Mining, Developing & Exploring

Operations / USA / Waterloo

Pan American Silver Corp. maintains its interest in an established silver deposit in the United States acquired in 1994 and 1995 to give immediate leverage to silver.

Waterloo is an investment property that features low holding costs and potential to add substantially to Pan American Silver’s production when silver prices trend higher.

The property is not considered to be material to the Company.

A historical estimate of mineralization at Waterloo is given as 33.8 million tonnes at a grade of 93 g/t Ag, containing 100.9 million ounces of silver. The historical estimate for Waterloo was initially prepared by Asarco Inc. in 1968. In September 1994 Robert J. Rodger, P.Eng., reviewed the Asarco reports and prepared a Technical Evaluation Report on the Waterloo property, prior to the implementation of NI 43-101. The Technical Evaluation Report confirmed that the historical estimate was based on reverse circulation drilling and underground sampling, and concluded the estimate was based on sound methodology. The historical estimate at Waterloo was prepared using a silver price of $5.00 per ounce (the relevant price at the time of the estimate). Michael Steinmann, P.Geo., has reviewed the Technical Evaluation Report and believes the historic estimate was conducted in a professional and competent manner and is relevant for purposes of the Company’s decision to maintain its interest in the property. However, the Company has not completed the work necessary to verify the historical estimate. Accordingly, the Company is not treating the historical estimate as NI 43-101 compliant categories of mineral resources based on information prepared by or under the supervision of a QP. These historical estimates should not be relied upon.

Waterloo Geological Map