New Pacific Reports Financial Results FOR
1
NEWS RELEASE
NEW PACIFIC REPORTS FINANCIAL RESULTS FOR
THE THREE MONTH ENDED SEPTEMBER 30, 2023
VANCOUVER, BRITISH COLUMBIA – NOVEMBER 7, 2023: New Pacific Metals Corp. (“New Pacific” or the “Company”)
reports its financial results for the three months ended September 30, 2023. All figures are expressed in US dollars
unless otherwise stated.
FISCAL 2024 Q1 HIGHLIGHTS
The Company filed its inaugural independent National Instrument 43‐101 – Standards of Disclosure for Mineral
Projects (“NI 43‐101”
) mineral resource estimate (the “MRE”) for its Carangas Project on September 18, 2023.
Total indicated mineral resources of 214.9 million tonnes (“Mt”) containing 205.3 million ounces (“Mozs”) of
silver (“Ag”), 1,588.2 thousand ounces (“Kozs”) of gold (“Au”), 1,444.9 million pounds (“Mlbs”) of lead (“Pb”),
2,653.7 Mlbs of zinc (“Zn”), and 112.6 Mlbs of copper (“Cu”); or collectively 559.8 Mozs silver equivalent
(“AgEq”). Total inferred mineral resources are 45.0 Mt containing 47.7 Mozs of silver, 217.7 Kozs of gold, 297.9
Mlbs of lead, 533.7 Mlbs of zinc, and 16.8 Mlbs of copper; or collectively 109.8 Mozs AgEq. For further details,
please refer to the Company’s news release dated September 18, 2023.
The Company successfully closed a bought deal financing on September 29, 2023. A total of 13,208,000
common shares of the Company were sold under the bought deal financing at a price of $1.96 (CAD $2.65) per
common share for total gross proceeds of approximately $25.9 million (CAD $35 million). The underwriter’s fee
and other issuance costs for the transaction were approximately $1.4 million.
The Company strengthened the Board by appointing Mr. Paul Simpson as a director on September 11, 2023.
Completed leadership transition as Mr. Andrew Williams was appointed as Chief Executive Officer (“CEO”) of
the Company on September 11, 2023. Mr. Williams previously held the role of President of the Company. Dr.
Rui Feng, founder of the Company, stepped down as CEO.
FINANCIAL RESULTS
Net loss attributable to equity holders of the Company for the three months ended September 30, 2023 was $1.75
million or $0.01 per share (three months ended September 30, 2022 – net loss of $2.09 million or $0.01 per share). The
Company’s financial results were mainly impacted by the following items:
O
perating expenses for the three months ended September 30, 2023 were $1.87 million (three months ended
September 30, 2022 ‐ $2.06
million).
N
et Income from investments for the three months ended September 30, 2023 was $0.02 million (three months
ended September 30, 2022 – $0.04 million).
2
Gain on disposal of plant and equipment for the three months ended September 30, 2023 was $0.05 million
(three months ended September 30, 2022 – $nil).
Foreign exchange gain for the three months ended September 30, 2023 was $0.05 million (three months ended
September 30, 2022 – gain of $0.01 million).
Working Capital: As of September 30, 2023, the Company had working capital of $27.06 million.
PROJECT EXPENDITURE
The following schedule summarized the expenditure incurred by category for each project for relevant periods:
SILVER SAND PROJECT
For the three months ended September 30, 2023 , total expenditures of $ 0.97 million (three months ended
September 30, 2022 ‐ $2.50 million) were capitalized under the project.
CARANGAS PROJECT
For the three months ended September 30, 2023 , total expenditures of $ 0.61 million (three months ended
September 30, 2022 ‐ $2.98 million) were capitalized under the project.
SILVERSTRIKE PROJECT
For the three months ended September 30, 2023 , total expenditures of $ 0.07 million (three months ended
September 30, 2022 ‐ $0.44 million) were capitalized under the project.
MANAGEMENT DISCUSSION AND ANALYSIS
This news release should be read in conjunction with the Company’s m anagement discussion and analysis and the
unaudited condensed and consolidated financial statements and notes thereto for the corresponding period, which
have been filed with the Canadian Securities Administrat ors and are available under the Company’s profile on
Cost Silver Sand Silverstrike Carangas Total
Balance, July 1, 2022 76,568,598$ 3,269,232$ 5,460,946$ 85,298,776$
Capitalized exploration expenditures
Reporting and assessment 1,008,174 ‐ 88,558 1,096,732
Drilling and assaying 1,925,695 977,881 8,289,678 11,193,254
Project management and support 2,719,120 256,569 1,424,573 4,400,262
Camp servi ce 467,690 174,651 1,005,158 1,647,499
Permit and license 195,821 ‐ 9,389 205,210
Foreign currency impact (201,972) (24,680) (8,831) (235,483)
Balance, June 30, 2023 82,683,126$ 4,653,653$ 16,269,471$ 103,606,250$
Capitalized exploration expenditures
Reporting and assessment 152,549 ‐ 113,565 266,114
Drilling and assaying 40,065 ‐ 8,227 48,292
Project management and support 561,860 50,169 365,956 977,985
Camp servi ce 186,734 17,147 117,801 321,682
Permit and license 24,691 ‐ 9,308 33,999
Foreign currency impact (222,359) (19,005) (45,440) (286,804)
Balance, September 30, 2023 83,426,666$ 4,701,964$ 16,838,888$ 104,967,518$
3
SEDAR+ at www.sedarplus.ca,on EDGAR at www.sec.gov and on the Company’s website at
www.newpacificmetals.com.
QUALIFIED PERSON
T
he 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 (as defined in National Instrument 43 ‐101 –
S
tandards of Disclosure for Mineral Projects (“NI 43‐101”
)) for the purposes of NI 43 ‐101.
The Qualified Person ha s
verified the information disclosed herein using standard verification processes, including the sampling, preparation,
security and analytical procedures underlying such information, and is not aware of any significant risks and
uncertainties or any limitations on the verification process that could be expected to affect the reliability or
confidence in the information discussed herein.
A
BOUT NEW PACIFIC
N
ew Pacific is a Canadian exploration and development company with precious metal projects in Bolivia, including
the Company’s flagship Project, the Silver Sand Silver Project, the Company’s recently discovered Carangas Silver ‐
G
old Project and the Company’s third project, the Silverstrike Silver‐G
old Project.
F
or further information, please contact:
Andrew Williams, CEO
N
ew Pacific Metals Corp. Phone: (604) 633‐136
8 Ext. 236
1750 – 1
066 Hastings Street, Vancouver, BC V6E 3X1, Canada
U
.S. & Canada toll‐fr
ee: 1 (877) 631‐059
3
E‐m
ail: [email protected]
F
or additional information and to receive the Company news by e‐m
ail, please register using New Pacific’s website
at www.
newpacificmetals.com.
CAUTIONARY NOTE REGARDING RESULTS OF PRELIMINARY ECONOMIC ASSESSMENT
The results of the independent preliminary economic assessment (the “PEA”) contained in the technical report filed
in respect of the Silver Sand Project on February 26, 2023 are preliminary in nature and are intended to provide an
initial assessment of the Silver Sand Project’s economic potential and development options. The PEA mine schedule
and economic assessment includes numerous assumptions and is based on both indicated and inferred mineral
resources. Inferred resources are considered too speculative geologically to have the economic considerations applied
to them that would enable them to be categorized as mineral reserves, and there is no certainty that the project
economic assessments described herein will be achieved or that the PEA results will be realized. The estimate of
mineral resources may be materially affected by geology, environmental, permitting, legal, title, socio -political,
marketing or other relevant issues. Mineral resources are not mineral reserves and do not have demonstrated
economic viability. Additional exploration will be required to potentially upgrade the classification of the inferred
mineral resources to be considered in future advanced studies. AMC Mining Consultants (Canada) Ltd. (“AMC
Consultants”) (mineral resource, mining, infrastructure and financial analysis) was contracted to conduct the PEA in
cooperation with Halyard Inc. (metallurgy and processing), and NewFields Canada Mining & Environment ULC
(tailings, water and waste management). The qualified persons (as defined in NI 43-101) for the PEA for the purposes
of NI 43-101 are Mr. John Morton Shannon, P.Geo, General Manage and Principal Geologist at AMC Consultants, Mr.
Wayne Rogers, P.Eng, and Mr. Mo Molavi, P.Eng, both Principal Mining Engineers with AMC Consultants, Mr. Andrew
Holloway, P.Eng, Process Director with Halyard Inc., and Mr. Leon Botham, P.Eng., Principal Engineer with NewFields
Canada Mining & Environment ULC , in addition to Ms. Dinara Nussipakynova, P.Geo., Principal Geologist with AMC
Consultants, who estimated the mineral resources. All qualified persons for the PEA have reviewed the disclosure of
the PEA herein. The PEA is based on the MRE, which was reported on November 28, 2022. The effective date of the
MRE is October 31, 2022. The cut -off applied for reporting the pit -constrained mineral resources is 30 g/t silver.
Assumptions made to derive a cut-off grade included mining costs, processing costs and recoveries and were obtained
4
from comparable industry situations. The model is depleted for historical mining activities. Mineral r esources are
constrained by optimized pit shells at a silver price of US$22.50 per ounce, silver metallurgical recovery of 91%, silver
payability of 99%, open pit mining cost of US$2.6/t, processing cost of US$16/t, G&A cost of US$2/t, and slope angle
of 44-47 degrees. Key assumptions used for pit optimization for the PEA mining pit include silver price of US$22.50
per ounce, silver metallurgical recovery of 91%, silver payability of 99%, open pit mining cost of US$2.6/t, incremental
mining cost of US$0.04/t (per 10 m bench), processing cost of US$16/t, tailing storage facility operating cost of
US$0.7/t, G&A cost of US$2/t, royalty of 6.00%, mining recovery of 92%, dilution of 8%, and cut -off grade of 30 g/t
silver.
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 always, 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 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; inferred, indicated or measured
mineral resources or mineral reserves on the Company’s projects; the results of the PEA; timing of receipt of permits
and regulatory approvals; 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; dependence 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 relations and corporate social responsibility, and other factors
described under the heading “Risk Factors” in the Company’s a nnual information form for the year ended June 30,
2023 and its other public filings.
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 sign ificant 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 av ailability 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 ratification and approval of the Mining Production Contract with the
Corporacion Minera de Bolivia (“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 administrative mining
contracts; the ability to meet current and future obligations; the ability to obtain timely financing on reasonable
5
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 expressly 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 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 United States 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 a nnual information form, can be obtained
under the Company’s profile on SEDAR + at www.sedarplus.ca, on EDGAR at www.sec.gov , and on the Company’s
website at www.newpacificmetals.com.