Quarter Management’s Discussion and Analysis (MD&A)

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# Quarter Management’s Discussion and Analysis (MD&A)

Source: https://www.newpacificmetals.com/wp-content/uploads/2026/05/FINAL-FY2026-Q3-NUAG-MDA.pdf
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# Quarter Management’s Discussion and Analysis (MD&A)
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the three and nine months ended March 31, 2026
(Expressed in United States Dollars)
NEW PACIFIC METALS CORP.
Management’s Discussion and Analysis
For the three and nine months ended March 31, 2026
(Expressed in United States dollars, unless otherwise stated)
DATE OF REPORT: May 12, 2026
This management’s discussion and analysis (“MD&A”) for New Pacific Metals Corp. and its subsidiaries
(collectively, “New Pacific” or the “Company”) should be read in conjunction with the Company’s unaudited
condensed consolidated interim financial statements for the three and nine months ended March 31, 2026
and 2025 and the related notes contained therein. The Company prepares its financial statements in
accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board
(“IASB”). The Company’s material accounting policy information are set out in Note 2 of the audited
consolidated financial statements for the years ended June 30, 2025 and 2024. All dollar amounts are
expressed in United States dollars (“USD”) unless otherwise stated. Certain amounts shown in this MD&A
may not add exactly to total amounts due to rounding differences. This MD&A contains “forward-looking
statements” that are subject to risk factors set out in a cautionary note contained at the end of this MD&A.
All information contained in this MD&A is current and has been approved by the Board of Directors of the
Company (the “Board”) as of May 12, 2026.
BUSINESS OVERVIEW AND STRATEGY
The Company is a Canadian mining issuer engaged in exploring and developing mineral properties in Bolivia.
The Company’s precious metal projects include the Silver Sand project (the “Silver Sand Project”), the
Carangas project (the “Carangas Project”) and the early stage Silverstrike project (the “Silverstrike Project”).
With experienced management and sufficient technical and financial resources, management believes the
Company is well positioned to create shareholder value through exploration and resource development.
The Company is publicly listed on the Toronto Stock Exchange under the symbol “NUAG” and on the NYSE
American stock exchange under the symbol “NEWP”. The head office, registered address and records office
of the Company are located at 1066 West Hastings Street, Suite 1750, Vancouver, British Columbia, Canada,
V6E 3X1.
FISCAL 2026 Q3 HIGHLIGHT
• On February 23, 2026, the Company signed a Framework Agreement for Cooperation and
Coordination (the “Agreement”) with the Carangas community (“TIOC Carangas”) in respect to the
Carangas Project. The Agreement establishes a general framework of understanding and commitment
between the Company and TIOC Carangas that reflects the shared intention to develop the Carangas
Project based on transparency, fairness, mutual benefits, mutual respect, and long-term cooperation.
PROJECTS OVERVIEW
Bolivian Licence Tenure
A summary of Bolivian mining laws with respect to the Administrative Mining Contract (“AMC”) and
exploration license is presented below.
Exploration and mining rights in Bolivia are granted by the Ministry of Mines and Metallurgy through the
Autoridad Jurisdictional Administrativa Minera (“AJAM”). Under Bolivian mining laws, tenure is granted as
either an AMC or an exploration license. Tenure held under the previous legislation was converted to
Autorización Transitoria Especiales (each, an “ATE”) which are required to be consolidated into new 25-
hectare sized cuadriculas (concessions) and converted to AMCs. AMCs created by conversion recognize
existing rights of exploration and/or exploitation and development, including treatment, metal refining,
Management’s Discussion and Analysis Page 2
NEW PACIFIC METALS CORP.
Management’s Discussion and Analysis
For the three and nine months ended March 31, 2026
(Expressed in United States dollars, unless otherwise stated)
and/or trading. AMCs have a fixed term of 30 years and can be extended for an additional 30 years if certain
conditions are met. Each AMC requires ongoing work and the submission of plans to the AJAM.
Exploration licenses allow exploration activities only and must be converted to AMCs to conduct
exploitation and development activities. Exploration licenses are valid for a maximum of five years and
provide the holder with the preferential right to request an AMC. In specific areas, mineral tenure is owned
by the Bolivian state mining corporation, Corporación Minera de Bolivia (“COMIBOL”). In these areas,
development and production agreements can be obtained by entering into a Mining Production Contract
(“MPC”) with COMIBOL.
Silver Sand Project
The Silver Sand Project is located in the Colavi District of Potosí Department in southwestern Bolivia at an
elevation of 4,072 m above sea level, 33 kilometres (“km”) northeast of Potosí City, the department capital.
The Silver Sand Project is comprised of two claim blocks, the Silver Sand south and north blocks, which
covers a total area of 5.42 km2. The Silver Sand south block, covering an area of 3.17 km2 hosts the Silver
Sand deposit. On August 12, 2021, the Company announced the receipt of an AMC for the Silver Sand south
block from the AJAM. The Silver Sand north block covers an area of 2.25 km2 and is comprised of two AMCs
(Jisasjardan and Bronce). The AMCs establish a clear title to the Silver Sand Project.
(a) Exploration
The Company carried out extensive exploration and resource definition drill programs on the Silver Sand
Project between 2017 and 2022, completing a total of 139,920 metre (“m") of diamond drilling in 564 holes
during the period. Silver Sand Project’s current Mineral Resource Estimate (the “Silver Sand MRE”) is based
on these extensive exploration programs. Based on the Silver Sand MRE, the Silver Sand Project has an
estimated measured and indicated mineral resource of 201.77 Moz of silver at an average grade of 116
gram per tonne (“g/t”) and an estimated inferred mineral resource of 12.95 Moz of silver at 88 g/t. For
further details on the Silver Sand MRE, please refer to the Company’s news release dated November 28,
2022.
(b) Advanced Study
On August 8, 2024, the Company filed its pre-feasibility study technical report for the Silver Sand Project
titled "Technical Report – Silver Sand Project Pre-Feasibility Study" dated August 8, 2024 and with an
effective date of June 19, 2024 (the “Silver Sand PFS Technical Report”). AMC Mining Consultants (Canada)
Ltd. (mineral resource and reserves, mining, infrastructure and financial analysis) was contracted to conduct
the Silver Sand PFS Technical Report in cooperation with Halyard Inc. (metallurgy and processing), and
NewFields Canada Mining & Environment ULC (tailings, water and waste management). The Silver Sand PFS
Technical Report is built on the preliminary economic assessment technical report for the Silver Sand Project
entitled "Silver Sand Deposit Preliminary Economic Assessment" dated February 14, 2023 and with an
effective date of November 30, 2022 (the “Silver Sand PEA Technical Report”). Highlights of the Silver Sand
PFS Technical Report are as follows:
▪ Post-tax NPV at a 5% discount rate of $740 million and IRR of 37% at a base case price of $24.00/oz
silver;
Management’s Discussion and Analysis Page 3
NEW PACIFIC METALS CORP.
Management’s Discussion and Analysis
For the three and nine months ended March 31, 2026
(Expressed in United States dollars, unless otherwise stated)
▪ 13 years mine life, excluding the 2 years pre-production period, producing approximately 157 Moz of
silver. Annual silver production exceeds 15 Moz in years one through three with LOM average annual
silver production exceeding 12 Moz;
▪ Initial capital costs of $358 million and a post-tax payback of 1.9 years (from the start of production) at
$24.00/oz silver; and
▪ Average LOM AISC of $10.69/oz silver.
For more details on the Silver Sand PFS Technical Report, please refer to the Company’s news releases dated
June 26, 2024 and August 8, 2024.
(c) Permitting
In May 2023, the Silver Sand Project obtained its environmental categorization as a proposed open pit
operation from Bolivia’s Ministry of Environment and Water, formally commencing the Environmental
Impact Assessment Study (“EEIA”) process. The environmental categorization expired in November 2024
and the Company is in the process of opening a new environmental categorization. The Company continues
to advance its socialization process with communities located within the Silver Sand Project’s area of
influence. After completion of the socialization process, the Company plans to achieve the following:
▪ obtain surface rights through long-term land lease agreements;
▪ create employment and business opportunities for community members;
▪ finalize a resettlement and compensation plan for impacted families; and
▪ implement measures to safeguard cultural and historical heritage.
Integral to our pathway towards obtaining the EEIA, the Company is establishing a framework to coexist
with artisanal and small-scale miners ("ASMs") and Cooperativas (the “Co-Ops”) in surrounding areas of the
Silver Sand Project that do not encroach on our mineral rights. The Company recognizes the importance of
ASMs and Co-Ops to the region’s economic and political landscape and is committed to ensuring the shared
benefits from a proposed modern mining operation, including access to milling capacity, technology,
infrastructure, and capital, are realized. The Company is also undertaking measures, with the assistance of
both local government authorities and external contractors, to address the presence of ASMs whose
activities do not align with the development objectives of the Silver Sand Project, and the interest of the
broader communities. These communities formally acknowledged the Company’s mining rights and they
indicated that they expect the cessation of these ASM activities. The Company took steps to address the
presence of these ASMs, including the commencement of formal legal proceedings in December 2023. In
addition, on May 7, 2024, the Company successfully obtained an execution order (the “Order”) from the
AJAM for the reinstatement of its mining rights and is working closely with government authorities to
enforce the Order. On June 25, 2025, through a formal judicial resolution process in Bolivia, the
Departmental Court of Justice of La Paz granted an Amparo (a constitutional protection action) to the
Company that provides the Silver Sand Project with immediate and long-term protection against any kinds
of encroachment and illegal mining activities. Since July 1, 2025, the ASMs stopped their mining activities
and withdrawn from the Silver Sand Project area and the Company successfully regained access to the area
and established a temporary camp. Survey and inspection work was performed in the area to measure the
extent of the impact of the ASMs’ activities on the Silver Sand Project’s mineral resources, and preliminary
results indicated the mineralized material extracted is not material.
With the illegal mining activities stopped, the Company has shifted its focus back to engaging the local
communities to build relationship and forge partnership in the project. The Company has engaged the
Management’s Discussion and Analysis Page 4
NEW PACIFIC METALS CORP.
Management’s Discussion and Analysis
For the three and nine months ended March 31, 2026
(Expressed in United States dollars, unless otherwise stated)
communities impacted by the project in a door-to-door and family-to-family approach, with encouraging
and positive results. The Company plans to complete the socialization process and

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