New Pacific Secures Local Support for Carangas Project, Plans 30,000-Meter Drill Program in 2026

New Pacific Metals Corp. (TSX:NUAG) (NYSE:NEWP) ("New Pacific" or the "Company")  is pleased to announce the signing of a Framework Agreement for Cooperation and Coordination (the "Agreement") with the Carangas community ("TIOC Carangas") in respect to its Carangas silver-gold project, located in Oruro Department, Bolivia (the "Carangas Project").

The Agreement establishes a general framework of understanding and commitment between the Company and TIOC Carangas that reflects the shared intention to develop the Carangas Project based on transparency, fairness, mutual benefits, mutual respect, and long-term cooperation. The Agreement includes the terms, conditions, and commitments of both the Company and TIOC Carangas and represents a critical step in moving the Carangas Project forward towards production. The Carangas Project will provide economic and social benefits to Bolivia, Oruro Department, TIOC Carangas, and the Company's shareholders.

Commitment to Responsible Development

As part of the Agreement, the Company has committed to:

• Fully acknowledge and respect the property, possession, and ancestral rights of TIOC Carangas over its lands and territory, in accordance with Bolivian laws and the United Nations Declaration on the Rights of Indigenous Peoples;
• Conduct its operations in compliance within the framework of Bolivian environmental regulations;
• Promote mutually beneficial social and economic opportunities;
• Support community members directly including support for the elderly community, individuals with disabilities, educational supplies, training initiatives and community health and development initiatives;
• A collaborative approach to sustainable development and identifying and advancing community priorities;
• Making a fixed annual contribution to a community development fund in amounts tied to the different stages of the Carangas Project;
• Support local businesses, where possible, by sourcing services and supplies related to the mine development and operation locally; and
• Implement a community resettlement plan to relocate the Carangas village to another location with improved infrastructure and living standards.

TIOC Carangas has committed to:

• Actively participate in all stages of the public consultation to be carried out by the Administrative Jurisdictional Mining Authority (the "AJAM") and other Government bodies of Bolivia including the Ministry of Environment and Water;
• Collaborate with the Company in identifying and resolving conflicts and problems that may arise during the implementation of the Carangas Project; and
• Support exploration, permitting, construction, and production of the Carangas Project, including, permitting unrestricted access to the area of the Carangas Project, and allowing full and unrestricted access to all mining rights granted to the Company by law.

This Agreement is an important milestone in strengthening trust and ensuring that project advancement is carried out in a manner aligned with community values and regional development objectives. As set out in the Company's December 4, 2025 news release, with the Framework Agreement in place, the Company and AJAM Oruro will be able to successfully complete the formal prior consultation process. This will be followed by submitting an application to the National Assembly to convert the exploration licenses to mining permits.  

The Company is also planning to commence work on a feasibility study for the Carangas Project once the mining permits are granted, with infill drilling to upgrade the known resources. Additionally, the Company plans to conduct exploration drilling – targeting deeper zones within the known wide intercepts of gold mineralization as well as new targets represented by the Induced Polarization (IP) anomalies. The 2026 drilling campaign is expected to comprise over 30,000 metres of drilling.