Mr. Chris Wright reports

DEFIANCE DISCOVERS HIGH-GRADE ZONES IN HISTORICALLY UNSAMPLED DRILL CORE

Defiance Silver Corp.'s new sampling of historical drill core has revealed previously unrecognized zones with high grade and wide widths within the San Acacio project area. Defiance geologists successfully used advances in the company's deposit and district knowledge to identify and target favourable structural positions and mineralization styles that were overlooked in historical sampling campaigns. Significant results are reported in holes SAD-15-05, SAD-15-06, SAD-15-07, SAD-15-08, SAD-17-14, SAD-17-15 and SAD-17-16; these holes were drilled during the 2015 and 2017 drilling campaigns. Notable silver mineralization over wide widths was encountered.

The company is encouraged by the success of this campaign, as it supports a growing resource on the Veta Grande vein system as well as validates the geological modelling and understanding of the mineral system potential. The company will continue to evaluate additional drill holes from the extensive district-wide drill core library.

Chris Wright, chairman and chief executive officer, commented: "Multiple years of technical analysis have outlined and confirmed that resource-building targets exist in the hangingwall and footwall of the main Veta Grande structure. Our team has diligently built a comprehensive geologic model that has led to the intersection of wide intervals and high-grade mineralization."

Highlights:

• SAD-17-14 -- discovered wide widths of appreciable grades, including 6.83 metres of 157 grams per tonne silver equivalent (from 283.21 m to 290.04 m), including 2.30 m of 376 g/t AgEq (from 284.65 m to 286.95 m), with a high-grade subinterval of 1,180 g/t silver and 2.23 g/t gold (1,369 g/t AgEq) (from 284.65 m to 285 m).
• SAD-17-15 -- returned a significant interval of silver mineralization of 36.70 m of 154.80 g/t Ag or 162 g/t AgEq (from 191.30 m to 228 m) when composited with the previously released results (see Oct. 25, 2017, news release). Other notable results in this wide interval include 6.81 m of 296 g/t AgEq (from 203.01 m to 209.82 m), including a high-grade subinterval of 629 g/t AgEq over 2.82 m (from 207 m to 209.82 m). A wide subinterval of 15 m of 137.91 g/t Ag or 145 g/t AgEq was encountered from 213 m to 228 m.
• SAD-17-16 -- encountered 2.31 m of 202 g/t AgEq (from 219.40 m to 221.71 m) in the Veta Navidad zone.
• SAD-15-06 -- returned 2.50 m of 127 g/t AgEq (from 155 m to 157.50 m) in a hangingwall veinlet-array splay zone.
• SAD-15-07 -- intersected 1.12 m of 267 g/t AgEq (from 156.35 m to 157.47 m) as well as a 3.77 m interval of 123 g/t AgEq (from 166.07 m to 169.84 m). The deeper intercept is located on the same structure as the reported intercept in SAD-15-06.
• SAD-15-08 -- a 1.63 m interval grading 165 g/t AgEq (from 97.65 m to 99.28 m) and a 1.54 m interval of 212 g/t AgEq (from 131.15 m to 132.69 m) in the Veta Navidad zone.

Discussion of results

Relogging and sampling of historical drill holes were designed to identify and subsequently sample mineralization that was not analyzed during previous drill campaigns. The updated geologic models and new assays confirm and expand upon the mineralized vein splays and veinlet zones that were identified during recent drilling campaigns. These zones of high-grade silver veinlets and stockwork zones are significant continuing exploration targets and are actively being incorporated into the deposit model. Reported intervals were dominantly found in the hangingwall of the main Veta Grande structure. The technical team believes that understanding the splays and veinlet zones as well as the structural controls on grade distribution are key to expanding the San Acacio resource.

The drill holes discussed herein are in spatial order, beginning in the northwest and moving toward the southeast. SAD-17-16, SAD-15-07, SAD-15-08, SAD-15-05 and SAD-15-06 are part of the northwest zone, where significant HW grade is found in unassuming veinlet array zones. Holes SAD-17-14 and SAD-17-15, in the central-to-southeast portion of the San Acacio resource area, begin to delineate vein splays, including the historically identified Veta Intermedio; grade is dominantly located in more formal HW structures and associated veinlet swarms. These learnings are being incorporated into the current grade and geologic model to guide future drilling at the project.

SAD-17-16 encountered 2.31 m of 191.98 g/t Ag or 202 g/t AgEq (from 219.40 m to 221.71 m) in the Veta Navidad zone. The Veta Navidad zone is in the NW extent of the San Acacio resource area, and this style of mineralization has been encountered in nearby holes. Structural review and modelling are currently under way to define this zone, and future oriented core drilling is planned for this area.

SAD-15-07 and SAD-15-08 were drilled from the same pad. SAD-15-08 intersected the Veta Navidad zone high in the hole. During relogging, additional mineralized veinlet zones in the HW and FW were noted and sampled. These intercepts returned 1.63 m of 165 g/t AgEq from 97.65 m as well as 1.54 m of 212 g/t AgEq from 131.15 m. The central portion of the Veta Navidad zone in SAD-15-08 was previously reported (see Oct. 25, 2017, news release). The new reported intervals in SAD-15-07 are from the recently identified mineralized HW veinlet splay zones. The shallower splay zone returned 1.12 m of 267 g/t AgEq from 156.35 m, while the lower zone returned 3.77 m of 123 g/t AgEq from 166.07 m. The new sampling expands the footprint of the mineralized zone in this location, and structural modelling is under way to incorporate these data into the resource model and design future drill targets.

SAD-15-05 and SAD-15-06 were drilled from the same pad. Both holes intersected multiple HW veinlet-array splay zones, which continue to build the continuity of mineralized zones in the Veta Grande hangingwall. In this portion of Veta Grande, three mineralized HW splays are known. SAD-15-06 previously reported intercepts on the main Veta Grande and the first splay above Veta Grande (see Oct. 25, 2017, news release). Recent sampling of additional splay zones has yielded further intercepts of interest, and oriented structural data collection and detailed geologic cross-sections continue to guide interpretation and modelling of these mineralized zones.

SAD-15-06 encountered 2.50 m at 127 g/t AgEq from 155 m, and SAD-15-05 returned 2.72 m at 161 g/t AgEq from 127.76 m; these two intercepts demonstrate down-dip continuity along the same HW splay. SAD-15-05 intersected two reportable intercepts on the third interpreted splay above Veta Grande, including 4.65 m of 114 g/t AgEq from 105.15 m.

SAD-17-14 encountered a high-grade zone in a hangingwall vein splay above the historically identified Veta Intermedio, 6.83 m of 157 g/t AgEq from 283.21 m, which includes 0.35 m of 1,369 g/t AgEq from 284.65 m. This intercept further demonstrates the high-grade potential of the HW vein splays in the central zone of the San Acacio resource area.

SAD-17-15 encountered wide widths of significant mineralization from the Veta Grande HW through to the Veta Intermedio HW zone. This hole intersected a well-mineralized shoot with historical workings, and the majority of the mineralized shoot remains in the ground. Relogging and sampling suggest that high-grade silver is hosted in veinlet swarms and vein splays that were previously unrecognized. These observations and results will be incorporated into the geologic model and used for future drill targeting.

Wide widths of significant silver mineralization are outlined in SAD-17-15. This hole encountered 36.70 m of 162 g/t AgEq from 191.30 m, including 6.81 m at 296 g/t AgEq from 203.01 m. The mineralogy is dominantly primary silver, lead and zinc sulphides (argentite-acanthite-galena-sphalerite) and quartz as gangue material. This mineralization style is representative of both the historically and currently mined material in the silver-dominant epithermal vein systems of the Zacatecas district.

Discussion of quality assurance/quality control and analytical procedures

Quality assurance/quality control for 2023 drill core sampling

Samples were selected based on the lithology, alteration and mineralization characteristics; sample size generally ranges from 0.25 m to two m in width. All altered and mineralized intervals were sent for assay. One blank, one standard and one duplicate were included within every 20 samples. Standard materials are certified reference materials from OREAS and CDN Resource Laboratories Ltd.; the suite of standards contains a range of silver, gold, copper, lead and zinc values. Blanks, standards and duplicates have been used to confirm the validity of the analytical results.

Samples were analyzed by ALS Ltd. Sample preparation was performed at ALS's Zacatecas, Mexico, preparation facility, and analyses were performed at the Vancouver, Canada, analytical facility. All elements except gold and mercury were analyzed by a multielement geochemistry method utilizing a four-acid digestion followed by ICP-MS detection (ME-MS61m); mercury was analyzed after a separate aqua regia digest by ICP-MS. Overlimit assays for Ag, Pb and Zn were conducted using the OG62 method (multiacid digest with ICP-AES/AAS finish). Gold was measured by fire assay with an ICP-AES finish (50 g sample, Au-ICP22).

Quality assurance/quality control for 2015 and 2017 drill core sampling

Samples were selected based on geologic breaks; sample size generally ranges from 0.50 m to 1.50 m in width. A minimum of one blank and one standard was submitted with each sample batch. Various reference materials from CDN were used as standards and blanks. The standards contain a range of Ag, Au, Cu, Pb and Zn values, while the blanks contain very low levels of these elements.

All analytical work, including sample preparation and analyses, was performed at the Activation Laboratories Ltd. facility in Guadalupe, Zacatecas, Mexico. Trace element geochemistry was completed using a four-acid, near-total digestion with an ICP-OES finish (method 1F2). Base metal overlimit assays were conducted using a four-acid digestion with an ICP-AAS finish, while overlimit silver assays were analyzed using the 8-Ag method (30 g sample, fire assay with gravimetric finish). Gold was measured by fire assay with an AAS finish (30 g sample, 1A2).

Shares-for-debt transaction update

Defiance has provided an update to the shares-for-debt transaction (see news release dated May 3, 2023) regarding consulting services rendered for the company by arm's-length parties: Rhea Advisors LLC and General Research GmbH. The scope of these services was related to in-house marketing, communications and project-based consulting with management. Defiance intends to settle $35,600 of debt through the issuance of 192,432 common shares of the company to Rhea at a deemed price of 18.5 cents per share, and $30,000 of debt through the issuance of 162,162 common shares of the company to General Research at a deemed price of 18.5 cents per share. The shares-for-debt transaction is subject to the approval of the TSX Venture Exchange.

Investor relations activities

Defiance has also provided an update to its relationship with Tarik Dede, an arm's-length party engaged to provide investor relations services, as defined in accordance with the policies of the exchange (see news release dated March 16, 2023). Pursuant to his agreement, Mr. Dede was retained to provide blogging services on a per-transaction basis for a cash fee of 750 euros per month and would not be issued any stock options for the services. The company confirms that the engagement has now terminated, and no funds were paid to Mr. Dede.

Shares for services -- corporate secretary

On May 1, 2023, the company entered into an administrative services agreement with Meraki Corporate Services Inc., for which Lisa Thompson, Defiance Silver's corporate secretary, is a founder. Pursuant to the agreement, the company will pay Meraki $2,500 per month and issue shares in the amount of $1,330 per month. The compensation shares will be accrued at the market value of the common shares on the last day of each month and will be issued semi-annually and will be subject to a statutory hold period. The shares-for-services transaction is subject to the approval of the exchange.

Ms. Thompson is a non-arm's-length party (as such term is defined under the policies of the exchange) of the company, and the issuance of the compensation shares to Ms. Thompson constitutes a related party transaction, as defined under Multilateral Instrument 61-101. Such transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the monthly fee nor the fair market value of the compensation shares issued to the interested party exceeds 25 per cent of the company's market capitalization.

About Defiance Silver Corp.

Defiance Silver is an exploration company advancing the district-scale San Acacio deposit, located in the historical Zacatecas silver district, and the Tepal gold/copper project in Michoacan state, Mexico. Defiance is managed by a team of proven mine developers with a record of exploring, advancing and developing several operating mines and advanced resource projects. Defiance's corporate mandate is to expand the San Acacio and Tepal projects to become premier Mexican silver and gold deposits.

George Cavey, PGeo, a qualified person within the meaning of National Instrument 43-101, has approved the technical information concerning the company's material mineral properties contained in this press release.

We seek Safe Harbor.