Company Description:

Pan American Silver is a leading producer of silver and gold in the Americas, operating mines in Canada, Mexico, Peru, Brazil, Bolivia, Chile and Argentina. We also own the Escobal mine in Guatemala that is currently not operating, and we hold interests in exploration and development projects. We have been operating in the Americas for three decades, 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 the New York Stock Exchange and the Toronto Stock Exchange under the symbol “PAAS”.

Pan American Silver strives to continuously improve its sustainability performance by implementing industry best practices and setting new goals to improve performance and manage risk. Our Environmental, Social and Governance (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.

Each of our operations is responsible for the development and implementation of procedures and programs that comply with our policies and standards, and with corporate initiatives such as Towards Sustainable Mining (TSM).

TSM Performance Assessment:

Our operating sites self-assess their performance against the TSM protocols on an annual basis. In 2024, self-assessments were performed at Cerro Moro (Argentina), Dolores (Mexico), El Peñon (Chile), Huarón (Peru), Jacobina (Brazil), La Colorada (Mexico), Minera Florida (Chile), San Vicente (Bolivia), Shahuindo (Peru), Timmins (Canada) and our Vancouver head office. 

Summary of 2024 TSM Results:

In 2024, we achieved or maintained Level A or higher for all indicators of the TSM protocols at all operations, except one indicator of the Safety and Health protocol at the Huarón and Dolores mines, where we achieved Level B, and three indicators of the Indigenous and Community Relationships protocol at the Cerro Moro mine, where we achieved Level B.

TSM External Verification:

In 2022, external verification of TSM performance was completed at our Timmins operations in Canada.

In 2023, the Company expanded the TSM external verification process to include three facilities outside of Canada: La Arena and Shahuindo in Peru, and Dolores in Mexico.

In 2024, external verification of TSM performance was conducted at four facilities: Cerro Moro in Argentina, Huarón in Peru, La Colorada in Mexico and San Vicente in Bolivia. The external verification process confirmed the results of our self-assessments are an accurate reflection of Pan American Silver’s performance against the requirements of all eight TSM protocols. 

Improvement Plan:

Pan American Silver is implementing specific action plans to improve its performance in the three facilities where indicators were rated at level B:

Cerro Moro – Indigenous and Community Relationships Protocol

• Indicator 2 – Effective Community of Interest (COI) Engagement and Dialogue: In collaboration with the COIs, the site will review the existing process of participation and dialogue with the COIs to ensure the opinions and feedback from COIs are incorporated.
• Indicator 4 – Community Impact and Benefit Management: The Pan American Cerro Moro Social Team will develop an impact mitigations action plan and will incorporate it into the social impact management plan and risk registers, with key performance indicators (KPIs) and regular updates. The team will also develop a Social Investment Plan and programs in collaboration with COIs to identify and review benefits and opportunities. Reports will be generated from monitoring visits, progress updates, and feedback meetings with COIs.
• Indicator 5 – Community of Interest Response Mechanism: The team will present and share the Guide to Receiving and Responding to Complaints and Social Claims to COIs, regularly engaging them to ensure the response mechanism system is accessible and understandable for the COIs.

Huarón – Safety and Health Protocol

• Indicator 5 – Performance: The action plan will be disclosed in the 2024 Sustainability Report: https://panamericansilver.com/sustainability/sustainability-reporting/.

Dolores – Safety and Health Protocol

• Indicator 5 – Performance: The action plan will be disclosed in the 2024 Sustainability Report: https://panamericansilver.com/sustainability/sustainability-reporting/.