JP Morgan Sales Desk Presentation December 10, 2013

Cautionary Notes
CAUTIONARY NOTE REGARDING NON-IFRS MEASURE CASH COSTS PER OUNCE THIS PRESENTATION PRESENTS INFORMATION ABOUT OUR CASH COSTS OF PRODUCTION OF AN OUNCE OF SILVER FOR OUR OPERATING MINES. CASH COSTS PER OUNCE PRODUCED IS CALCULATED AS FOLLOWS: EXCEPT AS OTHERWISE NOTED, CASH COSTS PER OUNCE PRODUCED IS CALCULATED BY DIVIDING TOTAL CASH COSTS BY TOTAL SILVER OUNCES PRODUCED AT THE RELEVANT MINE OR MINES TOTAL CASH COSTS INCLUDE MINE OPERATING COSTS SUCH AS MINING, PROCESSING, ADMINISTRATION, ROYALTIES AND OPERATING TAXES, BUT EXCLUDE AMORTIZATION, RECLAMATION COSTS, FINANCING COSTS AND CAPITAL DEVELOPMENT AND EXPLORATION. CERTAIN AMOUNTS OF STOCK-BASED COMPENSATION ARE EXCLUDED AS WELL CASH COST PER OUNCE OF SILVER PRODUCED IS INCLUDED IN THIS PRESENTATION BECAUSE CERTAIN INVESTORS USE THIS INFORMATION TO ASSESS OUR PERFORMANCE AND ALSO TO DETERMINE OUR ABILITY TO GENERATE CASH FLOW FOR USE IN INVESTING AND OTHER ACTIVITIES. THE INCLUSION OF CASH COSTS PER OUNCE PRODUCED MAY ENABLE INVESTORS TO BETTER UNDERSTAND YEAR-OVER-YEAR CHANGES IN OUR PRODUCTION COSTS, WHICH IN TURN AFFECT PROFITABILITY AND CASH FLOW. CASH COSTS PER OUNCE PRODUCED DOES NOT HAVE A STANDARDIZED MEANING OR A CONSISTENT BASIS OF CALCULATION PRESCRIBED BY CANADIAN ACCOUNTING STANDARDS. INVESTORS ARE CAUTIONED THAT CASH COSTS PER OUNCE PRODUCED SHOULD NOT BE CONSIDERED IN ISOLATION OR CONSTRUED AS A SUBSTITUTE TO COSTS DETERMINED IN ACCORDANCE WITH CANADIAN ACCOUNTING STANDARDS AS PRESCRIBED UNDER IFRS AS AN INDICATOR OF PERFORMANCE. OUR METHOD OF CALCULATING CASH COSTS PER OUNCE PRODUCED MAY DIFFER FROM THE METHODS USED BY OTHER ENTITIES AND, ACCORDINGLY, OUR CASH COSTS PER OUNCE PRODUCED MAY NOT BE COMPARABLE TO SIMILARLY TITLED MEASURES USED BY OTHER ENTITIES. SEE OUR MD&A FOR THE YEAR ENDED DECEMBER 31, 2012 FILED ON SEDAR AT WWW.SEDAR.COM FOR A RECONCILIATION OF CASH COSTS PER OUNCE PRODUCED TO THE MOST DIRECTLY COMPARABLE ACCOUNTING MEASURE UNDER IFRS. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS CERTAIN OF THE STATEMENTS AND INFORMATION IN THIS PRESENTATION CONSTITUTE FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND FORWARD-LOOKING INFORMATION WITHIN THE MEANING OF APPLICABLE CANADIAN PROVINCIAL SECURITIES LAWS. ALL STATEMENTS, OTHER THAN STATEMENTS OF HISTORICAL FACT, ARE FORWARDLOOKING STATEMENTS. WHEN USED IN THIS NEWS RELEASE THE WORDS, BELIEVES, EXPECTS, INTENDS, PLANS, FORECAST, OBJECTIVE, OUTLOOK, POSITIONING, POTENTIAL, ANTICIPATED, BUDGET, AND OTHER SIMILAR WORDS AND EXPRESSIONS, IDENTIFY FORWARD-LOOKING STATEMENTS OR INFORMATION. THESE FORWARD-LOOKING STATEMENTS OR INFORMATION RELATE TO, AMONG OTHER THINGS: FUTURE PRODUCTION OF SILVER, GOLD AND OTHER METALS AND THE TIMING OF SUCH PRODUCTION; FUTURE CASH COSTS PER OUNCE OF SILVER; THE PRICE OF SILVER AND OTHER METALS; THE EFFECTS OF LAWS, REGULATIONS AND GOVERNMENT POLICIES AFFECTING PAN AMERICANS OPERATIONS OR POTENTIAL FUTURE OPERATIONS INCLUDING, BUT NOT LIMITED TO RECENT PROPOSED CHANGES TO THE LAWS IN MEXICO RELATING TO A NEW MINING ROYALTY; THE CONTINUING NATURE OF HIGH INFLATION, RISING CAPITAL AND OPERATING COSTS, CAPITAL RESTRICTIONS AND RISKS OF EXPROPRIATION IN ARGENTINA, AND THEIR EFFECTS ON THE COMPANY AND ITS ASSETS; THE TIMING OF PRODUCTION AND THE CASH AND TOTAL COSTS OF PRODUCTION AT EACH OF THE COMPANYS PROPERTIES; THE SUFFICIENCY OF THE COMPANYS CURRENT WORKING CAPITAL, ANTICIPATED OPERATING CASH FLOW OR ITS ABILITY TO RAISE NECESSARY FUNDS; THE ABILITY OF THE COMPANY TO ACHIEVE ANY PLANNED EXPANSIONS AND DEVELOPMENT, INCLUDING BUT NOT LIMITED TO, POTENTIAL OPPORTUNITIES AT THE DOLORES MINE IN CONNECTION WITH THE PULP AGGLOMERATION PROJECT AND EXPANSION OF THE LA COLORADA MINE, THE TIMING FOR THE SAME AND THE EXPECTED RESULTS OF ANY SUCH OPPORTUNITIES OR EXPANSIONS; THE ABILITY OF THE COMPANY TO REDUCE CAPITAL COSTS AND THE EFFECTS OF SUCH REDUCTION MEASURES ON THE COMPANY; THE ESTIMATES OF EXPECTED OR ANTICIPATED ECONOMIC RETURNS FROM THE COMPANYS MINING PROJECTS; FORECAST CAPITAL AND NON-OPERATING SPENDING; FUTURE SALES OF THE METALS, CONCENTRATES OR OTHER PRODUCTS PRODUCED BY THE COMPANY; AND THE COMPANYS PLANS AND EXPECTATIONS FOR ITS PROPERTIES AND OPERATIONS. THESE STATEMENTS REFLECT THE COMPANYS CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE NECESSARILY BASED UPON A NUMBER OF ASSUMPTIONS AND ESTIMATES THAT, WHILE CONSIDERED REASONABLE BY THE COMPANY, ARE INHERENTLY SUBJECT TO SIGNIFICANT BUSINESS, ECONOMIC, COMPETITIVE, POLITICAL AND SOCIAL UNCERTAINTIES AND CONTINGENCIES. MANY FACTORS, BOTH KNOWN AND UNKNOWN, COULD CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS TO BE MATERIALLY DIFFERENT FROM THE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT ARE OR MAY BE EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS CONTAINED IN THIS NEWS RELEASE AND THE COMPANY HAS MADE ASSUMPTIONS AND ESTIMATES BASED ON OR RELATED TO MANY OF THESE FACTORS. SUCH FACTORS INCLUDE, WITHOUT LIMITATION: FLUCTUATIONS IN SPOT AND FORWARD MARKETS FOR SILVER, GOLD, BASE METALS AND CERTAIN OTHER COMMODITIES (SUCH AS NATURAL GAS, FUEL OIL AND ELECTRICITY); FLUCTUATIONS IN CURRENCY MARKETS (SUCH AS THE CANADIAN DOLLAR, PERUVIAN SOL, MEXICAN PESO, ARGENTINE PESO AND BOLIVIAN BOLIVIANO VERSUS THE U.S. DOLLAR); RISKS RELATED TO THE TECHNOLOGICAL AND OPERATIONAL NATURE OF THE COMPANYS BUSINESS; CHANGES IN NATIONAL AND LOCAL GOVERNMENT, LEGISLATION, TAXATION, CONTROLS OR REGULATIONS INCLUDING AMONG OTHERS, CHANGES TO IMPORT AND EXPORT REGULATIONS AND LAWS RELATING TO THE REPATRIATION OF CAPITAL AND FOREIGN CURRENCY CONTROLS; POLITICAL OR ECONOMIC DEVELOPMENTS IN CANADA, THE UNITED STATES, MEXICO, PERU, ARGENTINA, BOLIVIA OR OTHER COUNTRIES WHERE THE COMPANY MAY CARRY ON BUSINESS IN THE FUTURE; RISKS AND HAZARDS ASSOCIATED WITH THE BUSINESS OF MINERAL EXPLORATION, DEVELOPMENT AND MINING (INCLUDING ENVIRONMENTAL HAZARDS, INDUSTRIAL ACCIDENTS, UNUSUAL OR UNEXPECTED GEOLOGICAL OR STRUCTURAL FORMATIONS, PRESSURES, CAVE-INS AND FLOODING); RISKS RELATING TO THE CREDIT WORTHINESS OR FINANCIAL CONDITION OF SUPPLIERS, REFINERS AND OTHER PARTIES WITH WHOM THE COMPANY DOES BUSINESS; INADEQUATE INSURANCE, OR INABILITY TO OBTAIN INSURANCE, TO COVER THESE RISKS AND HAZARDS; EMPLOYEE RELATIONS AND THE EFFECTS OF LABOUR LAWS IN THOSE COUNTRIES IN WHICH THE COMPANY OPERATES; RELATIONSHIPS WITH AND CLAIMS BY LOCAL COMMUNITIES AND INDIGENOUS POPULATIONS; AVAILABILITY AND INCREASING COSTS ASSOCIATED WITH MINING INPUTS AND LABOUR; THE SPECULATIVE NATURE OF MINERAL EXPLORATION AND DEVELOPMENT, INCLUDING THE RISKS OF OBTAINING NECESSARY LICENSES AND PERMITS AND THE PRESENCE OF LAWS AND REGULATIONS THAT MAY IMPOSE RESTRICTIONS ON MINING, INCLUDING THOSE CURRENTLY IN THE PROVINCE OF CHUBUT, ARGENTINA; DIMINISHING QUANTITIES OR GRADES OF MINERAL RESERVES AS PROPERTIES ARE MINED; GLOBAL FINANCIAL CONDITIONS; THE COMPANYS ABILITY TO COMPLETE AND SUCCESSFULLY INTEGRATE ACQUISITIONS AND TO MITIGATE OTHER BUSINESS COMBINATION RISKS; CHALLENGES TO, OR DIFFICULTY IN MAINTAINING, THE COMPANYS TITLE TO PROPERTIES AND CONTINUED OWNERSHIP THEREOF; THE ACTUAL RESULTS OF CURRENT EXPLORATION ACTIVITIES, CONCLUSIONS OF ECONOMIC EVALUATIONS, AND CHANGES IN PROJECT PARAMETERS TO DEAL WITH UNANTICIPATED ECONOMIC OR OTHER FACTORS; INCREASED COMPETITION IN THE MINING INDUSTRY FOR PROPERTIES, EQUIPMENT, QUALIFIED PERSONNEL, AND THEIR COSTS; AND THOSE FACTORS IDENTIFIED UNDER THE CAPTION RISKS RELATED TO PAN AMERICANS BUSINESS IN THE COMPANYS MOST RECENT FORM 40-F AND ANNUAL INFORMATION FORM FILED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION AND CANADIAN PROVINCIAL SECURITIES REGULATORY AUTHORITIES. INVESTORS ARE CAUTIONED AGAINST ATTRIBUTING UNDUE CERTAINTY OR RELIANCE ON FORWARD-LOOKING STATEMENTS. ALTHOUGH THE COMPANY HAS ATTEMPTED TO IDENTIFY IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY, THERE MAY BE OTHER FACTORS THAT CAUSE RESULTS NOT TO BE AS ANTICIPATED, ESTIMATED, DESCRIBED OR INTENDED. THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE THESE FORWARD-LOOKING STATEMENTS OR INFORMATION TO REFLECT CHANGES IN ASSUMPTIONS OR CHANGES IN CIRCUMSTANCES OR ANY OTHER EVENTS AFFECTING SUCH STATEMENTS OR INFORMATION, OTHER THAN AS REQUIRED BY APPLICABLE LAW.

Geographically Diversified Assets

Q3 Consolidated Results
Operational Highlights Silverproduced Goldproduced ConsolidatedcashcostsperAgoz (1) AllinsustainingcostperAgoz sold(1) Q32013 6.7Moz 41.6Koz $10.40 $16.26 Q32012 6.3Moz 28.2Koz $13.87 $24.27

Agproductionup7%fromQ32012 RecordquarterlyAuproduction,up48%fromQ32012 Q32013cashcostsdown25%fromQ32012anddown14% fromQ22013

(1)Netofbyproductcredits

Q3 2013 Production
Mine
LaColorada AlamoDorado Dolores

Ag Production
1.1Moz 1.3Moz 1.0Moz

AuProduction
0.6Koz 4.6Koz 21.6Koz

CashCosts
$10.19/oz $6.76/oz $5.70/oz

Huaron Morococha (92.2%)

SanVicente(95%) Manantial Espejo

0.9Moz 0.7Moz
1.1Moz 0.8Moz

0.2Koz 0.5Koz
13.9Koz

$12.85/oz $15.89/oz
$13.14/oz $12.55/oz

TOTAL*

6.7Moz

41.6Koz

$10.40/oz

SignificantimprovementsachievedatPeruvianoperations Cashcostsperounceofsilver,netofbyproductcredits Realizedprices:Ag$20.52/oz,Au$1,319/oz,Zn$1,862/tonne,Pb $2,100/tonne,Cu$7,146/tonne

*Totalsmaynotaddupduetorounding.

All-In Sustaining Costs per Silver Ounce Sold (AISCSOS)

Measureofourconsolidatedoperatingperformanceandabilitytogeneratecashflow Q32013AISCSOSdown33%yearonyear
Three months ended Sept. 30, Nine months ended Sept. 30, Production costs Royalties Smelting, refining and (1) transportation charges (1) Less by-product credits Cash Cost of Sales Net of Byproducts Sustaining capital Exploration Reclamation cost accretion General & administrative expense All-in sustaining costs Payable ounces sold All-in sustaining cost per silver ounce sold, net of by-products
(2)

$ $ $ $ $ $ $ $ $ A $ B (A*$1000)/B $

2013 129,959 7,668 27,334 (89,313) 75,648 29,543 2,622 759 3,939 112,511 6,920,757 16.26

$ $ $ $ $ $ $ $ $ $

2012 141,977 14,161

$ $

2013 394,390 $ 20,889 $ 69,850 $ (246,113) $ 239,016 $ 88,944 14,485 2,273 14,377 359,095 19,042,012 $ $ $ $ $

2012 358,509 29,384 72,537 (214,036) 246,395 68,810 26,341 2,344 16,152 360,042 17,358,691 20.74

25,571 $ (76,742) $ 104,968 33,808 8,193 710 4,591 152,270 6,273,353 $ $ $ $ $ $

24.27

18.86 $

(1)IncludedintherevenuelineoftheunauditedcondensedinterimconsolidatedincomestatementsdatedSeptember30,2013andarereflectiveofrealizedmetalpricesforthe applicableperiods. (2)Non GAAPmeasures:pleaserefertosectionAlternativePerformance(NonGAAP)MeasuresofMD&AdatedSeptember30,2013forareconciliationofthesemeasurestothe unauditedcondensedinterimconsolidatedfinancialstatements.

Q3 2013 Operational Highlights

Dolores Ag production up 25% yearonyear on higher grades, recoveries and throughputs Huaron and Morococha Ag production up 18% and 24% yearonyear, respectively on higher grades, throughput and recoveries San Vicente Ag production up 9% yearonyear on higher grades, and throughput Record quarterly Au production of 41.6 Koz (48% up yearonyear) due to higher grades and recoveries at both Dolores and Manantial Espejo Cost control and productivity enhancement initiatives showing results. Cash costs 25% down yearonyear and 15% down from Q2 2013
7

Q3 2013 Financial Results

FinancialHighlights Mineoperating earnings Adjustedearnings Adjustedearningspershare Operatingcashflows Operatingcashflowspershare Q32013 $33.9M $12.2M $0.08 $40.7M $0.27

FinancialPositionatSeptember30,2013 Cash&shortterminvestments Networkingcapital Debt (includingcapitalleases) $421.0M $699.3M $63.7M

8

Q3 2013 Financial Highlights

VastimprovementfromQ22013:
Adjustednetearningsrosefrom($9.9M),or($0.07)pershareto$12.2M, or$0.08pershare Operatingcashflowsrosefrom$0.5M,to$40.7M,or$0.27pershare

Costreductionmeasurescontinuetobearpositiveresults:
G&Aexpensedeclinedto$3.9Mfrom$4.6M Exploration&projectdevelopmentdeclinedto$2.6Mfrom$5.6M

2013 Forecast
OnTracktomeetoperationalguidance:
25to26MozAg 125to135KozAu

Ontracktosurpassoriginalbasemetalsforecastat:
38.5Kto41.5Ktonnes Zn 12.5Kto13.5Ktonnes Pb 4.5Kto5KtonnesCu

Cashcostsexpectedtobe$11.25to$11.80/oz Ag,lowerthanoriginal consolidatedforecastof$11.80to$12.80/oz Ag

10

Organic Growth
Dolores Pulp Agglomeration
Preliminary work on pulp agglomeration project encouraging @ reserve prices ($25/oz Ag & $1,350/oz Au)

Initiated laboratory and onsite pilot metallurgical tests to evaluate potential for drygrinding to improve economics. Continue evaluating project and mine expansion opportunities in light of lower metal prices (i.e. future underground production) In H2 2013 will invest $2 $3 million to proceed with basic engineering, to put us in position to advance the project early next year, should results of continued evaluation prove positive and/or precious metals prices improve.
11

Organic Growth La Colorada Expansion

ExplorationsuccessincreasedP+Preservesfrom18Moz Agin2009to65 Moz Agin2013(=14yearsproductionatcurrentrates). Opportunitytosignificantlyincreaseproductionrate(50%to75%increase): Installnew600metredeepshaftandhoist Installrelatedinfrastructure(air,waterandpower) Increasedevelopmentratesandactiveproductionareas Expandsulfideprocessingplant Technical/engineeringworkunderway,expectscopingstudyinQ42013 Potential: 2430monthsprojectexecution Lowrisk andmodestcapitalinvestment(operatingcosts,permitting, metallurgyallwellknown) MeaningfulincreasetoPAASconsolidatedAgproduction

La Colorada Expansion
W E

Accessramp

100meters

ProvenReserves ProbableReserves Resources Potential(partiallydrilled)

HWvein NC2vein

La Colorada Expansion Potential

S N

100meters ProvenReserves ProbableReserves Resources Potential(partiallydrilled)

Recompensa vein

Amolillo vein

NC2vein

Amolillo Long Section

W
2.49m Ag823g/t Au0.56g/t Pb 1.66% Zn2.79% 3.44m Ag710g/t Au0.26g/t Pb 2.49% Zn3.91% 1.44m Ag703g/t Au0.79g/t Pb 1.65% Zn1.80% 3.73m Ag1,584g/t Au0.82g/t Pb 1.16% Zn2.14% 3.52m Ag1,073g/t Au0.12g/t Pb 0.58% Zn1.90%

2.17m Ag575g/t Au0.20g/t Pb 1.38% Zn4.74%

1.31m Ag610g/t Au0.64g/t Pb 6.80% Zn13.50%

4.08m Ag984g/t Au1.61g/t Pb 4.99% Zn8.14%

5.76m Ag588g/t Au0.23g/t Pb 0.51% Zn0.23%

2.75m Ag833g/t Au0.29g/t Pb 5.05% Zn9.97%

2.70m Ag461g/t Au0.45g/t Pb 3.30% Zn3.09%

2.80m Ag538g/t Au0.22g/t Pb 7.97% Zn14.73% 100metres

15

Q3 2013 A Stronger PAAS

Returnedtoprofitability adjustedearningsreboundedto$12.2millionor $0.08persharefromalossinQ22013 Operatingcashflowof$40.7millionor$0.27pershare Meaningfullyimprovedcashcoststructure throughproductivity enhancementsandcostreductions AISCOSdown33%yearonyearto$16.26/oz Ag G&Acostsdown15% Explorationbudgetreducedby20%

Maintainedbalancesheetstrength Cashof$420millionandworking capitalof$700million,withonly$63.7millionindebt IncreasedSilverandGoldproduction

Real Returns
Industryleading quarterly cash dividend of $0.125 per common share was maintained Annual dividend of $0.50 per common share represents yield ~5% (at Nov. 27, 2013 closing) Through our NCIB programs invested $142.5 million & repurchased and cancelled approximately 6.4 million shares in past 2 years Since inception in 2010, we have paid a total of $100.6 million to our shareholders in cash dividends Intending to maintain our dividend (at current Ag price of $20 to $22/oz ) In total, we have returned in excess of $260 million to our shareholders
17

Pan American Silver Corp. OurVision: Tobetheworldspreeminentsilver producer,withareputationfor excellenceindiscovery,engineering, innovation andsustainable development."

18

Appendix I Capital Structure *

ShareCapital: Marketcapitalization US$1.52Billion Issuedandoutstandingshares 151,410,712 Fullydilutedshares 151,411,371 TradingStatistics: NASDAQ: Averagevolume(3months) 2,845,767shares 52weekhigh $22.62 52weeklow $10.23 TSX: Averagevolume(3months) 594,067shares 52weekhigh $22.62 52weeklow $9.89
*AtNovember27,2012
19

Appendix II Q3 2013 Capex

Capex ($M) Q32013A LaColorada AlamoDorado Dolores DoloresLeachPad* Huaron Morococha (92.2%) SanVicente(95%) Manantial Espejo Dolores/LCTechnicalStudies* TOTAL
*Investmentcapital

2013keycapitalprojects: Dolores: Prestripping Leachpad2stabilization&pad3 construction Enhancementstominingfleet Powerlineproject Huaron,LaColorada andSan Vicente: Tailingsdamraises Morococha andHuaron: Undergrounddevelopment AlamoDoradoandManantial Espejo Prestripping
20

2013E $12.7 $6.5 $78.9 $18.7 $16.3 $10.0 $13.7

$1.3 $2.3 $13.5 $10.6 $2.5 $3.4 $3.2 $3.4 $2.0 $41.6

$156.8

Appendix III Proven and Probable Reserves

Proven&ProbableMineralReserves&Resources(1),(2),(3)
Property Huaron Morococha (92.2%) La Colorada Dolores Alamo Dorado La Bolsa Manantial Espejo San Vicente (95%) TOTALS(1) Location Peru Peru Mexico Mexico Mexico Mexico Argentina Bolivia Classification Proven Probable Proven Probable Proven Probable Proven Probable Proven Probable Proven Probable Proven Probable Proven Probable Proven+ Probable Tonnes (Mt) 6.6 4.7 2.8 2.7 2.0 3.1 49.4 38.4 6.0 1.7 9.5 6.2 3.4 1.8 1.9 0.8 140.8 Ag (g/t) 171 171 187 203 397 390 29 25 74 89 10 7 127 129 428 395 70 Contained Au(g/t) Ag(Moz) 36.1 N/A 25.5 N/A 16.8 N/A 17.4 N/A 25.8 0.38 39.0 0.42 45.6 0.59 30.5 0.55 14.3 0.25 4.8 0.55 3.1 0.67 1.4 0.57 13.9 2.02 7.3 2.11 25.8 N/A 9.8 N/A 316.9 0.62 ContainedAu (000soz) N/A N/A N/A N/A 24.9 42.1 934.4 682.5 48.9 29.4 203.0 113.1 221.8 119.2 N/A N/A 2,419.4

(1)Totalsmaynotaddupduetorounding,(2)theDecember31,2012ProvenandProbableMineralReserveswereestimatedusingappropriatecutoffgradesbasedon assumedmetalpricesofAg:25/oz,Au:$1,350,Cu:$6,500/t,Pb:$1,850/t,Zn:$1,750/t,(3)Completemineralreserveandresourcestablesatwww.panamericansilver.com

21

Note on Mineral Reserves and Resources Information

THIS PRESENTATION CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND FORWARD-LOOKING INFORMATION WITHIN THE MEANING OF APPLICABLE CANADIAN SECURITIES LEGISLATION. WHEN USED IN THIS PRESENTATION, THE WORDS BELIEVES, EXPECTS, INTENDS, PLANS, TARGETS, POTENTIAL, AND OTHER SIMILAR WORDS AND EXPRESSIONS IDENTIFY FORWARD-LOOKING STATEMENTS OR INFORMATION. FORWARD-LOOKING STATEMENTS AND INFORMATION EXPRESS, AS AT THE DATE OF THIS NEWS RELEASE, THE COMPANYS PLANS, ESTIMATES, FORECASTS, PROJECTIONS, EXPECTATIONS, OR BELIEFS AS TO FUTURE EVENTS OR RESULTS AND THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION TO, UPDATE SUCH FORWARD-LOOKING STATEMENTS OR INFORMATION, OTHER THAN AS REQUIRED BY APPLICABLE LAW. SUCH FORWARDLOOKING STATEMENTS AND INFORMATION INCLUDE, BUT ARE NOT LIMITED TO STATEMENTS AS TO: THE ACCURACY OF ESTIMATED MINERAL RESERVES AND RESOURCES, ANTICIPATED RESULTS OF FUTURE EXPLORATION, AND FORECAST FUTURE PRECIOUS METAL PRICES. AND EXPECTATIONS THAT METALLURGICAL, ENVIRONMENTAL, PERMITTING, LEGAL, TITLE, TAXATION, SOCIO-ECONOMIC, POLITICAL, MARKETING OR OTHER ISSUES WILL NOT MATERIALLY AFFECT ESTIMATES OF MINERAL RESERVES. THESE STATEMENTS REFLECT THE COMPANYS CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE NECESSARILY BASED UPON A NUMBER OF ASSUMPTIONS AND ESTIMATES THAT, WHILE CONSIDERED REASONABLE BY THE COMPANY, ARE INHERENTLY SUBJECT TO SIGNIFICANT BUSINESS, ECONOMIC, COMPETITIVE, POLITICAL AND SOCIAL UNCERTAINTIES AND CONTINGENCIES. MANY FACTORS, BOTH KNOWN AND UNKNOWN, COULD CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS TO BE MATERIALLY DIFFERENT FROM THE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT ARE OR MAY BE EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS CONTAINED IN THIS PRESENTATION AND THE COMPANY HAS MADE ASSUMPTIONS AND ESTIMATES BASED ON OR RELATED TO MANY OF THESE FACTORS. SUCH FACTORS INCLUDE, WITHOUT LIMITATION: FLUCTUATIONS IN SPOT AND FORWARD MARKETS FOR SILVER, GOLD, BASE METALS AND CERTAIN OTHER COMMODITIES (SUCH AS NATURAL GAS, FUEL OIL AND ELECTRICITY); FLUCTUATIONS IN CURRENCY MARKETS (SUCH AS THE PERUVIAN SOL, MEXICAN PESO, ARGENTINE PESO AND BOLIVIAN BOLIVIANO VERSUS THE U.S. DOLLAR); RISKS RELATED TO THE TECHNOLOGICAL AND OPERATIONAL NATURE OF THE COMPANYS BUSINESS; CHANGES IN NATIONAL AND LOCAL GOVERNMENT, LEGISLATION, TAXATION, CONTROLS OR REGULATIONS AND POLITICAL OR ECONOMIC DEVELOPMENTS IN CANADA, THE UNITED STATES, MEXICO, PERU, ARGENTINA, BOLIVIA OR OTHER COUNTRIES WHERE THE COMPANY MAY CARRY ON BUSINESS IN THE FUTURE; RISKS AND HAZARDS ASSOCIATED WITH THE BUSINESS OF MINERAL EXPLORATION, DEVELOPMENT AND MINING (INCLUDING ENVIRONMENTAL HAZARDS, INDUSTRIAL ACCIDENTS, UNUSUAL OR UNEXPECTED GEOLOGICAL OR STRUCTURAL FORMATIONS, PRESSURES, CAVE-INS AND FLOODING); EMPLOYEE RELATIONS; RELATIONSHIPS WITH AND CLAIMS BY LOCAL COMMUNITIES AND INDIGENOUS POPULATIONS; AVAILABILITY AND INCREASING COSTS ASSOCIATED WITH MINING INPUTS AND LABOUR; THE SPECULATIVE NATURE OF MINERAL EXPLORATION AND DEVELOPMENT, INCLUDING THE RISKS OF OBTAINING NECESSARY LICENSES AND PERMITS AND THE PRESENCE OF LAWS AND REGULATIONS THAT MAY IMPOSE RESTRICTIONS ON MINING, INCLUDING THOSE CURRENTLY IN THE PROVINCE OF CHUBUT, ARGENTINA; DIMINISHING QUANTITIES OR GRADES OF MINERAL RESERVES AS PROPERTIES ARE MINED; GLOBAL FINANCIAL CONDITIONS; CHALLENGES TO, OR DIFFICULTY IN MAINTAINING, THE COMPANYS TITLE TO PROPERTIES AND CONTINUED OWNERSHIP THEREOF; THE ACTUAL RESULTS OF CURRENT EXPLORATION ACTIVITIES, CONCLUSIONS OF ECONOMIC EVALUATIONS, AND CHANGES IN PROJECT PARAMETERS TO DEAL WITH UNANTICIPATED ECONOMIC OR OTHER FACTORS; INCREASED COMPETITION IN THE MINING INDUSTRY FOR PROPERTIES, EQUIPMENT, QUALIFIED PERSONNEL, AND THEIR COSTS; AND THOSE FACTORS IDENTIFIED UNDER THE CAPTION RISKS RELATED TO PAN AMERICANS BUSINESS IN THE COMPANYS MOST RECENT FORM 40F AND ANNUAL INFORMATION FORM FILED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION AND CANADIAN PROVINCIAL SECURITIES REGULATORY AUTHORITIES. INVESTORS ARE CAUTIONED AGAINST ATTRIBUTING UNDUE CERTAINTY OR RELIANCE ON FORWARDLOOKING STATEMENTS. ALTHOUGH THE COMPANY HAS ATTEMPTED TO IDENTIFY IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY, THERE MAY BE OTHER FACTORS THAT CAUSE RESULTS NOT TO BE AS ANTICIPATED, ESTIMATED, DESCRIBED OR INTENDED. THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE THESE FORWARD-LOOKING STATEMENTS OR INFORMATION TO REFLECT CHANGES IN ASSUMPTIONS OR CHANGES IN CIRCUMSTANCES OR ANY OTHER EVENTS AFFECTING SUCH STATEMENTS OR INFORMATION, OTHER THAN AS REQUIRED BY APPLICABLE LAW. CAUTIONARY NOTE TO US INVESTORS CONCERNING ESTIMATES OF MEASURED AND INDICATED RESOURCES THIS NEWS RELEASE HAS BEEN PREPARED IN ACCORDANCE WITH THE REQUIREMENTS OF CANADIAN PROVINCIAL SECURITIES LAWS, WHICH DIFFER FROM THE REQUIREMENTS OF U.S. SECURITIES LAWS. UNLESS OTHERWISE INDICATED, ALL MINERAL RESERVE AND RESOURCE ESTIMATES INCLUDED IN THIS NEWS RELEASE HAVE BEEN PREPARED IN ACCORDANCE WITH CANADIAN NATIONAL INSTRUMENT 43-101 STANDARDS OF DISCLOSURE FOR MINERAL PROJECTS (NI 43-101) AND THE CANADIAN INSTITUTE OF MINING, METALLURGY AND PETROLEUM CLASSIFICATION SYSTEM. NI 43-101 IS A RULE DEVELOPED BY THE CANADIAN SECURITIES ADMINISTRATORS THAT ESTABLISHES STANDARDS FOR ALL PUBLIC DISCLOSURE AN ISSUER MAKES OF SCIENTIFIC AND TECHNICAL INFORMATION CONCERNING MINERAL PROJECTS. CANADIAN STANDARDS, INCLUDING NI 43-101, DIFFER SIGNIFICANTLY FROM THE REQUIREMENTS OF THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION (THE SEC), AND INFORMATION CONCERNING MINERALIZATION, DEPOSITS, MINERAL RESERVE AND RESOURCE INFORMATION CONTAINED OR REFERRED TO HEREIN MAY NOT BE COMPARABLE TO SIMILAR INFORMATION DISCLOSED BY U.S. COMPANIES. IN PARTICULAR, AND WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, THIS PRESS RELEASE USES THE TERMS MEASURED RESOURCES, INDICATED RESOURCES AND INFERRED RESOURCES. U.S. INVESTORS ARE ADVISED THAT, WHILE SUCH TERMS ARE RECOGNIZED AND REQUIRED BY CANADIAN SECURITIES LAWS, THE SEC DOES NOT RECOGNIZE THEM. UNDER U.S. STANDARDS, MINERALIZATION MAY NOT BE CLASSIFIED AS A RESERVE UNLESS THE DETERMINATION HAS BEEN MADE THAT THE MINERALIZATION COULD BE ECONOMICALLY AND LEGALLY PRODUCED OR EXTRACTED AT THE TIME THE RESERVE DETERMINATION IS MADE. U.S. INVESTORS ARE CAUTIONED NOT TO ASSUME THAT ANY PART OF A MEASURED RESOURCE OR INDICATED RESOURCE WILL EVER BE CONVERTED INTO A RESERVE. U.S. INVESTORS SHOULD ALSO UNDERSTAND THAT INFERRED RESOURCES HAVE A GREAT AMOUNT OF UNCERTAINTY AS TO THEIR EXISTENCE AND GREAT UNCERTAINTY AS TO THEIR ECONOMIC AND LEGAL FEASIBILITY. IT CANNOT BE ASSUMED THAT ALL OR ANY PART OF INFERRED RESOURCES EXIST, ARE ECONOMICALLY OR LEGALLY MINEABLE OR WILL EVER BE UPGRADED TO A HIGHER CATEGORY. UNDER CANADIAN SECURITIES LAWS, ESTIMATED INFERRED RESOURCES MAY NOT FORM THE BASIS OF FEASIBILITY OR PRE-FEASIBILITY STUDIES EXCEPT IN RARE CASES. DISCLOSURE OF CONTAINED OUNCES IN A MINERAL RESOURCE IS PERMITTED DISCLOSURE UNDER CANADIAN SECURITIES LAWS. HOWEVER, THE SEC NORMALLY ONLY PERMITS ISSUERS TO REPORT MINERALIZATION THAT DOES NOT CONSTITUTE RESERVES BY SEC STANDARDS AS IN PLACE TONNAGE AND GRADE, WITHOUT REFERENCE TO UNIT MEASURES. THE REQUIREMENTS OF NI 43-101 FOR IDENTIFICATION OF RESERVES ARE ALSO NOT THE SAME AS THOSE OF THE SEC, AND RESERVES REPORTED BY THE COMPANY IN COMPLIANCE WITH NI 43-101 MAY NOT QUALIFY AS RESERVES UNDER SEC STANDARDS. ACCORDINGLY, INFORMATION CONCERNING MINERAL DEPOSITS SET FORTH HEREIN MAY NOT BE COMPARABLE WITH INFORMATION MADE PUBLIC BY COMPANIES THAT REPORT IN ACCORDANCE WITH U.S. STANDARDS.

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PAA - Contact Information

CorporateOffice 625HoweStreet,Suite1440 Vancouver,BC,V6C2T6 Tel:16046841175,Fax16046840147 Website:www.panamericansilver.com InvestorRelations:ir@panamericansilver.com ToregistertoreceiveCompanynewsviaemail notificationsorrequestaninvestorpackage,please email:info@panamericansilver.com
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