Pan American Silver owns 100% of the Navidad project, one of the world’s largest undeveloped silver deposits. The Navidad properties are located in north central Chubut Province in Argentina.

To date, the Navidad Project comprises eight individual mineral deposits in three separate mineralized trends (Navidad, Esperanza and Argenta trends). The six deposits of the Navidad Trend occur along strike over a distance of about 5.8 kilometres and are essentially continuous. Mineral Resource estimates have been completed for eight of these deposits.

The Province of Chubut passed a law in 2003 (“Law 5001”) that prohibits open pit mining and the use of cyanide in mineral processing in the entire province, effectively preventing the development of Navidad. To date, this law remains in place.

Our activities at Navidad at this time are guided by an investment plan that focuses primarily on satisfying the legal requirements necessary to maintain our property interests under the current mining law. We plan to continue with such maintenance requirements and remain committed to Navidad and to contributing to the positive economic and social development of Chubut, should a favourable legislative framework be adopted.