MAG Silver Corp. (TSX:MAG) (NYSE: MAG) announces the Company’s unaudited consolidated financial results for the three months ended June 30, 2025. For details of the unaudited condensed interim consolidated financial statements of the Company for the three and six months ended June 30, 2025 and management’s discussion and analysis for the three and six months ended June 30, 2025, please see the Company’s filings on the System for Electronic Document Analysis and Retrieval Plus at (www.sedarplus.ca) or on the Electronic Data Gathering, Analysis, and Retrieval at (www.sec.gov).

Except for per share amounts, all amounts herein are reported in thousands of United States dollars unless otherwise specified (C$ refers to thousands of Canadian dollars).

KEY HIGHLIGHTS FOR Q2 2025 (on a 100% basis unless otherwise noted)

• On May 11, 2025, the Company and Pan American Silver Corp. entered into a definitive agreement, as amended, whereby Pan American agrees to acquire all of the issued and outstanding common shares of the Company pursuant to a plan of arrangement under the Business Corporations Act (British Columbia) (the “Transaction”). Under the terms of the Arrangement Agreement, MAG shareholders will be able to elect to receive the consideration as either (i) $20.54 in cash per MAG share or (ii) $0.0001 in cash and 0.755 of a common share of Pan American per MAG share, or a combination of cash and shares, subject to proration such that the aggregate consideration paid to all MAG shareholders consists of $500,000 in cash and the remaining consideration paid in Pan American shares. On July 10, 2025, MAG’s shareholders approved the Transaction at its special shareholders meeting. The Transaction is expected to close in the second half of 2025, subject to the satisfaction of customary closing conditions, including clearance under Mexican anti-trust laws, and approval of the listing of the Pan American common shares to be issued under the Transaction on both the Toronto Stock Exchange and the NYSE. The Company has incurred costs of $3,563 in connection with the Transaction in the three months ended June 30, 2025, which have been included in general exploration and business development expenses in the condensed interim consolidated statements of income and comprehensive income of the Q2 2025 Financial Statements.
• MAG reported record net income of $33,444 ($0.32 per share) and adjusted EBITDA¹ of $56,442, driven by income from Juanicipio (equity accounted) of $42,091 and MAG’s attributable interest in Juanicipio adjusted EBITDA of $63,221.
• During April 2025, Juanicipio returned a total of $61,500 to MAG: $59,400 as a second dividend payment, and $2,100 in interest and loan principal repayments. All loan balances to Juanicipio have now been fully repaid.
• MAG’s second dividend payment of $0.20 per share (fixed component of $0.02 per share and additional cash flow linked component of $0.18 per share representing approximately 30% of cash received from Juanicipio in April 2025) was made on May 28, 2025, to shareholders on record as of May 19, 2025. A total of $39,316 in dividend payments was returned to shareholders during the quarter.
• On August 8, 2025 MAG declared its third dividend, of $0.144 per share (fixed component of $0.02 per share and additional cash flow linked component of $0.124 per share representing approximately 30% of the $40,872 free cash flow generated by Juanicipio attributable to MAG during Q2 2025) payable on September 1, 2025 to shareholders on record as of August 18, 2025.
• A total of 342,515 tonnes of ore at a silver head grade of 417 grams per tonne (“g/t”) (equivalent silver head grade² of 661 g/t) was processed at Juanicipio.
• Silver recovery of 94.6% at Juanicipio, up from 92.4% in Q2 2024, reflecting the benefit from ongoing optimizations in the processing plant.
• Juanicipio achieved silver production and equivalent silver production² of 4.3 and 6.6 million ounces, respectively.
• Juanicipio generated strong operating cash flow and free cash flow¹ of $110,639 and $92,891, respectively.
• Juanicipio continued to maintain its strong cost performance with record low cash cost¹ of negative $3.90 per silver ounce sold ($8.38 per equivalent silver ounce sold³) and record low all-in sustaining cost¹ of $0.65 per silver ounce sold ($11.46 per equivalent silver ounce sold³).

CORPORATE

• On June 19, 2025, MAG released its fourth annual sustainability report, highlighting the Company’s ongoing commitment to transparency and accountability. The 2024 report provides a detailed overview of MAG’s environmental, social, and governance priorities, practices and performance throughout the year. The 2024 Sustainability Report and ESG Data Table are available on the MAG Silver website at the following link: https://magsilver.com/esg/⁴.

• On June 18, 2025, at MAG’s Annual General and Special Meeting (“AGSM”), the shareholders approved by majority to elect all eight directors that stood for election. The changes made during the AGSM included the retirement of Peter Barnes, the outgoing Chairman of the Board and welcomed the new Chairman of the Board, John Armstrong.

EXPLORATION

• Juanicipio:
  • During Q2 2025, 9,494 metres were drilled from underground at Juanicipio with all underground drilling assay results pending. The 2025 underground drilling program at Juanicipio continues to focus on:
    • infill drilling areas of the resource expected to be mined in the near to mid-term, including Valdecañas, Anticipada, Ramal 1, Ramal 2, and Venadas veins;
    • continuation of a southwardly directed program drilling off the conveyor ramp, designed to test for a deep skarn target; and
    • testing for near-mine veins.
  • Regional surface drilling at Juanicipio started in late February 2025. During Q2 2025, surface drilling at Juanicipio totalled 6,174 metres. Surface drilling to date has been further testing the Cañada Honda structure as well as the newly identified Magdalena structure. Surface drilling at Mesa Grande is expected to start in Q3 2025.

• Deer Trail Project, Utah⁵:
  • During Q2 2025, MAG initiated a comprehensive geophysical program across the 112 km² project area, comprising an Ambient Noise Tomography (“ANT”) survey as well as airborne radiometric and magnetic surveys. These surveys are designed to enhance subsurface geological mapping and improve the identification of structural features associated with potential mineralization. Interpretation of the newly acquired data is currently underway and will be integral to refining drill targets for the next phase of exploration. In parallel, three higher-resolution ANT infill surveys are being conducted over the Deer Trail Corridor, Alunite Ridge, and Bullion Canyon, which are expected to further improve targeting precision.
  • A 9km 2D seismic line has been completed in Gold Gulch within the southern patented ground; this data will be combined with the sub-parallel Cottonwood Canyon seismic line completed in November 2024 to validate, refine and rank drill targets.
  • New geochronological age dates of rocks continue to confirm that the Deer Trail Property belongs to the Bingham style family of rocks with strong mineralization potential.

• Larder Project, Ontario⁶:
  • During Q2 2025, MAG commenced its field program and Phase 1 drilling program at the Italian Zone (formerly the Instant Pond Zone at the Goldstake Property) that utilized the data collected from the Q1 2025 geological synthesis. Drilling highlights include:
    • testing of newly identified regional structures and collection of new structural data from historic gold zones;
    • 5,243 metres drilled in nine drillholes;
    • rock types encountered include syenite, pillowed-massive basalt, quartz feldspar porphyry, gabbro and albite dykes;
    • major structures have been validated which include regional NE-SW (Bear Lake Fault extension from main Cadillac Larder Break) NW-SE (along western side of the syenite) and E-W extensional veins which carry the higher grades recorded thus far; and
    • significant intersections include (See Table 1): 21.0 g/t gold over 0.5 metre (LP-25-001 at 105.9-106.4 metres), 12.4 g/t gold over 0.5 metre (LP-25-004 at 288.5-289 metres) and 16.4 g/t gold over 0.7 metre (LP-25-005 at 36.1-36.8 metres).

Table 1. Drillhole results from Phase 1 at the Italian Zone – some assays outstanding

JUANICIPIO RESULTS

All results of Juanicipio in this section are on a 100% basis, unless otherwise noted.

Operating Performance

The following table and subsequent discussion provide a summary of the operating performance of Juanicipio for the three months ended June 30, 2025 and 2024, unless otherwise noted.

During Q2 2025, a total of 355,785 tonnes of ore were mined. This represents an increase of 2% over Q2 2024. Increases in mined tonnages at Juanicipio have been driven by access to the full strike length of the deposit and the operational ramp-up of the mine towards steady state mining and milling targets.

During Q2 2025, a total of 342,515 tonnes of ore were processed through the Juanicipio plant. The 2% increase over Q2 2024 is mainly due to an increase in availability of the Juanicipio processing plant, currently operating at or above nameplate per operating day, during 2025.

The silver head grade and equivalent silver head grade for the ore processed in Q2 2025 were 417 g/t and 661 g/t (Q2 2024: 498 g/t and 746 g/t). The higher silver and lower base metal head grades in Q2 2024 were the result of processing ore from higher levels of the mine, characterized by elevated silver grade, compared to deeper areas in Q2 2025. Silver metallurgical recovery during Q2 2025 was 94.6% (Q2 2024: 92.4%) reflecting the commencement of commercial pyrite and gravimetric concentrate production during Q2 2024 delivering incremental silver and gold recovery paired with ongoing optimizations in the processing plant.

The following table provides a summary of the total cash costs and all-in sustaining costs of Juanicipio for the three months ended June 30, 2025 and 2024.

The cash cost per silver ounce sold¹ and cash cost per equivalent silver ounce sold¹ for the three months ending June 30, 2025 were negative $3.90/oz and $8.38/oz (three months ended June 30, 2024: $1.15/oz and $8.86/oz). The decrease in cash cost per silver ounce sold¹ during the three months ended June 30, 2025 is predominantly attributable to higher by-product revenues, as a result of 81% higher gold revenues (29% higher gold volumes and 41% higher realized gold price) offset by lower silver ounces sold. Additionally, cash cost per silver ounce sold¹ and cash cost per equivalent silver ounce sold¹ for the three months ended June 30, 2025 were impacted by 9% lower production cost, and 18% lower treatment and refining costs driven by recent benchmark treatment price adjustments.

The all-in sustaining cost per ounce sold¹ and all-in sustaining cost per equivalent silver ounce sold¹ for the three months ended June 30, 2025 were $0.65/oz and $11.46/oz (three months ended June 30, 2024: $4.49/oz and $11.31/oz). The decrease in all-in sustaining cost per ounce sold¹ and all-in sustaining cost per equivalent silver ounce sold¹ was primarily due to the decrease in cash cost per silver ounce sold¹ and cash cost per equivalent silver ounce sold¹ described above. Additionally, all-in sustaining cost per ounce sold¹ and all-in sustaining cost per equivalent silver ounce sold¹ during the three months ended June 30, 2025 were impacted by $1,031 lower general and administrative expenses (impacted by timing of operator services charges), and $4,160 higher sustaining capital expenditures (driven by higher exploration spend and higher mine Cell 2 infrastructures spend).

Financial Results

The following table presents excerpts of the financial results of Juanicipio for the three months ended June 30, 2025 and 2024.

Sales increased by $19,386 during the three months ended June 30, 2025, due to 13% higher realized metal prices and $1,553 lower treatment and refining charges driven mainly by updated favorable benchmark treatment pricing terms.

Production costs decreased by $3,416 mainly due to lower mining costs ($2,776), driven by lower labour and energy costs, and higher stockpile inventory build-up ($679).

Depreciation decreased by $1,062 impacted by an increase in updated reserve base (yearly assessment) for the purpose of units of production depreciation calculation.

Cash operating margin (gross profit plus depreciation divided by sales) increased from 76% to 80%, mainly due to positive commodity price movements, lower treatment and refining costs and reduced operating costs.

Other expenses increased by $1,601 mainly as a result of negative foreign exchange differences ($5,175) and higher selling costs and other duties ($674), which were impacted by higher metal prices, offset by lower consulting and administrative expenses ($1,031) and lower interest expense ($3,216) as Juanicipio reduced its outstanding shareholder loans balance by $175,884 during the period of June to December 2024.

Taxes decreased by $19,517 mainly due to non-cash deferred tax charges on fixed assets driven by a strengthening in the Mexican peso versus the US dollar, offset by higher taxable profits generated during Q2 2025.

Gross Profit from Ore Processed at Juanicipio Plant (100% basis)

Sales and treatment charges are recorded on a provisional basis and are adjusted based on final assay and pricing adjustments in accordance with the offtake contracts.

MAG FINANCIAL RESULTS – THREE MONTHS ENDED JUNE 30, 2025

As at June 30, 2025, MAG had working capital of $170,149 (December 31, 2024: $160,113) including cash of $171,834 (December 31, 2024: $162,347) and no long-term debt. As well, as at June 30, 2025, Juanicipio had working capital of $107,696 including cash of $83,717 (MAG’s attributable share is 44%).

The Company’s net income for the three months ended June 30, 2025 amounted to $33,444 (June 30, 2024: $21,614) or $0.32/share (June 30, 2024: $0.21/share). MAG recorded its 44% income from equity accounted investment in Juanicipio of $42,091 (June 30, 2024: $25,123) which included MAG’s 44% share of net income from operations as well as loan interest earned on loans advanced to Juanicipio (see above for a discussion of MAG’s share of income from its equity accounted investment in Juanicipio).

Qualified Persons: All scientific or technical information in this press release including assay results referred to, mineral resource estimates and mineralization, if applicable, is based upon information prepared by or under the supervision of, or has been approved by Gary Methven, P.Eng., Vice President, Technical Services and Lyle Hansen, P.Geo, Geotechnical Director; both are “Qualified Persons” for purposes of National Instrument 43-101, Standards of Disclosure for Mineral Projects.

About MAG Silver Corp.

MAG Silver Corp. is a growth-oriented Canadian mining and exploration company focused on advancing high-grade, district scale precious metals projects in the Americas. MAG is emerging as a top-tier primary silver mining company through its (44%) joint venture interest in the 4,000 tonnes per day Juanicipio Mine, operated by Fresnillo plc (56%). The mine is located in the Fresnillo Silver Trend in Mexico, the world’s premier silver mining camp, where in addition to underground mine production and processing of high-grade mineralised material, an expanded exploration program is in place targeting multiple highly prospective targets. MAG is also executing multi-phase exploration programs at the 100% earn-in Deer Trail Project in Utah and the 100% owned Larder Project, located in the historically prolific Abitibi region of Canada.