PAN AMERICAN SILVER CORP

Management Discussion and Analysis

For the years ended December 31, 2024 and 2023(tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted)

2024 OPERATING PERFORMANCE

Consolidated(1)(2)

(1)Please refer to the “Operating Metrics” and “Alternative Performance (Non-GAAP) Measures” sections of this MD&A for mine by mine operating and cost metrics.

(2)Consolidated results are inclusive of operating results for the La Arena gold mine from January 1, 2024 to November 30, 2024; see the Strategic Dispositions section of this MD&A for further details.

(3)Cash Costs and AISC are non-GAAP measures. Please refer to the “Alternative Performance (Non-GAAP) Measures” section of this MD&A for a detailed reconciliation of these measures to production costs.

Silver Production

Consolidated silver production for 2024 was 21.06 million ounces compared with 20.44 million ounces in 2023. The increase was driven by higher production at El Peñon and Minera Florida, due to a full twelve months of production from both mines, and higher silver production at La Colorada from the benefits of the new ventilation infrastructure. These increases were partially offset by: (i) the production decline at Dolores, where lower grade ores and stockpiles were processed following the planned cessation of mining activities in July 2024; and (ii) at Cerro Moro, where lower silver grades resulted from planned mine sequencing into lower grade ore zones and the impact of the development delays and dilution on production despite the benefit of a full twelve-month contribution to production relative to 2023.

Gold Production

Consolidated gold production for 2024 was 892.5 thousand ounces compared to 882.9 thousand ounces in 2023. The increase was largely driven by the contribution of the full twelve months of production in 2024 from the Acquired Mines, partially offset by lower production, primarily from: (i) Dolores, due to the aforementioned cessation of mining activities; (ii) La Arena, largely reflecting one month less production following the completion of the sale on December 2, 2024; (iii) Timmins, primarily reflecting lower grades driven by delayed stope sequencing; and (iv) Cerro Moro, from higher mining dilution and weather-related disruptions.

Base Metal Production

Zinc, lead and copper ("base metal") production in 2024 was 45.1 thousand tonnes, 20.8 thousand tonnes, and 5.2 thousand tonnes, respectively. Zinc and lead production increased 16% and 11%, respectively, relative to 2023 due to a full-year contribution of Minera Florida and higher throughput and grades at La Colorada, partially offset by lower production at Huaron from mine sequencing. Copper production was consistent with 2023.

Management Discussion and Analysis

For the years ended December 31, 2024 and 2023(tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted)

Cash Costs

Silver Segment Cash Costs per ounce in 2024 of $14.30 were $1.23 higher than the $13.07 in 2023. The increase was primarily driven by: (i) mining of lower grade ores at Cerro Moro; and (ii) the beneficial contribution to costs in 2023 from low-cost residual sales at Manantial Espejo, as the mine was entering care and maintenance. These factors increasing Cash Costs were partially offset by: (i) the ventilation improvements at La Colorada in the second half of 2024 ("H2 2024") leading to higher production and by-product credits from higher base metal grades due to access to higher grade zones; and (ii) lower treatment and refining charges at Huaron, reflective of favorable commercial concentrate terms on zinc and lead.

Gold Segment Cash Costs per ounce in 2024 of $1,203 were $90 per ounce higher relative to 2023. The increase in Cash Costs was primarily driven by: (i) lower gold grades at Dolores attributable to processing of lower grade stockpiles following the planned cessation of mining activities in July 2024; (ii) an increase in expensed costs at Jacobina, reflecting 2023 benefiting from the sale of acquired Yamana inventories that were carried at lower allocated costs ("the Acquired Inventory"); and (iii) an increase in operating costs at Timmins due to mining lower grade ore and higher development costs. These factors increasing Cash Costs were partly offset by higher silver by-product credits at El Peñon, reflective of favorable silver grades.

AISC

Silver Segment AISC excluding NRV inventory adjustments for 2024 of $18.98 per ounce were $1.07 per ounce higher than in 2023, predominately due to the previously described factors increasing Cash Costs, partially offset by reduced sustaining capital investments at Cerro Moro and Huaron. At Cerro Moro, the decrease mostly pertained to reduced near-mine exploration and mine and site infrastructure investments. At Huaron, reduced sustaining capital expenditures related to mine deepening and ventilation projects that were largely completed in 2023, along with the timing of payments on capital investments.

Gold Segment AISC excluding NRV inventory adjustments for 2024 of $1,501 per ounce were $85 per ounce higher than in 2023, largely reflecting the previously described factors increasing Cash Costs year-over-year.

Silver Segment Operations

La Colorada

At the La Colorada mine, 2024 silver production of 4.88 million ounces was 11% higher than 2023, primarily reflecting the significant improvements in mine ventilation conditions following the completion of the ventilation infrastructure in July 2024. Improved ventilation conditions have allowed mine rehabilitation and development rates to accelerate, thus increasing the number of production areas and leading to higher throughput. Zinc and lead production were 54% and 67% higher, respectively, due to mine sequencing as well as the improvement of ventilation conditions allowing access to certain higher grade zones.

2024 Cash Costs of $20.16 per ounce were $2.66 per ounce lower than in 2023, mainly from improved ventilation conditions in H2 2024 leading to improved mine productivity and access to high grade zones with improved by-product zinc and lead production. 2024 AISC excluding NRV inventory adjustments of $25.81 per ounce were $1.48 per ounce lower than in 2023, primarily driven by the same factors that affected Cash Costs, partially offset by higher sustaining capital investments. Higher sustaining capital investments in 2024 were related to the timing of payments on capital investments.

During 2024, the Company invested $30.8 million on project capital, to complete the Guadalupe ventilation infrastructure, and for engineering work and additional exploration drilling to advance the La Colorada Skarn project.

Cerro Moro

At the Cerro Moro mine, 2024 silver production of 2.97 million ounces and gold production of 77.5 thousand ounces were 16% and 8% lower, respectively, relative to 2023. The reduction in silver and gold production is due to planned mine sequencing into lower silver grade zones, delayed underground development, higher than

Management Discussion and Analysis

For the years ended December 31, 2024 and 2023(tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted)

planned dilution in the underground mines, and delayed mining and processing of ores from the satellite Naty zone due to severe weather conditions in the second quarter of 2024.

2024 Cash Costs of $9.57 per ounce were $6.89 per ounce higher relative to 2023, primarily due to the cost impact of mining lower grade ores and an increase in expensed costs related to the Acquired Inventory. This was partially offset by higher by-product credits from higher gold prices and a higher mix of gold to silver ore, as well as lower export taxes. 2024 AISC of $14.13 per ounce were $4.13 per ounce higher than 2023, largely due to the same factors affecting Cash Costs, partly offset by lower sustaining capital from near-mine exploration, capitalized underground development and site infrastructure.

Huaron

In 2024, silver production of 3.52 million ounces was comparable to silver production in 2023, as throughput, grades and recoveries were largely consistent year-over-year. Zinc and copper production also remained consistent, while lead production decreased 11% as a result of planned mine sequencing. 2024 Cash Costs of $8.84 per ounce were $1.11 per ounce lower relative to 2023, primarily reflecting lower treatment and refining charges attributable to favorable commercial concentrate terms, partly offset by higher operating costs pertaining to increased mine development. AISC in 2024 decreased by $2.19 per ounce, primarily as a result of the same factors that affected Cash Costs, as well as a decrease in sustaining capital expenditures. The year-over-year reduction in sustaining capital investments was related to mine deepening and ventilation projects that were largely completed in 2023, along with the timing of payments of capital investments.

In 2024, the Company invested $39.4 million on project capital related to the construction of the new filter plant and filter-stack tailings storage facility. The construction of the filter-stack tailings storage facility was substantially completed in Q4 2024 and is expected to be fully operational within the first half of 2025 ("H1 2025"), with some residual capital accounts payable settlements expected in 2025.

San Vicente

In 2024, silver production of 3.11 million ounces was 4% higher relative to silver production in 2023, mainly due to higher silver grades from mine sequencing. Zinc production remained consistent year-over-year, while lead and copper production decreased 11% and 4%, respectively, due to mine sequencing into higher silver grade ore zones. Cash Costs of $16.40 per ounce in 2024 were $0.75 per ounce higher than in 2023, primarily reflecting lower zinc by-product credits as a result of timing of zinc concentrate sales. In 2024, AISC of $18.38 per ounce were $1.29 per ounce higher than 2023 from the same factors that affected Cash Costs, as well as larger investments in sustaining capital relative to the prior year. The increase in sustaining capital investments were largely related to mine equipment replacements.

Gold Segment Operations

Jacobina

At the Jacobina mine, gold production of 196.7 thousand ounces in 2024 was 33% higher relative to gold production in 2023, reflecting the contribution of the full year of production from the operation. In 2024, Cash Costs of $969 per ounce were $183 per ounce higher than in 2023, largely driven by 2023 costs benefiting from the Acquired Inventory carried at relatively lower costs. In 2024, AISC of $1,230 per ounce were $122 per ounce higher than in 2023, driven by the same factors affecting Cash Costs, partially offset by lower sustaining capital per ounce.

During 2024, $49.9 million of sustaining capital was invested for near mine exploration, mine equipment replacements, lease payments for ore and waste haulage and tailings storage facility expansions. Additionally, the Company invested $14.4 million in project capital for upgrading the plant facility infrastructure and mine optimization study.

Management Discussion and Analysis

For the years ended December 31, 2024 and 2023(tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted)

El Peñon

At the El Peñon mine, gold production of 126.8 thousand ounces and silver production of 3.87 million ounces in 2024 were 32% and 33% higher, respectively, reflecting the contribution of the full year of production from the operation. Cash Costs in 2024 of $929 per ounce were $71 per ounce lower than 2023, primarily driven by higher silver by-product credits, partially offset by the impact of the Acquired Inventory carried at relatively lower costs in 2023. 2024 AISC of $1,244 per ounce were $37 per ounce higher than 2023, due to higher sustaining capital from near-mine exploration and mine equipment leases.

Timmins

At the Timmins mines, gold production of 123.7 thousand ounces in 2024 was 7% lower than in 2023, reflecting lower gold grades due to delayed stope sequencing, in addition to excess dilution in certain stopes. 2024 Cash Costs of $1,670 per ounce were $167 per ounce higher than in 2023, reflecting the cost impact of mining lower gold grade ores, as well as higher development costs at the Bell Creek mine. 2024 AISC of $2,023 per ounce were $223 per ounce higher than in 2023 due to the same factors affecting Cash Costs, as well as increased investments for mine equipment replacements and refurbishments, and near-mine exploration.

In 2024, the Company invested $8.8 million on project capital related to the development and construction of the Bell Creek paste backfill plant. The construction of the plant was completed in the third quarter of 2024 ("Q3 2024") and commissioned in Q4 2024. The plant is now fully operational and is expected to provide enhanced ground stability and increased mineral resource recovery.

Shahuindo

At the Shahuindo mine, 2024 gold production of 135.1 thousand ounces was 4% lower than in 2023, largely related to a lower ratio of ounces recovered to ounces stacked from lower heap leach irrigation rates driven by the high proportion of fine ore stacked in 2024. Cash Costs in 2024 of $976 per ounce were consistent with 2023, while 2024 AISC of $1,371 per ounce were $61 per ounce lower than in 2023. The decrease in 2024 AISC pertains largely to lower investments relating to waste dump preparation and water treatment plant infrastructure projects, which have been postponed to 2025 to allow for a design optimization.

Minera Florida

At the Minera Florida mine, 2024 gold production of 80.3 thousand ounces and silver production of 0.65 million ounces were 11% and 129% higher than in 2023, respectively, reflecting the contribution of the full year of production from the operation. The increase in silver production was also due to higher silver grades mined from positive mine grade reconciliations and mine sequencing. 2024 Cash Costs of $1,542 per ounce were $70 per ounce higher than in 2023, primarily due to higher mining costs from processing low gold grade ores, partially offset by higher by-product credits from higher silver and zinc grades. 2024 AISC excluding NRV inventory adjustments of $1,839 per ounce were consistent with 2023, due to the increase in Cash Costs being largely offset by the reduction in sustaining capital per ounce.

Dolores

At the Dolores mine, 2024 silver production of 1.74 million ounces and gold production of 72.3 thousand ounces were 21% and 32% lower than in 2023, respectively. The reduction was due to the planned cessation of mining activities in July 2024, which was partially offset by the processing of lower grade stockpiles as a result of higher metal prices, and a higher ratio of ounces recovered to ounces stacked. Cash Costs of $1,388 per ounce in 2024 were $367 per ounce higher than in 2023 due to the processing of lower grade ores. 2024 AISC excluding NRV inventory adjustments of $1,518 per ounce were $344 per ounce higher than in 2023, primarily as a result of the same factors that affected Cash Costs, partially offset by lower sustaining capital given the wind-down of mining activities.