6 2 01 9 S U S T AINABILITY REPOR T C ha i r ma n s M e s s a g e T w ent y fv e y e ar s ag o I f ounded P an Americ an Silv er with a simple mis sion t o bec ome the w orld s be s t silv er mining in v e s tment I w ant ed t o build a w orldclas s mining c omp an y pr o viding s olid r eturns t o shar eholder s while cr e ating v alue f or all o f our s t ak eholder s O ur long his t or y o f building and oper ating mine s thr oughout L atin Americ a is a t e s t ament t o our suc c e s s in managing a sus t ainable busine s s E v er y thing w e do as humans has an imp act and mining is no e x c eption Ho w e v er the s e imp act s c an be minimiz ed as much as po s sible with dedic at ed att ention t o the principle s o f sus t ainabilit y I am v er y pr oud o f ho w P an Americ an Silv er s triv e s t o do this at all o f it s oper ations I r ec ogniz e that the t erm sus t ainable mining is an o xymor on in that mining is nonr ene w able S o what doe s sus t ainable mining me an at P an Americ an Silv er It me ans r ec ognizing wher e w e need t o mitig at e the imp act s o f our oper ations and w orking t o pr ot ect the ec o s y s t em in and ar ound our mining sit e s It me ans ensuring s af e and he alth y w orkplac e s f or emplo y ee s and c ontr act or s It me ans p artnering with our emplo y ee s c ontr act or s c ommunitie s and ho s t g o v ernment s t o cr e at e long t erm ec onomic bene ft s And it me ans cr e ating the be s t po s sible c onditions f or a c ommunit y t o thriv e aft er our mine s clo s e I am v er y pr oud o f ho w P an Americ an Silv er s triv e s t o do this at all o f our oper ations W e alw a y s ask our s elv e s ho w c an w e mine bett er O ne w a y w e achie v e this is thr ough hone s t and tr ansp ar ent dialogue C ommunic ating and w orking with our peer s c ommunitie s and the NGO c ommunit y enable s us t o cr e at e bett er s olutions fr om div er s e vie w s O pen dialogue als o help s us under s t and emer ging is sue s and de v elop t ools and t echnologie s t o impr o v e our busine s s In lat e 2 01 6 w e joined our peer s in the Mining A s s ociation o f Canada and beg an w ork on implementing the T o w ar ds Sus t ainable Mining T SM fr ame w ork s and pr ot oc ols O ur p articip ation in this pr oc e s s will help us implement le ading s ocial and en vir onment al pr actic e s as w ell as s tr engthen our he alth and s af et y pr ogr ams Another ambitious c ommitment w e made w as joining the W orld E c onomic F orum s Allianc e o f CE O Climat e L e ader s in 2 01 7 This glob al net w ork o f bo ar d chair s and CE O s is le ading the tr ansition t o a lo w c arbon climat e r e silient ec onom y Mining oper ations ar e not immune t o the imp act s o f climat e chang e or t o the r egulat or y r equir ement s o f mitig ation and adapt ation O ur p articip ation ensur e s that w e ar e in dialogue with our peer s which mak e s us bett er pr ep ar ed f or the c oming challeng e s and opportunitie s r elat ed t o climat e chang e I als o ob s er v e that silv er pla y s an import ant r ole in the tr ansition t o a lo w c arbon ec onom y The lar g e s t single indus trial us e o f silv er t oda y is in phot o v olt aic c ells that pr oduc e s olar ener gy a pr o f ound p art o f the shift fr om f o s sil fuels t o r ene w able ener gy W e c ontinue t o look t o applying the Unit ed Nations Sus t ainable D e v elopment Go als t o shape our sus t ainabilit y w ork The 1 7 indic at or s enshrined in this fr ame w ork ar e ambitious and c ompr ehensiv e The y help ensur e that w e appr o ach our w ork in a holis tic f ashion aligned with identifed glob al prioritie s and that our ef ort s cr e at e las ting po sitiv e imp act s in the plac e s w e oper at e A g ood c omp an y is one that r e w ar ds it s shar eholder s A gr e at c omp an y is one that als o look s aft er it s emplo y ee s c ontr act or s en vir onment c ountrie s and c ommunitie s wher e it w ork s I am v er y pr oud o f our t e am s sus t ainabilit y achie v ement s It is the c ollectiv e ef ort s o f all o f tho s e who w ork at P an Americ an Silv er that enable us t o maint ain our s t ellar r eput ation as a gr e at silv er mining c omp an y and a gr e at le ader in sus t ainabilit y RO S S B E A T T Y C H A I R M A N