VANCOUVER, BRITISH COLUMBIA – SEPTEMBER 16, 2021: New Pacific Metals Corp. (“New Pacific” or the “Company”) reports its audited consolidated financial results for the year ended June 30, 2021. All figures are expressed in US dollars unless otherwise stated.

FISCAL 2021 HIGHLIGHTS

Maintained working capital of $46.36 million, sufficient to advance the Silver Sand Project and regional exploration initiatives, including the Carangas and Silverstrike Projects;

Silver Sand Preliminary Economic Analysis (“PEA”) continues to advance as scheduled. A 38,000-metre (“m”) exploration and resource expansion drill program commenced in July 2021;

Received an administrative mining contract for the Silver Sand Project, establishing a clear title to the project mineral rights;

Acquired a 98% interest in the Carangas Silver Project in April 2021. A 5,000 m initial discovery drill program commenced in June 2021;

Identified three significant new zones of gold and silver rich polymetallic mineralization on the Silverstrike Project;

Developed and implemented a Company-wide environmental policy and corporate social responsibility policy;

Successfully completed the spin-out transaction of Whitehorse Gold Corp. (TSX.V: WHG.V), enabling shareholders to realize the value of the Tagish Lake Gold Project in the current strong gold market;

Listed on the Toronto Stock Exchange (“TSX”) and delisted all of the Company’s issued and outstanding shares from the TSX Venture Exchange (“TSX.V”) in August 2020; and

Listed on the NYSE American stock exchange in May 2021, achieving a significant milestone in the growth of the Company.

Dr. Mark Cruise, CEO of New Pacific, said, “Fiscal year 2021 has been very productive for our team and I am pleased with the work we have accomplished to advance our projects and the milestones we have achieved. We continue to advance the Silver Sand PEA and have commenced an extensive drill program with the aim to continue growing our silver resources. In parallel, we have strengthened our portfolio with a third project, the Carangas silver project, where a discovery drill program is underway. Importantly, our listing on the NYSE American and graduation to the TSX, have increased our ability to appeal to the investment community, offering greater investability and liquidity, while we continue to focus on creating value for our shareholders.”

FINANCIAL RESULTS

Working Capital: As of June 30, 2021, the Company had working capital of $46.36 million.

Net loss attributable to equity holders of the Company for the year ended June 30, 2021 was $6.57 million or $0.04 per share (year ended June 30, 2020 – net income of $5.91 million or $0.04 per share). The Company’s financial results were mainly impacted by the following: (i) operating investment expenses of $5.95 million compared to $4.61 million in the prior year; (ii) income from investments of $0.40 million compared to $1.31 million in the prior year; (iii) impairment recovery of $nil compared to $8.72 million in the prior year; and (iv) foreign exchange loss of $1.02 million compared to gain of $0.47 million in the prior year.

Operating expenses for the year ended June 30, 2021 were $5.95 million (year ended June 30, 2020 – $4.61 million). The increase in operating expenses was mainly due to the following reasons: (i) a $0.62 million increase in project evaluation and corporate development expense as a result of the Company’s increased efforts in seeking and evaluating other exploration and investment opportunities in Bolivia; (ii) a $0.46 million increase in regulatory filing, listing, and professional fees as a result of the Whitehorse Gold spin-out transaction, the Company’s graduation from the TSX.V to the TSX, and listing on the NYSE American; (iii) a $0.26 million increase in annual incentive payout; and (iv) a $0.17 million increase in office administrative expense as a result of the inclusion of the Company’s La Paz office expenses as it transitioned to a regional office overseeing multiple projects. The increase in operating expenses was offset by a $0.2 million decrease in investor relation expense as a result of reduced travel expenses due to the COVID-19 pandemic.

Income from investments for the year ended June 30, 2021 was $0.40 million (year ended June 30, 2020 – $1.31 million).

Foreign exchange loss for the year ended June 30, 2021 was $1.02 million (year ended June 30, 2020 – gain of $0.47 million). The Company holds a large portion of cash and short-term investments in US dollars to support its operations in Bolivia. Revaluation of these US-dollar-denominated financial assets to their Canadian dollar functional currency equivalents resulted in unrealized foreign exchange gain or loss for the relevant reporting periods. During the year ended June 30, 2021, the US dollar depreciated by 9.1% against the Canadian dollar (from 1.3628 to 1.2394) while in the prior year the US dollar appreciated by 4.1% against the Canadian dollar (from 1.3087 to 1.3628).

PROJECT OVERVIEW

SILVER SAND PROJECT

Since acquiring the project in 2017, the Company has carried out extensive exploration and Mineral Resource definition drill programs. From 2017 to 2019, the Company completed a total of 97,619 m of drilling in 386 diamond core drillholes.

On July 27, 2021, the Company announced the commencement of a 38,000 m diamond drill program with the objectives to expand the existing resource, which remains open along strike and at depth, and to complete geotechnical drilling to support the PEA study. Highlights of the drill program include:

80% of the drill program is intended to focus on expanding the existing Mineral Resources and discovering new resources;

5,000 m of the drill program is dedicated to testing for feeder zones for the large Silver Sand deposit;

District exploration drilling to target the North Block and Snake Hole Zone; and

Mineral continuity and geotechnical drilling to support the Silver Sand PEA.

For additional information on the 2021 drill program, please see the Company’s news release dated July 27, 2021.

In addition to the 2021 drill program, the Company continues to advance or has commenced key studies and initiatives in support of the Silver Sand Project development. These include environmental baseline, socioeconomic and hydrogeology studies.

For the year ended June 30, 2021, total expenditures of $3.36 million (year ended June 30, 2020 - $9.48 million) were capitalized under the Silver Sand Project.

CARANGAS PROJECT

In April 2021, the Company signed a mining association agreement with a private Bolivian company to acquire a 98% interest in the Carangas Project. Under the agreement, the Company will cover 100% of the future expenditures of exploration, mining, development and production activities. The agreement has a term of 30 years and renewable for another 15 years.

On June 29, 2021, the Company announced the commencement of an initial discovery drill program at the Carangas Project. Phase I of the 5,000 m drill program is expected to be comprised of approximately 20 drillholes with an initial 3,000 m to be completed over an eight-week period. Contingent on the success of initial results, follow-up drilling will complete the budgeted 5,000 m program.

For the year ended June 30, 2021, total expenditures of $0.25 million (year ended June 30, 2020 - $nil) were capitalized under the project.

The Carangas Project is comprised of two exploration licenses covering an area of 6.25 km2 and owned 100% by the Company’s Bolivian joint venture partner. New Pacific has entered into a mining association agreement with the Bolivian partner (the “Carangas Joint Venture”), under which New Pacific is required to cover 100% of the future expenditures on exploration, mining, development, and production activities in return for 98% economic interest in the Project.

SILVERSTRIKE PROJECT

During the fiscal year ended June 30, 2021, the Company’s exploration team completed reconnaissance and detailed mapping and sampling programs on the northern portion of the project. The results to date indicate good to excellent exploration potential for hosting narrow, high-grade, near-surface broad-zones of silver mineralization. Please refer to the Company’s news release dated September 29, 2020 for details on the exploration program at the northern areas of the project and to the news release dated November 19, 2020 for details on exploration activities and field work on the central and southern areas of the project.

For the year ended June 30, 2021, total expenditures of $1.29 million (year ended June 30, 2020 - $0.48 million) were capitalized under the Silverstrike Project.

MANAGEMENT DISCUSSION AND ANALYSIS

This news release should be read in conjunction with the Company’s Management Discussion and Analysis (“MD&A”) and the audited consolidated financial statements and notes thereto for the corresponding period, which have been filed with the Canadian Securities Administrators and are available under the Company’s profile on SEDAR at www.sedar.com and on the Company’s website at www.newpacificmetals.com.

QUALIFIED PERSON

The scientific and technical information contained in this news release has been reviewed and approved by Alex Zhang, P. Geo., Vice President of Exploration, who is a Qualified Person for the purposes of National Instrument 43-101 — Standards of Disclosure for Mineral Projects (“NI 43-101”). The Qualified Person has verified the information disclosed herein and is not aware of any significant risks and uncertainties that could be expected to affect the reliability or confidence in the information discussed herein.

ABOUT NEW PACIFIC

New Pacific is a Canadian exploration and development company with precious metal projects, including the flagship Silver Sand Project, the Silverstrike Project and the Carangas Project, all of which are located in Bolivia. The Company is focused on progressing the development of the Silver Sand Project, while growing its Mineral Resources through the exploration and acquisition of properties in the Americas.