New Pacific Metals : Mar 31, 2024 Third Quarter Management’s Discussion and Analysis (MD&A)

MANAGEMENT'S DISCUSSION AND ANALYSIS

For the three and nine months ended March 31, 2024 (Expressed in United States Dollars)

NEW PACIFIC METALS CORP.

Management's Discussion and Analysis

For the three and nine months ended March 31, 2024 (Expressed in United States dollars, unless otherwise stated)

DATE OF REPORT: May 6, 2024

This management's discussion and analysis ("MD&A") for New Pacific Metals Corp. and its subsidiaries (collectively, "New Pacific" or the "Company") should be read in conjunction with the Company's unaudited condensed consolidated interim financial statements for the three and nine months ended March 31, 2024 and the related notes contained therein. The Company prepares its financial statements in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). The Company's accounting policies are set out in Note 2 of the audited consolidated financial statements for the year ended June 30, 2023 and Note 2(c) of the unaudited condensed consolidated interim financial statements for the three and nine months ended March 31, 2024. All dollar amounts are expressed in United States dollars ("USD") unless otherwise stated. Certain amounts shown in this MD&A may not add exactly to total amounts due to rounding differences. This MD&A contains "forward-looking statements" that are subject to risk factors set out in a cautionary note contained at the end of this MD&A. All information contained in this MD&A is current and has been approved by the Board of Directors of the Company (the "Board") as of May 6, 2024.

BUSINESS OVERVIEW AND STRATEGY

The Company is a Canadian mining issuer engaged in exploring and developing mineral properties in Bolivia. The Company's precious metal projects include the flagship Silver Sand project (the "Silver Sand Project"), the Carangas project (the "Carangas Project") and the Silverstrike project (the "Silverstrike Project"). With experienced management and sufficient technical and financial resources, management believes the Company is well positioned to create shareholder value through exploration and resource development.

The Company is publicly listed on the Toronto Stock Exchange under the symbol "NUAG" and on the NYSE American stock exchange under the symbol "NEWP". The head office, registered address and records office of the Company are located at 1066 West Hastings Street, Suite 1750, Vancouver, British Columbia, Canada, V6E 3X1.

PROJECTS OVERVIEW

Bolivian Licence Tenure

A summary of Bolivian mining laws with respect to the Administrative Mining Contract ("AMC") and exploration license is presented below.

Exploration and mining rights in Bolivia are granted by the Ministry of Mines and Metallurgy through the Autoridad Jurisdictional Administrativa Minera ("AJAM"). Under Bolivian mining laws, tenure is granted as either an AMC or an exploration license. Tenure held under the previous legislation was converted to Autorización Transitoria Especiales (each, an "ATE") which are required to be consolidated into new 25- hectare sized cuadriculas (concessions) and converted to AMCs. AMCs created by conversion recognize existing rights of exploration and/or exploitation and development, including treatment, metal refining, and/or trading. AMCs have a fixed term of 30 years and can be extended for an additional 30 years if certain conditions are met. Each AMC requires ongoing work and the submission of plans to the AJAM.

Exploration licenses allow exploration activities only and must be converted to AMCs to conduct exploitation and development activities. Exploration licenses are valid for a maximum of five years and provide the holder with the preferential right to request an AMC. In specific areas, mineral tenure is owned

Management's Discussion and Analysis

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NEW PACIFIC METALS CORP.

Management's Discussion and Analysis

For the three and nine months ended March 31, 2024 (Expressed in United States dollars, unless otherwise stated)

by the Bolivian state mining corporation, Corporación Minera de Bolivia ("COMIBOL"). In these areas, development and production agreements can be obtained by entering into a Mining Production Contract ("MPC") with COMIBOL.

Silver Sand Project

The Silver Sand Project is located in the Colavi District of Potosí Department in southwestern Bolivia at an elevation of 4,072 m above sea level, 33 kilometres ("km") northeast of Potosí City, the department capital.

The Silver Sand Project is comprised of two claim blocks, the Silver Sand south and north blocks, which covers a total area of 5.42 km2. The Silver Sand south block, covering an area of 3.17 km2 hosts the Silver Sand deposit. On August 12, 2021, the Company announced the receipt of an AMC for the Silver Sand south block from the AJAM. The Silver Sand north block covers an area of 2.25 km2 and is comprised of two AMCs (Jisasjardan and Bronce). The AMCs establish a clear title to the Silver Sand Project.

(a) Exploration

The Company has carried out extensive exploration and resource definition drill programs on the Silver Sand Project between 2017 and 2022, completing a total of 136,000 metre ("m") of diamond drilling in 551 holes during the period. For details on the most recent 2022 drill program, please refer to the Company's news releases dated September 19, 2022, May 31, 2022, and April 6, 2022. Silver Sand Project's current Mineral Resource Estimate ("MRE") is based on these extensive exploration programs. Based on the MRE, the Silver Sand Project has an estimated measured and indicated mineral resource of 201.77 million ounces ("oz") of silver at head grade of 116 g/t and an estimated inferred mineral resource of 12.95 million oz of silver at 88 g/t. For further details on the MRE, please refer to the Company's news release dated November 28, 2022.

(b) Advanced Study

On February 16, 2023, the Company filed its independent Preliminary Economic Assessment (the "PEA") for its Silver Sand Project (the "Silver Sand PEA Technical Report"). AMC Mining Consultants (Canada) Ltd. (mineral resource, mining, infrastructure and financial analysis) was contracted to conduct the Silver Sand PEA Technical Report in cooperation with Halyard Inc. (metallurgy and processing), and New Fields Canada Mining & Environment ULC (tailings, water and water management). The Silver Sand PEA Technical Report is based on the MRE, which was reported on November 28, 2022. Highlights from the Silver Sand PEA Technical Report, with a base case silver price of $22.50/oz are as follows:

• pre-taxNPV (5%) of $1.1 billion with an IRR of 52%, and a post-tax NPV (5%) of $726 million with an IRR of 39%;
• using a +/- 20% sensitivity analysis for silver price, a post-tax NPV (5%) of $1,054 million with an IRR of 50% at $27/oz silver, or a post-tax NPV (5%) of $398 million with an IRR of 26% at $18/oz silver;
• 14-yearmine life producing approximately 171 million ounces payable silver metal;
• initial capital cost of $308 million, which includes $52 million in contingency cost;
• life-of-mine("LOM") total sustaining capital cost of $20 million;
• average LOM operating cash cost of $8.45/oz and total all-in sustaining cost of $10.42/oz silver; and
• annual payable metal production exceeds 15 million ounces of silver in years one through four, with LOM average annual payable metal production exceeding 12 million ounces of silver.

Management's Discussion and Analysis

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NEW PACIFIC METALS CORP.

Management's Discussion and Analysis

For the three and nine months ended March 31, 2024 (Expressed in United States dollars, unless otherwise stated)

Please see "Cautionary Note Regarding Results of Preliminary Economic Assessment". For more details on the Silver Sand PEA Technical Report, please refer to the Company's news releases dated February 16, 2023 and January 9, 2023.

The Preliminary Feasibility Study for the Silver Sand project (the "Silver Sand PFS") is progressing as planned, with an expected delivery by mid-2024. Independent consultants AMC Mining Consultants (Canada) Ltd., NewFields Canada Mining & Environment ULC and Halyard Inc. are actively involved in completing the Silver Sand PFS. Significant milestones achieved include the completion of mine optimization, strategic phasing, processing flowsheet optimization, and tailings trade-off studies. Concurrently, ongoing efforts encompass strategic mine scheduling, tailings and site infrastructure design, and processing plant layout design. We expect the technical route to remain largely consistent with the Silver Sand PEA Technical Report.

(c) Permitting

In May 2023, the Silver Sand Project obtained its environmental categorization as a proposed open pit operation from Bolivia's Ministry of Environment and Water, formally commencing the Environmental Impact Assessment Study ("EEIA") process. The Company continues to advance its socialization process with communities located within the Silver Sand Project's area of influence and collect wet and dry season environmental baseline data. In addition, the Company is establishing a development fund for sustainable development projects in partnership with local communities, demonstrating its long-term commitment to the region. After completion of the socialization process, the Company plans to achieve the following:

• obtain surface rights through long-term land lease agreements;
• finalize a resettlement and compensation plan for impacted families; and
• implement measures to safeguard cultural and historical heritage.

Integral to our pathway towards obtaining the EEIA, the Company is establishing a framework to coexist with artisanal and small-scale miners ("ASMs") in areas of the Silver Sand Project that do not encroach on our mineral rights. The Company recognizes the importance of ASMs to the region's economic and political landscape and is committed to ensuring the shared benefits from a proposed modern mining operation, including access to milling capacity, technology, infrastructure, and capital, are realized. The Company is also undertaking measures, with the assistance of both local government authorities and external contractors, to address the presence of ASMs whose activities do not align with the development objectives of the Silver Sand Project.

The Company is also pursuing compliance with the International Finance Corporation's eight performance standards for sustainable development. This aligns with the Company's commitment to responsible mining while providing the ancillary benefit of positioning the project for development by the Company, or another party, upon successful completion of the EEIA process.

(d) Mining Production Contract

On January 11, 2019, New Pacific announced that its 100% owned subsidiary, Minera Alcira S.A. ("Alcira"), entered into an MPC with COMIBOL granting Alcira the right to carry out exploration, development and mining production activities in ATEs and cuadriculas owned by COMIBOL adjoining the Silver Sand Project. An update to the MPC was made with COMIBOL on January 19, 2022. The MPC is comprised of two areas. The first area is located to the south and west of the Silver Sand Project. The second area includes additional geologically prospective ground to the north, east and south of the Silver Sand Project,

Management's Discussion and Analysis

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NEW PACIFIC METALS CORP.

Management's Discussion and Analysis

For the three and nine months ended March 31, 2024 (Expressed in United States dollars, unless otherwise stated)

wherein COMIBOL is expected to apply for exploration and mining rights with the AJAM. Upon granting of the exploration and mining rights, COMIBOL will contribute these additional properties to the MPC.

There are no known economic mineral deposits, nor any previous drilling or exploration discoveries within the MPC area. The MPC presents an opportunity to explore and evaluate the possible extensions and/or satellites of mineralization outside of the currently defined Silver Sand Project.

Since October 2023, the Company continues to engage with COMIBOL to obtain the ratification and approval of the signed MPC by the Plurinational Legislative Assembly of Bolivia. The Company and COMIBOL have refined the MPC to concentrate exclusively on claims immediately adjacent to the Silver Sand Project boundary. This streamlined landholding, while maintaining the core value of the MPC to the Silver Sand Project, is anticipated to facilitate progress towards ratification and approval of the MPC.

The MPC remains subject to ratification and approval by the Plurinational Legislative Assembly of Bolivia. As of the date of this MD&A, the MPC has not been ratified nor approved by the Plurinational Legislative Assembly of Bolivia. The Company cautions that there is no assurance that the Company will be successful in obtaining ratification of the MPC in a timely manner or at all, or that the ratification of the MPC will be obtained on reasonable terms. The Company cannot predict the Bolivia government's positions on foreign investment, mining concessions, land tenure, environmental regulation, community relations, taxation or otherwise. A change in the government's position on these issues could adversely affect the ratification of the MPC and the Company's business.

(e) Project Expenditure

For the three and nine months ended March 31, 2024, total expenditures of $713,623 and $2,092,884, respectively (three and nine months ended March 31, 2023 - $1,223,506 and $5,421,035, respectively) were capitalized under the Silver Sand Project.

Carangas Project

In April 2021, the Company signed an agreement with a private Bolivian company to acquire a 98% interest in the Carangas Project. The Carangas Project is located approximately 180 km southwest of the city of Oruro and within 50 km from Bolivia's border with Chile. The private Bolivian company is 100% owned by Bolivian nationals and holds title to the three exploration licenses that cover an area of 40.75 km2.

Under the agreement, the Company is required to cover 100% of the future expenditures on exploration, mining, development and production activities for the Carangas Project.

(a) Exploration

The Company has carried out extensive exploration and resource definition drill programs on the Carangas Project between 2021 and 2023, completed a total of 81,145 m of diamond drilling in 189 holes during the period. On September 18, 2023, the Company filed its inaugural independent NI 43-101 MRE for the Carangas Project (the "Carangas MRE") based on the results of these exploration programs. RPMGlobal (Canada) Ltd. ("RPM") was contracted to conduct the Carangas MRE technical report. Highlights from the Carangas MRE are as follows:

Management's Discussion and Analysis

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NEW PACIFIC METALS CORP.

Management's Discussion and Analysis

For the three and nine months ended March 31, 2024 (Expressed in United States dollars, unless otherwise stated)

• Total indicated mineral resources of 214.9 Mt containing 205.3 Mozs of silver, 1,588.2 Kozs of gold, 1,444.9 Mlbs of lead ("Pb"), 2,653.7 Mlbs of zinc, and 112.6 Mlbs of copper; or collectively 559.8 Mozs of AgEq.
• Total inferred mineral resources of 45.0 Mt containing 47.7 Mozs of silver, 217.7 Kozs of gold, 297.9 Mlbs of lead, 533.7 Mlbs of zinc, and 16.8 Mlbs of copper; or collectively 109.8 Mozs of AgEq.
• The Carangas Project is a globally significant Ag-Au polymetallic discovery.
• Mineralization starts at or near surface, potentially allowing for open-pit mining with an average stripping ratio for the conceptual pit of approximately 1.8:1 (tonnes of waste: tonnes of mineral resource).
• Below the pit constraint, substantial gold-dominant mineralization, similar in size and grade to the reported gold domain, has the potential for conversion to underground mineable resources pending further evaluation for reasonable prospects of eventual economic extraction.
• Favorable initial metallurgical test work indicates laboratory-based recoveries of up to 90% for silver and 98% for gold based on a combination of flotation and cyanide leaching.

For more details on the Carangas MRE, please refer to the Company's news releases dated September 5, 2023 and September 18, 2023.

(b) Advanced Study

The Preliminary Economic Assessment in respect of the Carangas Project (the "Carangas PEA") remains on schedule for completion by September 2024. The Company and its independent consultants led by RPM are currently undertaking trade-off studies based on the Carangas MRE. There are a variety of open pit mining options under review, all focusing on the higher-grade,near-surface starter pit at the Carangas Project that can be mined at a lower strip ratio. Additionally, the Company is undertaking a metallurgical test program to enhance the processing flowsheet and gather valuable data to support the Carangas PEA.

(c) Project Expenditure

For the three and nine months ended March 31, 2024, total expenditures of $369,643 and $1,306,377, respectively (three and nine months ended March 31, 2023 - $3,341,524 and $9,190,157, respectively) were capitalized under the Carangas Project.

Silverstrike Project

The Silverstrike Project is located approximately 140 km southwest of La Paz, Bolivia. In December 2019, the Company signed a mining association agreement and acquired a 98% interest in the Silverstrike Project from a private Bolivian corporation. The private Bolivian corporation is owned 100% by Bolivian nationals and holds the title to the nine ATEs (covering an area of approximately 13 km2) that comprise the Silverstrike Project.

Under the mining association agreement, the Company is required to cover 100% of future expenditures including exploration, contingent on results of development and subsequent mining production activities at the Silverstrike Project.

Management's Discussion and Analysis

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NEW PACIFIC METALS CORP.

Management's Discussion and Analysis

For the three and nine months ended March 31, 2024 (Expressed in United States dollars, unless otherwise stated)

(a) Exploration

During 2020, the Company's exploration team completed reconnaissance and detailed mapping and sampling programs on the northern portion of the Silverstrike Project. The results to date identified near surface broad zones of silver mineralization in altered sandstones to the north, with similarities to the Silver Sand Project. In the Silverstrike Project's central area, a near surface broad silver zone that occurs near the top of a 900 m diameter volcanic dome of ignimbrite (volcaniclastic sediments) with intrusions of rhyolite dyke swarms and andesite flows. In addition, a broad gold zone occurs halfway from the top of this dome.

In 2022, the Company completed a 3,200 m drill program at the Silverstrike Project. Assay results for the two drill holes were released in the news releases dated November 1, 2022 and September 12, 2022.

Further exploration activities remain on standby as the Company focuses on the programs for the Silver Sand Project and Carangas Project, as outlined above.

(d) Project Expenditure

For the three and nine months ended March 31, 2024, total expenditures of $5,767 and $83,208, respectively (three and nine months ended March 31, 2023 - $200,581 and $1,346,071, respectively) were capitalized under the Silverstrike Project.

Frontier Area - Carangas Project and Silverstrike Project

The Carangas Project and the Silverstrike Project are located within 50 km of the Bolivian border with Chile. In line with many South American countries, Bolivia does not permit foreign entities to own property within 50 km of international borders (the "Frontier Area"). Property owners in the Frontier Area are, however, permitted to enter into mining association agreements with third parties, including foreign entities, for the development of mining activities under Bolivian Law No. 535 on Mining and Metallurgy. While the Company believes the mining association agreements for the Carangas Project and the Silverstrike Project are legally compliant with the Frontier Area requirements and Bolivian mining laws, there is no assurance that the Company's Bolivian partners will be successful in obtaining the approval of the AJAM to convert the exploration licenses to AMC in the case of the Carangas Project, or that even if approved, that such relationships and structures will not be challenged by other Bolivian organizations or communities.

Management's Discussion and Analysis

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NEW PACIFIC METALS CORP.

Management's Discussion and Analysis

For the three and nine months ended March 31, 2024 (Expressed in United States dollars, unless otherwise stated)

Overall Expenditure Summary

The continuity schedule of mineral property acquisition costs, deferred exploration and development costs are summarized as follows:

Cost		Silver Sand		Carangas		Silverstrike		Total
Balance, July 1, 2022	$	76,568,598	$	5,460,946	$	3,269,232		85,298,776
Capitalized exploration expenditures
Reporting and assessment		1,008,174		88,558		-		1,096,732
Drilling and assaying		1,925,695		8,289,678		977,881		11,193,254
Project management and support		2,719,120		1,424,573		256,569		4,400,262
Camp service		467,690		1,005,158		174,651		1,647,499
Permit and license		195,821		9,389		-		205,210
Foreign currency impact		(201,972)		(8,831)		(24,680)		(235,483)
Balance, June 30, 2023	$	82,683,126	$	16,269,471	$	4,653,653	$	103,606,250
Capitalized exploration expenditures
Reporting and assessment		470,438		198,479		-		668,917
Drilling and assaying		47,217		23,894		-		71,111
Project management and support		1,307,101		842,711		51,530		2,201,342
Camp service		235,081		231,985		31,678		498,744
Permit and license		33,047		9,308		-		42,355
Foreign currency impact		(246,085)		(49,389)		(20,995)		(316,469)
Balance, March 31, 2024	$	84,529,925	$	17,526,459	$	4,715,866	$	106,772,250

Management's Discussion and Analysis

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NEW PACIFIC METALS CORP.

Management's Discussion and Analysis

For the three and nine months ended March 31, 2024 (Expressed in United States dollars, unless otherwise stated)

FINANCIAL RESULTS

Net loss attributable to equity holders of the Company for the three and nine months ended March 31, 2024 was $1,269,136 and $4,539,260 or $0.01 and $0.03 per share, respectively (three and nine months ended March 31, 2023 - net loss of $2,275,519 and $6,231,420 or $0.01 and 0.04 per share, respectively).

The Company's net loss attributable to equity holders of the Company for the three and nine months ended March 31, 2024 and the respective comparative periods were mainly impacted by its operating expenses and other income (expenses). Details of the variance analysis on operating expenses and net income from investments are explained below.

Operating expenses for the three and nine months ended March 31, 2024 were $1,722,246 and $5,409,638, respectively (three and nine months ended March 31, 2023 - $2,377,480 and $6,364,070, respectively). Items included in operating expenses were as follows:

1. Project evaluation and corporate development expenses for the three and nine months ended March 31, 2024 of $6,539 and $196,076, respectively (three and nine months ended March 31, 2023 - $154,017 and $340,114, respectively). The Company is focusing on the exploration and development of its existing projects and did not incur significant expenditures in new project evaluation in recent periods.
2. Filing and listing fees for the three and nine months ended March 31, 2024 of $61,274 and $228,305, respectively (three and nine months ended March 31, 2023 - $59,558 and $264,784, respectively).

Management's Discussion and Analysis

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NEW PACIFIC METALS CORP.

Management's Discussion and Analysis

For the three and nine months ended March 31, 2024 (Expressed in United States dollars, unless otherwise stated)

Filing fees for the current periods were comparable to prior periods and were incurred in ordinary course of business.

1. Investor relations expenses for the three and nine months ended March 31, 2024 of $100,046 and $244,149, respectively (three and nine months ended March 31, 2023 - $226,827 and $495,176, respectively). Investor relations expenses decreased in the current periods as a result of reduced investor relation activities.
2. Professional fees for the three and nine months ended March 31, 2024 of $74,929 and $268,020, respectively (three and nine months ended March 31, 2023 - $116,987 and $287,513, respectively). Professional fees in the periods were comparable to prior periods. The professional fees related to shelf-prospectus filing and bought deal financing in the nine months ended March 31, 2024 were treated as part of the issuance cost of the transaction.
3. Salaries and benefits expense for the three and nine months ended March 31, 2024 of $493,889 and $1,595,001, respectively (three and nine months ended March 31, 2023 - $412,395 and $1,171,969, respectively). The increase in salaries and benefits for the current period was a result of hirings of a few key management positions in 2023 and the accrual of bonus incentives.
4. Office and administration expenses for the three and nine months ended March 31, 2024 of $301,456 and $1,013,917, respectively (three and nine months ended March 31, 2023 - $412,825 and $1,132,622, respectively). Office and administrative expenses for the current periods slightly decreased compared to prior periods and were incurred in ordinary course of business.
5. Share-basedcompensation for the three and nine months ended March 31, 2024 of $634,919 and $1,710,018, respectively (three and nine months ended March 31, 2023 - $944,406 and $2,515,235, respectively). The decrease in share-based compensation for the current periods were a result of forfeitures of stock options and restricted share units during the periods.

Net income from investments for the three and nine months ended March 31, 2024 were $440,991 and $736,285, respectively (three and nine months ended March 31, 2023 - $119,438 and $161,219, respectively). The increase in net income from investments for the current periods was a result of: (i) interest income for the three and nine months ended March 31, 2024 of $319,166 and $619,887, respectively (three and nine month ended March 31, 2023 - $79,521 and $329,745, respectively) earned from cash and cash equivalents;

1. fair value change on bonds for the three and nine month ended March 31, 2024 of $67,820 and $67,534, respectively (three and nine months ended March 31, 2023 - $51,038 and $17,886, respectively); and (iii) fair value change on equity investments for the three and nine months ended March 31, 2024 of $54,005 and $48,864, respectively (three and nine months ended March 31, 2023 - $(11,121) and $(186,412), respectively).

Gain on disposal of plant and equipment for the three and nine months ended March 31, 2024 of $nil and $51,418, respectively (three and nine months ended March 31, 2023 - $nil and $nil, respectively). The Company disposed of a small fleet of used pick-up trucks during the current periods for proceeds of $58,776, which resulted in a gain on disposal of $51,418.

Foreign exchange gain for the three and nine months ended March 31, 2024 of $10,699 and $77,694, respectively (three and nine months ended March 31, 2023 - loss of $18,683 and $32,540, respectively). The Company holds a portion of cash and short-term investments in USD to support its operations in Bolivia.

Management's Discussion and Analysis

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