Mission
Pan American Silver Corp. is founded upon a single mission: To become the best vehicle for equity investors wanting to gain real exposure to higher silver prices.

To accomplish this we are striving to:

1. increase our low-cost silver production,
2. have the most successful silver exploration programs,
3. hold the largest silver reserves and resources,
4. maximize leverage to the price of silver by maintaining a no hedging philosophy, and
5. generate sustainable profits.

Pan American has never, and will never, hedge any of its silver production. The Company's Board and management is of the opinion that limiting the upside of silver revenues through hedging is contrary to Pan American's mission statement.

History
Pan American Silver began as a silver company in early 1994, when Equinox Resources, a company managed by Ross Beaty and John Wright, was taken over by a well-known U.S. mining company. The Equinox team noted that the U.S. mining company's shares traded in tandem with the silver price, even though gold and industrial minerals generated much more of their revenue than silver. Impressed with this fact, along with the strong demand and supply fundamentals of silver, a study of worldwide silver companies was undertaken and revealed that there were few well-valued, well-leveraged, well-structured stocks available to investors interested in silver equities. A good opportunity existed to form a pure silver mining company. In 1994, starting with no assets or liabilities and a share price of ten cents, Pan American Silver began by acquiring a number of projects with known silver resources. These properties contained over 250 million ounces of silver but required higher silver prices to be produced economically.

In September of 1995 Pan American purchased the producing Quiruvilca silver-zinc mine located north of Lima in Peru. The financial turnaround of the Quiruvilca mine began immediately and utilized the strong technical skills of Pan American's operational management.

With the Quiruvilca mine operating smoothly, Pan American focused on acquiring new projects that would increase annual silver production and gained three new projects from 1997 through the present. In September 1997 Pan American signed an option to acquire a 100 percent interest in the La Colorada silver mine in Zacatecas State, Mexico. La Colorada is located in the largest silver-producing region in the world, with over 2 billion ounces of historic silver production. Pan American completed the purchase of La Colorada in March 1998, completed feasibility in 2000, began small-scale production in 2001 and in 2003 completed an expansion of the mine that increased production to an average 3 million ounces of silver annually in 2005.

The Dukat deposit, located in Magadan State, Far Eastern Russia, is the world's third largest primary silver deposit, containing nearly 500 million ounces of silver in reserves and resources. From November 1997 until 1999 Pan American successfully advanced the deposit through many difficult hurdles to begin construction of a silver mine on the great Dukat ore body. In December 1999 these accomplishments were undermined when a Russian company blocked the project by acquiring some of the mine's assets. In 2000, after significant legal action, Pan American agreed to become a minority joint venture partner on the project and wrote off its entire $37 million capital investment. In 2004, Pan American sold its 20% interest to Polimetall for $43 million to more than recoup its investment.

In March 2000, Pan American acquired a majority interest in the Huaron mine, located northeast of Lima in the Cerro de Pasco district, one of the most important mining regions in Peru. Pan American fast-tracked the project through feasibility, financing and construction to begin full-scale production in April 2001. In 2002, Huaron became Pan American's largest operation and currently produces 3.6 million ounces of silver annually.

Also in Peru, in 2002 Pan American acquired rights to silver-rich stockpiles in the Cerro de Pasco district. The stockpiles contain an aggregate of nearly 110 million ounces of contained silver -- the largest aboveground inventory of silver ore in the world. Pan American has a 10-year agreement to sell some of the stockpiled ore to a nearby smelter and is paid for the silver contained. The operation currently yields an average 900,000 ounces of silver per year.

2002 was also the year in which the San Vicente property was optioned and began small-scale mining. In 2003 Pan American optioned 50% of the property to a Bolivian mining company, EMUSA, in order to operate more effectively in Bolivia. In 2005 Pan American increased its interest to 55% and initiated a feasibility study to expand production to 3 million ounces per year. A mining plan is expected in the second quarter of 2006.

In Argentina in 2002, Pan American acquired 50% of the Manantial Espejo silver/gold project. A feasibility study was completed at the end of 2005 and the remaining 50% was purchased in April 2006. The mine is currently under construction.

In February 2003 Pan American acquired Corner Bay Silver and its primary asset, the Alamo Dorado silver deposit in Sonora state, Mexico. The project is currently under construction with production expected to average 5 million ounces annually at a cash cost of less than $3.25/oz. beginning at the end of 2006.

In 2004, Pan American marked its tenth anniversary with its tenth consecutive year of growth in silver production and saw additional future growth objectives become real with construction and development projects at Alamo Dorado (México) and Manatial Espejo (Argentina). By 2008, the company plans to have annual silver production of 25 million ounces from eight operations.

In August 2004 Pan American acquired an 88% interest in the Morococha silver mine in Peru, which immediately added 1.2 million ounces of silver production to the Company, bringing 2005 production to 12.5 million ounces.