New Pacific Inks Key Bolivia Deal, Posts Strong Finances Amid Net Loss

VANCOUVER, BC – May 13, 2026 – New Pacific Metals Corp. (NYSE: NEWP, TSX: NUAG) released its third-quarter financial results today, detailing a net loss consistent with its development phase while showcasing a formidable financial position with $39.28 million in working capital. The financial report, however, was overshadowed by a more strategic victory on the ground in Bolivia: a landmark framework agreement with the local community for its massive Carangas Silver-Gold Project, a critical step in de-risking the asset and paving its path toward production.

A Blueprint for Partnership: The Carangas Community Accord

The most significant development highlighted in the company's Q3 update is the Framework Agreement for Cooperation and Coordination signed on February 23, 2026. This pact with the Indigenous Originary Campesino Territory of Carangas (TIOC Carangas) establishes a foundation of mutual respect and shared benefits, a crucial element for securing a “social license to operate” in Bolivia.

This agreement is more than a formality; it is a strategic imperative in modern mining, particularly in Latin America where community support can make or break a billion-dollar project. By committing to respect ancestral rights, protect the environment, and provide direct community support through development funds and local business initiatives, New Pacific is aligning its project with international best practices, including the principles of the United Nations Declaration on the Rights of Indigenous Peoples. In return, the community has committed to supporting the project through permitting, construction, and future production, ensuring access and collaborating on conflict resolution. This collaboration effectively clears a major hurdle for the project's permitting process, enabling the company to advance its application to convert its exploration licenses into full mining permits through Bolivia's Plurinational Legislative Assembly.

Beyond the Bottom Line: A Development-Stage Financial Profile

For a pre-revenue exploration and development company, headline profits and losses tell only part of the story. New Pacific reported a net loss attributable to equity holders of $0.87 million for the quarter ended March 31, 2026, slightly higher than the $0.86 million loss in the same period last year. The nine-month loss was $3.20 million.

However, investors and analysts are more focused on the company's robust treasury. With $39.28 million in working capital and no debt, New Pacific is well-funded to continue its aggressive development and exploration activities. The company’s spending reflects this strategy, with total capitalized expenditures on its projects reaching $119.48 million as of March 31, 2026. During the last nine months, the company invested $1.91 million into its Silver Sand Project and another $0.95 million into the Carangas Project, channeling capital directly into advancing its core assets.

Operating expenses for the quarter were $1.58 million, primarily covering project management, support, and corporate overhead. This careful cash management, combined with a strong balance sheet, gives the company a significant runway to achieve its next set of critical milestones without immediate pressure to return to the capital markets.

Advancing a Two-Pronged Precious Metals Strategy

New Pacific is advancing two of Bolivia’s most promising precious metals projects. The Carangas Project, located in the Oruro Department, is a giant silver and gold system. With the community agreement now in place, the company is positioned to complete the formal consultation process and secure mining permits. Once granted, New Pacific plans to launch a full feasibility study, a 12-to-18-month process that will provide detailed engineering and economic parameters for a future mine. A planned 2026 drill program of over 30,000 meters will further define the resource, targeting deeper gold zones and new geophysical anomalies.

Meanwhile, the company’s Silver Sand Project in the Potosí Department is touted as having the potential to become one of the world's largest primary silver mines. The company continues to invest in the project, capitalizing $0.73 million in the latest quarter. Progress here is centered on negotiating surface rights with local communities, another key step required before its Mining Production Contract can be ratified by the Bolivian government, which would unlock the path to construction and mining.

Riding the Silver and Gold Wave in a Complex Climate

New Pacific's progress occurs against a backdrop of a complex but improving investment climate in Bolivia and a highly favorable market for precious metals. While operating in the country presents unique regulatory and political challenges—including a legal structure to accommodate the Carangas project's location near an international border—the Bolivian government has signaled a desire to attract foreign investment to its mining sector.

More importantly, the economic case for the company's vast silver and gold resources is strengthening. Gold has been trading near record highs in 2026, with major financial institutions forecasting continued strength due to central bank buying and geopolitical uncertainty. Silver has also seen dramatic price increases, benefiting from its monetary role and its critical, growing use in industrial applications like solar panels and electric vehicles. This bullish commodity environment dramatically enhances the potential economics of both the Carangas and Silver Sand projects, providing a powerful tailwind as New Pacific moves them through the final stages of permitting and development.