New Pacific Reports Financial Results FOR
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NEWS RELEASE
NEW PACIFIC REPORTS FINANCIAL RESULTS FOR
THE THREE AND NINE MONTHS ENDED MARCH 31, 2022
VANCOUVER, BRITISH COLUMBIA – MAY 11 , 202 2: New Pacific Metals Corp. (“New Pacific” or the
“Company”) reports its unaudited consolidated financial results for the three and nine months ended
March 31, 2022, the third quarter of fiscal 2022. All figures are expressed in US dollars unless otherwise
stated.
QUARTERLY HIGHLIGHTS
▪ Reported assay results of the 2021 -2022 drill program at Silver Sand Project. The 2021 drill
programs comprise structural orientation drilling, step-out and infill drilling as well as exploration
drilling. Assay results of all 55 holes completed in 2021 and results of 13 holes from 48 holes in
10,520 m completed during the quarter under the 2022 drill program have been received;
▪ Reported assay results of 25 drill holes from the discovery drill program completed in 2021 at the
Carangas Silver-Gold Project. All drill holes with assay results intersected silver -rich polymetallic
mineralization near surface with some deep holes intersecting a wide zone of gold mineralization
below; and
▪ Maintained working capital of $34. 7 million, sufficient to advance the Silver Sand Project, the
Carangas Project and other regional exploration initiatives.
FINANCIAL RESULTS
Net loss attributable to equity holders of the Company for the three months ended March 31, 2022 was
$1.41 million or $0.01 per share (three months ended March 31, 2021 – net loss of $1.69 million or $0.01
per share). The Company’s financial results were mainly impacted by the following: (i) operating expenses
of $1.52 million compared to $1.60 million in the prior year quarter; (ii) income from investments of $0.12
million compared to $0.07 million in the prior year quarter; and (iii) foreign exchange loss of $0.04 million
compared to loss of $0.16 million in the prior year quarter.
For the nine months ended March 31, 2022, net loss attributable to equity holders of the Company was
$4.08 million or 0.03 per share compared to net loss of $4.59 million or 0.03 per share for the nine months
ended March 31, 2021.
Operating expenses for the three and nine months ended March 31, 20 22 were $1.52 million and $4.49
million, respectively (three and nine months ended March 31, 20 21 - $1.60 million and $4 .38 million,
respectively).
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Income from investments for the three months ended March 31, 20 22 was $0.12 million (three months
ended March 31, 2021 – $0.07 million) and is comprised of a $60,323 gain on the Company ’s equity
investments (three months ended March 31, 2021 – gain of $37,223), a $34,037 gain on bonds (three
months ended March 31, 2021 – loss of $6,039), $nil income from dividends (three months ended March
31, 2021 – income of $1,411), and $30,500 interest earned from cash accounts (three months ended March
31, 2021 - $39,152).
For the nine months ended March 31, 2022, income from investments was $0.21 million (nine months ended
March 31, 2021 – income of $0.61 million).
Foreign exchange loss for the three months ended March 31, 2022 was $0.04 million (three months ended
March 31, 2021 – loss of $0.16 million ). The Company holds a large portion of cash and short -term
investments in USD to support its operations in Bolivia. Revaluation of these USD-denominated financial
assets to their CAD functional currency equivalents resulted in unrealized foreign exchange gain or loss
for the relevant reporting periods. During the three months ended March 31, 2022, the USD depreciated
by 1.4% against the CAD (from 1.2678 to 1.2496) while in the prior year quarter the USD depreciated by
1.2% against the CAD (from 1.2732 to 1.2575).
For the nine months ended March 31, 2022, foreign exchange gain was $0.16 million (nine months ended
March 31, 2021 – loss of $0.83 million).
Working Capital: As of March 31, 2022, the Company had working capital of $34.7 million.
PROJECT OVERVIEW
SILVER SAND PROJECT
On April 6, 2022, the Company reported the assay results of the 2021 -2022 drill programs for the Silver
Sand Project. The 2021 drill programs comprise structure orientation drilling, step -out and infill drilling
as well as exploration drilling. Assay res ults of all 55 drill holes in 13,313.7 m completed in 2021 have
been received. The 2022 drill program is planned at 15,000 m of infill and step -out drilling. The aim of
the resource infill drilling is to improve the confidence in the continuity of mineralization in the core area
of Silver Sand and upgrade resource categories, and the step -out drilling is to test the extension of the
major mineralized zones up and down dip as well as on strike. As of the date of this news release, a total
of 10,520 m in 48 holes were completed, for which assay results of 13 holes have been received.
For the three and nine months ended March 31, 2022, total expenditures of $1 .02 million and $4 .44
million, respectively (three and nine months ended March 31, 2021 - $0.88 million and $2 .23 million,
respectively) were capitalized under the project.
CARANGAS PROJECT
On June 29, 2021, the Company announced the commencement of an initial 2021 discovery drill program
at the Carangas Project to test near-surface bulk -tonnage and high -grade vein -hosted silver -rich
polymetallic targets centered on and adjacent to the histor ically exploited West and East Dome areas.
Total drilling of 13,209 m was completed in 35 holes under the 2021 discovery drill program , defining a
mineralized area of approximately 1,000 m long by 700 m wide and up to 400 m in depth. On February
10 and 23, 2022, the Company announced assays results of 25 drill holes, with the remaining 10 drill holes
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pending. All drill holes with assay results intersected silver -rich polymetallic mineralization near surface
with some deep holes intersecting a wide zone of gold mineralization below.
Following the success of the 2021 discovery drill program, the Company has commenced a 2022 resource
definition drill program during the quarter with initial planned meterage of 30,000 m which could be
extended to 40,000 m or more if on-going drill results continue to be encouraging.
For the three and nine months ended March 31, 2022, total expenditures of $1 .16 million and $3 .13
million, respectively (three and nine months ended March 31, 2021 - $nil and $nil, respectively) were
capitalized under the project.
SILVERSTRIKE PROJECT
During 2020, the Company’s exploration team completed reconnaissance and detailed mapping and
sampling programs on the northern portion of the project. The results to date indicate go od to excellent
exploration potential for hosting narrow, high -grade, near-surface broad-zones of silver mineralization.
The Company is planning a discovery drill program in 2022 to test the northern and central areas of the
project.
For the three and nine months ended March 31, 2022, total expenditures of $ 0.03 million and $ 0.04
million, respectively (three and nine months ended March 31, 2021 - $0.43 million and $1 .40 million,
respectively) were capitalized under the project.
MANAGEMENT DISCUSSION AND ANALYSIS
This news release should be read in conjunction with the Company’s Management Discussion and Analysis
(“MD&A”) and the unaudited condensed consolidated interim financial statements and notes thereto for
the corresponding period, which have been filed with the Canadian Securities Administrat ors and are
available under the Company’s profile on SEDAR at www.sedar.com and on the Company’s website at
www.newpacificmetals.com.
QUALIFIED PERSON
The scientific and technical information contained in this news release has been reviewed and approved
by Alex Zhang, P. Geo., Vice President of Exploration, who is a Qualified Person for the purposes of
National Instrument 43-101 – Standards of Disclosure for Mineral Resources (“NI 43-101”). The Qualified
Person ha s verified the information disclosed herein and are not aware of any significant risks and
uncertainties that could be expected to affect the reliability or confidence in the in formation discussed
herein.
ABOUT NEW PACIFIC
New Pacific is a Canadian exploration and development company with precious metal projects, including
the flagship Silver Sand Project, the Silverstrike Project and the Carangas Project, all of which are located
in Bolivia. The Company is focused on progressing the development of the Silver Sand Project, exploring
the Carangas broad silver -gold Project, recently discovered in 2021 and initiating the exploration of the
historic silver mining district of the Silverstrike Project.
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For further information, please contact:
New Pacific Metals Corp. Investor Relations
Phone: (604) 633-1368
U.S. & Canada toll-free: 1 (877) 631-0593
E-mail: [email protected]
www.newpacificmetals.com
To receive company news by e-mail, please register using New Pacific’s website at
www.newpacificmetals.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Certain of the statements and information in this news release 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. Any statements or information that express or
involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or
future even ts or performance (often, but not always, using words or phrases such as “expects”, “is expected”,
“anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”,
“forecasts”, “objectives”, “budgets”, “s chedules”, “potential” or variations thereof or stating that certain actions,
events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of
these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or
information. Such statements include, but are not limited to: statements regarding anticipated exploration, drilling,
development, construction, and other activities or achievements of the Company; t iming of receipt of permits and
regulatory approvals; timing and content of the PEA, and estimates of the Company’s revenues and capital
expenditures.
Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and
other factors that could cause actual events or results to differ from those reflected in the forward-looking statements
or information, including, without limitation, risks relating to: global economic and social impact of COVID -19;
fluctuating equity prices, bond prices, commodity prices; calculation of resources, reserves and mineralization,
general economic conditions, foreign exchange risks, interest rate risk, foreign investment risk; loss of key personnel;
conflicts of interest; dep endence on management , uncertainties relating to the availability and costs of financing
needed in the future, environmental risks, operations and political conditions, the regulatory environment in Bolivia
and Canada, risks associated with community relat ions and corporate social responsibility, and other factors
described under the heading “Risk Factors” in the Company’s Annual Information Form for the year ended June 30,
2021 and its other public filings.
This list is not exhaustive of the factors tha t may affect any of the Company’s forward -looking statements or
information.
The forward-looking statements are necessarily based on a number of estimates, assumptions, beliefs, expectations
and opinions of management as of the date of this news release that, while considered reasonable by management,
are inherently subject to significant business, economic and competitive uncertainties and contingencies. These
estimates, assumptions, beliefs, expectations and options include, but are not limited to, th ose related to the
Company’s ability to carry on current and future operations, including: the duration and effects of COVID -19 on our
operations and workforce; development and exploration activities; the timing, extent, duration and economic
viability of such operations; the accuracy and reliability of estimates, projections, forecasts, studies and assessments;
the Company’s ability to meet or achieve estimates, projections and forecasts; the stabilization of the political climate
in Bolivia; the Company’s ability to obtain and maintain social license at its mineral properties; the availability and
cost of inputs; the price and market for outputs; foreign exchange rates; taxation levels; the timely receipt of
necessary approvals or permits , including the ra tification and approval of the Mining Production Contract with
COMIBOL by the Plurinational Legislative Assembly of Bolivia; the ability of the Company’s Bolivian partner to convert
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the exploration licenses at the Carangas Project to AMC; the ability to meet current and future obligations; the ability
to obtain timely financing on reasonable terms when required; the current and future social, economic and political
conditions; and other assumptions and factors generally associated with the mining industry.
Although the forward-looking statements contained in this news release are based upon what management believes
are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward -
looking statements. All forward -looking statements in this news release are qualified by these cautionary
statements. Accordingly, readers should not place undue reliance on such statements. Other than specifically
required by applicable laws, the Company is under no obligation and exp ressly disclaims any such obligation to
update or alter the forward-looking statements whether as a result of new information, future events or otherwise
except as may be required by law. These forward-looking statements are made as of the date of this news release.
CAUTIONARY NOTE TO US INVESTORS
This news release, including the documents incorporated by reference herein, has been prepared in accordance with
the requirements of the securities laws in effect in Canada which differ from the requirements of United States
securities laws. All mining terms used herein but not otherwise defined have the meanings set forth in NI 43-101.
Accordingly, information contained in this news release and the documents incorporated by reference herein
containing descriptions of the Company's mineral deposits may not be comparable to similar information made public
by U.S. companies subject to the reporting and disclosure requirements of United States federal securities laws and
the rules and regulations thereunder.