New Pacific Reports Financial Results for the Three and Six Months Ended December 31, 2017

VANCOUVER, British Columbia, Feb. 15, 2018 - New Pacific Metals Corp. (“New Pacific” or the “Company”) (TSXV:NUAG) today announced its unaudited condensed consolidated interim financial results for the three and six months ended December 31, 2017.

This earnings release should be read in conjunction with the Company's Management Discussion & Analysis, Financial Statements and Notes to Financial Statements for the corresponding period, which have been posted on SEDAR at www.sedar.com and are also available on the Company's website at www.newpacificmetals.com. All figures are expressed in Canadian Dollars (CAD) unless otherwise stated.

Q2 FISCAL 2018 HIGHLIGHTS

• Successfully obtained the permits required for the Silver Sand property and immediately commenced a 30,000 meter exploration drilling program;
• Raised $26,980,000 through a strategic private placement with Pan American Silver Corp. and Silvercorp Metals Inc. to boost the Company’s financial position; and
• Ended the quarter with working capital of $37,531,285.

FINANCIALS

Net loss attributable to equity holders of the Company for the three months ended December 31, 2017 was $1,096,699 or $0.01 per share (three months ended December 31, 2016 - net loss of $2,228,616 or $0.03 per share). The Company’s financial results were mainly impacted by the following: (i) income from investments of $68,533 compared to loss of $2,361,196 in the prior year; (ii) foreign exchange gain of $59,635 compared to foreign exchange gain of $449,762 in the prior year; and, (iii) operating expenses of $1,230,747 compared to $398,894 in the prior year.

For six months ended December 31, 2017, net loss attributable to equity holders of the Company was $2,647,798 or $0.02 per share compared to net income of $1,353,652 or $0.02 per share for six months ended December 31, 2016.

Income from investments for the three months ended December 31, 2017 was $68,533 (three months ended December 31, 2016 - loss of $2,361,196). Within the income (loss) from investments, $27,057 was from a loss on the Company’s equity investments offset by gain of $92,305 from fair value change and interest earned on bonds.

For the six months ended December 31, 2017, loss from investments was $508,411 compared to income of $1,321,232 for the six months ended December 31, 2016.

Operating expenses for the three months ended December 31, 2017 were $1,230,747 (three months ended December 31, 2016 - $398,894). For the six months ended December 31, 2017, operating expenses were $1,738,197 (six months ended December 31, 2016 - $652,254). The increase in operating expenses was a result of the Company’s increased activity.

Foreign exchange gain for the three months ended December 31, 2017 was $59,635 (three months ended December 31, 2016 - foreign exchange gain of $449,762). The Company holds a large portion of cash and cash equivalents and bonds in US dollars while the Company’s functional currency is the Canadian dollar. The fluctuation in exchange rates between the US dollar and Canadian dollar will impact the financial results of the Company. During the three months ended December 31, 2017, the US dollar appreciated by 0.5% against Canadian dollar (from 1.2480 to 1.2545) while in the prior year the US dollar appreciated by 2.4% against Canadian dollar (from 1.3117 to 1.3427).

SILVER SAND PROPERTY

The Company started the preparation work for the planned exploration program after the acquisition of the Silver Sand Property. In October 2017, the Company successfully received exploration permits required by the relevant Bolivian government authorities and immediately commenced a 30,000 meter exploration drilling program on the property. For the three and six months ended December 31, 2017, total expenditures of $966,651 and $1,354,399, respectively were capitalized under the property. These expenditures were mainly related to the drilling program, site and camp preparation, maintaining a regional office in La Paz, and building a competent management team and workforce for the property.

ABOUT NEW PACIFIC

New Pacific Metals Corp. is a Canadian exploration and development company which owns the Silver Sand Project, in the Potosi Department of Bolivia, the Tagish Lake Gold Project in Yukon, Canada and the RZY Project in Qinghai Province, China.