New Pacific continues work at Carangas, Silver Sand

Executive Summary

• New Pacific Metals Corp. reports significant progress on its Carangas and Silver Sand silver projects in Bolivia, driven by proactive community engagement and a supportive political environment under the newly elected government.
• At the Carangas project, the company successfully initiated the conversion of exploration licenses to administrative mining contracts and secured a favorable community vote to continue prior consultations and negotiate a long-term framework agreement.
• At the Silver Sand project, the company resolved critical issues regarding illegal artisanal mining, securing a judicial amparo and removing encroachers, allowing for the resumption of community engagement and preparatory work for a feasibility study.

Key Details

• Carangas Project - Permitting & Community:

  • In early 2025, the company submitted applications to convert Exploration Permit Licenses (EPLs) to Administrative Mining Contracts (AMCs) to the Autoridad Jurisdictional Administrativa Minera (AJAM) in Oruro.
  • AJAM Oruro reviewed the application and granted permission to proceed with prior community consultation.
  • In August 2025, the Carangas community voted in favor of continuing the prior consultation process and authorizing further permitting activities.
  • A draft long-term framework agreement detailing community benefits from permitting through mine life was presented in fall 2025; negotiations are ongoing.
  • Next steps include finalizing the framework agreement, completing the formal prior consultation with AJAM Oruro, and submitting the AMC conversion application to the Plurinational Legislative Assembly for final approval.
  • Upon obtaining AMCs, the company will conduct the Environmental Impact Assessment (EIA).

• Carangas Project - Exploration & Drilling:

  • Historical data (2021-2023) includes 81,145 meters of diamond drilling in 189 holes, supporting the September 2023 mineral resource estimate and September 2024 Preliminary Economic Assessment (PEA).
  • The company plans to commence a feasibility study supported by infill drilling to upgrade resources.
  • 2026 drilling campaign is expected to comprise over 30,000 meters, targeting deeper zones within known wide gold intercepts and new targets based on induced polarization anomalies.

• Silver Sand Project - Legal & Security:

  • The project's environmental categorization expired in November 2024 due to interruptions from illegal artisanal and small-scale mining (ASM).
  • By July 1, 2025, illegal mining activities ceased, and ASMs withdrew from the area.
  • The company established 24/7 on-site security and a temporary camp.
  • Preliminary surveys indicate a marginal impact on the project's overall economics from the illegal mining activities.
  • In June 2025, the Departmental Court of Justice of La Paz granted an amparo (constitutional protection) in favor of the company, providing immediate and long-term protection against encroachment.

• Silver Sand Project - Community & Future Work:

  • The company has resumed door-to-door community engagement led by the CEO and CSR team, with encouraging results.
  • Goals for late 2025 and early 2026 include negotiating framework and resettlement agreements with the directly impacted community and four indirectly impacted communities.
  • Target is to complete socialization and sign agreements by mid-2026.
  • Following community agreements, the company will restart the environmental categorization and Environmental and Social Impact Assessment (EEIA) process.
  • Concurrently, technical, geotechnical, and hydrogeological drilling will be conducted to support the feasibility study.

Notable Quotes

• "Two thousand twenty-five marks a year of change for New Pacific as the company took a more pro-active approach to move both projects toward production... and, as a result, made significant progress at both the Carangas project and the Silver Sand project."
• "The company believes that all these factors will make 2026 very promising and productive."