Pan American Silver: Early Warning News Release

Pan American Silver Corp. (PAAS) has acquired 6,250,000 common shares of Galleon Gold Corp. at C$1.12 per share through a non-brokered private placement, totaling C$7.0 million. The transaction was executed simultaneously with Galleon's bought-deal offering, which raised approximately $30 million in aggregate gross proceeds through flow-through and regular shares.

Following the acquisition, Pan American holds approximately 15.6% of Galleon's issued and outstanding shares on a non-diluted basis and 27.3% on a partially-diluted basis. Pan American's total exposure to Galleon now includes 26,074,766 common shares, 9,375,000 warrants with an exercise price of C$0.75 expiring in December 2027, and an unsecured convertible debenture with an C$8.0 million principal, 10% interest, and a conversion price of C$0.45. The acquisition is classified as an investment with a long-term view, aligning with Pan American's existing strategic interest in Galleon's West Cache project, which sits adjacent to the Timmins West operations.

Pan American Silver Corp. (PAAS) is making a C$7.0 million investment, a figure that represents a negligible fraction of the company’s $1.8 billion cash position and $18.8 billion market capitalization. The transaction does not alter the company's net asset value, mine life, or near-term cash flow profile.

This move serves as a strategic follow-on to the December 2025 early-warning report, securing a larger equity position in a junior explorer with a project adjacent to a core growth asset at the Timmins Camp. The market has already priced in the Timmins growth thesis and the Galleon relationship; this incremental stake reinforces existing positioning without introducing new operational leverage or financial risk.

Pan American Silver Corp. (PAAS) operates 10 producing mines and advancing projects across the Americas, with a primary focus on silver and gold. The company holds a leading position in silver mineral reserves and maintains a high correlation to silver price movements.

Its geographic exposure spans Mexico, Chile, Brazil, Peru, Argentina, Canada, Bolivia, and Guatemala. Operations utilize underground, open-pit, and residual leaching methods. Flagship assets include La Colorada in Mexico, a 44% interest in Juanicipio (Mexico), Cerro Moro (Argentina), Huaron (Peru), San Vicente (Bolivia), Jacobina (Brazil), El Peñón (Chile), Timmins (Canada), Shahuindo (Peru), Minera Florida (Chile), and Dolores (Mexico).