New Pacific Reports Financial Results FOR
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NEWS RELEASE
NEW PACIFIC REPORTS FINANCIAL RESULTS FOR
THE THREE MONTHS AND YEAR ENDED JUNE 30, 2022
VANCOUVER, BRITISH COLUMBIA – AUGUST 25, 2022: New Pacific Metals Corp. (“New Pacific” or the “Company”)
reports its financial results for the three months and year ended June 30, 2022. All figures are expressed in US dollars
unless otherwise stated.
FISCAL 2022 HIGHLIGHTS
▪ Commenced the 2022 drill program at the Silver Sand Project which includes resource infill drilling to improve
the confidence in the continuity of mineralization and step -out drilling to test the extension of the major
mineralized zones up and down dip as well as on strike. To date, a total of 21,309 metres (“m”) in 94 drill holes
have been completed, of which assay results for 35 drill holes have been received;
▪ Completed the 2021 drill program of 13,313.7 m in 55 drill holes and received assay results f or all drill holes at
the Silver Sand Project;
▪ Commenced the 2022 drill program at the Carangas Silver-Gold Project, a total of 21,980 m in 43 drill holes have
been completed so far, of which assay results for 12 drill holes have been received. The assay results continue
to show near surface silver horizons stacking over a broad bulk of gold mineralization below;
▪ Completed the 2021 initial discovery drill program at the Carangas Silver-Gold Project for a total of 13,209 m in
35 drill holes and received assay results for all drill holes. All assay results intersected silver -rich polymetallic
mineralization near surface, with some deep holes intersecting a wide zone of gold mineralization below;
▪ Commenced a 6,000 m initial discovery drill program at the Silverstrike Project and a 2,000 m initial discovery
drill program at the Jisas prospect, a satellite concession located in the north block of the Silver Sand Project;
▪ Continue to advance the preliminary economic assessment (“PEA”) study for the Silver Sand Project , including
a mineral resource estimate (“MRE”). The PEA is expected to be completed by the end of 2022; and
▪ Maintained working capital of $29. 3 million, sufficient to advance the existing exploration projects and other
regional exploration initiatives.
FINANCIAL RESULTS
Net loss attributable to equity holders of the Company for the year ended June 30, 2022 was $6.42 million or $0.04
per share (year ended June 30, 2021 – net loss of $6.57 million or $0.04 per share). The Company’s financial results
were mainly impacted by the following: (i) operating expenses of $6.78 million compared to $5.95 million in the prior
year; (ii) income from investments of $0.22 million compared to $0.40 million in the prior year; and (iii) foreign exchange
gain of $0.19 million compared to loss of $1.02 million in the prior year.
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For the three months ended June 30, 2022, net loss attributable to equity holders of the Company was $2.34 million or
0.01 per share (three months ended June 30, 2021 - net loss of $1.97 million or 0.01 per share).
Operating expenses for the three months and year ended June 30, 20 22 were $2.29 million and $6 .78 million ,
respectively (three months and year ended June 30, 2021 - $1.57 million and $5.95 million, respectively).
Income from investments for the three months and year ended June 30, 2022 was $0.01 million and $0.22 million,
respectively (three months and year ended June 30, 2021 – loss of $0.21 million and income of $0.40 million,
respectively).
Foreign exchange gain for the year ended June 30, 2022 was $0.19 million (year ended June 30, 2021 – loss of $1.02
million). The Company holds a portion of cash and short-term investments in USD to support its operations in Bolivia.
Revaluation of these USD -denominated financial assets to their Canadian dollar (“CAD”) functional c urrency
equivalents resulted in unrealized foreign exchange gain or loss for the relevant reporting periods. For the year
ended June 30, 2022, the USD appreciated by 4.0% against the CAD (from 1.2394 to 1.2886 ) while in the prior year
the USD depreciated by 9.1% against the CAD (from 1.3628 to 1.2394).
For the three months ended June 30, 2022, foreign exchange gain was $ 0.02 million (three months ended June 30,
2021 – loss of $0.20 million).
Working Capital: As of June 30, 2022, the Company had working capital of $29.3 million.
PROJECT OVERVIEW
SILVER SAND PROJECT
In 2021, the Company completed a drill program of 13,313.7 m in 55 holes. The 2021 drill program comprised
structure orientation drilling, step-out and infill drilling as well as exploration drilling. Assay results of all drill holes
have been received. Detailed structural logging and assay of the oriented drill cores confirmed previous
understanding of the orientation of mineralized structures and resource model which are dominantly striking in the
direction of north and northwest and dipping in direction of west at high angles which are also evidenced at surface
outcrops and historical underground workings. Step -out drilling was carried out mainly outside of the major
mineralized trends with results indicating the existence of multiple smaller satellit e mineralized zones between the
major mineralized trends. For details of the 2021 drill program, please refer to the Company’s news release dated
April 6, 2022.
In the first half of 2022, the Company commenced a resource infill drilling and step -out dr illing program . The
resource infill drilling aims to improve the confidence in the continuity of mineralization in the core area of the
project and upgrade resource categories , while the step -out drilling is designed to test the extension of the
mineralized zones up and down dip as well as on strike. The results of the infill and step-out drilling will be included
in the MRE and will be incorporated into the PEA expected to be completed by the end of 2022. To date, a total of
21,309 m in 94 drill holes h ave been completed, of which assay results for 35 drill holes have been received . For
details of the 2022 drill program, please refer to the Company’s news releases dated May 31, 2022 and April 6, 2022.
For the three months and year ended June 30, 2022, total expenditures of $3 .20 million and $7 .64 million,
respectively (three months and year ended June 30, 2021 - $1.13 million and $3 .36 million , respectively) were
capitalized under the project.
CARANGAS PROJECT
In 2021, the Company completed an initial discovery drill program of 13,209 m in 35 drill holes . Assay results of all
drill holes have been received. Results from the 2021 discovery drill program confirmed the broad silver -rich
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polymetallic mineralization near surface and intersected a wide zone of gold mineralization below it. For details of
the 2021 discovery drill program, please refer to the Company’s news releases dated May 17, 2022, February 23,
2022, and February 10, 2022.
Following the success of the 2021 discovery drill program, the Company has commenced a 2022 resource definition
drill program with a planned meterage of up to 40,000 m if ongoing drill results continue to be encouraging. To date,
a total of 21,980 m in 43 drill holes have been completed, of which assay results of 12 drill holes have been received.
The assay results continue to show near surface silver horizons stacking over a broad bulk gold mineralization below.
Currently, there are five drill rigs deployed at the project, of which the three larger drill rigs with a capacity of 1,000
m depth are focusing on both near surface silver and at depth gold zones, while the other two smaller drill rigs are
focusing on near surface silver zone. For details of the 2022 drill program, please refer to the Company’s news
release dated July 13, 2022 and August 8, 2022.
For the three months and year ended June 30, 2022, total expenditures of $ 2.10 million and $ 5.22 million,
respectively (three months and year ended June 30, 2021 - $nil and $ 0.25 million, respectively) were capitalized
under the project.
SILVERSTRIKE PROJECT
On June 14, 2022, the Company announced to commence a 6,000 m initial discovery drill program at the Silverstrike
Project. The program will focus on testing a broad gold zone identified by the Company and by historical drilling.
For the three months and year ended June 30 , 202 2, total expenditures of $0.10 million and $ 0.14 million,
respectively (three months and year ended June 30 , 2021 - $0.02 million and $1.29 million, respectively ) were
capitalized under the project.
RZY PROJECT
The RZY Project, located in Qinghai, China was an early stage silver -lead-zinc exploration project. The RZY Project
was located approximately 237 km from the city of Yushu Tibetan Autonomous Prefecture. In 2016, the Qinghai
Government issued a moratorium which suspended exploration for 26 mining projects in the region, including the
RZY Project, and classified the region as a National Nature Reserve Area.
During Fiscal 2020, the Company’s subsidiary, Qinghai Found Mining Co., Ltd. (“Qinghai Found”) , reached a
compensation agreement with the Qinghai Government for the RZY Project. Pursuant to the agreement, Qinghai
Found will surrender its title to the RZY Project to the Qinghai Government for one-time cash compensation of $2.99
million (RMB ¥20 million) (the “RZY compensation transaction”).
On June 25, 2022, the Qinghai Government completed its approval process of the RZY compensation transaction .
As a result, the Company disposed its RZY Project for cash consideration of $2.99 million (RMB ¥20 million), which is
included in the receivables balance as of June 30, 2022. For the year ended June 30, 2022, a loss of $0.09 million
(year ended June 30, 2021 - $nil) was recognized upon disposal of the RZY Project. Subsequent to June 30, 2022,
the Company received the cash compensation in full.
MANAGEMENT DISCUSSION AND ANALYSIS
This news release should be read in conjunction with the Company’s Management Discussion and Analysis (“MD&A”)
and the audited consolidated 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.
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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 has verified the information
disclosed herein and is not aware of any significant risks and uncertainties that could be expected to affect the
reliability or confidence in the information discussed herein.
ABOUT NEW PACIFIC
New Pacific is a Canadian exploration and development company with precious metal projects in Bolivia. The
Company’s flagship Project, the Silver Sand Silver Project, is waiting for a new Mineral Resource Estimate Update
and a PEA by the end of 2022. Rece ntly discovered Carangas Silver -Gold Project is undergoing a 40,000 m drill
program. The third project, the Silverstrike Silver-Gold Project, commenced a 6,000 m initial test drilling program in
June 2022.
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 events or performance (often, but not alway s, using words or phrases such as “expects”, “is expected”,
“anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”,
“forecasts”, “objectives”, “budgets”, “schedules”, “potential” or variations th ereof 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; timing 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 pr ices; 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; dependence on management , uncertainties relating to the availability and costs of financing
needed in the future, environmental risks, opera tions and political conditions, the regulatory environment in Bolivia
and Canada, risks associated with community relations and corporate social responsibility, and other factors
described under the heading “Risk Factors” in the Company’s Annual Informatio n Form for the year ended June 30,
2021 and its other public filings.
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This list is not exhaustive of the factors that 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, those 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 o utputs; foreign exchange rates; taxation levels; the timely receipt of
necessary approvals or permits , including the ratification 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
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 socia l, 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 assumption s, 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 relia nce on such statements. Other than specifically
required by applicable laws, the Company is under no obligation and expressly disclaims any such obligation to
update or alter the forward -looking statements whether as a result of new information, future eve nts 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 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. Unless otherwise indicated, the technical and scientific disclosure
herein has been prepared in accordance with NI 43 -101, which differs significantly from the requirements adopted
by the U.S. Securities and Exchange Commission.
Accordingly, information contained in this news release 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.
Additional information relating to the Company, including the Company’s Annual Information form, can be obtained
under the Company’s profile on SEDAR at www.sedar.com, on EDGAR at www.sec.gov, and on the Company’s website
at www.newpacificmetals.com.