annual general meeting 2016

AnnualGeneralMeetingMay11,2016– FairmontWaterfrontHotel,Vancouver,BC

CautionaryNoteonForward-LookingStatements

2 TSX:PAA|NASDAQ:PAAS

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

CERT AIN O F THE ST ATEMENT S AND I NFORMATIO N I N THIS P RESENT ATION CONSTITUTE “ FO RWARD- LOOKI NG STATEMENTS” WITHIN THE MEANI NG O F THE UNITED STATE S PRI VATESECURITIE S LITIGATION RE FO RM ACT O F 1995 AND “ FO RWARD- LOOKI NG I NFORMATIO N” WITHIN THE MEANI NG O F APPLI CABLE CANADIAN P ROVI NCI AL SE CURITIES LAWS. ALL ST ATEMENT S,OTHER THAN ST ATEMENT S OF HISTO RICAL FACT , ARE FORWARD-LOOKI NG STATEMENTS OR I NFO RMATIO N. FO RWARD- LOOKING ST ATEMENT S OR INFO RMATION I N THIS PRE SENTATIO NRELATE TO , AMONG OTHER THI NGS: OUR ESTIMAT ED PROD UCTION O F SI LVE R, GOLD AND OTHER METALS IN 2016; OUR ESTIMATED CASH COSTS PER P AYABLE OUNCE O F SILVER ANDAISCSOS IN 2016; O UR ESTI MATED CAPITAL INVESTMENTS, AI SCSOS, AND SUSTAI NING CAPITAL FOR 2016; THE ABILITY OF THE COMPANY TO SUCCESSFULLY COMPLETE ANY CAPITALINVE STMENT P ROGRAMS AND P ROJECT S, AND THE IMP ACT S O F ANY SUCH P ROGRAMS AND P ROJECT S ON THE COMPANY; AND ANY ANTICIPATED LE VEL O F FI NANCIAL AND OPERATIO NALSUCCESS IN 2016.

THESE ST ATEMENT S RE FLECT THE COMPANY’S CURRENT VIEWS WITH RESPECT TO FUT URE EVENTS AND ARE NECESSARI LY BASED UPON A NUMBER O F ASSUMPTIO NS THAT, WHILECONSIDERED REASONABLE BY THE COMPANY, ARE INHERENTLY SUBJE CT TO SIGNI FICANT OPERATIONAL, BUSINE SS, ECONOMIC AND REG ULATO RY UNCERTAI NTIES AND CONTI NGENCIE S.THESE ASSUMPTIONS I NCLUDE: TONNAGE O F O RE TO BE MI NED AND PROCESSED; ORE GRADES AND RECOVERIE S; P RICES FOR SILVER, GO LD AND BASE MET ALS REMAINI NG AS ESTI MATED;CURRENCY EXCHANGE RATE S REMAI NING AS ESTIMATED; CAPITAL, DE COMMISSIONI NG AND RECLAMATIO N ESTI MATE S; OUR MI NERAL RE SERVE AND RESOURCE E STIMATE S AND THEASSUMPTIONS UPON WHICH THEY ARE BASED; PRICE S FO R ENERGY I NPUT S, LABOUR, MATE RIALS, SUPPLIE S AND SERVICE S (I NCLUDING TRANSPO RTATIO N); NO LABOUR- RE LATEDDISRUPTIONS AT ANY O F OUR OPERATIO NS: NO UNPLANNED DE LAYS IN OR INTE RRUPTIO NS IN SCHEDULED PROD UCTIO N; ALL NECESSARY PE RMITS, LICENCES AND REGULAT ORY APPRO VALSFOR OUR OPERATIO NS ARE RECEIVED IN A TIMELY MANNER; AND OUR ABILITY TO COMPLY WITH ENVI RONMENTAL, HE ALTH AND SAFETY LAWS. THE FO REGOI NG LI ST OF ASSUMPTIONS ISNOT EXHAUSTIVE.

THE COMPANY CAUTIO NS THE READ ER THAT FO RWARD- LOOKING ST ATEMENT S AND I NFORMATIO N I NVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAI NTIES AND OTHER FACTORS TH AT MAYCAUSE ACT UAL RESULTS AND DEVE LOPMENT S TO DI FFER MATERIALLY FROM THOSE E XPRE SSED OR IMP LIED BY SUCH FO RWARD- LOOKI NG STATEMENTS OR I NFO RMATIO N CONT AINED I NTHIS PRESENTATIO N AND THE COMPANY HAS MADE ASSUMPTIO NS AND ESTIMATES BASED ON OR RE LATED TO MANY O F THESE FACTORS. SUCH FACTO RS I NCLUD E, WITHOUT LIMITATIO N:FLUCTUATIO NS I N SILVER, GOLD AND BASE METALS PRICE S; FLUCTUATIO NS I N P RICES FOR ENERGY I NPUT S, LABOUR, MATE RIALS, SUPPLIES AND SERVICE S (INCLUDI NG T RANSPO RTATIO N);FLUCTUATIO NS IN CURRENCY MARKETS (SUCH AS THE CANADIAN DOLLAR, PERUVIAN SO L, ME XICAN PE SO AND BO LIVIAN BO LIVIANO VERSUS THE U.S. DO LLAR); OPERATIO NAL RISKS ANDHAZARDS I NHERENT WITH THE BUSI NE SS O F MI NI NG (INCLUDI NG ENVIRONMENTAL ACCIDENTS AND HAZARDS, IND UST RIAL ACCIDENTS, EQUIPMENT BRE AKDOWN, UNUSUAL ORUNEXPE CTED G EOLOGI CAL O R STRUCTURAL FO RMATIONS, CAVE-I NS, FLOODI NG AND SEVERE WEATHER); RISKS RE LATI NG TO THE CREDIT WORTHINE SS OR FI NANCIAL CONDITIO N O FSUPP LIERS, RE FINE RS AND OTHER PARTIES WITH WHOM THE COMPANY D OES BUSI NESS; I NADEQUATE I NSURANCE , OR INABI LITY TO OBTAI N INSURANCE, TO COVER THESE RI SKS ANDHAZARDS; EMPLOYEE RE LATIO NS; RELATIONSHIPS WITH, AND CLAI MS BY , LO CAL COMMUNITIES AND I NDIGENOUS POPULATIO NS; O UR ABI LITY TO OBTAI N ALL NECESSARY PERMIT S,LICENSES AND REGULAT ORY APP ROVALS IN A TIMELY MANNER; CHANGES I N LAWS, REGULATIO NS AND GOVERNMENT PRACTICES I N THE JURISDICTIO NS WHERE WE OPERATE, I NCLUDI NGENVI RONMENT AL, E XPORT AND IMPO RT LAWS AND REG ULATIONS; DIMINI SHING QUANTITIES OR G RADES OF MINERAL RE SERVES AS PROPE RTIES ARE MI NED; INCRE ASED COMPETITIO N I NTHE MI NING IND USTRY FO R EQUIP MENT AND QUALIFIED PERSONNEL; AND THOSE FACTO RS IDENTI FIED UNDER THE CAPTIO N “RISKS RE LAT ED TO PAN AMERICAN’S BUSINE SS” I N THECOMPANY’ S MOST RECENT FO RM 40- F AND ANNUAL I NFORMATIO N FO RM FILED WITH THE UNITED ST ATES SECURITIES AND EXCHANGE COMMISSIO N AND CANADIAN SECURITIESREGULAT ORY AUTHORITIES. ALTHOUGH THE COMPANY HAS ATT EMPTED TO IDENTI FY IMPO RTANT FACTO RS TH AT COULD CAUSE ACT UAL RESULTS TO DIFFE R MATERI ALLY, THE RE MAY BEOTHER FACTORS THAT CAUSE RE SULT S NOT T O BE AS ANTICIPATED, ESTI MATED, DE SCRIBED OR I NTENDED. I NVE STORS ARE CAUTIO NED AGAI NST UND UE RE LIANCE ON FO RWARD- LOOKI NGSTATEMENTS AND I NFORMATIO N. FORWARD-LOOKI NG STATEMENTS AND I NFORMATIO N ARE DESIGNED TO HELP RE ADERS UNDERST AND MANAGEMENT’S CURRENT VIEWS O F OUR NEAR ANDLONGER TERM PROSPECT S AND MAY NOT BE APPROP RIATE FO R OTHER PURPOSES. THE COMPANY D OES NOT I NTEND, NO R DOES IT ASSUME ANY O BLIG ATION TO UPD ATE OR REVISEFORWARD-LOOKI NG STATEMENTS AND I NFORMATIO N, WHETHER AS A RE SULT O F NEW I NFORMATIO N, CHANGES I N ASSUMPTIO NS, FUTURE EVENT S OR OTHERWI SE, EXCEPT TO THE EXTENTREQUIRED BY APPLICABLE LAW

CAUTIONARY NOTE TO US INVESTORS CONCERNING ESTIMATES OF MINERAL RESERVES AND RESOURCES

THIS PRESENT ATIO N HAS BE EN PREPARED I N ACCORD ANCE WITH THE REQUIREMENT S O F CANADI AN SECURITIES LAWS, WHI CH DIFFE R FROM THE REQUIREMENTS OF U.S . SECURITIES LAWS.UNLE SS OTHERWISE INDICATED, ALL MINERAL RE SE RVE AND RESOURCE ESTI MATE S INCLUDED I N THIS NEWS RELE ASE HAVE BEEN PREPARED I N ACCORDANCE WITH CANADIAN NATIO NALINST RUMENT 4 3-101 – ST ANDARD S OF DISCLO SURE FO R MINERAL P ROJE CTS ('' NI 43-10 1'') AND THE CANADIAN I NSTIT UTE O F MI NING , METALLURGY AND PETRO LEUM CLASSI FICATIO NSYSTEM. NI 43-101 I S A RULE DEVE LOPED BY THE CANADIAN SECURITIES AD MINI STRATORS THAT EST ABLISHE S STANDARDS FO R ALL P UBLIC DISCLO SURE AN I SSUER MAKES O F SCIENTI FICAND TECH NICAL INFO RMATION CONCERNI NG MI NERAL PROJE CTS. CANADIAN STANDARDS, I NCLUDING NI 43-101 , DI FFER SIG NIFICANTLY FROM THE REQUIREMENTS O F THE UNITED STAT ESSECURITIE S AND EXCH ANGE COMMISSIO N (THE "SE C"), AND INFO RMATION CONCERNI NG MINERALIZATIO N, DEPOSIT S, MINERAL RESERVE AND RESOURCE INFO RMATION CONTAI NED ORREFERRED TO HEREI N MAY NOT BE COMPARABLE TO SI MILAR I NFORMATIO N DISCLO SED BY U.S. COMPANIES. I N P ARTICULAR, AND WITHOUT LIMITI NG THE GENERALITY OF THE FO REGOI NG,THIS PRESENT ATION USES THE TE RMS ''ME ASURED RESOURCES'', ''INDICATED RESOURCES'' AND ''I NFE RRED RESOURCES''. U.S. I NVE STORS ARE AD VISED THAT , WHILE SUCH TERMS ARERECOGNIZED AND REQUIRED BY CANADIAN SECURITIES LAWS, THE SEC DO ES NOT RECOGNIZE THEM. THE REQUIREMENT S O F NI 43-101 FO R IDENTI FICATIO N OF ''RESERVES'' ARE NOT THESAME AS THOSE OF THE SEC, AND RESERVE S REPORT ED BY PAN AMERICAN I N COMP LIANCE WITH NI 43-101 MAY NOT QUALI FY AS ''RESE RVE S'' UNDER SEC STANDARDS. UNDER U.S.STANDARDS, MI NE RALIZATIO N MAY NOT BE CLASSIFIED AS A ''RE SERVE'' UNLESS THE DETE RMI NATIO N H AS BEEN MAD E THAT THE MINERALIZATION COULD BE ECONOMICALLY AND LEG ALLYPRODUCED OR EXT RACT ED AT THE TI ME THE RE SERVE DET ERMINATION IS MADE . U.S. INVEST ORS ARE CAUTIO NED NOT TO ASSUME THAT ANY PART O F A "MEASURED RESOURCE" OR"INDICATED RESOURCE" WI LL EVE R BE CONVERTED I NTO A "RE SERVE". U.S . I NVE STORS SHOULD ALSO UNDERSTAND THAT "I NFERRED RESOURCES" HAVE A GREAT AMOUNT O F UNCERTAI NTYAS TO THEIR E XISTENCE AND GREAT UNCERTAI NTY AS TO THEI R E CONOMI C AND LEG AL FE ASIBI LITY. IT CANNOT BE ASSUMED TH AT ALL OR ANY P ART OF "INFE RRED RESOURCES" EXIST , AREECONOMI CALLY OR LEG ALLY MINE ABLE OR WILL E VER BE UPG RADED TO A HIGHER CATEG ORY. UND ER CANADIAN SECURITIES LAWS, ESTIMATED "I NFERRED RESOURCES" MAY NOT FORM THEBASI S O F FEASIBI LITY OR PRE- FEASIBILITY ST UDIES EXCEPT I N RARE CASE S. DI SCLOSURE O F " CONTAI NED OUNCES" IN A MINERAL RESOURCE IS PE RMITTED DISCLO SURE UNDER CANADIANSECURITIE S LAWS. HOWEVER, THE SEC NORMALLY ONLY PERMITS ISSUERS TO REPO RT MI NERALIZATIO N THAT DOES NOT CONSTIT UTE "RE SERVES" BY SEC ST ANDARDS AS I N PLACETONNAGE AND GRADE, WITHOUT REFE RENCE TO UNIT MEASURES. ACCORDING LY, I NFO RMATIO N CONCERNING MI NERAL DEPO SITS SET FO RTH HEREIN MAY NOT BE COMPARABLE WITHINFORMATION MADE PUBLIC BY COMPANIES THAT REPORT IN ACCORDANCE WITH U.S. STANDARDS.

TECHNICAL INFORMATION

TECHNI CAL I NFORMATIO N CONTAI NED I N THIS PRE SENTATIO N WITH RESPECT TO PAN AMERICAN HAS BEEN REVIEWED OR APP ROVED BY MARTI N WAFFO RN P.ENG ., VP TE CH NICAL SERVICE S,WHO IS THE COMP ANY’ S Q UALI FIED PERSON FO R THE PURPOSES OF NATIO NAL I NSTRUMENT 43-101 . FO R ADDITIONAL INFO RMATIO N ABOUT THE COMPANY’S MAT ERIAL MINERALPROPERTIES, PLEASE REFER TO THE COMPANY’S ANNUAL INFORMATION FORM DATED MARCH 24, 2016, FILED AT WWW.SEDAR.COM.

OurOperations


2016Forecast

Buildingonourachievements


2016Forecast


Production TotalConsolidatedSilver 24.0to25.0MozGold 175.0to185.0kozZinc 46,000 tonnes to48,000tonnesLead 15,000tonnes to15,500tonnesCopper 13,000tonnes to 13,500 tonnes

(1) Cash costs per payable silver ounce (“cash costs”), net of by-product credits. By-product metal prices assumptions used for 2016 cash costs calculation: Au $1,100/oz, Zn $1,700/tonne, Pb $1,600/tonne, Cu$4,600/tonne. Cash cost is a non-GAAP measure. Cash costs does not have a standardized meaning prescribed by IFRS as an indicator of performance. The Company’s method of calculating cash costs may differfrom the methods used by other entities and, accordingly, the Company’s cash costs may not be comparable to similarly titled measures used by other entities. Readers should refer to the “Alternative Performance(Non-GAAP) Measures” section of the Company’s Management’s Discussion & Analysis for the period ended March 31, 2016, for a more detailed description of this measure and its calculation. Exchange ratesassumed: Mexican Peso 17:1, Peruvian Sol 3.3:1, Argentinean Peso 11:1, Bolivian Boliviano 7:1.

(2) AISCSOS is a non-GAAP measure and does not have a standardized meaning under IFRS as an indicator of performance and readres shoud refer to the “Alternative Performance (non-GAAP) Measures” section of the Company’s most recently filed Management’s Discussion & Analysis for the period ended December 31, 2015 for a more detailed description of this measure and its calculation.

Costs TotalConsolidated

Cashcosts(1) $9.45to$10.45

AISCSOS(2) $13.60to$14.90

2016ForecastCapitalSpending


SustainingCapital $millionLa Colorada 8.0– 10.5Dolores 39.0– 42.0Huaron 6.0– 7.5Morococha 7.0 – 8.5SanVicente 3.0– 4.0Manantial Espejo 2.0– 2.5TotalSustainingCapital $65.0– $75.0La Colorada expansion 64.0– 66.5Dolores expansion 71.0– 73.5TotalCapitalSpending $200.0- $215.0

OrganicGrowth

Buildingtherightassetsattherighttime


LaColoradaExpansion

• New600-metredeepmineshaftbetweentheCandelariaandEstrellaStructures

• Constructionofanewsulphideflotationplant

• New115kVpowerlinetosupportexpandedoperation

• Increaseproduction ratefrom1,250tpd to1,800tpd

Highlights(1)

• 69%expectedincreaseinaverageannualsilverproduction from4.6Moz in2013to7.7Moz in2018

ProjectScope

(1) For additional information, please refer to the Company’s technical report entitled “Technical Report – Preliminary Economic Analysis for the Expansion of the La Colorada Mine, Zacatecas, Mexico”, with an effective date of December 31, 2013 available at www.SEDAR.com. The results of this preliminary economic assessment are preliminary in nature, in that it includes inferred mineral resources that are considered too geologically speculative 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 assessment will be realized. Mineral resources that are not mineral reserves have no demonstrated economic viability.

8

LaColorada Expansion


Reserveincrease:300%

30.4MozAg

38.3MozAg

44.1MozAg

64.8MozAg

81.4MozAg

86Moz Ag91.2MozAg



ProjectScope(2014-2017)

• Incrementalexpansioncapital~$80M• Totalinvestment~$163.8M(includessustainingcapital)

ProjectFinancials2014-2023(1) Ag $16/oz Ag $19/oz

Netrevenue $1.3 B $1.4B

Aftertaxnetcashflow(2) $251M $372M

Aftertaxnetcash flow(3) $117M $196M

Incrementalprojectnetcashflow(3) $22.0M $38.6M

Expansionproject- IRR 18% 22%

Paybackperiod 2.9years 2.5years

(1) By-product price assumptions: At Ag $16/oz and $19/oz: Pb $2,100/tonne, Zn $1,850/tonne(2) Undiscounted(3) 10% discount



2016Milestones:

Finishconstructionandcommissionthenewsulphideprocessingplant

duringQ3

Finishconstructionandcommissionthenewshaftby

year-end

Complete2.0kmofundergrounddevelopment

DoloresExpansion

• New5,600tpd pulpagglomerationplant• New1,500tpd undergroundmine

• 40%expectedincreaseinaverageannualAgproductionfrom4.5Moz to6.3Moz

• 52%expectedincreaseinaverageannualAuproductionfrom135.1koz to205.7koz

ProjectScope

• EstimatedLOMtotalsilverproductionincreasefrom41Moz to50Moz

• EstimatedLOMtotalgoldproductionincreasefrom1.3Moz to1.5Moz

• Reducecashcostthroughoperationalefficienciesandhighergoldproduction

Highlights

(1) For additional information, please refer to the Company’s technical report entitled “Technical Report for the Dolores Property, Chihuahua, Mexico - Preliminary Economic Assessment of a Pulp AgglomerationTreatment and Underground Option”, with an effective date of May 31, 2014 available at www.SEDAR.com. The results of this preliminary economic assessment are preliminary in nature, in that it includesinferred mineral resources that are considered too geologically speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is nocertainty that the assessment will be realized. Mineral resources that are not mineral reserves have no demonstrated economic viability.

DoloresExpansion


ProjectScope(2015-2018)

• Incrementalexpansioncapital~$112.4M• LOMsustainingcapital~$173.9M

Financials2015– 2024 Ag$16, Au$1,100/oz Ag $19,Au$1,200/oz

Netrevenue $2.7B $3.0B

Aftertaxnetcashflow(1) $453.0M $651.0M

Aftertaxnetcash flow(2) $217.3M $350.0M

Expansionprojectnetcashflow(2) $38.8M $65.6M

Expansionproject- IRR 19.9% 27.4%

Paybackperiod 3.1years 1.7years

(1) Undiscounted(2) 10% discount

DoloresExpansion


DoloresExpansion


2016Milestones:

Completethethirdphaseoftheleachpad3expansionbyQ3

Complete2.5kmofundergrounddevelopment

Pulpagglomerationplant

• Finalizedetailedengineering

• Settherodmillbyyear-end

CompleteandenergizethepowerlineduringQ3

BuildingourFuture


(1) Cash costs per payable ounce of silver, net of by-product credits. By-product metal prices assumptions used for forecast cash costs calculation: Au $1,100/oz, Zn $1,700/tonne, Pb $1,600/tonne, Cu$4,600/tonne. Cash cost is a non-GAAP measure. Cash costs does not have a standardized meaning prescribed by IFRS as an indicator of performance. The Company’s method of calculating cash costs may differfrom the methods used by other entities and, accordingly, the Company’s cash costs may not be comparable to similarly titled measures used by other entities. Readers should refer to the “Alternative Performance(Non-GAAP) Measures” section of the Company’s Management’s Discussion & Analysis for the period ended March 31, 2016, for a more detailed description of this measure and its calculation. Exchange rates relativeto US$ assumed: Mexican Peso 17:1, Peruvian Sol 3.3:1, Argentinean Peso 11:1, Bolivian Boliviano 7:1.

SilverProduction

CashCosts(1)

Oportunities


MaverixMetalsInc.


• CreatingapubliclytradedcompanytoconsolidateandholdroyaltyassetscurrentlyhiddenandundervaluedwithinPAA’sportfolio‒ Exposeassetstomarketvaluation‒ Retain54%majorityownership(63%fully-diluted)andcontinuedoptionalityforPAAshareholders

‒ Provideadditionalleveragetogoldandsilverprices‒ Managedbytrustedandexperiencedmanagementteam‒ OpportunetimingforMaverix toattractnewgrowthprospects

• Longtermstrategyistomonetizestakeatpremiumvaluation

Silver

WorldSilverSurvey2016(byGFMS– ThomsonReuters)


ReasonstobeOptimisticGFMS’2016SilverSurveywasreleasedonMay5,2016

In2015:– Totalglobalsupplydeclinedfrom1.06billionto1.04billionounces– Mineproductiongrew2%topeakat887millionounces– Supplyfromscrapandrecyclingdeclinedby13%– SilverETP’sholdingsdeclined3%– Totalglobaldemandwas1.17billionounceswithgrowthinkey

demandcomponents(jewelry,bullionandphotovoltaics)– Physicalmarketdeficitwas~130millionounces.2015wasthird

consecutiveyearthatdemandsurpassedsupply– Minesupplyexpectedtodeclinegoingforwardduetocost-relatedcuts

andreducedinvestmentinexploration/development


Visit www.silverinstitute.org for the Silver Institute’s publications, including the World Silver Survey 2016

annual general meeting 2016

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