4 2 01 9 S U S T AINABILITY REPOR T P r es i d e n t s M es sa g e 2 01 9 mark ed P an Americ an Silv er s 25th y e ar o f oper ation This w as a tr ans f ormativ e y e ar f or the C omp an y with the ac quisition o f T ahoe R e s our c e s and I am pr oud o f our ac c omplishment s I am equally pr oud o f our c ontinued c ommitment t o building and maint aining a r eput ation f or e x c ellenc e in dis c o v er y engineering inno v ation s af et y and long t erm sus t ainabilit y W ith the ac quisition w e added f our ne w oper ations t o our portf olio L a Ar ena and Shahuindo in P eru Timmins W e s t and B ell Cr eek in Canada and E s c ob al in Guat emala W e als o doubled our w orkf or c e and our silv er r e s er v e s and added sub s t antial g old pr oduction O ur f ocus in 2 01 9 w as the int egr ation o f the T ahoe as s et s int o our portf olio including ins tilling P an Americ an Silv er s v alue s and sus t ainabilit y appr o ach at the ne w oper ations W e ha v e als o been w orking t o le v er ag e s yner gie s and shar e be s t pr actic e s which ar e alr e ady c ontributing t o perf ormanc e impr o v ement s acr o s s the or g aniz ation I w ould lik e t o thank both the P an Americ an Silv er and T ahoe R e s our c e s t e ams f or their ef ort s in making the tr ansition suc c e s s ful W e ar e c ontinuously s triving t o impr o v e our sus t ainabilit y perf ormanc e O ne c omponent o f this is the implement ation o f the Mining A s s ociation o f Canada s MA C T o w ar ds Sus t ainable Mining T SM pr ot oc ols and fr ame w ork s a w orld clas s manag ement s t andar d de signed t o help mining c omp anie s addr e s s and manag e k e y sus t ainabilit y is sue s W e ar e on tr ack t o r e ach le v el A in 2 0 2 0 at all o f our oper ations other than tho s e ac quir ed thr ough T ahoe w e anticip at e r e aching le v el A at tho s e oper ations b y 2 0 22 D uring the y e ar w e made signifc ant ef ort s t o w ar ds f ormalizing our appr o ach t o human right s W e implement ed a ne w Human Right s P olic y and appoint ed a Human Right s Ofc er W e ar e als o deepening our alignment with the V olunt ar y P rinciple s on S ecurit y and Human Right s and UNICEF Canada s Child Right s and S ecurit y Checklis t at oper ations using s ecurit y f or c e s F ollo wing the ac quisition o f the E s c ob al mine in Guat emala during 2 01 9 w e s ettled the Gar cia v T ahoe R e s our c e s Inc c as e which w as br ought ag ains t T ahoe f or the us e o f violenc e during a pr ot e s t at the mine in 2 01 3 It w as import ant t o demons tr at e that w e s triv e t o r e ach pe ac e ful amic able r e s olution t o c onfict s thr ough c ons tructiv e and r e spectful dialogue Mining oper ations at E s c ob al r emain suspended and on c ar e and maint enanc e pending c ompletion o f an Int ernational L abour O r g aniz ation 1 6 9 c onsult ation pr oc e s s b y the Go v ernment o f Guat emala D uring this time w e ar e c omplying with the r equir ement s o f E s c ob al s en vir onment al manag ement plan which include s r e specting e xis ting c ommitment s t o the c ommunitie s and r e sponding t o r eque s t s f or inf ormation O ur human right s polic y als o r einf or c e s our c ommitment t o building a div er s e and inclusiv e w orkf or c e Div er sit y mak e s us bett er and w e will c ontinue t o emphasiz e the import anc e o f div er sit y and inclusivit y at all our oper ations including incr e asing the number o f w omen in our w orkf or c e In 2 0 2 0 w e will be piloting our Building R e spect T og ether pr ogr am with the int ention o f cr e ating mor e r e spectful s af e and sus t ainable w ork en vir onment s The pr ogr am will als o include c ont ent t o f o s t er gr e at er under s t anding and pr ot ection o f and r e spect f or w omen s right s W e belie v e r e sponsible mining c an pr o vide import ant bene ft s t o c ommunitie s O ur ho s t c ommunitie s ar e s t ak eholder s in our suc c e s s and w e w ork with them MI C H A EL S T E I N MA N N P R E S I D EN T C E O