CORPORATE UPDATE www.newpacificmetals.com S e p t e m b e r 1 5 , 2020 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com NEW PACIFIC METALS CORP. IS A CANADIAN ISSUER This presentation is prepared by New Pacific Metals Corp. (TSXV:NUAG/OTCQX:NUPMF) (“New Pacific”) management and New Pacific is solely responsible for content and format. This presentation is not intended as a solicitation or offering of securities in any jurisdiction and the information contained herein in no way should be construed or interpreted as such. No securities commission or other regulatory authority in Canada or any other country or jurisdiction has in any way passed on the merits of this presentation and no representation or warranty is made by New Pacific to that effect. The information in this presentation is not intended to modify, qualify, supplement or amend information disclosed under corporate and securities legislation of any jurisdiction applicable to New Pacific and should not be used for the purpose of making investment decisions concerning securities of New Pacific.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation concerning the business, operations and financial performance and condition of New Pacific. Forward-looking statements include, but are not limited to, statements with respect to the future price of silver, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of exploration activities, requirements for additional capital, government regulation of mining operations, environmental risks, title disputes or claims and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation thereof. Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, level of activity, performance or achievements of New Pacific to be materially different from those expressed or implied by such forward-looking statements; see a list of risk factors in the section titled “Description of the Business – Risk Factors” in New Pacific’s annual information form available under New Pacific’s profile on www.sedar.com. Although New Pacific has attempted to identify important factors that could cause actual results to differ materially from those contained in such forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
CAUTIONARY STATEMENTS REGARDING ESTIMATES OF MINERAL RESOURCES
This presentation uses the terms measured, indicated and inferred resources as a relative measure of the level of confidence in the resource estimate. Readers are cautioned that mineral resources are not economic mineral reserves and that the economic viability of resources that are not mineral reserves has not been demonstrated. The estimate of mineral resources may be materially affected by geology, environmental, permitting, legal, title, socio-political, marketing or other relevant issues. The mineral resource estimate is classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum's "CIM Definition Standards on Mineral Resources and Mineral Reserves" incorporated by reference into NI 43-101. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies or economic studies except for Preliminary Assessment as defined under NI 43-101. Readers are cautioned not to assume that further work on the stated resources will lead to mineral reserves that can be mined economically. This presentation contains certain exploration information conceptual in nature. Please note that for such information, there has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
CAUTIONARY NOTE TO US INVESTORS
This presentation has been prepared in accordance with the requirements of NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards, which differ from the requirements of U.S. Securities laws. 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.
2 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com WHY SILVER?
“In a long-term precious metals bull market, SILVER typically out-performs gold.” ** Silver Comparative Price Performance In Periods Of Rising Gold Prices Daily Prices. London 1967 - 1974; NY Comex After 1974; CPM Group 16 July 2020 1200.0% Gold Silver, Using Same Dates For Troughs and Peaks Silver, Using Silver's Troughs and Peaks 1000.0%
800.0%
600.0%
400.0%
200.0% ? 0.0%
-200.0% 1968 - 1969 1970- 1974 1976 - 1980 1985 - 1987 1993 - 1996 2001 - 2011 2015 - Present Silver is both a precious metal and Industrial metal Annual silver consumption ~1.0B ounces 80% sourced from mining, 20% sourced from recycling Demand by sector: 55% industrial fabrication, and hedging* 20% jewelry, 19% coins & bars, 6% silverware*
*Silver Institute, 2020 3 ** The CPM Group, 2020 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com WHY NEW PACIFIC?
Experienced Board & Near Term Catalysts Management Mineralization remains open & Dr. Mark Cruise, P. Geo – CEO Regional District is unexplored Dr. Rui Feng, P. Geo – Founder & Director - Expansion & Discovery Drilling (North + South of Silver Sand; Snake hole) Supportive Major Shareholders Silvercorp Metals, Pan American Silver - PEA Studies in Progress (Sustainability studies)
- Metallurgy Major Silver Deposit Ag Measured & Indicated – 155.86 Moz Inferred – 35.5 Moz Active Project Pipeline -Silverstrike -Other regional targets in Bolivia Capital Structure $ - US$50.4 Million in the treasury (June 20, 2020) - Market Cap ~US$736 M - 52-Week High US$5.60 – Low US$1.67
4 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com PROVEN LEADERSHIP
MANAGEMENT
Dr. Mark Cruise Gordon Neal David Tingey CEO President VP Sustainability 25+ years of Discovery and 35+ years of Corporate Finance, 24+ years in Operational Mine Development Communications & Government Sustainability (HSE CSR) & Civil Engineering
Alex Zhang Gary DeSchutter Carolina Ordonez VP Exploration Silver Sand Project Manager Corporate Affairs & Communications 20+ years of Technical and 25 years of Exploration and 15 years Mining Comm., & Managerial skills related to Advanced Project Government Relations Exploration Management 5 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com PROVEN LEADERSHIP
BOARD OF DIRECTORS & ADVISORS
Hon. Jack Austin Chairman Former Senator of Canada, former Canadian Deputy Minister of Energy, Mines and Resources Dr. Rui Feng, (Ph.D.) Founder & Director Chairman & CEO of Silvercorp Metals Inc. Founder of successful companies with significant discoveries of mineral resources
Dr. Mark Cruise (Ph.D) CEO & Director CEO of New Pacific Metals Corp. Greg Hawkins Director Chairman of Yellowhead Mining David Kong Director Former Partner of EY Canada, Chartered Professional Accountants Martin Wafforn Director Senior Vice President, Technical Services - Pan American Silver Dr. Peter Megaw, Ph.D., C.P.G. Advisor Awarded the Thayer Lindsley Award for the discovery of the Juanicipio silver deposit in Fresnillo, Mexico
6 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com SHARE STRUCTURE
54.5% 28.8% Financial Summary Float Silvercorp Metals Inc.
OTCQX: NUPMF Shareholders
Shareholders
9.7% Pan American Silver
7% Management Research Coverage Common Shares 152.31 M PI Financial Fully Diluted Shares 157.89 M Chris Thompson ROTH Capital Partners Market Cap. ~US$736 M Joe Reagor
Cash Position US$48 M BMO Capital Markets (as of Aug 28) Ryan Thompson
7 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com Use of Funds History and Projection (US$)
Cash + Investments accrued (2017-2019) $104.00 M
Acquisition of Silver Sand Project (Completed Sept. 2017) ($40.00 M)
2018 Drilling Program (55,010 metres) and Corporate Overhead ($13.22 M) (Oct 2017 – Mar 2019) $240/m
2019 Drilling Program (43,727 metres) and Corporate Overhead ($12.58 M) (Apr – Dec 2019) $288/m
Mineral property and land purchase (Jul 2018 – Oct 2019) ($3.2 M)
2020 Drilling Program (2,388 metres of planned 30,000 metres) ($1.51 M) (Jan. – Mar. 2020)
Care and maintenance during COVID-19 (Apr. – Jun. 2020) ($0.83 M)
Corporate Overhead and Investor Relations (Jan. – Jun. 2020) ($1.30 M)
BMO Bought Deal Financing (June 2020) Net proceeds: 17 M
Remaining Funds as of August 28, 2020 $48.36 M
ZERO DEBT 8 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com8 WHY BOLIVIA?
Rich history of mining – Pre-Incas Major Active Mining Companies to Spanish
Silver metal endowment & prospectivity is Glencore Pan American Silver good to excellent – potential for major discoveries Sumitomo Underexplored – limited “modern’ New Pacific Metals exploration last wave in early 2000s
Mining laws and regulations
Mining Law No. 535 issued on 2014 and Amendment No. 845 issued on 2016 aimed at increasing foreign investment
“Mining is an important part of the identity of Bolivia and is a strategic sector for economic development.” Source: http://www.investbolivia.gob.bo/
9 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com PROPERTY LOCATION
BOLIVIA
SILVER STRIKE
BOLIVIA SILVER SAND
10 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com SILVER SAND DEPOSIT
11 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com SILVER SAND LOCATION
SILVER SAND
BOLIVIA
SILVER SAND
Location • Elevation: 4,100m • Paved Roads • Graded gravel roads • Airport • Grid power on site • Cell tower on Site • Water-abundant
12 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com SILVER SAND PROJECT OVERVIEW
Largest exploration drill program in South America ~100,000m for an exploration company, 2018-2019 (S&P) RESOURCE New Discovery DEFINITION & Acquired & Inaugural project - Land Package Resource DISCOVERY EXPANSION Expansion Estimate
2017 2018 2019 2020
December April January January Discovery hole: Expansion hole: Signed Mining Production Snake Hole Discovery: DSS5803 DSS525001 contract (“MPC”) with DSS5218 “COMIBOL” adds 57 km2 to 172m @ 110g/t Ag 135.72m @ 240 g/t Ag project. MPC remains subject to 72.44m @ 279g/t Ag (18.0m to 190.0m) (50.8m to 186.52m) ratification by Bolivian (60.5m to 132.94m) Legislative Assembly incl. 83.5m @ 192g/t Ag incl. 76.63m @ 383g/t Ag April (18.0m to 101.5m) (50.8m to 127.43m) Inaugural Resource Estimate Release
13 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com DRILL RESULTS FOR SECTION 5250 - “JEWEL BOX”
14 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com SILVER SAND N . I . 4 3 - 101 RESOURCE
Silver Sand Deposit Conceptual Pit1 constrained Mineral Resource as of 31 December 2019.
Resource category Tonnes (Mt) Ag (g/t) Ag (Moz)
Measured 8.4 159 43.05
Indicated 26.99 130 112.81
Measured & Indicated 35.39 137 155.86
Inferred 9.84 112 35.55
1Notes: CIM Definition Standards (2014) were used for reporting the Mineral Resources. The Qualified Person is Dinara Nussipakynova, P.Geo. of AMC Mining Consultants (Canada) Ltd. Mineral Resources are constrained by an optimized pit shell at a metal price of US$18.70/oz Ag and recovery of 90% Ag. Cut-off grades applied to the pit-constrained resource is 45 g/t Ag. Mineral Resources are reported inside the Claim boundary. Pit optimization allows waste to extend outside the claim to the NE and SW. Model has been depleted for historical mining. The numbers may not compute exactly due to rounding. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Source: AMC Mining Consultants (Canada) Ltd.
15 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com SILVER SAND N . I . 4 3 - 101 RESOURCE HIGHLIGHTS
Silver Sand is a significant global primary silver discovery
Detailed drilling indicates good mineral continuity to provide high confidence – lower technical risk Measured & Indicated tonnes:
or ~70% of the 35.39 Mt @ 137 g/t Ag for 155.86 Moz resource estimate.
Large-near-surface mineralization High Ag Ag amenable open-pit extraction: recoveries:
Approximately laboratory-based recoveries range from 70% of the resources 87% to 97% for the various oxide – are within 200 m of the conceptual pit transition and sulphide mineral domains surface
16 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com METALLURGY
Ag mineralized core samples underwent preliminary metallurgical recovery testing at SGS-Peru Lab. Ag composite sample results for rougher-scavenger flotation recovery: Sulphide: 96.0%, Transition:86.8%, Oxide: 92.0% Ag composite sample results for bottle roll cyanidation extraction: Sulphide: 96.7%, Transition: 97.0%, Oxide: 96.3% Oxide coarse column leach cyanidation: 88.3% Additional metallurgical test-work in Sulphide & Transition, Ag-bearing progress to support advanced studies mineral results for cyanidation: (i.e. process-flow sheet design) non-refractory Composite samples: soft-med grindability range with low-med abrasion index values
17 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com SILVER SAND DEPOSIT DETAILS
18 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com SILVER SAND MINERAL RESOURCES & GRADE DISTRIBUTION
Measured & Indicated Inferred 35.4Mt @ 137 g/t Ag 9.84Mt @ 112 g/t Ag for 155.86Moz Ag for 35.5Moz Ag
19 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com FAVORABLE TOPOGRAPHY FOR OPEN CUT MINING
Looking East at Silver Sand Drilling Pads: Section 5250
NE60
20 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com DSS5218: SILVER SAND 72.44m @ 279g/t Ag 3D MINERAL (60.5m to 132.94m) incl. 32.96m @ 517g/t WIREFRAMES – Ag (84.95m to 117.9m) P L A N V I E W Snake Hole Drilling & Discovery
Measured & Indicated 35.4Mt @ 137 g/t Ag for 155.86Moz Ag
Inferred 9.84Mt @ 112 g/t Ag for 35.5Moz Ag
21 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com SILVER SAND 3D MINERAL WIREFRAMES – LONG SECTION (VIEW WEST)
Open Open Potential 7–15Mt @ 85 to 150 g/t Ag adjacent to the Conceptual pit - drilled. Conceptual Exploration target of 10 to 20Mt adjacent Open Measured and below current Indicated
Resource. Inferred
Conceptual Exploration
Potential quantity and grade is conceptual in nature, there has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the targets being delineated as a mineral resource. the target being delineated as a mineral resource
22 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com SILVER SAND CONCEPTUAL EXPLORATION MODEL
Fluid Seal
Deposit drilling to date has only tested the upper host unit ~200-250m depth
No holes through the red siltstone – potential seal
23 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com WHAT DOES EXPLORATION SUCCESS LOOK LIKE?
Silver Asset Checklist Silver Sand
35km away from Cerro Rico (~1.6 billion historical ounces of Ag) other District Pedigree major mines in the region include San Cristobal and San Vicente mine
Mineralization starts at or near surface – amenable to open extraction. Technical Advantages Simple metallurgy – high recoveries
More than 100M oz Silver Resource – potential to support a long LOM Scale PEA in progress
Silver Sand remains open to the north and the south- system untested at Exploration upside depth. Silver Sand North Block shows abundant historic workings- highly anomalous Ag values. Resource expansion drilling underway at Snake H
High Grade Average grade of open pit silver mines ~ 40 to 80 g/t Ag. Average grade underground mines ~ 180 g/t Ag. Silver Sand - 137 g/t Ag
Metallurgy High recoveries 87 - 96%
24 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com SILVER SAND DEPOSIT AN EMERGING NEW SILVER DISTRICT
25 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com SILVER SAND AN EMERGING SILVER DISTRICT
NUAG 100% owned land composed of four concessions area of North and South blocks approximately 6 km2 El Bronce Chiaraque Mining Production Contract (MPC) via COMIBOL
NUAG 100% Jisas pending ratification by Bolivian Legislative *Ownership Assembly for a 57km2 area surrounding our 100% owned land package*
District scale two major NW trending Ag bearing fairways identified & confirmed:
Silver Sand • Silver Sand / La Puerta Trend - sandstone-hosted (e.g. Silver Sand Deposit)
• Eastern Intrusion Trend – dacite hosted (e.g. Chiaraque, Jisas & El Bronce prospects)
Potential to host multiple Silver Sand deposits, both at surface as well as blind/buried/covered
Mineral system analysis in progress
*Mineral Rights held through 100% ownership of Minera Alcira S.A. Bolivia
26 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com S N A K E H O L E AN EMERGING SILVER DISTRICT
Snake Hole - lower in the mineral system - wider vein sets than Silver Sand
Multiple mineralized fracture zones striking 330-340, steeply dipping west and extending over >800m in strike
Discovery holes:
DSS5218: 72.44m @ 279g/t Ag (60.5m to 132.94m) incl. 32.96m @ 517g/t Ag (84.95m to 117.9m)
DSS5217: 11.12m @ 761g/t Ag (149.48m to 160m)
Note: Snake Hole not Included in NI 43-101 Resource Estimate
27 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com SILVER SAND NORTH BLOCK ADVANCED EXPLORATION
Large Ag-rich polymetallic hydrothermal system identified - intense stockworked argillic and sericitic alteration
El Numerous ancient workings/ Chiaraque dumps, as at Silver Sand - Bronce Select late 2019 surface grab samples from El Bronce returned up to 422ppm Ag Jisas Assay results for 591 grab and chip samples outstanding
Contingent on logistics initial drill test planned for H2
28 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com SILVERSTRIKE REGIONAL EXPLORATION
29 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com SILVERSTRIKE LOCATION
SILVERSTRIKE
BOLIVIA
Location • Elevation: 4,100m • Paved Roads • Grid power on site • Cell tower on Site
30 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com SILVERSTRIKE GEOLOGY & MINERALIZATION
Three Styles of Mineralization:
Silverstrike North: Sub vertical Ag-Pb-Zn mineralized fractures occur within sub-horizontal, hydrothermal bleached, whitish sandstones. Note: Silver mineralization is similar to the Silver Sand Project;
Silverstrike Central: Disseminated Ag-Au-Pb-Zn mineralization associated with rhyolitic volcanic dome/diatreme 900m by 900m; and
Silverstrike South: Ag-Pb-Zn mineralization within quartz and K-feldspar phenocryst rhyolite intruded into red sandstone strata. Extensive Mining Diggings and Dumps at the Valley Zone and the South Top
31 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com SILVERSTRIKE A SILVER SAND ANALOG
Silver Sand Silverstrike District Historic Berenguela Mining District – extensive workings over a “Pedigree” circa 1.5 by 1.5 kilometer area – average results of waste dump sampling ~190g/t Ag (broadly similar to Silver Sand) Limited prior exploration. Three main targets identified to date – Silver Strike North – Central Dome & South - Dos Amigos. Rio Tinto in mid-1990s intersected Ag at North & Dome targets however Cu-Au exploration model: Exploration • 2m @ 1,254 Ag & 0.48% Cu Potential • 2m @ 237 g/t Ag & 0.5% Cu • 62m @ 0.74 g/t Au
Mineralized system Geological Sedimentary package (sandstones) intruded by a felsic dome Setting (cf Cerro Rico - +/- Silver Sand)
Structural / fracture controlled silver mineralization – veins & Mineral Style veinlets in massive altered sandstone units. Unrecognized potential Extraction Mineralization starts at surface / near-surface - potential for Open- Method(s) pit bulk mineable
32 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com CATALYSTS
Resource Expansion Exploration
Silver Sand Deposit Silver Sand District – Snake Hole & North Block - El Bronce
Advanced Studies Regional Exploration: Silverstrike Project Preliminary Economic Assessment in progress ~anticipated H1 2020 Project Generation – Cementing first mover status Environmental & Social studies in progress
33 TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com Silverstrike, La Paz, Bolivia
HEAD OFFICE Suite 1750 – 1066 West Hastings Street Vancouver, BC | V6E 3X1
(604) 633-1368 [email protected] Silverstrike, La Paz, Bolivia
TSX OTCQX NUAG NUPMF
F O L L O W U S
New Pacific’s disclosure documents are available on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com
TSX: NUAG | OTCQX:NUPMF | www.newpacificmetals.com