Pan American Silver's 2012 annual revenue soars on record silver and gold production

The Company Generated Annual Adjusted Earnings of $1.26 per Share

(Unaudited Results - All amounts in US dollars unless otherwise stated and all production figures are approximate)

VANCOUVER, Feb. 20, 2013 /CNW/ - Pan American Silver Corp. (NASDAQ: PAAS; TSX: PAA) (the "Company", or "Pan American"), posted a net loss of $29.4 million during the fourth quarter of 2012, including a non-cash after-tax $100 million impairment charge on the carrying value of the Navidad deposit. Excluding the impairment charge and a $14.2 million gain on derivatives, the Company generated adjusted earnings⁽¹⁾ for the quarter of $55.8 million, or $0.37 per share. For the full year 2012, adjusted earnings were $177.9 million or $1.26 per share.

Geoff Burns, President & CEO commented on the fourth quarter and fiscal 2012 results; "As I said when we released our production results several weeks ago, 2012 was an excellent production year.  We met our targets for silver production and cash costs during the fourth quarter for the full year, and in the process we set new quarterly and annual production records for silver and gold.  It is rewarding to deliver financial results that echo our production performance.  Adjusted earnings for the year were a very healthy $1.26 per share and operating cash flow was also robust at $1.53 per share.  As a consequence of our expected continued excellent financial performance, the Board has agreed to decisively increase our quarterly dividend from $0.05 to $0.125 per share, a clear testament to the strength and profitability of Pan American.  We are expecting 2013 to be even better, as we are forecasting increases in both our silver and gold production, while our cash costs per ounce should remain basically unchanged".

Financial Results

Pan American generated revenue of $247.3 million during the fourth quarter of 2012, which was 16% higher year-on-year.  The increase resulted primarily from higher quantities of silver and gold sold, combined with modest price increases for all the metals produced by the Company.  Annual revenue for 2012 rose 9% from the previous year to a record $928.6 million, driven by significantly higher quantities of precious metals sold, partially offset by lower realized prices for all metals produced by the Company, with the exception of gold.

In 2012, Pan American realized average prices for silver and gold of $31.26 per ounce and $1,672.30 per ounce, respectively.  Average realized prices for zinc, lead and copper were $1,971 per tonne, $2,071 per tonne and $7,879 per tonne, respectively.  On an annualized basis, silver accounted for 71% and gold accounted for 18% of the Company's revenue, while zinc, lead and copper contributed 6%, 2% and 3% of total revenue, respectively.

During the fourth quarter of 2012, Pan American recorded a net loss of ($29.4) million or ($0.19) per share, primarily due to the Company's decision to incur a $100 million non-cash impairment charge on the Navidad deposit, thereby decreasing the carrying value from $570 million to $470 million.  The impairment charge was taken in recognition of the deterioration of business conditions in Argentina and the uncertainty the current environment has created. The Company remains committed to the development of Navidad; however, as previously disclosed, the project will remain on care and maintenance until conditions improve.

Adjusted earnings for the fourth quarter of 2012 were $55.8 million or $0.37 per share, after adjusting for the $100 million impairment charge, a $14.2 million non-cash gain on the valuation of the Company's derivatives, and a $0.6 million unrealized gain on foreign exchange.  Quarterly adjusted earnings further benefited from a $2.5 million gain on the sale of investment shares in Orko Silver, $2.5 million realized from option payments on the company's Peruvian exploration properties, and $0.8 million in silver option payments from the Quiruvilca property.  For the full year 2012, Pan American generated consolidated net earnings of $87.5 million or $0.62 per share, and adjusted earnings of $177.9 million or $1.26 per share.

Mine operating earnings generated during the last quarter of 2012 were $85 million, 4% lower year-on-year.  The decline was mainly the result of higher operating costs resulting from higher labour, consumables and energy expenses at the Peruvian, Argentinean and Bolivian operations.  Mine operating earnings for the year 2012 were $311.4 million, a decline of 24% as compared to 2011, predominantly due to lower realized metal prices in 2012.

Operating cash flows before changes in non-cash operating working capital during the fourth quarter of 2012 was $86.1 million, or $0.57 per share, 11% less than in the same period of 2011.  Operating cash flows before changes in non-cash operating working capital for the year 2012 was $215.5 million, or $1.53 per share, a decline of 46% from the previous year.

Cash and short term investments at December 31, 2012 rose to $542.3 million from $491.2 million at year-end 2011.  The Company's working capital rose to $779 million, 37% more than at year-end 2011.  The Company maintains one of the cleanest balance sheets in the industry, with minimal debt consisting of $36.9 million in capital lease obligations and $41.1 million in convertible notes acquired in connection with the Minefinders' transaction.

During the last quarter of 2012 the Company repurchased approximately 598,000 shares under the current normal course issuer bid for total consideration of approximately $10.7 million.  In 2012, the Company spent $41.7 million to purchase approximately 2.4 million shares.  At December 31, 2012, Pan American had 151,820,635 issued and outstanding common shares.  In addition, Pan American distributed a total of $7.6 million and $24.9 million in cash dividends to shareholders during the fourth quarter of and full year 2012, respectively.

The Company's effective tax rates for the fourth quarter and full year 2012 were 25% and 34%, respectively using adjusted earnings.  Effective rates vary considerably between periods and from the amounts that would result from applying the Canadian statutory income tax rates to earnings before income taxes.   The main factors that have affected the effective tax rate for 2012 and the comparable period were the non-taxable portion of unrealized gains and losses on the Company's derivatives, foreign income tax rate differentials, foreign exchange and non-recognition of certain deferred tax assets.  In addition, the Company took a non-cash impairment charge on its Navidad asset. The Company expects that these and other factors will continue to cause volatility in effective tax rates in the future and that the effective tax rate for 2013 would be 30% to 35%.

Production and Operations

During the last quarter of 2012, the Company produced a record 6.9 million ounces of silver and 32,400 ounces of gold, an increase of 29% and 88%, respectively year-on-year.  The production increase resulted from the addition of silver and gold production from Dolores, and higher silver production at Alamo Dorado, Manantial Espejo, Morococha and San Vicente due to higher throughput and grades.  Annual consolidated silver production in 2012 was also a record at 25.1 million ounces, as expected.

Over half of the Company's silver is now being produced at its three Mexican operations.  During the fourth quarter of 2012, La Colorada produced 1.1 million ounces, 3% higher year-on-year primarily due to higher grades.  Alamo Dorado produced 1.6 million ounces of silver, which was 26% higher than in the fourth quarter of 2011 due to higher grades and recoveries.  In addition, Dolores produced 0.9 million ounces of silver, a 16% improvement from the previous quarter.  During the full year 2012, La Colorada produced a total of 4.4 million ounces of silver and Alamo Dorado produced 5.4 million ounces of silver, while Dolores contributed 2.7 million ounces of silver from April 1 until December 31, 2012.

Pan American's Peruvian operations had a good fourth quarter of 2012 with Huaron and Morococha producing 0.8 million ounces and 0.6 million ounces of silver, respectively. Huaron's production was slightly lower year-on-year on lower grades; whereas Morococha's silver production rose 38% year-on-year on higher throughput and grades.  For the full year 2012, the Company's Peruvian operations produced a combined total of 5.3 million ounces of silver: 2.9 million at Huaron, 2.1 million at Morococha, and 0.3 million at Quiruvilca before the Company divested the mine effective June 1, 2012.

In Bolivia, higher throughput and grades at San Vicente boosted production to 1 million ounces of silver during the last quarter of 2012, 15% higher year-on-year and to 3.7 million ounces during the full year 2012, or 19% greater than the previous year.

In Argentina, better throughput, grades and recoveries at Manantial Espejo drove a 25% increase in quarterly silver production compared to the last quarter of 2011 to 1 million ounces.  Silver production for the year was 3.6 million ounces, slightly lower than the 3.8 million ounces produced in 2011.

Pan American's consolidated 2012 gold production was a record 112,300 ounces, a 43% increase from 2011 due to the addition of production from Dolores, which contributed 43,500 ounces and more gold ounces produced at Alamo Dorado and Morococha, partially offset by less ounces produced at Manantial Espejo and La Colorada and the divestiture of Quiruvilca.

At 36,900 tonnes of zinc, 12,300 tonnes of lead and 4,200 tonnes of copper, the Company's annual consolidated base metals production exceeded our expectations.

Pan American posted consolidated cash costs of $11.75 per ounce of silver, net of by-product credits, during the last quarter of 2012, a 5% increase year-on-year.  2012 annual consolidated cash costs of $12.03 per ounce of silver, net of by-product credits were well within Company guidance and represent an increase of 28% compared to 2011.  The cash costs escalation was driven mainly by industry-wide escalation for the cost of supplies and consumables like cyanide, labour cost increases in all jurisdictions where Pan American operates, higher underground mine development rates at the Company's Peruvian operations, the strengthening of the Peruvian Sol against the US Dollar, higher smelting and refining costs and the increase in royalties paid to COMIBOL, Pan American's joint venture partner at the San Vicente mine in Bolivia.

In 2012, Pan American spent $129 million in sustaining capital at its seven operations primarily for exploration activities, particularly at La Colorada; open pit mine pre-stripping at Dolores, Manantial Espejo and Alamo Dorado; underground mine development at Morococha and Huaron; mobile mine equipment repair and replacements across all mines; significant tailings dam expansions at Huaron and La Colorada; and ancillary facility and infrastructure upgrades across all mines.

In 2012, Pan American spent $50 million on major projects, $21 million were spent for advancing the Navidad project engineering and design, including preparation of an Environmental Impact Assessment; $5.6 million to complete the Morococha ancillary facility relocation project; and $23.5 million at the Dolores mine to conduct preliminary studies to assess the potential to enhance long-term value with the addition of a milling circuit and/or underground mine and to advance leach pad stabilization and construction efforts to insure sustainability of heap leach production.  In addition, Pan American spent a total of $25 million in its exploration programs, including $16.3 million in mine-site exploration at its seven operations and $8.7 million in greenfield exploration activities at selected properties.

2013 Outlook 

As indicated in the news release dated January 22, 2013, the Company plans to make $157 million in capital investments this year. Of this, approximately $127 million will be invested in sustaining capital for the seven operating mines, primarily for near-mine exploration activities; open pit mine pre-stripping at Dolores, Manantial Espejo and Alamo Dorado; underground mine development at Morococha and Huaron; and mobile mine equipment repair and replacements across all mines.

In addition, the Company plans to invest $30 million at the Dolores mine on leach pad stabilization, expansion and construction, to complete a mill scoping analysis and to initiate a power line project to connect the mine to the national power grid.  Pan American is examining the potential economic benefits of increasing Dolores' production with the installation of a grinding circuit to treat part of the higher grade ore currently being mined and treated.  The Company has launched preliminary engineering, as well as capital and operating cost studies required to construct and operate a high grade ore grinding and treatment circuit, which will culminate in a scoping study to be completed during the third quarter of 2013.

At La Colorada, given the mine's enormous exploration discovery success over the last few years and the favorable geometry of the mineral distribution of those discoveries, the Company has initiated engineering studies to determine the viability of expanding the mine's production and expects to complete a Preliminary Economic Assessment by year-end 2013 to define the magnitude, the capital investment and the economic benefit of a potential expansion.

The Company also plans to spend $3.6 million to complete a confirmation drilling campaign at the Waterloo deposit in San Bernardino County, California, and to conduct additional metallurgical evaluations, project scoping and a Mineral Resource estimate.

A further $14.7 million is expected to be spent in selected greenfield exploration activities and another $6.5 million in holding costs for other exploration properties.

Commenting on the Company's operating results, Steve Busby, Chief Operating Officer, said; "Without a doubt, our greatest accomplishment during 2012 for Pan American was our excellent safety performance, the prevention of lost time accidents and a reduction in accident severity among all of our employees and contractors.  In addition, in 2012, we completed the Minefinder's acquisition providing a significant boost of low-cost silver and gold production from the Dolores mine in Mexico.  We look forward to having an excellent year in 2013 and are excited to advance the evaluation of the milling circuit at Dolores and the potential expansion of our La Colorada mine in Mexico with the goal of increasing the Company's consolidated silver production.  I'd like to extend my personal thanks to all of our dedicated and hardworking employees and contractors throughout the Company who have again proven their superior ability to successfully overcome the challenges we face in running our business and achieving consolidated operating performance firmly within our production and cost guidance for 2012.  Thanks to these efforts, our business is exceptionally strong and sustainable and I see 2013 shaping-up to be another good year."

***

About Pan American

Pan American's mission is to be the world's pre-eminent silver producer, with a reputation for excellence in discovery, engineering, innovation and sustainable development.  The Company has seven operating mines in Mexico, Peru, Argentina and Bolivia, including the recently acquired Dolores gold/silver mine in Chihuahua, Mexico.  Pan American also owns the La Virginia development project in Sonora, Mexico,  the Waterloo silver project in California, USA as well as both the Navidad silver project and Calcatreu gold project in Argentina.

Technical information contained in this news release with respect to Pan American has been reviewed by Michael Steinmann, P.Geo., Executive VP Corporate Development & Geology, and Martin Wafforn, P.Eng., VP Technical Services, who are the Company's Qualified Personsfor the purposes of NI 43-101.

CAUTIONARY NOTE REGARDING NON-IFRS MEASURE - CASH COSTS PER OUNCE
THIS NEWS RELEASE PRESENTS INFORMATION ABOUT OUR CASH COSTS OF PRODUCTION OF AN OUNCE OF SILVER FOR OUR OPERATING MINES.  CASH COSTS PER OUNCE PRODUCED IS CALCULATED AS FOLLOWS:

• EXCEPT AS OTHERWISE NOTED, CASH COSTS PER OUNCE PRODUCED IS CALCULATED BY DIVIDING TOTAL CASH COSTS BY TOTAL SILVER OUNCES PRODUCED AT THE RELEVANT MINE OR MINES
• TOTAL CASH COSTS INCLUDE MINE OPERATING COSTS SUCH AS MINING, PROCESSING, ADMINISTRATION, ROYALTIES AND OPERATING TAXES, BUT EXCLUDE AMORTIZATION, RECLAMATION COSTS, FINANCING COSTS AND CAPITAL DEVELOPMENT AND EXPLORATION.  CERTAIN AMOUNTS OF STOCK-BASED COMPENSATION ARE EXCLUDED AS WELL

CASH COST PER OUNCE OF SILVER PRODUCED IS INCLUDED IN THIS NEWS RELEASE BECAUSE CERTAIN INVESTORS USE THIS INFORMATION TO ASSESS OUR PERFORMANCE AND ALSO TO DETERMINE OUR ABILITY TO GENERATE CASH FLOW FOR USE IN INVESTING AND OTHER ACTIVITIES.  THE INCLUSION OF CASH COSTS PER OUNCE PRODUCED MAY ENABLE INVESTORS TO BETTER UNDERSTAND YEAR-OVER-YEAR CHANGES IN OUR PRODUCTION COSTS, WHICH IN TURN AFFECT PROFITABILITY AND CASH FLOW.

CASH COSTS PER OUNCE PRODUCED DOES NOT HAVE A STANDARDIZED MEANING OR A CONSISTENT BASIS OF CALCULATION PRESCRIBED BY CANADIAN ACCOUNTING STANDARDS.  INVESTORS ARE CAUTIONED THAT CASH COSTS PER OUNCE PRODUCED SHOULD NOT BE CONSIDERED IN ISOLATION OR CONSTRUED AS A SUBSTITUTE TO COSTS DETERMINED IN ACCORDANCE WITH CANADIAN ACCOUNTING STANDARDS AS PRESCRIBED UNDER IFRS AS AN INDICATOR OF PERFORMANCE.  OUR METHOD OF CALCULATING CASH COSTS PER OUNCE PRODUCED MAY DIFFER FROM THE METHODS USED BY OTHER ENTITIES AND, ACCORDINGLY, OUR CASH COSTS PER OUNCE PRODUCED MAY NOT BE COMPARABLE TO SIMILARLY TITLED MEASURES USED BY OTHER ENTITIES.  SEE OUR MD&A FOR THE YEAR ENDED DECEMBER 31, 2011 FILED ON SEDAR AT WWW.SEDAR.COM FOR A RECONCILIATION OF CASH COSTS PER OUNCE PRODUCED TO THE MOST DIRECTLY COMPARABLE ACCOUNTING MEASURE UNDER IFRS.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

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.  ALL STATEMENTS, OTHER THAN STATEMENTS OF HISTORICAL FACT, ARE FORWARD-LOOKING STATEMENTS.  WHEN USED IN THIS NEWS RELEASE THE WORDS, "BELIEVES", "EXPECTS", "INTENDS", "PLANS", "FORECAST", "OBJECTIVE", "OUTLOOK", "POSITIONING", "POTENTIAL", "ANTICIPATED", "BUDGET", AND OTHER SIMILAR WORDS AND EXPRESSIONS, IDENTIFY FORWARD-LOOKING STATEMENTS OR INFORMATION.  THESE FORWARD-LOOKING STATEMENTS OR INFORMATION RELATE TO, AMONG OTHER THINGS: FUTURE PRODUCTION OF SILVER, GOLD AND OTHER METALS AND THE TIMING OF SUCH PRODUCTION; FUTURE CASH COSTS PER OUNCE OF SILVER; THE PRICE OF SILVER AND OTHER METALS; THE EFFECTS OF LAWS, REGULATIONS AND GOVERNMENT POLICIES AFFECTING PAN AMERICAN'S OPERATIONS OR POTENTIAL FUTURE OPERATIONS INCLUDING, BUT NOT LIMITED TO, THE LAWS IN THE PROVINCE OF CHUBUT, ARGENTINA, WHICH CURRENTLY HAVE SIGNIFICANT RESTRICTIONS ON MINING, AND RECENT AMENDMENTS TO THE LABOUR LAWS IN MEXICO; THE CONTINUING NATURE OF HIGH INFLATION, RISING CAPITAL AND OPERATING COSTS, CAPITAL RESTRICTIONS AND RISKS OF EXPROPRIATION IN ARGENTINA AND, IN PARTICULAR, IN THE PROVINCE OF CHUBUT AND THEIR EFFECTS ON THE COMPANY AND ITS ASSETS; THE DEVELOPMENT OF THE NAVIDAD PROJECT AND OTHER  DEVELOPMENT PROJECTS OF THE COMPANY; THE TIMING OF PRODUCTION AND THE CASH AND TOTAL COSTS OF PRODUCTION AT EACH OF THE COMPANY'S PROPERTIES; THE SUFFICIENCY OF THE COMPANY'S CURRENT WORKING CAPITAL, ANTICIPATED OPERATING CASH FLOW OR ITS ABILITY TO RAISE NECESSARY FUNDS; TIMING OF RELEASE OF TECHNICAL OR OTHER REPORTS, INCLUDING ENVIRONMENTAL IMPACT ASSESSMENTS; THE ABILITY OF THE COMPANY TO ACHIEVE  ANY PLANNED EXPANSIONS AND DEVELOPMENT, INCLUDING BUT NOT LIMITED TO, POTENTIAL OPPORTUNITIES AND ADVANCEMENTS AT THE DOLORES MINE, AND THE TIMING FOR THE SAME; THE ESTIMATES OF EXPECTED OR ANTICIPATED ECONOMIC RETURNS FROM THE COMPANY'S MINING PROJECTS; FORECAST CAPITAL AND NON-OPERATING SPENDING; FUTURE SALES OF THE METALS, CONCENTRATES OR OTHER PRODUCTS PRODUCED BY THE COMPANY; AND THE COMPANY'S PLANS AND EXPECTATIONS FOR ITS PROPERTIES AND OPERATIONS.

THESE STATEMENTS REFLECT THE COMPANY'S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE NECESSARILY BASED UPON A NUMBER OF ASSUMPTIONS AND ESTIMATES THAT, WHILE CONSIDERED REASONABLE BY THE COMPANY, ARE INHERENTLY SUBJECT TO SIGNIFICANT BUSINESS, ECONOMIC, COMPETITIVE, POLITICAL AND SOCIAL UNCERTAINTIES AND CONTINGENCIES.  MANY FACTORS, BOTH KNOWN AND UNKNOWN, COULD CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS TO BE MATERIALLY DIFFERENT FROM THE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT ARE OR MAY BE EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS CONTAINED IN THIS NEWS RELEASE AND THE COMPANY HAS MADE ASSUMPTIONS AND ESTIMATES BASED ON OR RELATED TO MANY OF THESE FACTORS.  SUCH FACTORS INCLUDE, WITHOUT LIMITATION: FLUCTUATIONS IN SPOT AND FORWARD MARKETS FOR SILVER, GOLD, BASE METALS AND CERTAIN OTHER COMMODITIES (SUCH AS NATURAL GAS, FUEL OIL AND ELECTRICITY); FLUCTUATIONS IN CURRENCY MARKETS (SUCH AS THE CANADIAN DOLLAR, PERUVIAN SOL, MEXICAN PESO, ARGENTINE PESO AND BOLIVIAN BOLIVIANO VERSUS THE U.S. DOLLAR); RISKS RELATED TO THE TECHNOLOGICAL AND OPERATIONAL NATURE OF THE COMPANY'S BUSINESS; CHANGES IN NATIONAL AND LOCAL GOVERNMENT, LEGISLATION, TAXATION, CONTROLS OR REGULATIONS INCLUDING AMONG OTHERS, CHANGES TO IMPORT AND EXPORT REGULATIONS AND LAWS RELATING TO THE REPATRIATION OF CAPITAL AND FOREIGN CURRENCY CONTROLS; POLITICAL OR ECONOMIC DEVELOPMENTS IN CANADA, THE UNITED STATES, MEXICO, PERU, ARGENTINA, BOLIVIA OR OTHER COUNTRIES WHERE THE COMPANY MAY CARRY ON BUSINESS IN THE FUTURE; RISKS AND HAZARDS ASSOCIATED WITH THE BUSINESS OF MINERAL EXPLORATION, DEVELOPMENT AND MINING (INCLUDING ENVIRONMENTAL HAZARDS, INDUSTRIAL ACCIDENTS, UNUSUAL OR UNEXPECTED GEOLOGICAL OR STRUCTURAL FORMATIONS, PRESSURES, CAVE-INS AND FLOODING); RISKS RELATING TO THE CREDIT WORTHINESS OR FINANCIAL CONDITION OF SUPPLIERS, REFINERS AND OTHER PARTIES WITH WHOM THE COMPANY DOES BUSINESS; INADEQUATE INSURANCE, OR INABILITY TO OBTAIN INSURANCE, TO COVER THESE RISKS AND HAZARDS; EMPLOYEE RELATIONS AND THE EFFECTS OF LABOUR LAWS IN THOSE COUNTRIES IN WHICH THE COMPANY OPERATES; RELATIONSHIPS WITH AND CLAIMS BY LOCAL COMMUNITIES AND INDIGENOUS POPULATIONS; AVAILABILITY AND INCREASING COSTS ASSOCIATED WITH MINING INPUTS AND LABOUR; THE SPECULATIVE NATURE OF MINERAL EXPLORATION AND DEVELOPMENT, INCLUDING THE RISKS OF OBTAINING NECESSARY LICENSES AND PERMITS AND THE PRESENCE OF LAWS AND REGULATIONS THAT MAY IMPOSE RESTRICTIONS ON MINING, INCLUDING THOSE CURRENTLY IN THE PROVINCE OF CHUBUT, ARGENTINA; DIMINISHING QUANTITIES OR GRADES OF MINERAL RESERVES AS PROPERTIES ARE MINED; GLOBAL FINANCIAL CONDITIONS; THE COMPANY'S ABILITY TO COMPLETE AND SUCCESSFULLY INTEGRATE ACQUISITIONS AND TO MITIGATE OTHER BUSINESS COMBINATION RISKS; CHALLENGES TO, OR DIFFICULTY IN MAINTAINING, THE COMPANY'S TITLE TO PROPERTIES AND CONTINUED OWNERSHIP THEREOF; THE ACTUAL RESULTS OF CURRENT EXPLORATION ACTIVITIES, CONCLUSIONS OF ECONOMIC EVALUATIONS, AND CHANGES IN PROJECT PARAMETERS TO DEAL WITH UNANTICIPATED ECONOMIC OR OTHER FACTORS; INCREASED COMPETITION IN THE MINING INDUSTRY FOR PROPERTIES, EQUIPMENT, QUALIFIED PERSONNEL, AND THEIR COSTS; AND THOSE FACTORS IDENTIFIED UNDER THE CAPTION "RISKS RELATED TO PAN AMERICAN'S BUSINESS" IN THE COMPANY'S MOST RECENT FORM 40-F AND ANNUAL INFORMATION FORM FILED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION AND CANADIAN PROVINCIAL SECURITIES REGULATORY AUTHORITIES.  INVESTORS ARE CAUTIONED AGAINST ATTRIBUTING UNDUE CERTAINTY OR RELIANCE ON FORWARD-LOOKING STATEMENTS.  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.  THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE THESE FORWARD-LOOKING STATEMENTS OR INFORMATION TO REFLECT CHANGES IN ASSUMPTIONS OR CHANGES IN CIRCUMSTANCES OR ANY OTHER EVENTS AFFECTING SUCH STATEMENTS OR INFORMATION, OTHER THAN AS REQUIRED BY APPLICABLE LAW.

SOURCE Pan American Silver Corp.