Annual Information Form For the Year Ended December 31, 2014 March 30, 2015 1500‐625 Howe Street Vancouver, British Columbia V6C 2T6 www.panamericansilver.com WHAT'S INSIDE WHAT'S INSIDE ........................................................................................................................................................................1 IMPORTANT INFORMATION ABOUT THIS DOCUMENT ...........................................................................................................2 CORPORATE STRUCTURE .........................................................................................................................................................7 GENERAL DEVELOPMENT OF THE BUSINESS .........................................................................................................................11 NARRATIVE DESCRIPTION OF THE BUSINESS ........................................................................................................................13 RISKS RELATED TO OUR BUSINESS ........................................................................................................................................90 DIRECTORS AND EXECUTIVE OFFICERS .............................................................................................................................. 106 EXCEPTIONS FROM NASDAQ CORPORATE GOVERNANCE REQUIREMENTS ...................................................................... 110 DIVIDENDS .......................................................................................................................................................................... 110 MARKET FOR SECURITIES ................................................................................................................................................... 111 LEGAL PROCEEDINGS AND REGULATORY ACTIONS ........................................................................................................... 111 INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS ....................................................................... 111 TRANSFER AGENTS AND REGISTRAR .................................................................................................................................. 111 MATERIAL CONTRACTS ...................................................................................................................................................... 112 INTERESTS OF EXPERTS ...................................................................................................................................................... 112 ADDITIONAL INFORMATION .............................................................................................................................................. 112 GLOSSARY OF TERMS ......................................................................................................................................................... 113 APPENDIX “A” – AUDIT COMMITTEE CHARTER ........................................................................................................... A‐1 1 IMPORTANT INFORMATION ABOUT THIS DOCUMENT This annual information form (“AIF”) provides important information about Pan American Silver Corp. It describes our history, our markets, our operations and development projects, our mineral reserves and resources, sustainability, our regulatory environment, the risks we face in our business and the market for our shares, among other things. We have prepared this document to meet the requirements of Canadian securities laws, which are different from what US securities Throughout this document, the term Pan laws require. American means Pan American Silver Corp. and the terms we, us, and our mean Pan American and its subsidiaries. Reporting currency and financial information Unless we have specified otherwise, all dollar amounts are in United States dollars. Any references to CAD$ mean Canadian dollars. All financial information presented in this AIF was prepared in accordance with international financial reporting standards (“IFRS”) as issued by the International Accounting Standards Board. This AIF refers to various non‐GAAP (generally accepted accounting principles) measures, such as "cash and total cost per ounce of silver" and “all‐in sustaining costs per silver ounce sold” (“AISCOS”), which are used by us to manage and evaluate operating performance at each of our mines and are widely reported in the silver mining industry as benchmarks for performance, but do not have standardized meaning. Please refer to our management’s discussion and analysis for the year ended December 31, 2014 (the “2014 MD&A”) for detailed descriptions and reconciliations of these non‐GAAP measures to their closest respective GAAP measures under IFRS. Glossary of Terms The glossary of terms under "Glossary of Terms" of our AIF contains definitions of certain terms used in this AIF that might be useful for your understanding. Caution about forward‐looking information Our AIF includes statements and information about our expectations for the future. When we discuss our strategy, plans and future financial and operating performance, or other things that have not yet taken place, we are making statements considered to be forward‐looking information or forward‐looking statements under Canadian and US securities laws. We refer to them in this AIF as forward‐looking information. Key things to understand about the forward‐looking information in this AIF are: It typically includes words and phrases about the future, such as believe, estimate, anticipate, expect, plan, intend, predict, goal, target, forecast, project, scheduled, potential, strategy and proposed (see examples on page 3). It is based on a number of material assumptions, including those we have listed below, that may prove to be incorrect. Actual results and events may be significantly different from what we currently expect, because of the risks associated with our business. We list a number of these material risks below. We recommend you ‐ 2 ‐ also review other parts of this document, including "Risks Related to Our Business" starting on page 90, and our 2014 MD&A, which include a discussion of other material risks that could cause our actual results to differ from current expectations. Forward‐looking information is designed to help you understand management’s current views of our near and longer term prospects. It may not be appropriate for other purposes. We will not necessarily update this forward‐looking information unless we are required to by securities laws. Examples of forward‐looking information in this AIF: the price of silver and other metals; and pre‐feasibility studies or other reports prepared in the sufficiency of our current working capital, relation to development of projects; anticipated operating cash flow or our ability to raise estimated exploration expenditures to be incurred on necessary funds; our various silver exploration properties; the accuracy of mineral reserve and mineral resource compliance with environmental, health, safety and estimates, estimates of future production and future other regulations; cash, and total costs of production, as applicable, at estimated future closure, reclamation and remediation Huaron, Morococha, La Colorada, Dolores, Alamo costs; Dorado, Manantial Espejo, Navidad, San Vicente, or forecast capital and non‐operating spending; other properties; future sales of the metals, concentrates or other estimated production rates for silver and other payable products produced by us; metals we produce, timing of production and estimated cash and total costs of production at our continued access to necessary infrastructure, properties, including forecasted cash costs of including, without limitation, access to power, water, production; lands and roads to carry on activities as planned; the estimated cost of and availability of funding for our plans and expectations for our properties and ongoing capital replacement, improvement or operations, including, without limitation, the remediation programs; production estimates, forecasts regarding our investment activities, and other matters discussed access to and availability of funding for the future under the heading “Outlook for 2015” and under the construction and development of our projects; headings “Activities in 2015” with respect to each of estimated costs of construction, development and our material properties; ramp‐up of our projects; the expected investment and development activities at future successful development of the Navidad property the La Colorada mine; and our other development projects; the expected investment and development activities at the effects of laws, regulations and government the Dolores mine; and policies affecting our operations, including, without the ability to obtain permits, including for future limitation, expectations relating to or the effect of project development and expansion. certain highly restrictive laws and regulations applicable to mining in the Province of Chubut, Argentina; the estimates of expected or anticipated economic returns from a mining project, as reflected in feasibility Material risks and assumptions: These statements reflect our current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by us, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies.