Pan American Silver Corp. (NASDAQ: PAAS) (TSX: PAAS) today announced results from 14,300 metres of drilling completed during the third quarter of 2019 on the La Colorada skarn discovery in Mexico. Preliminary metallurgical testing of samples indicates high recoveries across all metals can be expected.

“The most recent drill results feature some of the highest grade intercepts we have seen to date, with widths up to 379 metres. Stand-out drill holes include U-66-19 with 253 metres grading at 67 grams per tonne of silver, 3.84% lead and 6.56% zinc,” said Christopher Emerson, Pan American’s Vice President Business Development and Geology. “We have now completed over 52,400 metres of drilling on the skarn target, allowing us to substantially expand the mineralized footprint and to identify a high-grade core zone.”

Drill highlights include:

• D-57-01-19: 250.9 m at 40 g/t Ag, 0.08% Cu, 2.57% Pb and 3.43% Zn
  including 78.9 m at 60 g/t Ag, 0.09% Cu, 3.90% Pb and 4.84% Zn
• D-57-02-19: 72.3 m at 37 g/t Ag, 0.16% Cu, 3.80% Pb and 6.25% Zn
  and 56.6 m at 39 g/t Ag, 0.10% Cu, 3.31% Pb and 6.64% Zn
• S-57-19: 124.8 m at 42 g/t Ag, 0.08% Cu, 2.41% Pb and 3.14% Zn
• U-66-19: 252.9 m at 67 g/t Ag, 0.19% Cu, 3.84% Pb and 6.56% Zn
  including 27.3 m at 108 g/t Ag, 0.20% Cu, 8.14% Pb and 13.70% Zn
  and 148.6 m at 81 g/t Ag, 0.23% Cu, 4.43% Pb and 7.66% Zn
• U-72-19: 132.5 m at 56 g/t Ag, 0.19% Cu, 3.81% Pb and 6.32% Zn
  including 57.9 m at 80 g/t Ag, 0.24% Cu, 5.46% Pb and 9.42% Zn
  and 139.2 m at 54 g/t Ag, 0.15% Cu, 1.80% Pb and 5.87% Zn
• U-73-19: 278.0 m at 26 g/t Ag, 0.08% Cu, 1.56% Pb and 3.98% Zn
• U-79-19: 379.0 m at 54 g/t Ag, 0.50% Cu, 1.96% Pb and 3.73% Zn
  including 57.9 m at 47 g/t Ag, 0.37% Cu, 2.83% Pb and 6.35% Zn
  and 66.7 m at 154 g/t Ag, 2.07% Cu, 0.97% Pb and 1.58% Zn

The drilling continues to define a polymetallic mineralized skarn system and cross-cutting veins starting 300 metres below and adjacent to the current lowest production level of the La Colorada mine. Drill holes D- 57-01-19 and D-57-02-19 were drilled 200 metres to the southwest of a mineralized hydrothermal breccia zone, indicating the potential to extend mineralization further to the southwest. Drill results for the hydrothermal breccia zone were previously announced in Pan American’s news release dated August 1, 2019.

Pan American expects to complete over 50,000 metres of drilling in 2019, and provide an initial resource estimate of the skarn discovery by the end of 2019. An intensive exploration program and further metallurgical testing will continue in 2020. Given that the skarn deposit is more massive than the existing vein structures, pending technical studies, future development would conceptually require new mining, processing and other facilities.

In addition to the drilling program, Pan American has advanced initial metallurgical testing at the independent ALS Metallurgy laboratory in Kamloops, Canada. To date, flotation tests and mineral liberalization analysis on three composites samples have been performed. Positive flotation recovery results for silver, lead, zinc and copper were obtained, with the preliminary bulk rougher flotation recovery ranges and averages provided in the table below. Preliminary open cleaner tests show that good concentrate qualities can be obtained, ranging from 50% to 70% Pb in the lead cleaner concentrate, 55% to 63% Zn in the zinc cleaner concentrate and 20% to 31% Cu in the copper cleaner concentrate. Minor element analysis results in concentrates are pending. Pan American plans to prepare additional composite samples, as we get more information on the resource, and to conduct additional flotation tests.

Bulk Rougher Flotation Recovery Results

Summary of Drill results for the Third Quarter of 2019

Previous drill results disclosed in Pan American’s news releases dated October 23, 2018, February 21, 2019, May 8, 2019 and August 1, 2019, are not included in this table.

Drill Hole Collar Information

Please see our website at: https://www.panamericansilver.com/operations/north-and-central-america/la-colorada/ to view cross sections, plan and images of the mineralized core.

General Notes with Respect to Technical Information

Technical information contained in this news release with respect to Pan American has been reviewed and approved by Christopher Emerson, FAusIMM., Vice President Business Development and Geology, who is a Qualified Person for the purposes of NI 43-101.

Grades are shown as contained metal before mill recoveries are applied. All metallurgical samples provided in this news release were prepared and analyzed by ALS in Kamloops, Canada while all other samples were prepared and analyzed by SGS in Durango, Mexico using fire assay with gravimetric finish for gold, and by acid digestion with ICP finish for silver, lead, zinc, and copper. Pan American implements a quality assurance and quality control (“QAQC”) program including the submission of certified standards, blanks, and duplicate samples to the laboratories. The results of the QAQC samples submitted to SGS demonstrate acceptable accuracy and precision. The Qualified Person is of the opinion that the sample preparation, analytical, and security procedures followed for the samples are sufficient and reliable for the purpose of any future mineral resource and mineral reserve estimates. Pan American is not aware of any drilling, sampling, recovery or other factors that could materially affect the accuracy or reliability of the data reported herein. SGS is independent from Pan American.

About Pan American Silver

Pan American is the world’s second largest primary silver producer, providing enhanced exposure to silver through a diversified portfolio of assets, large reserves and growing production. We own and operate mines in Mexico, Peru, Canada, Argentina and Bolivia. In addition, we own the Escobal mine in Guatemala that is currently not operating. In 2019, we celebrate our silver anniversary: 25 years of operating in Latin America, earning an industry-leading reputation for operational excellence and corporate social responsibility.