• Bolivia heads into an October presidential runoff, signaling a possible shift toward more pro-business policies, with the end of MAS’s political dominance hopefully reducing barriers to foreign investment, including in the mining sector.
• Bolivia has the world’s largest lithium reserves and is the fourth-largest silver producer, yet much of the country’s mineral-rich territory remains unexplored due to languid government support.
• New Pacific Metals owns two of the world’s largest undeveloped silver projects: Silver Sand and Carangas.
• Rising global silver demand, particularly from the solar industry, adds urgency to new project development.

Running a mining company in Bolivia has long meant navigating uncertainty. Heavy state involvement, slow permitting, and regulatory hurdles have discouraged outside capital, leaving vast parts of the country’s mineral wealth untapped. But following Bolivia’s August 17 election, the political environment could be shifting. The ruling Movimiento al Socialismo (MAS) party, dominant for two decades, lost its grip on national leadership (https://ibn.fm/v0s8U). The presidential race now advances to an October 19 runoff between a centrist and a right-wing candidate. While their policy details differ, both contenders have signaled possible openness to foreign investment and stronger trade ties.

For New Pacific Metals (NYSE American: NEWP) (TSX: NUAG), a Canadian exploration and development company, the runoff represents more than just a political transition. It may open the door to advancing projects that could position Bolivia as a leading supplier of silver to the global market.

Bolivia is already the world’s sixth-largest silver producer, contributing 5% of global output in 2023, according to GlobalData (https://ibn.fm/XwAVu). Yet more than 60% of its national territory remains unmapped or unexplored. Geological indicators suggest large untapped deposits across the Andes and highlands (https://ibn.fm/z4gAp).

New Pacific’s flagship Silver Sand and Carangas projects are discoveries made within the last five years and represent two of the world’s largest undeveloped silver deposits. They stand out for their scale and grade. Together, Silver Sand and Carangas could position New Pacific among the top global primary silver producers, with potential combined output of nearly 19 million ounces annually when production begins.

Bolivia’s mining legacy includes Cerro Rico in Potosí, one of history’s richest silver deposits, which helped finance Spain’s empire. That past underlines the potential of today’s underexplored regions. The challenge has been bringing in new capital. While Bolivia updated its mining law in 2014 with private-sector input, the approval process remains slow. Without faster permitting, even high-quality projects risk delay.

With limited new silver discoveries globally, high-grade deposits are increasingly scarce. This scarcity coincides with sharply rising demand. Industrial silver demand hit a record 20,353 tonnes in 2023, up 11% from the prior year, driven by solar panel manufacturing (https://ibn.fm/9Bagv). Projections suggest the solar industry alone will require 273 million ounces annually by 2030. By 2050, renewable infrastructure could consume more silver than has been mined in the past 500 years combined.

Such figures highlight the value of developing Bolivia’s silver belt, where New Pacific is one of the few international players positioned with advanced projects.

The October runoff does not eliminate Bolivia’s political and regulatory risks. But a departure from MAS’s state-heavy model could ease investor concerns. Both candidates have pledged to encourage outside participation, particularly in lithium and silver. For New Pacific, already established in the country, that creates a major potential turning point. If the next administration lowers barriers and accelerates permitting, the company’s assets could move closer to production or become targets for acquisition by larger miners.

For more information, visit the company’s website at www.NewPacificMetals.com.

NOTE TO INVESTORS: The latest news and updates relating to NEWP are available in the company’s newsroom at https://ibn.fm/NEWP

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