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NUAG.TO ·

New Pacific Reports Financial Results FOR the Three and Six Months Ended December 31, 2018

Financials

NEWS RELEASE

Trading Symbol: TSX-V: NUAG

OTCQX: NUPMF

NEW PACIFIC REPORTS FINANCIAL RESULTS FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2018

VANCOUVER, BRITISH COLUMBIA – February 21, 201 9: New Pacific Metals Corp. (“New Pacific” or the

“Company”) (TSX-V:NUAG) (OTCQX:NUPMF) today announced its unaudited condensed consolidated interim

financial results for the three and six months ended December 31, 2018.

This news release should be read in conjunction with the Company's management discussion & analysis,

financial statements and notes to financial statements for the corresponding period, which have been posted

under the Company’s profile on SEDAR at www.sedar.com and are also available on the Company's website

at www.newpacificmetals.com. All figures are expressed in Canadian dollars unless otherwise stated.

FINANCIALS

Net income attributable to equity holders of the Company for the three months ended December 31, 2018

was $473,838 or $0.00 per share (three months ended December 31, 2017 - net loss of $1,096,699 or $0.01 per

share). The Company’s financial results were mainly impacted by the following: (i) income from investments of

$65,926 compared to income of $68,533 in the prior year quarter , (ii) operating expenses of $592,7 96

compared to $1,162,214 in the prior year quarter, and (iii) foreign exchange gain of $1,065,279 compared to

gain of $59,635 in the prior year quarter.

For six months ended December 31, 2018, net loss attributable to equity holders of the Company was $278,745

or $0.00 per share compared to net loss of $2,647,798 or $0.02 per share for six months ended December 31,

2017.

Income from investments for the three months ended December 31, 2018 was $65,926 (three months ended

December 31, 2017 – income of $68,533). Within the income from investments, $150,525 was gain on the

Company’s equity investments and $125,677 was loss from fair value change on bonds offset by interest

earned.

For the six months ended December 31, 201 8, income from investments was $183,123 compared to loss of

$508,411 for the six months ended December 31, 2017.

Operating expenses for the three and six months ended December 31, 2018 were $592,796 and $1,006,872,

respectively (three and six months ended December 31, 2017 - $1,162,214 and $2,246,608, respectively).

Foreign exchange gain for the three months ended December 31, 2018 was $1,065,279 (three months ended

December 31, 2017 - $59,635). The Company holds a large portion of cash and cash equivalents and bonds in

US dollars while the Company ’s functional currency is Canadian dollar . The fluctuation in exchange rates

between the US dollar and the Canadian dollar will impact the financial results of the Company. During the

three months ended December 31, 2018, the US dollar appreciated by 5.4% against the Canadian dollar (from

1.2945 to 1.3642) while in the prior year period the US dollar appreciated by 0.5% against the Canadian dollar

(from 1.2480 to 1.2545).

For the six months ended December 31, 2108, foreign exchange gain was $720,437 (six months ended

December 31, 2017 – foreign exchange loss of $409,669).

SILVER SAND PROPERTY

The Company started the preparation work for the planned exploration program after the acquisition of the

Silver Sand Property. In October 2017, the Company successfully received exploration permits required by

the relevant Bolivian government authorities and immediately commenced its exploration drilling program

on the property. By mid-December 2018, a total of 55,010 metres in 195 HQ size diamond core drill holes

had been completed. On January 22 and February 20 , 2019, through two separate news releases , the

Company released the results of 195 drill holes that had assay result s received and analyzed, of which 190

holes intercepted silver mineralization. For details of the drill program, please follow the link s at

https://newpacificmetals.com/news-and-media/2019/1/22/new-pacific-reports-first-results-from-2018-drill-

program-at-silver-sand-bolivia and https://newpacificmetals.com/news-and-media/2019/2/20/new-pacific-

reports-remaining-drill-results-from-2018-drill-program-at-silver-sand-bolivia. For the three and six months

ended December 31 , 2018, total expenditures of $ 3,413,976 and $6,593,939, respectively (three and six

months ended December 31, 2017 - $966,651 and $1,354,399, respectively) were capitalized under the

property. These expenditures were mainly related to the drilling program, site and camp preparation,

maintaining a regional office in La Paz, and building a competent management team and workforce for the

property.

As part of the Silver Sand Property ’s expansion plan, on January 11, 2019, the C ompany announced that

through its wholly -owned subsidiary, Empresa Minera Alcira S.A., it had entered into a Mining Production

Contract (the ”MPC”) with Corporación Minera de Bolivia (“C OMIBOL”) granting the C ompany the right to

carry out exploration, mining, and production activities in the area of up to 56.9098 square kilometres

adjoining the Silver Sand Property. In addition, in July 2018, t he Company entered into agreements with

private owners to acquire their 100% interest in certain mineral concessions located adjacent to the Silver

Sand Property. For the six months ended December 31, 2018, the Company acquired total mineral

concessions valued at $2,631,200 (US$2,000,000) by cash p ayments of $1,315,600 (US$1,000,000) and

issuance of 832,000 of its common shares.

ABOUT NEW PACIFIC

New Pacific Metals Corp. is a Canadian exploration and development company which owns the Silver Sand

Project, in the Potosi Department of Bolivia, the Tagish Lake Gold Project in Y ukon, Canada and the RZY

Project in Qinghai Province, China.

For further information, please contact:

New Pacific Metals Corp.

Gordon Neal

President

Phone: (604) 633-1368

Fax: (604) 669-9387

[email protected]

www.newpacificmetals.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exc hange) accepts

responsibility for the adequacy or accuracy of this release.

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 perfo rmance (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.

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: fluctuating equity prices, bond prices,

commodity prices; calculation of resources, reserves and mineralization, foreign exchange risks, interest rate risk,

foreign investment risk; loss of key personnel; conflicts of interest; dependence on management and others.

This list is not exhaustive of the factors that may affect any of the Company’s forward -looking statements or

information. Forward-looking statements or information are statements about the future and are inherently

uncertain, and actual achievements of the Company or other future events or conditions may differ materially from

those reflected in the forward -looking statements or inform ation due to a variety of risks, uncertainties and other

factors, including, without limitation, those referred to in the Company’s Annual Information Form for the year

ended June 30, 2018 under the heading “Risk Factors”. Although the Company has attempted to identify important

factors that could cause actual results to differ materially, there may be other factors that cause results not to be as

anticipated, estimated, described or intended. Accordingly, readers should not place undue reliance on forwar d-

looking statements or information.

The Company’s forward-looking statements or information are based on the assumptions, beliefs, expectations and

opinions of management as of the date of this news release, and other than as required by applicable sec urities

laws, the Company does not assume any obligation to update forward -looking statements or information if

circumstances or management’s assumptions, beliefs, expectations or opinions should change, or changes in any

other events affecting such statements or information. For the reasons set forth above, investors should not place

undue reliance on forward-looking statements or information.