories			$	699		$	640

Current			$	644		$	588
Non-current(1)			$	55		$	52

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

Total inventories held at net realizable value ("NRV") amounted to $50 million at June 30, 2026 (December 31, 2025 – $48 million).

6. MINERAL PROPERTIES, PLANT AND EQUIPMENT

			Mining Properties
			Depletable			Non-depletable
			Reserves and Resources			Reserves and Resources			Exploration and Evaluation			Plant and Equipment			Total
Net book value
As at January 1, 2026			$	2,158		$	1,568		$	502		$	1,110		$	5,338
Additions			136			19			8			50			213
Disposals			—			(1)			(14)			(2)			(17)
Depreciation and amortization (1)(2)			(129)			(1)			—			(106)			(236)
Depreciation charge captured in inventory			7			—			—			—			7
Transfers			(19)			—			—			19			—
Changes in asset retirement obligations (Note 9)			(4)			—			—			—			(4)
As at June 30, 2026			$	2,149		$	1,585		$	496		$	1,071		$	5,301
Cost as at June 30, 2026			$	4,732		$	2,458		$	535		$	2,309		$	10,034
Accumulated depreciation and impairments			(2,583)			(873)			(39)			(1,238)			(4,733)
Net book value – June 30, 2026			$	2,149		$	1,585		$	496		$	1,071		$	5,301

(1)Includes $1 million of depreciation and amortization included in mine care and maintenance for the three and six months ended June 30, 2026.

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

7. INVESTMENT IN JUANICIPIO

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

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

			PAN AMERICAN SILVER CORP.			8

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			Notes to the Condensed Interim Consolidated Financial Statements
			As at June 30, 2026 and December 31, 2025, and for the three and six months ended June 30, 2026 and 2025 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted)

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

			June 30, 2026			December 31, 2025
Investment in Juanicipio, opening balance			$	1,921		$	—
Acquisition of Investment in Juanicipio (Note 3)			—			1,888
Dividends paid to Pan American			(192)			(44)
Income from equity accounted investment in Juanicipio			163			77
Investment in Juanicipio, closing balance			$	1,892		$	1,921

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

			June 30, 2026						December 31, 2025
			100%			44%			100%			44%
Cash and cash equivalents			$	221		$	97		$	288		$	127
Other current assets			212			94			177			78
Non-current assets			714			314			724			318
Current liabilities			(124)			(55)			(164)			(72)
Non-current liabilities			(60)			(26)			(21)			(9)
Net assets			$	963		$	424		$	1,004		$	442
Acquisition fair value and other accounting adjustments						1,468						1,479
Carrying amount of Investment in Juanicipio						$	1,892					$	1,921

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

			Three months ended June 30,						Six months ended June 30,
			2026						2026
			100%			44%			100%			44%
Revenue			$	335		$	147		$	747		$	329
Production costs and royalties			(52)			(23)			(109)			(48)
Depreciation and amortization			(20)			(9)			(39)			(17)
Mine operating earnings			263			115			599			264
Net income and comprehensive income			$	180		$	80		$	395		$	174
Depreciation and amortization of acquisition fair value adjustments						(7)						(17)
Deferred tax impact of acquisition fair value adjustments						2						6
Income from investment in Juanicipio						$	75					$	163

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

			Three months ended June 30,						Six months ended June 30,
			2026						2026
			100%			44%			100%			44%
Cash and cash equivalents at the beginning of the period			$	453		$	199		$	288		$	127
Cash from operating activities			221			98			402			177
Cash used in investing activities			(16)			(7)			(32)			(14)
Cash used in financing activities			(437)			(193)			(437)			(193)
Cash and cash equivalents at the end of the period			$	221		$	97		$	221		$	97

			PAN AMERICAN SILVER CORP.			9

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			Notes to the Condensed Interim Consolidated Financial Statements
			As at June 30, 2026 and December 31, 2025, and for the three and six months ended June 30, 2026 and 2025 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted)

8. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

			June 30, 2026			December 31, 2025
Trade account payables(1)			$	199		$	187
Royalty payables			68			55
Other accounts payable and accrued liabilities			150			128
Payroll and severance liabilities			146			157
Value added tax liabilities			7			5
Other tax payables			15			17
			$	585		$	549

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

9. PROVISIONS

			June 30, 2026			December 31, 2025
Asset retirement obligations, opening balance			$	600		$	438
Reclamation paid			(10)			(15)
Revisions in estimates and obligations			(10)			151
Accretion expense			17			26
Asset retirement obligations, closing balance			597			600
Litigation			34			35
Total provisions			$	631		$	635

Current			$	65		$	46
Non-current			$	566		$	589

10. DEBT

			December 31, 2025						Repayments			Accrued Interest									June 30, 2026
Senior note maturing December 2027			$	278					$	—		$	1								$	279
Senior note maturing August 2031			430						—			5									435
Construction loans			6						(3)			—									3
Total debt			$	714					$	(3)		$	6								$	717

Debt classification			June 30, 2026			December 31, 2025
Current			$	3		$	5
Non-current			$	714		$	709

Senior Notes

The Company has the following senior notes (the "Senior Notes"):

•$283 million in aggregate principal with a 4.63% coupon and maturing in December 2027; and

•$500 million in aggregate principal with a 2.63% coupon and maturing in August 2031.

These Senior Notes are unsecured with interest payable semi-annually. Each series of Senior Notes is redeemable, in whole or in part, at the Company's option, at any time prior to maturity, subject to make-whole provisions. The Senior Notes are accreted to the face value over their respective terms and were recorded at fair value upon acquisition using an effective interest rate of 5.52%.

			PAN AMERICAN SILVER CORP.			10

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			Notes to the Condensed Interim Consolidated Financial Statements
			As at June 30, 2026 and December 31, 2025, and for the three and six months ended June 30, 2026 and 2025 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted)

Credit Facility

The Company's existing senior unsecured revolving Credit Facility (the "Credit Facility") in place as of June 30, 2026 had a limit of $750 million plus an accordion feature for up to an additional $250 million, available at the discretion of the lenders. As of June 30, 2026, the Company was in compliance with all financial covenants under the Credit Facility and it is undrawn.

Subsequent to the quarter-end on July 22, 2026, the Company finalized an amendment to its senior unsecured revolving Credit Facility, which increased available commitments to $1,500 million and the accordion feature to $750 million, available at the discretion of the lenders, and extended the term for an additional five years.

The borrowing costs under the amended Credit Facility are based on the Company's credit ratings from Moody's and S&P Global at either: (i) SOFR plus 1.00% to 1.75% or; (ii) Bank of Montreal's Base Rate on U.S. dollar denominated commercial loans plus nil to 0.75%. Under the ratings-based pricing, undrawn amounts under the amended Credit Facility are subject to a stand-by fee of 0.09% to 0.25% per annum, dependent on the Company's credit rating. The amended Credit Facility matures on July 22, 2031.

11. SHARE CAPITAL AND EMPLOYEE COMPENSATION PLANS

Share-based awards (stock options, restricted share units ("RSUs"), performance share units ("PSUs") and deferred share units ("DSUs"))

For the three and six months ended June 30, 2026, the Company recorded the following share-based compensation expense included as a component of general and administrative expense:

			Three months ended June 30,						Six months ended June 30,
			2026			2025			2026			2025
Stock options and equity-settled RSUs			$	1		$	—		$	2		$	1
PSUs			(2)			3			3			7
RSUs intended to be settled in cash			1			3			6			6
DSUs			(2)			—			(1)			1
Total share-based compensation expense			$	(2)		$	6		$	10		$	15

The following table summarizes the changes in stock options and RSUs to be settled in equity for the six months ended June 30, 2026:

			Stock Options						Equity-settled RSUs
			Number Outstanding			Weighted Average Exercise Price CAD$			Number Outstanding			Weighted Average Fair Value Price CAD$
As at December 31, 2024			396			$	22.90		159			$	31.61
Granted			—			—			90			68.41
Exercised/settled			(202)			23.15			(48)			31.61
Expired			(1)			22.95			—			—
Forfeited			(30)			22.92			(17)			31.61
As at December 31, 2025			163			$	22.57		184			$	49.88
Exercised/settled			(40)			22.45			(8)			47.10
Forfeited			(3)			21.18			(4)			48.60
As at June 30, 2026			120			$	22.66		172			$	50.11

			PAN AMERICAN SILVER CORP.			11

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			Notes to the Condensed Interim Consolidated Financial Statements
			As at June 30, 2026 and December 31, 2025, and for the three and six months ended June 30, 2026 and 2025 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted)

As at June 30, 2026, the following PSUs, RSUs intended to be settled in cash, and DSUs were outstanding:

			PSUs			RSUs			DSUs
			Number Outstanding			Number Outstanding			Number Outstanding
As at December 31, 2024			881			858			131
Granted			140			347			46
Exercised/settled			(128)			(359)			—
Expired			(31)			—			—
Forfeited			—			(86)			—
As at December 31, 2025			862			760			177
Granted			—			—			26
Exercised/settled			(235)			(28)			(16)
Forfeited			—			(15)			—
As at June 30, 2026			627			717			187

Issued share capital

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

Dividends

The Company declared the following dividends in respect of or relating to the six months ended June 30, 2026 and for the year ended December 31, 2025:

Declaration Date			Record Date			Dividend per common share
August 12, 2026			August 24, 2026			0.18
May 5, 2026			May 19, 2026			0.18
February 18, 2026			March 2, 2026			0.18
November 12, 2025			November 24, 2025			0.14
August 6, 2025			August 18, 2025			0.12
May 7, 2025			May 20, 2025			0.10
February 19, 2025			March 3, 2025			0.10

Contingent Value Rights ("CVRs")

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

As at June 30, 2026 and 2025, there were 313.9 million CVRs outstanding that are convertible into 15.6 million common shares.

Normal Course Issuer Bid ("NCIB")

In March 2025, the Company obtained approval of its NCIB from the TSX and the NYSE to purchase for cancellation up to 18,107,917 common shares between March 6, 2025 and March 5, 2026. In March 2026, the Company renewed the NCIB until March 5, 2027 for the ability to purchase up to 21,090,323 of its common shares for cancellation. Daily purchases (other than pursuant to a block purchase exemption) on the TSX and NYSE under the NCIB are limited to a maximum of 304,358 common shares and 25% of the average trading volume for the Company's common shares in the four calendar weeks preceding the date of purchase, respectively.

			Three months ended June 30,						Six months ended June 30,
			2026			2025			2026			2025
Shares repurchased for cancellation (in thousands)			4,352			459			4,813			1,368
Average Price			$	51.46		$	24.22		$	51.71		$	22.74
Total Consideration			$	224		$	11		$	249		$	31

			PAN AMERICAN SILVER CORP.			12

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			Notes to the Condensed Interim Consolidated Financial Statements
			As at June 30, 2026 and December 31, 2025, and for the three and six months ended June 30, 2026 and 2025 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted)

Subsequent to June 30, 2026, 2,456 thousand common shares were repurchased for cancellation under the NCIB at an average price of $44.36 per share for a total consideration of $109 million.

12. PRODUCTION COSTS

			Three months ended June 30,						Six months ended June 30,
			2026			2025			2026			2025
Materials and consumables			$	167		$	139		$	313		$	264
Salaries and employee benefits			157			132			306			260
Contractors			126			112			244			210
Utilities			17			18			39			36
Insurance			3			6			6			11
Changes in inventories (1)			3			(11)			(54)			(5)
			$	473		$	396		$	854		$	776

(1)    Includes NRV adjustments to inventories to reduce production costs by $nil and $3 million during the three and six months ended June 30, 2026 (2025 - $3 million and $7 million).

13. INCOME TAXES

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

			Three months ended June 30,						Six months ended June 30,
			2026			2025			2026			2025
Current income tax expense			164			81			$	361		$	145
Deferred income tax expense (recovery)			15			(36)			3			(55)
Income tax expense			$	179		$	45		$	364		$	90

Income tax expense differs from the amounts that would result from applying the Canadian federal and provincial income tax rates to earnings before income taxes. These differences result from the items shown on the following table, which result in effective tax rates that vary considerably from the comparable period. The main factors that impacted the effective tax rate for the three and six months ended June 30, 2026 and the comparable period for 2025 were changes in the recognition of certain deferred tax assets, foreign exchange rate fluctuations, mining taxes paid, and withholding taxes remitted on payments from foreign subsidiaries. The Company expects that these and other factors will continue to cause fluctuations in effective tax rates in the future.

			PAN AMERICAN SILVER CORP.			13

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			Notes to the Condensed Interim Consolidated Financial Statements
			As at June 30, 2026 and December 31, 2025, and for the three and six months ended June 30, 2026 and 2025 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted)

Reconciliation of Effective Income Tax Rate

			Three months ended June 30,						Six months ended June 30,
			2026			2025			2026			2025
Income before taxes and non-controlling interest			$	484		$	235		$	1,125		$	449
Statutory Canadian income tax rate			27		%	27		%	27		%	27		%
Income tax expense based on above rates			$	131		$	63		$	304		$	121
Increase (decrease) due to:
Non-deductible expenditures			5			—			3			1
Foreign tax rate differences			(12)			1			(28)			6
Change in net deferred tax assets not recognized			34			(8)			45			(20)
Effect of other taxes paid (mining and withholding)			38			14			69			23
Effect of foreign exchange on tax expense			(14)			(29)			(8)			(42)
Non-taxable impact of foreign exchange			4			8			13			10
Impact of inflation			(5)			(1)			(11)			(2)
Impact of change in effective tax rate on deferred tax			4			—			(14)			—
Reduction in tax expense due to country-specific deductions			(9)			(2)			(9)			(3)
Other			3			(1)			—			(4)
Income tax expense			$	179		$	45		$	364		$	90
Effective income tax rate			37		%	19		%	32		%	20		%

14. EARNINGS PER SHARE

Three months ended June 30,			2026			2025
Net earnings attributable to equity holders of the Company			$	304		$	189
Basic weighted average number of shares			420,271			362,011
Effect of Dilutive Securities:
Stock Options			74			110
Diluted weighted average number of shares			420,345			362,121
Earnings per share attributable to shareholders of the Company:
Basic earnings per share			0.72			0.52
Diluted earnings per share			0.72			0.52

Six months ended June 30,			2026			2025
Net earnings attributable to equity holders of the Company			$	761		$	358
Basic weighted average number of shares			421,056			362,208
Effect of Dilutive Securities:
Stock Options			77			112
Diluted weighted average number of shares			421,133			362,320
Earnings per share attributable to shareholders of the Company:
Basic earnings per share			1.81			0.99
Diluted earnings per share			1.81			0.99

			Three months ended June 30,						Six months ended June 30,
Potentially issuable anti-dilutive securities			2026			2025			2026			2025
Share options			—			4			—			5
Potential shares from CVR conversion (1)			15,600			15,600			15,600			15,600
			15,600			15,604			15,600			15,605

(1)    There were 314 million CVRs outstanding at June 30, 2026 (2025 - 314 million).

			PAN AMERICAN SILVER CORP.			14

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			Notes to the Condensed Interim Consolidated Financial Statements
			As at June 30, 2026 and December 31, 2025, and for the three and six months ended June 30, 2026 and 2025 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted)

15. SUPPLEMENTAL CASH FLOW INFORMATION

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

						Three months ended June 30,						Six months ended June 30,
Other operating activities						2026			2025			2026			2025
Adjustments for non-cash income statement items:
			Unrealized foreign exchange losses			$	9		$	9		$	13		$	15
			Losses (gains) on derivatives			1			(13)			1			(29)
			Stock options and equity-settled RSUs expense (Note 11)			1			—			2			1
			(Gains) losses on sale of mineral properties, plant and equipment			(2)			(1)			7			—
						$	9		$	(5)		$	23		$	(13)

			Three months ended June 30,						Six months ended June 30,
Net change in working capital:			2026			2025			2026			2025
Trade and other receivables			$	(19)		$	7		$	3		$	—
Inventories			1			(13)			(62)			(12)
Prepaid expenses			(2)			5			(14)			(3)
Accounts payable and accrued liabilities			4			6			27			(43)
Legal provisions			(1)			5			—			6
			$	(17)		$	10		$	(46)		$	(52)

Cash and Cash Equivalents			June 30, 2026			December 31, 2025
Cash in banks			$	1,434		$	1,143
Short maturity investments			132			72
Cash and cash equivalents			$	1,566		$	1,215

16. SEGMENTED INFORMATION

The Company reviews its segment reporting to ensure it reflects the operational structure of the Company and enables the Company's President and CEO, the 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 financial performance of the operating segments is principally evaluated by the CODM with reference to attributable mine operating earnings. Mine operating earnings is the net result of segmental revenue less production costs, royalties and depreciation and amortization. The Company has organized its reportable and operating segments by significant revenue streams and geographic regions.

The accounting policies of the operating segments are the same as the ones described in Note 2 of the 2025 Annual Financial Statements with the exception of mining operations with non-controlling interests and the treatment of the investment in Juanicipio, which was acquired on September 4, 2025 (Note 3). The Company's investment in Juanicipio is accounted for under the equity method. However, for internal reporting and analysis, the Company evaluates the operating performance of the Juanicipio mine by including the Company's attributable 44% share of revenues, expenses and capital expenditures.

			PAN AMERICAN SILVER CORP.			15

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			Notes to the Condensed Interim Consolidated Financial Statements
			As at June 30, 2026 and December 31, 2025, and for the three and six months ended June 30, 2026 and 2025 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted)

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

For the three months ended June 30, 2026									Production costs and royalties			Depreciation and Amortization			Mine operating earnings (losses)			Capital expenditures(1)
Segment/Country			Operation			Revenue
Silver Segment:
Mexico			La Colorada			$	139		$	84		$	8		$	47		$	23
			Juanicipio			147			23			16			108			9
Peru			Huaron			67			38			7			22			11
Bolivia			San Vicente			58			37			3			18			2
Argentina			Cerro Moro			144			70			14			60			5
Attributable Total Silver Segment						$	555		$	252		$	48		$	255		$	50
Gold Segment:
Mexico			Dolores			21			12			4			5			—
Peru			Shahuindo			103			37			13			53			11
Canada			Timmins			120			67			10			43			18
Brazil			Jacobina			187			61			31			95			23
Chile			El Peñon			178			74			19			85			10
			Minera Florida			104			65			9			30			8
Attributable Total Gold Segment						$	713		$	316		$	86		$	311		$	70
Other segment:
Corporate and other						—			—			2			(2)			1
Attributable Consolidated Total						$	1,268		$	568		$	136		$	564		$	121
Reconciliation to Reported Measures
Remove the Company's attributable 44% share of Juanicipio operating results						(147)			(23)			(16)			(108)			(9)
Add proportionate share of non-controlling interests						3			2			—			1			—
Reported Consolidated Total						$	1,124		$	547		$	120		$	457		$	112

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

			PAN AMERICAN SILVER CORP.			16

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			Notes to the Condensed Interim Consolidated Financial Statements
			As at June 30, 2026 and December 31, 2025, and for the three and six months ended June 30, 2026 and 2025 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted)

For the three months ended June 30, 2025									Production costs and royalties			Depreciation and Amortization			Mine operating earnings (losses)			Capital expenditures(1)
Segment/Country			Operation			Revenue
Silver Segment:
Mexico			La Colorada			$	59		$	37		$	6		$	16		$	13
Peru			Huaron			46			33			7			6			6
Bolivia			San Vicente			23			15			2			6			1
Argentina			Cerro Moro			79			60			10			9			4
Attributable Total Silver Segment						$	207		$	145		$	25		$	37		$	24
Gold Segment:
Mexico			Dolores			45			14			14			17			—
Peru			Shahuindo			113			41			16			56			11
Canada			Timmins			87			55			9			23			9
Brazil			Jacobina			156			51			30			75			14
Chile			El Peñon			134			64			21			49			9
			Minera Florida			69			45			6			18			6
Attributable Total Gold Segment						$	604		$	270		$	96		$	238		$	49
Other segment:
Corporate and other						—			—			2			(2)			—
Attributable Consolidated Total						$	811		$	415		$	123		$	273		$	73
Reconciliation to Reported Measures
Add proportionate share of non-controlling interests						1			1			—			—			—
Reported Consolidated Total						$	812		$	416		$	123		$	273		$	73

For the six months ended June 30, 2026									Production costs and royalties			Depreciation and Amortization			Mine operating earnings (losses)						Capital expenditures(1)
Segment/Country			Operation			Revenue
Silver Segment:
Mexico			La Colorada			$	219		$	112		$	12		$	95					$	38
			Juanicipio			329			48			34			247						18
Peru			Huaron			147			72			15			60						23
Bolivia			San Vicente			113			71			5			37						4
Argentina			Cerro Moro			310			130			28			152						11
Attributable Total Silver Segment						$	1,118		$	433		$	94		$	591					$	94
Gold Segment:
Mexico			Dolores			59			28			10			21						—
Peru			Shahuindo			244			78			29			137						26
Canada			Timmins			249			127			22			100						37
Brazil			Jacobina			392			114			57			221						54
Chile			El Peñon			351			134			36			181						19
			Minera Florida			188			110			15			63						18
Attributable Total Gold Segment						$	1,483		$	591		$	169		$	723					$	154
Other segment:
Corporate and other						—			—			4			(4)						2
Attributable Consolidated Total						$	2,601		$	1,024		$	267		$	1,310					$	250
Reconciliation to Reported Measures
Remove the Company's attributable 44% share of Juanicipio operating results						(329)			(48)			(34)			(247)						(18)
Add proportionate share of non-controlling interests						6			4			—			2						—
Reported Consolidated Total						$	2,278		$	980		$	233		$	1,065					$	232

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

			PAN AMERICAN SILVER CORP.			17

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			Notes to the Condensed Interim Consolidated Financial Statements
			As at June 30, 2026 and December 31, 2025, and for the three and six months ended June 30, 2026 and 2025 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted)

For the six months ended June 30, 2025									Production costs and royalties			Depreciation and Amortization			Mine operating earnings (losses)						Capital expenditures(1)
Segment/Country			Operation			Revenue
Silver Segment:
Mexico			La Colorada			$	112		$	69		$	12		$	31					$	23
Peru			Huaron			102			66			15			21						14
Bolivia			San Vicente			57			39			4			14						2
Argentina			Cerro Moro			159			116			18			25						9
Attributable Total Silver Segment						$	430		$	290		$	49		$	91					$	48
Gold Segment:
Mexico			Dolores			100			33			28			39						—
Peru			Shahuindo			211			80			32			99						19
Canada			Timmins			176			109			17			50						24
Brazil			Jacobina			288			97			58			133						29
Chile			El Peñon			254			124			41			89						19
			Minera Florida			123			84			12			27						13
Attributable Total Gold Segment						$	1,152		$	527		$	188		$	437					$	104
Other segment:
Corporate and other						—			—			5			(5)						2
Attributable Consolidated Total						$	1,582		$	817		$	242		$	523					$	154
Reconciliation to Reported Measures
Add proportionate share of non-controlling interests						3			2			—			1						—
Reported Consolidated Total						$	1,585		$	819		$	242		$	524					$	154

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

Reconciliation of Mine operating earnings to Earnings before income taxes			Three months ended June 30,						Six months ended June 30,
			2026			2025			2026			2025
Attributable segmental mine operating earnings			$	564		$	273		$	1,310		$	523
Less: the Company's 44% share of Juanicipio operating results			(108)			—			(247)			—
Add: proportionate share of non-controlling interests			1			—			2			1
Mine operating earnings as reported			$	457		$	273		$	1,065		$	524
General and administrative			(18)			(21)			(57)			(46)
Income from investment in Juanicipio (Note 7)			75			—			163			—
Exploration and project development			(6)			(2)			(12)			(6)
Mine care and maintenance			(8)			(7)			(15)			(15)
Foreign exchange losses			(6)			(4)			(2)			(4)
Derivative (losses) gains			(1)			13			(1)			29
Mineral properties, plant and equipment gains (losses)			2			1			(7)			—
Change in asset retirement obligations			1			—			6			(2)
Other expense			1			(9)			—			(7)
Investment income			9			12			31			17
Interest and finance expense			(22)			(21)			(46)			(41)
Earnings before income taxes			$	484		$	235		$	1,125		$	449

			PAN AMERICAN SILVER CORP.			18

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			Notes to the Condensed Interim Consolidated Financial Statements
			As at June 30, 2026 and December 31, 2025, and for the three and six months ended June 30, 2026 and 2025 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted)

			Three months ended June 30,						Six months ended June 30,
Revenue			2026			2025			2026			2025
Refined silver and gold			$	848		$	679		$	1,777		$	1,301
Zinc concentrate (1)			42			26			74			67
Lead concentrate (1)			163			74			270			149
Copper concentrate (1)			20			11			49			21
Silver concentrate (1)			51			22			108			47
Total			$	1,124		$	812		$	2,278		$	1,585

(1)    Zinc, lead, copper and silver concentrates also include payable quantities of silver and gold.

			PAN AMERICAN SILVER CORP.			19