New Pacific Metals Corp. ("New Pacific" or the "Company") (TSX:NUAG) (OTCQX:NUPMF) is pleased to announce that the Company has signed an agreement with a private Bolivian company (the "Vendor"), to acquire a 98% interest in the Carangas silver project (the "Carangas Project" or the "Project"), located in the Oruro Department, Bolivia. New Pacific will cover 100% of the future expenditures on exploration, mining, development, and production activities. The agreement has a term of 30 years and is renewable for an additional 15 years. An initial discovery diamond drill program is planned to commence upon receipt of the related permit from the local authorities.

CARANGAS PROJECT HIGHLIGHTS:

Former silver mining district, located on La Ruta de la Plata (the Silver Road), containing broad zones of outcropping silver mineralization and historically exploited high-grade silver veins;

Highlights of due diligence sampling include 30 meters ("m") at an average grade of 101 grams per tonne ("g/t") silver, 15 m at an average grade of 252 g/t silver, and 8 m at an average grade of 512 g/t silver;

Near surface bulk tonnage and high-grade vein targets identified;

Leverages New Pacific's exploration and project development expertise and cements the Company's first mover status in an under-explored silver district; and

5,000-meter discovery diamond drill program planned for 2021.

Dr. Mark Cruise, CEO of New Pacific, stated, "The addition of the Carangas Project fits well with the Company's strategy to become a premier Latin American focused precious metal explorer and developer. Initial field work, including target generation, positions us well for a successful drill program and compliments our planned exploration programs at our Silverstrike Project, in addition to the advanced exploration and development studies currently in progress on our flagship Silver Sand project."

CARANGAS PROJECT OVERVIEW

The Carangas Project consists of two exploration concessions totaling 6.25 square kilometers ("km"), located approximately 180 km southwest of the city of Oruro, in southwest Bolivia (Figure 1). Situated in the Bolivian altiplano at an average elevation of 3,800 m, access to the Project is via paved Highway 12 and a municipally maintained 30 km gravel road.

Geologically, the Project lies within the South American Epithermal Belt which hosts large precious metal deposits and operations in neighboring countries but remains under-explored in Bolivia. The Project is comprised of a Tertiary volcanic complex approximately 1.6 km long in east-west direction and 1.4 km wide in north-south direction, which stands 150 m above the surrounding fluvial plains. An ephemeral stream divides the volcanic complex into two separate domes known as West and East Domes, respectively (Figure 2).

Figure 1: Location of the Carangas Project in the Department of Oruro, Bolivia

Figure 2: Satellite Imagery of the Carangas Project, Bolivia, including West and East Domes

GEOLOGY AND MINERALIZATION

West Dome consists of felsic to dacitic volcanic facies (lithic and/or ash fall tuffs) cross-cut by multi-phase mineralized hydrothermal and/or structural breccia bodies and rhyo-dacitic dykes. East Dome consists of lithic tuffs cut by faults and associated minor breccia zones.

The Domes are dissected by a series of laterally extensive, steeply dipping to sub-vertical, extensional fault and fracture zones of half meter to more than one meter wide, predominantly striking east-west, west-northwest and northwest. Silver-rich polymetallic mineralization occurs as millimeter to multi-meter-wide veins (which were historically exploited), veinlets and disseminations in the matrix of the breccias and/or associated volcanic host units.

The area between the West Dome and East Dome is a flat valley, approximately 200 m wide, filled by fluvial sediments (Figure 2).

HISTORY OF MINING AND EXPLORATION

Mining is thought to have commenced in the sixteenth century and continued intermittently until the early twentieth century. The Project, and in particular West Dome, contains extensive surface workings in addition to underground mine adits, shafts and associated processing and smelting infrastructure. There is no active mining at the present time.

Modern mineral exploration, by local mining interests, occurred in the early 1980's. The first drill program comprising of nine reverse circulation holes for a total of 1,000 m was carried out in 1995. Written records for the program report a drill intercept (1) of 116 m at an average grade of 95 g/t silver (from 18 m to 134 m downhole), including 16 m at 325 g/t silver (from 66 m to 82 m downhole), including a 4-m mined-out interval in hole RC-05.

A second drill program was conducted in 2000, also by a local Bolivian group, with six diamond drill holes for a total of 914 m completed. The results are in line with prior exploration and include a drill intercept (1) of 76 m at an average grade of 90 g/t silver, 0.96% lead, and 0.12% zinc (from 0 m to 76 m downhole), including 8 m at 266 g/t silver, 1.02% lead, and 0.06% zinc (from 26m to 34 m downhole) in hole DDH-01. No exploration activities were recorded after the year 2000.

Note:

(1)

The drill results are historic in nature and should not be relied upon. The historical drill intercepts were not verified by the Company as the drill cores and sample pulp/rejects are not available and there are other inherent limitations and uncertainties. The drill intercepts are not considered as true width of mineralization due to little knowledge of spatial morphology of mineralization at this early stage.

NEW PACIFIC DUE DILLIGENCE

New Pacific conducted reconnaissance scale geological, structural and alteration mapping and geochemical sampling of the Project including the collection of representative characterization ("grab") (1) and continuous channel chip samples (2) from surface outcropping mineralization, historical mine dumps and, where safely accessible, underground workings.

A total of 282 characterization samples and 729 continuous channel rock chip samples were collected from surface outcrop, underground mining faces, and open pit walls. The grab samples returned an average silver grade of 229 g/t (range of 1 g/t to 1,950 g/t); an average lead grade of 1.02% (range of 0% to 7.33%), and an average zinc grade of 0.16% (range of 0% to 3.28%), reflecting the presence of widespread geochemically anomalous mineralization. In general, continuous chip samples intercepted multiple wide mineralized zones, where outcrop or underground workings are accessible. Table 1 contains a summary of selected composite intervals of continuous chip samples.

Table 1: Selected Composite Intervals of Continuous Chip Samples from the Carangas Project, Bolivia.

Target	Location	From (m)	To (m)	Interval (m)	Ag (g/t)	Pb (%)	Zn (%)	Note
West Dome	Chip_1	0.0	30.0	30.0	101	0.77	0.03	composite
	Chip_2	0.0	6.6	6.6	280	0.79	0.01	composite
	Chip_3	0.0	15.3	15.3	252	1.32	0.02	composite
	Chip_4	0.0	8.0	8.0	512	1.66	0.06	composite
	Chip_5	2.0	80.0	78.0	65	0.98	0.21	composite
East Dome	Chip_6	14.0	68.0	54.0	52	0.30	0.14	composite
	Chip_7	18.0	56.0	38.0	98	0.66	0.21	composite
	Chip_8	0.0	2.0	2.0	1,100	0.62	0.25	single sample
	Chip_9	0.0	1.0	1.0	1,755	0.93	0.59	single sample

At East Dome (Figure 3), mineralization occurs as fracture and fault zones cutting the lithic tuff host unit. Continuous rock chip sampling returned broad mineralized zones, including up to 54.0 m at 52 g/t silver, 0.30% lead and 0.14% zinc, and 38.0 m at 98 g/t silver, 0.66% lead and 0.21% zinc. Sampling also confirmed the presence of numerous high grade narrow zones of silver-rich mineralization including up to 2.0 m at 1,100 g/t silver, 0.62% lead and 0.25% zinc, and 1.0 m at 1,755 g/t silver, 0.93% lead and 0.59% zinc.

At West Dome (Figure 4), channel chip sampling confirmed the presence of multiple mineralized zones including up to 30.0 m at 101 g/t silver and 0.77% lead, 6.6 m at 280 g/t silver and 0.79% lead, and 15.0 m at 252 g/t silver and 1.32% lead. Encouraging intervals of continuous rock chip sampling from underground include 8.0 m at 512 g/t silver and 1.66% lead, and 78.0 m at 65 g/t silver, 0.98% lead and 0.21% zinc. All channel chip samples were collected from mineralized hydrothermal breccias, which are cut by mineralized fractures and faults.

Notes:
(1)	Grab samples are selective in nature and are not representative of the average in-situ mineralization.
(2)	Rock chip samples were taken across mineralized structures from surface outcrops and underground faces. Sample interval is close to true width of mineralization.

Figure 3: Geology Map of East Dome, Carangas Project, Bolivia, including Sample Results

Figure 4: Geology Map of West Dome, Carangas Project, Bolivia, including Sample Results

NEAR-TERM STRATEGY AND NEXT STEPS

Based on the historical mining activities evidenced by widespread mine dumps and numerous surface and underground mining workings, historical exploration results, and the results of the Company's initial exploration programs, the Company believes that the Carangas Project has the potential to host near surface bulk tonnage mineralization and high-grade mineralization, controlled by narrow structures, at relatively shallow depths.

Permitting is in progress and the Company plans an initial discovery diamond drill program of up to 5,000 m in 2021. Upon completion of the program, New Pacific will provide an update on the results. Contingent on these drill results, additional drilling may be conducted to expand upon and define any new discoveries.

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