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Analogies for New Pacific Metals (NEWP):

• An early-stage Pan American Silver.

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• Silver Exploration and Development: Identifying, delineating, and advancing silver mineral deposits towards potential production.

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New Pacific Metals Corp. (symbol: NEWP) is a mineral exploration and development company focused on advancing its silver projects in Bolivia (e.g., Silver Sand, Carangas, and Silverstrike projects). As of its current operational stage, the company is primarily engaged in exploration, resource definition, and feasibility studies, rather than being in commercial production with a consistent stream of salable products.

Therefore, New Pacific Metals does not currently have "major customers" in the traditional sense of regularly purchasing significant quantities of its end product, as it has not yet reached full commercial production. The company operates in a Business-to-Business (B2B) model, dealing with raw materials and future metal concentrates.

However, once New Pacific Metals successfully develops its projects and enters commercial production, its customers would typically be other companies further down the mineral supply chain. These would generally include:

• International Smelters and Refineries: These companies would purchase mineral concentrates (e.g., silver-lead-zinc concentrates) or dore bars produced by New Pacific Metals. They process these raw materials into refined metals for various industrial and investment applications. Examples of major companies in this sector globally (these are representative types and not necessarily confirmed direct customers of NEWP, as specific agreements would be announced upon reaching production) include:
  • Glencore (LSE: GLEN, OTC: GLCNF)
  • Teck Resources Ltd. (TSX: TECK.A, TECK.B; NYSE: TECK)
  • Umicore (EBR: UMI)
• Metal Trading Houses: These firms act as intermediaries, facilitating the sale and distribution of mineral concentrates and refined metals on global commodity markets to various industrial users and investors. Many of these are large private companies (e.g., Trafigura, Vitol) or divisions of larger diversified mining companies.

It is important to note that specific offtake agreements with future customers would typically be announced by New Pacific Metals as its projects move closer to or enter commercial production.

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• RPMGlobal Holdings Limited (ASX: RPM)
• Micon International Limited

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Jalen Yuan, Chief Executive Officer

Mr. Yuan was appointed permanent Chief Executive Officer in October 2025, having previously served as interim CEO since April 2025, and as the company's Chief Financial Officer since 2015.

Chester Xie, Chief Financial Officer

Mr. Xie was appointed permanent Chief Financial Officer in October 2025, following his role as interim CFO since April 2025. He previously served as the company's financial controller.

Dr. Rui Feng, Founder and Chairman of the Board

Dr. Feng is a successful entrepreneur and mine builder with over 25 years of global mining industry experience. He founded Silvercorp Metals in 2003, acquiring early-stage properties in China, which he developed into a profitable Canadian mining company with multiple mines. He was integral in discovering Jinshan Gold's CSH Gold Mine in China in 2002, which was later acquired by China Gold International. Dr. Feng also founded New Pacific Metals and served as its CEO from 2010 to April 2020. Under his leadership, New Pacific acquired the Silver Sand project in Bolivia in 2017, leading to a significant discovery.

Alex Zhang, Vice President of Exploration

Mr. Zhang is a professional geoscientist with over 30 years of experience in mineral exploration. He has applied his technical and managerial skills to major gold and silver-lead-zinc polymetallic projects in China, Canada, and Bolivia. His previous roles include senior exploration geologist, senior resource geologist, exploration manager, chief geologist, and vice president of exploration with companies such as Eldorado Gold, Afcan Mining, Sino Gold, and Silvercorp.

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1. Political and Regulatory Risks in Bolivia

   New Pacific Metals faces significant political and regulatory challenges in Bolivia, the jurisdiction where its primary projects (Silver Sand and Carangas) are located. These risks include navigating a complex and uncertain permitting process, as Bolivia has not seen a new large-scale open-pit mine permitted in some time. There are also broader concerns regarding political uncertainty, regulatory delays, and untested permitting frameworks. Historically, the region has experienced territorial disputes involving mining cooperatives, which could impact operations. Furthermore, there have been accusations of potential violations of Bolivian law in the acquisition of mining concessions, which could put the company's assets at risk of being stripped by the government. Obtaining and maintaining a "social license" and community acceptance is a crucial factor in converting exploration licenses into mining permits.

2. Capital Requirements and Financing Risk

   As an exploration and development company not yet in commercial production, New Pacific Metals requires substantial capital investment to advance its Silver Sand and Carangas projects. The company incurs significant operating expenses without generating revenue from mining. While recent financing efforts have bolstered its financial position, New Pacific Metals will need further capital, potentially through additional equity or debt offerings, to fund project development and move towards construction and production.

3. Commodity Price Volatility

   The economic viability and valuation of New Pacific Metals are highly sensitive to the volatile price of silver. As a company focused on silver development, its future revenues and the profitability of its projects are directly tied to fluctuations in the global silver market. While strong demand for silver in industrial applications and as a safe-haven asset can be beneficial, any significant downturn in silver prices could negatively impact the company's financial performance and project economics.

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The clear emerging threat for New Pacific Metals (NEWP) stems from the accelerating global shift towards a circular economy and advancements in urban mining and metal recycling technologies. As these technologies improve and become more economically viable, the ability to recover precious and base metals (such as silver, gold, zinc, and lead) from electronic waste, industrial byproducts, and end-of-life products is increasing. This trend has the potential to significantly reduce the demand for newly mined virgin materials, impacting commodity prices and the overall market for primary metal producers. Governments and industries worldwide are increasingly investing in and promoting circular economy principles, which could lead to policies favoring recycled content and potentially diminishing the long-term profitability of traditional mining operations.

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New Pacific Metals (NEWP) is primarily focused on silver projects, with their Carangas project also demonstrating significant resources of lead, zinc, and gold.

The estimated global addressable markets for their main products are as follows:

• Silver: The global silver market was valued at approximately USD 87.12 billion in 2024 and is projected to grow to USD 202.07 billion by 2033.
• Lead: The global lead market was valued at approximately USD 23.34 billion in 2024 and is expected to reach USD 37.20 billion by 2032.
• Zinc: The global zinc market was valued at approximately USD 36.26 billion in 2024 and is projected to reach USD 54.11 billion by 2032.
• Gold: The global gold market was valued at approximately USD 291.68 billion in 2024 and is projected to reach USD 457.91 billion by 2032.

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Expected Drivers of Future Revenue Growth for New Pacific Metals (NEWP)

Over the next 2-3 years, New Pacific Metals (NEWP), an exploration and development company, anticipates revenue growth primarily from the advancement and eventual production of its key precious metal projects in Bolivia. Currently, the company does not generate revenue, as it is in the development phase of its assets.

1. Advancement and Production from the Silver Sand Project: The Silver Sand project is identified as New Pacific Metals' flagship asset, with the potential to become one of the world's largest silver mines. The company is actively working on moving this project through the permitting phase. Successful permitting and subsequent development into production would be a significant driver of future revenue, with projections of approximately 12 million ounces of silver per year for 12 years once operational.
2. Advancement and Production from the Carangas Project: The Carangas project is another critical asset that is currently in the permitting stages, aiming to convert its exploration license to an administrative mining contract and secure surface rights. A Preliminary Economic Assessment (PEA) completed in September 2024 outlines a 16-year mine life, initially focused on silver but with additional revenue potential from gold, lead, and zinc. The broader conceptual pit scenario suggests even greater potential, with total mill feed reaching 196 million tonnes containing 233 million ounces of silver, 2 million tonnes of lead and zinc, and 1.3 million ounces of gold. Production from Carangas is projected to add 6.6 million ounces of silver annually for 16 years.
3. Favorable Precious Metal Prices (Silver and Gold): As an exploration and development company focused on precious metals, New Pacific Metals' future revenue will be highly sensitive to the market prices of silver and gold. Strengthening commodity prices for these metals would enhance the economic viability and profitability of their projects once they reach production.
4. Further Exploration and Development of the Carangas District and Silverstrike Project: The Carangas district is emerging as a broader exploration corridor, with geophysical testing identifying five additional targets in close proximity to the main Carangas deposit that exhibit similar mineralization patterns. Expanding drill coverage and updating the mine plan to incorporate deeper gold zones within Carangas also represent growth opportunities. Additionally, a discovery drill program was completed at the Silverstrike project in 2022, indicating potential for future development and contribution to revenue.

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Share Issuance

• On October 21, 2025, New Pacific Metals closed a bought deal financing, issuing 11,385,000 common shares at approximately $2.53 (CAD $3.55) per share, generating total gross proceeds of approximately $28.8 million (CAD $40.4 million).
• On September 29, 2023, the company completed a bought deal financing, selling 13,208,000 common shares at $1.96 per share for gross proceeds of approximately $25.9 million.
• In June 2020, New Pacific Metals closed a bought deal financing for C$25 million.

Inbound Investments

• As of May 2020, Silvercorp Metals Inc. increased its interest in New Pacific Metals to approximately 28.87%.
• Also in May 2020, Pan American Silver held approximately 9.7% ownership in New Pacific Metals following a block trade.

Capital Expenditures

• For the nine months ended March 31, 2025, capital expenditures amounted to approximately $2.3 million, primarily directed towards asset improvements at the Silver Sand project, the Carangas silver-lead-zinc project, and the exploration drilling program at Silverstrike.
• As of December 31, 2024, total expenditures for the Carangas Project reached US$20,843,608, contributing to an estimated total investment of US$324 million required for its 16-year production life.
• Future capital expenditures for full feasibility studies for both the Silver Sand and Carangas projects are estimated to be between US$5 million and US$10 million each, contingent on further permitting advancements.