Pan American Silver : ESG Call Presentation Slides

Pan American Silver's Responsible Investor Call:

"A conversation on ESG"

September 14, 2020

Cautionary Note

Non-GAAP Measures

This presentation of Pan American Silver Corp. and its subsidiaries (collectively, "Pan American", "Pan American Silver", the "Company", "we" or "our") may refer to various non-GAAP measures.

Readers should refer to the "Alternative Performance (Non-GAAP) Measures" section of the Company's Management's Discussion and Analysis ("MD&A") for the financial year ended December 31, 2019 and the three months ended June 30, 2020, available at www.sedar.com.

Reporting Currency and Financial Information

Unless we have specified otherwise, all references to dollar amounts or $ are to United States dollars.

Cautionary Note Regarding Forward Looking Statements and Information

Certain of the statements and information in this presentation 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 presentation relate to, among other things, anticipated accretion to shareholder value from the Company's future developments; our future financial and operational performance; the effect of any reductions or suspensions in our operations relating to the COVID-19 pandemic may have on our financial and operational results; the ability of the Company to continue with its operations, or to successfully maintain our other operations on care and maintenance, or to restart or ramp-up these operations efficiently or economically, or at all; our expectations with respect to future metal prices and exchange rates; the impact of the Escobal mine on the Company's performance in the future; the anticipated capital expenditures and the timing thereof and the results of any future exploration, development or expansion programs, including, but not limited to, the La Colorada skarn discovery; whether the Company is able to maintain a strong financial condition and have sufficient capital, or have access to capital through our credit facility or otherwise, to sustain our business and operations; the timing and disclosure of the Company's environmental, social, and sustainability performance; achievement of our environmental, social, sustainability, inclusion and diversity goals, and the timing thereof; the presence and impact of COVID-19 on our workforce, suppliers and other essential resources and what effect those impacts, if they occur, would have on our business; and whether we will be successful and able to continue with our efforts to protect our personnel, communities and others in respect of our business.

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 that, while

considered reasonable by the Company, are inherently subject to significant operational, business, economic and regulatory uncertainties and contingencies. These assumptions include: 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; successful restart or ramp-up of our suspended operations efficiently or economically, or at all; our ability to achieve environmental, social, sustainability, inclusion and diversity goals; 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 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 and can be maintained; our ability to secure and maintain title and ownership to properties and the surface rights necessary for our operations; 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.

…continued on next page

2	September 14, 2020

Cautionary Note

The Company 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 presentation and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: 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); 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 claims and legal proceedings involving or against the Company and our subsidiaries; risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom the Company does business; risk of liability relating to our past sale of the Quiruvilca mine in Peru; 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; 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, including legal restrictions relating to mining, such as those in Chubut, Argentina, the risk of expropriation, and the constitutional court-mandated ILO 169 consultation process in Guatemala; 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; challenges to, or difficulty in maintaining, the Company's title to properties and continued ownership thereof; 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; the duration and effects of the coronavirus and COVID-19, and any other pandemics on our operations and workforce, and the effects on global economies and society; 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.

3	September 14, 2020

Sustainability Leadership Team

Michael Steinmann	Steve Busby	Rob Doyle	Christopher Lemon	Brent Bergeron
President and Chief	Chief Operating Officer	Chief Financial Officer	General Counsel	Senior Vice President, Corporate
Executive Officer				Affairs and Sustainability

Sean McAleer	Martin Wafforn	Monica Moretto	Siren Fisekci	Matthew Andrews
Senior Vice President	Senior Vice President,	Vice President, Social	Vice President, Investor	Vice President,
and Managing Director,	Technical Services &	Sustainability, Diversity	Relations & Corporate	Environment
Guatemala	Optimization	and Inclusion	Communications

4	September 14, 2020

Agenda

1. Sustainability: Key to our Vision and Strategy
2. 2019 Sustainability Highlights
3. Response to COVID-19 and Safety & Health
4. Sustainability Goals and Results
5. Management Approach and Performance
6. • Environmental Stewardship and Mine Closure
   • Communities and Inclusion & Diversity
   • People, Governance and Human Rights
7. Escobal Update
8. ESG Opportunities and Challenges
9. Q&A

5	September 14, 2020

Our Vision & Sustainability Values

To be the world's premier silver producer, with a reputation for excellence in discovery, engineering, innovation and sustainable development

• Caring for the environment in which we operate
• Contributingcommunitiesto the long-term development of our host
• Ensuring safe and secure workplaces for our employees
• Contributing to the welfare of our employees, local communities and government
• Operating transparently

(1) The Escobal mine in Guatemala is currently not operating

6	September 14, 2020

2019 Sustainability Highlights

95

CHAIRMAN'S

ZERO

1,065,088

SAFETY AWARD

COMMUNITIES AND INDIGENOUS

DOLORES MINE WAS

SIGNIFICANT

GROUPS THAT BENEFIT FROM

HOURS OF SAFETY TRAINING

ENVIRONMENTAL INCIDENTS

OUR SOCIO-ECONOMIC

RECIPIENT OF THE

IN 2019

AT OUR OPERATIONS

PROGRAMS DIRECTLY OR

CHAIRMAN'S SAFETY AWARD

INDIRECTLY

FOR BEST OVERALL SAFETY

PERFORMANCE

410,000			8,778
	2,368
MORE THAN 410,000				PEOPLE RECEIVED
FAMILIES BENEFITED FROM
TREES PLANTED OR
	OUR INFRASTRUCTURE		MEDICAL ATTENTION
DONATED IN MEXICO,

GUATEMALA, AND PERU	INVESTMENTS

99%

OF OUR EMPLOYEES ARE FROM THE COUNTRIES WHERE WE OPERATE

25%

DECREASED OUR

NON-RECYCLABLE HAZARDOUS WASTE GENERATION AT SILVER SEGMENT OPERATIONS

7	September 14, 2020

Our Products & Sustainability

SILVER (Ag) + GOLD (Au)

SOLAR PANELS	HEALTH
Silver paste is a key	Silver's
component of	antimicrobial
photovoltaic cells used	and non-toxic
in solar panels that	qualities are
transform sunlight into	beneficial for
electrical energy	human health

ELECTRONICS	INVESTING	JEWELRY
Silver is the best	Governments,	Silver and
thermal and electrical	institutions, or	gold are
conductor of all metals	individuals may	used to
and is used in most	hold gold and/or	create pieces
electronic devices. Gold	silver coins or	of jewelry
is also an efficient	bullion as forms of	around the
conductor of electricity	investment	world

For additional information on the uses of silver, see The Silver Institute: www.silverinstitute.org

8	September 14, 2020

Economic Benefits

Direct economic value generated and distributed in 2019

1. Based on 2019 accrued revenue as per annual Financial Statements for fiscal 2019, dated March 12, 2020. Financial metrics for Shahuindo, La Arena and Timmins are as of the acquisition date, February 22, 2019.
2. Local refers to the expenditures in communities within the direct area of influence. Regional captures expenditures in the indirect areas of influence within surrounding regions. National includes all other areas within a country that are excluded from either local or regional. Local, regional and national expenditures include wages, supplies and services, and community investments.
3. This is the economic value retained by the company after expenditures from mining activities, but prior to distributions to providers of capital (shareholders and debtholders). Expenditures from mining activities include production costs, royalties, general and administrative expenditures, exploration and project development, mine care and maintenance, income taxes paid, payments for mineral properties, plant and equipment and payment of lease obligations as described in the annual Financial Statements for fiscal 2019, dated March 12, 2020. Production costs exclude purchase price allocation inventory fair value adjustments and NRV inventory adjustments.
4. Excludes $335M drawn from our revolving credit facility for the acquisition of Tahoe, and $125M paid to cancel Tahoe's revolving credit facility.

9	September 14, 2020

Executive Compensation Linked to Sustainability Performance

Safety (15%)

Operating
Performance		Significant environmental
40%
	incidents (10%)
Annual
ESG
Incentive Plan	35%
Categories		Inclusion & Diversity (5%)

Growth	Towards Sustainable
25%	Mining (TSM) level (5%)

10	September 14, 2020

Operational Approach to Sustainability

• Minimizing environmental impacts, protecting ecosystems, and ensuring safe and healthy workplaces
• Our operations set annual goals to drive performance improvements in sustainability
• Developing effective partnerships and collaborations
• Honest, transparent and lasting dialogue with stakeholders
• Sustainability key performance indicators (KPIs) are integrated in operational budgeting process at corporate and site levels

11	September 14, 2020

COVID-19 Response

Protocols and practices implemented across our operations

• Our primary concern is the health and safety of our employees and contractors, and the communities in which they live and work
• We are monitoring information provided by governments and health authorities and following the recommended measures for prevention and containment
• We continue to implement and enforce measures that are consistent with those recommended by local health authorities and the World Health Organization

Protecting

health &

safety

Education &	Compliance &
training	regulations

Facilities &	Production
camps	planning

For more information on the specific protocols, visit https://www.panamericansilver.com/company/covid-19-response/

12	September 14, 2020

Health & Safety

• Leadership engagement and accountability
• Building a culture of safety
• Improved training, process, technology and innovation
• Annual safety audits

2019 Performance

• Lost Time Injury Frequency (LTIF) rate on 1 million hour basis: 1.04 against the target of 1.5 or less
• Lost Time Injury Severity (LTIS) rate: 481 against the target of 600 or less
• 2 fatalities: one at our COSE project in Argentina and one at our Morococha mine in Peru. Measures are being implemented to improve safety controls and prevent similar accidents in the future

13	September 14, 2020

Sustainability Approach

VISION

To be the world's premier silver producer, with a reputation for excellence in

discovery, engineering, innovation and sustainable development

VALUES

Set the standard for how we operate as a business

CODE OF CONDUCT

Sets out key principles and expectations for ethical business conduct in how we operate and interact with each other and our Communities of Interest

POLICIES

Translate our values into specific commitments

SYSTEMS

Incorporate best practices and provide consistent guidance to sites for

managing our sustainability foundations

PILLARS

Focus on managing performance in key areas

14	September 14, 2020

Our Sustainability Focus

Water & Energy Stewardship

Biodiversity & Mine Closure

Tailings Facility Safety

Emergency Response Preparedness

Sustainable Development Programs

Education & Health

Local Procurement Development

Infrastructure

Health & Safety

Human Rights & Business Ethics

Human Resources Attraction & Retention

15	September 14, 2020

Sustainability Performance

2019 Goals & Results

Category	Goals	Results
	Achieve zero fatalities
Operations and
Achieve a lost time injury frequency (LTIF) of 1.5 or less	
Safety
	Achieve a loss time injury severity (LTIS) of 600 or less	
	Achieve zero social conflicts at our operations	
Social	Continue to expand our community engagement activities	
	Improve access to quality education and health care in the communities near our mines	
	Conduct annual Leadership Development Program workshops at our operations	
People
Increase percentage of women in new hires and promotions by 20%
	Achieve zero significant environmental incidents (SEIs) at our operations	
	Reduce water use compared to business as usual	
Environment
Substantially complete active physical reclamation activities at Alamo Dorado	
	Implement projects that can potentially reduce energy use and greenhouse gas emissions	

16	September 14, 2020

Commitment to External Initiatives

Viola Desmond Chair in Social Justice

17	September 14, 2020

Environment: Strategy, Management Approach & Performance

• Implementing Mining Association of Canada's Towards Sustainable Mining (TSM) program across our operations
• No significant environmental incidents* at our operations since internal management program and regular corporate environmental auditing started in 2012

• Significant environmental incidents are those that negatively impact the environment or communities outside of our mines or project sites, including environmental incidents that significantly impact the reputation or community perception of Pan American Silver.

Environmental Policy and Standards - Our policy and internal

standards guide performance and help operations implement best practices to mitigate impacts across our environmental pillars:

• Water management
• Climate, energy and greenhouse gas emissions
• Biodiversity
• Mine closure
• Tailings management
• Waste management

18	September 14, 2020

Water Management

• We completed an upgrade to the mine wastewater treatment facility at San Vicente, which allowed plant effluent to be recycled and reduced our reliance on fresh water for mineral processing from an external source
• We started the process of establishing water management committees at our operations. In 2019, we made significant investments to improve surface water management at La Arena and Shahuindo

Water Use m3/tonne ore processed

WATER INTENSITY *

0.4

0.3

0.2

0.1

0

2017	2018	2019
Silver Segment		Company Wide Average	Gold Segment

Next Steps

• Implement site-specific projects to minimize freshwater extraction use and water use intensity
• Improve water use accounting at all operations
• Continue implementation of TSM Water Stewardship Protocol

*Excluding Huaron and Morococha operations, please see 2019 Sustainability Report for explanation

19	September 14, 2020

Climate, Energy & Greenhouse Gas (GHG) Emissions

• We improved our climate disclosure including Scope 3 emissions and information on physical risks in our 2019 Sustainability Report
• We implemented projects to reduce energy use and emissions at our operations including a new shaft and process plant optimizations at Bell Creek, lighting improvements at La Colorada, and ventilation upgrades at San Vicente

Next Steps

GHG Emissions	2019	2019
Silver	2018	2017
(Tonnes CO2 eq)	Total
Segment
Scope 1	- Direct	308,504	171,328	164,645	179,842
Scope 2	- Indirect	142,099	126,739	123,880	113,971
Total Scope 1 and 2	450,603	298,067	288,525	293,813
Scope 3	- Value Chain	668,098	-	-	-

• Include full climate risk disclosure in line with the Task Force on Climate-related Financial Disclosure (TCFD) recommendations in our 2021 reporting
• Develop short- and medium-term emissions goals based on site projects and initiatives
• Continue implementation of TSM Energy and GHG Emissions Management Protocol

20	September 14, 2020

Biodiversity & Mine Closure

• We completed reclamation of 126 hectares of previously mined land, primarily at Alamo Dorado in Mexico. A total of approximately 205 hectares have been reclaimed at Alamo Dorado
• We reclaimed over 80 hectares at our Manantial Espejo mine in Argentina in partnership with the local Agricultural School
• In Guatemala we donated 55,200 trees to local communities, equivalent to 50 hectares of reforested land
• In Argentina we protected 57,000 hectares of Company-ownedland for native habitat

Alamo Dorado Tailings Dry Stack:	Alamo Dorado Tailings Dry Stack:
During operation	After

Next Steps

• Continue implementation of TSM Biodiversity Protocol and Mine Closure Framework
• Continue post-closure monitoring and maintenance at Alamo Dorado
• Update closure planning for Manantial Espejo and La Arena

21	September 14, 2020

Tailings Management

We implement leading tailings management standards at all our facilities:

 Towards Sustainable Mining -	 Internal Corporate Standard	 Canadian Dam Association
Tailings Management	on Tailings, Water and Heap	Dam Safety Guidelines
Protocol	Leach Facilities

Tailings Monitoring System

• Successful completion of first cycle of our program of independent third- party reviews of all operating tailings facilities in 2019
• Increased disclosure on tailings management through our 2019 Sustainability Report and the Investor Mining and Tailings Safety Initiative's Global Tailings Portal
• Real-timetailings monitoring pilot project at La Colorada in Mexico

22	September 14, 2020

Social: Strategy and Management Approach

ENGAGE	PLAN	IMPLEMENT	MONITOR &
		Capacity	EVALUATE
		Building &
		Training	Social Audits
Community	Participatory
Teams	Education &
Baseline	Towards
	Health
	Assessments
	Sustainable
Materiality
		Mining
Survey	Community	Local
Aboriginal and
	Procurement
	Development
	Community
Response
Initiative Tool
	Relationship
Mechanisms	Economic

Development	Protocol
Programs
Infrastructure
ACCOUNTABILITY

• Site-levelcommunity teams are responsible for ongoing engagement and program implementation
• Bi-AnnualSocial Audits
• Periodic site visits from Corporate Senior Management
• The Vice President of Social Sustainability, Inclusion & Diversity leads sustainable development programs and initiatives, which are overseen by the Senior Vice President, Corporate Affairs and Sustainability

23	September 14, 2020

Community Investment

• All community development projects are designed in collaboration with communities and adhere to Pan
  American Silver's CSR policy guidelines
• In 2019, we spent US $14,416,070 on community investment
• We support 16 long-termsocio-economic development programs in host communities in Mexico, Peru, Bolivia, and Argentina

Contributing to Sustainable Development Goals (SDGs):

Socio-economic Development Programs:

• Local economic development projects
• Education
• Health
• Local procurement

24	September 14, 2020

COVID-19 Response

Supporting communities

Pan American Silver pledged a US $2 million to help fund for COVID-19 in 2020, covering:

Vulnerable families: Food, cleaning, and winter supplies for more than 15,000 families in 110 communities

Health: Sanitation and hygiene initiatives, donations of protective equipment and supplies, medication and COVID-19 tests to health facilities in coordination with local authorities

Communication: Awareness campaigns with information about COVID-19 prevention practices

Education: School materials and laptops to support students and educators. Support to teachers in close coordination with local authorities.

25	September 14, 2020

COVID-19 Response - UNICEF Partnership

Countries covered by this initiative:

Bolivia, Argentina,

Mexico, Guatemala and

Peru

Pan American Silver's contribution will help UNICEF to:

26	September 14, 2020

Inclusion & Diversity

• We are making significant efforts towards creating awareness around vulnerable groups impacted by the COVID-19 crisis
• We will continue to monitor and promote collaboration and inclusiveness through our programs and current initiatives

Building Respect Together Program:











Respect - establishing respectful understanding

Awareness - developing assertiveness and empathy

Self-Esteem - understanding who you are

Teamwork - working collaboratively

Managing Differences - communicating effectively

27	September 14, 2020

Human Capital Development: Strategy & Management Approach

• Competitive compensation and quality benefits
• Opportunities for training and professional development
• • Leader Development Program
  • Site-leveltraining programs
• Succession planning
• Retention
• Respectful work environment

Next Steps

• Enhancing our internal employee grievance mechanism at all of our operations

28	September 14, 2020

Governance: Strategy & Management

Approach

• Say-on-PayPolicy: 93.65% support
• Majority Voting Policy: > 85% vote for all directors
• Independent Directors: 86% independent
• Separate Chairperson, Lead Director, and CEO
• Ethics and Compliance Program

Policies:

• Environmental Policy
• Health & Safety Policy
• Majority Voting Policy
• Global Code of Ethical Conduct
• Corporate Social Responsibility Policy

Next Steps

• Roll out of our supplier due diligence process to ensure compliance with our Supplier Code and related policies
• Develop an online training platform to incentivize ethical behavior and improve employee understanding of the anti-corruption program

• Diversity Policy
• Global Anti-Corruption Policy
• Human Rights Policy
• Suppliers Code of Conduct

29	September 14, 2020

Human Rights: Strategy & Management Approach

• Global Human Rights Policy
• • Labor
  • Anti-corruption
  • Indigenous Peoples
  • Gender
  • Environment
• Human Rights Officer - Global
• Alignment with the Voluntary Principles on Security and Human Rights

Next Steps

• Human rights training
• Human Rights Due Diligence and COVID-19 based on UNDP rapid self-assessment tool

30	September 14, 2020

Escobal Update

ILO 169 Consultation

• The Escobal mine is a world-class silver deposit:
• • Concession ~20km2; industrial footprint ~1km2
  • Low water consumption
  • Filtered tailings, paste backfill and dry-stack tailings facility
  • Provided over 1,500 direct jobs during operation
  • Currently under care and maintenance
• The operation is suspended since 2017, awaiting completion of an ILO 169 consultation process, ordered by the Constitutional Court and led by the Ministry of Energy and Mines (MEM) of the Guatemalan government. We are a participant.

	STAGE 1	
	STAGE 2		STAGE 3		STAGE 4
	Review			Pre-		Consultation		Supreme Court
			consultation			Verification

31	September 14, 2020

Escobal Update

Actions since the acquisition

Values based approach	Implementing Best Practices

• Based on review of project history
• Identified areas for improvement
• Defined a set of values that we consider key to future success:
• • Listening
  • Humility and respect
  • Truth and transparency
  • Collaborative solutions
  • Delivering on promises
• The team on the ground is committed to these values and we have seen change in the culture

• Human Rights and Security
• • Assessment of practices
  • Changes in structure and management oversight
  • Control of deployment of weapons
  • Conflict management protocols
• Towards Sustainable Mining
• Partnership with United Nations Development Program in Guatemala
• Training phase of a participatory monitoring initiative with the municipality and the School of Engineering of the University of San Carlos
• Efforts with municipalities and government to increase the transparency of royalty payments and document the use of funds

32	September 14, 2020

ESG Opportunities & Challenges

Next steps

ENVIRONMENT		SOCIAL		GOVERNANCE

• Develop short-and-medium-termtargets for water, energy and greenhouse gas emissions based on viable projects
• Continually improve on implementation of Towards
  Sustainable Mining program
• Disclose climate risk in accordance with the Task Force on Climate- Related Financial Disclosure (TCFD)

• Update indicators to measure the social impact of our programs based on participatory baseline assessments
• Improve our grievance systems, both internal and external
• Develop inclusivity and diversity metrics. Implement Building Respect Together program

• Roll out of the behavior-basedsafety program
• Continue to implement our business continuity framework at all operations
• Continue to implement our Global Human Rights Policy and related training programs

Develop a more systematic approach to managing, measuring and monitoring our sustainability risks

33	September 14, 2020

Q&A

34	September 14, 2020

Suite 1440, 625 Howe Street, Vancouver, BC, V6C 2T6

PanAmericanSilver.com

[e-mail]

+1.604.684.1175

35	September 14, 2020