Pampa Metals : MD&A – June 30, 2023

PAMPA METALS CORP.

MANAGEMENT'S DISCUSSION AND ANALYSIS

("MD&A")

FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2023

(All amounts expressed in Canadian dollars unless otherwise indicated)

Introduction

Pampa Metals Corp. (the "Company" or "Pampa") is a Vancouver-based mineral exploration company engaged in the acquisition and exploration of base metals and precious metals projects in Chile, with a primary focus on copper. The Company is a reporting issuer in British Columbia, Alberta and Ontario, and trades on the Canadian Securities Exchange ("CSE") under the symbol PM; the Frankfurt Stock Exchange (FSE: FIRA); and on the OTCQB® Best Market (OTCQB: PMMCF). The Company is eligible for electronic clearing and settlement through the Depository Trust Company ("DTC") in the United States.

The following MD&A of the Company's financial condition and results of operations has been prepared by management in accordance with the requirements of National Instrument 51-102. The following information is prepared as of August 28, 2023 unless otherwise stated, and supplements, but does not form part of, the unaudited condensed consolidated interim financial statements of the Company as at June 30, 2023 and for the three and six months ended June 30, 2023 and 2022. This MD&A should be read in conjunction with the unaudited condensed consolidated interim financial statements and related notes as at June 30, 2023 and for the three and six months ended June 30, 2023 and 2022.

The Company reports its financial position, results of operations and cash flows in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and interpretations of the International Financial Reporting Interpretations Committee ("IFRIC"). All dollar amounts included therein and in the following Management's Discussion and Analysis ("MD&A") are in Canadian dollars except where noted.

For the purposes of preparing this MD&A, management, in conjunction with the Board of Directors, considers the materiality of information. Information is considered material if: (i) such information results in, or would reasonably be expected to result in, a significant change in the market price or value of Pampa's common shares; or (ii) there is a substantial likelihood that a reasonable investor would consider it important in making an investment decision; or (iii) it would significantly alter the total mix of information available to investors. Management, in conjunction with the Board of Directors, evaluates materiality with reference to all relevant circumstances, including potential market sensitivity. The results for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for any future period. Additional information relevant to the Company's activities can be found on SEDAR+ at www.sedarplus.ca and on the Company's website at www.pampametals.com.

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PAMPA METALS CORP.

Management's Discussion & Analysis

Three and six months ended June 30, 2023Dated August 28, 2023 Caution Regarding Forward-LookingStatements

This MD&A contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as "forward-looking statements"). These statements relate to future events or the Company's future performance. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates" or "believes", or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements. The forward-looking statements in this MD&A speak only as of the date of this MD&A or as of the date specified in such statement.

Inherent in forward-looking statements are risks, uncertainties, and other factors beyond Pampa's ability to predict or control. Please also refer to those risk factors referenced in the "Risks and Uncertainties" section below. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this MD&A. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether because of new information or future events or otherwise, except as may be required by law. If the Company does update one or more forward-looking statements, no inference should be made that it will make additional updates with respect to those or other forward-looking statements, unless required by law.

Description of Business

Pampa is a reporting issuer in British Columbia, Alberta and Ontario, and trades on the CSE; the Frankfurt Stock Exchange, and on the OTCQX®. The Company has a vision to create value for shareholders and all other stakeholders by making a major copper or gold discovery along the prime mineral belts of Chile.

As of June 30, 2023, Pampa owned 100% of a highly prospective portfolio of seven (7) projects for copper and gold totalling more than 47,000-hectares, all located along proven mineral belts in northern Chile, one of the world's top mining jurisdictions. The Company has actively progressed exploration for porphyry copper style deposits at five of its projects including initial drill tests at three projects, with one other

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PAMPA METALS CORP.

Management's Discussion & Analysis

Three and six months ended June 30, 2023

project subject to third party expenditures under an Option and Joint Venture Agreement. As of the date of this MD&A, Pampa has completed a maiden drill test of its Buenavista (previously Block 4) project.

In addition to exploring its wholly owned portfolio of projects, Pampa will consider business development opportunities which management believes enhance the Company's ability to participate in an economic mineral discovery and capable of improving shareholder returns.

Overall Performance to June 30, 2023, and Summary of News Releases for the Reporting Period

The Company has no revenues, so its ability to ensure continuing operations is dependent on it discovering economically recoverable reserves within its portfolio of properties in northern Chile, and its ability to obtain necessary financing to continue and complete exploration activities to that end, as well as its ability to pursue business development opportunities that support its prime objective of discovery.

As at June 30, 2023, the Company had a net working capital of $101,489 (December 31, 2022 - $287,043). The Company had cash and cash equivalents of $215,300 (December 31, 2022 - $404,633). Working capital and cash decreased during the six months ended June 30, 2023 as a result significant exploration expenditures undertaken on the Company's mineral properties of $1,975,931, funded by two private placement financings in March 2023 that raised $2,430,180 net of cash share issuance costs.

The Company may be required to raise additional capital to meet its ongoing operating and exploration expenses on its current projects for the twelve-month period subsequent to June 30, 2023. Management may increase or decrease budgeted expenditures depending on exploration results and ongoing volatility in the business environment. See "Liquidity and Financial Position" below.

During the six months ended June 30, 2023, the Company announced the following material technical, corporate, and commercial developments:

• Pampa advised on January 3, 2023, that the exploration partnership agreement between Pampa and VerAI Discoveries Inc detailed in the February 1, 2022 news release, had been discontinued in order to allow the Company to focus on the drill testing of its priority Block 4 (now Buenavista) target.
• The Company announced on January 19, 2023, the launch of a non-brokered private placement offering of up to 20,000,000 units ("Units") at a price of $0.15 per Unit for gross proceeds of up to $3,000,000. Each Unit will consist of one fully paid common share one purchase warrant (a "Warrant"). Each Warrant shall entitle the holder to acquire an additional common share at a

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PAMPA METALS CORP.

Management's Discussion & Analysis

Three and six months ended June 30, 2023Dated August 28, 2023 price of $0.21 for a period of 3 years after the closing of the Offering.

• Additionally, on January 19, 2023, the company summarised the key technical findings and targets at its Block 4 (now Buenavista) project, including the priority Buenavista Target. Proceeds from the private placement offering will be used primarily to drill test the Buenavista target and the Block 4 Project more broadly, where an initial ~2,100m diamond drill program has been designed to test coincident geological, geochemical, and geophysical anomalies.
• On 3 March 2023, the Company completed the previously announced non-brokered private placement offering through the issuance of 14,644,334 units at a price of $0.15 per Unit for gross proceeds to the Company of $2,196,650. Each unit comprised one common share and one common share purchase warrant of the Company entitling the holder to acquire one additional common share of the Company at a price of $0.21 for a period of 36 months from the closing date. In connection with the private placement offering, the Company paid total cash commissions of $94,724 and issued 1,041,023 finder's warrants and 344,143 finder's shares. Each finder's warrant is exercisable into one common share of the Company at an exercise price of $0.21 for a period of 36 months from the closing date.
• Subsequently, on 22 March 2023 the Company announced the launch of a non-brokered private placement offering of up to 5,333,334 units at a price of $0.15 per Unit for gross proceeds of up to $800,000. Each Unit will consist of one fully paid common share one purchase warrant. Each Warrant shall entitle the holder to acquire an additional common share at a price of $0.21 for a period of 3 years after the closing of the Offering.
• On 31 March, 2023 the Company advised that the diamond drill testing of the Buenavista target commenced on March 31, 2023. It also advised that the ~2,100m diamond drill program is expected to be completed within 2 months, with assay results available during June.
• On 31 March, 2023 the Company also announced that it had issued 2,399,999 units at a price of $0.15 per Unit under the Non-Brokered Placement offering detailed in the 22 March, 2023 news release for gross proceeds of $360,000. Each unit comprised one common share and one common share purchase warrant of the Company entitling the holder to acquire one additional common share of the Company at a price of $0.21 for a period of 36 months from the closing date. In connection with the private placement offering, the Company paid total cash commissions of $1,750 and issued 324,333 finder's warrants and 156,333 finder's shares. Each

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