Mr. Chris Wright reports

DEFIANCE DRILLS 33.76M OF 217G/T AGEQ AND ENCOUNTERS INCREASING CU GRADES AT SAN ACACIO PROJECT

Defiance Silver Corp. has released the results of the 2023 San Acacio diamond drill program, which returned wide intervals of well-developed silver, zinc and lead mineralization, with elevated gold and copper values. This release contains results from DDSA-23-67 through DDSA-23-72.

Additional drilling within the resource area has demonstrated that significant in situ vein material, including semi-massive to massive sulphide phases, remains in place at shallow levels of the historic mine in the Almaden zone. Previous drilling was not undertaken at these levels because it was incorrectly believed that no in situ material remained.

The company is also highly encouraged by the intersection of notable epithermal-style silver mineralization at the deepest drilled levels of the Veta Grande system to date at the San Acacio project. Despite significant downhole deviation from the target, anomalous (approximately 100 grams per tonne (g/t) silver equivalent (AgEq)) mineralization was hit 61 metres below the deepest known workings at the historical San Acacio mine.

Highlight of results:

• Almaden zone:
  • DDSA-23-68 -- returned 7.79 metres of 391 g/t AgEq (from 53.26 m to 61.05 m) within a 12.82 m interval grading 310 g/t AgEq with 223.53 g/t silver (Ag) (from 53.26 m to 66.08 m).
  • DDSA-23-69 -- encountered 32.32 m of 195 g/t AgEq (from 43.18 m to 75.5 m), including 6.39 m of 316 g/t AgEq with 4.56 per cent zinc (Zn), 1.70 per cent lead (Pb) and 0.26 per cent copper (Cu) (from 69.11 m to 75.5 m) hosted in a base-metal-rich semi-massive to massive sulphide mineralization phase. Copper values were not included in the AgEq calculation for this release (see the table entitled "Drilled intercepts from Defiance's San Acacio project reported in this release").
  • DDSA-23-70 -- returned 15.02 m of 353 g/t AgEq (from 86.96 m to 101.98 m) within a longer interval of 33.76 m grading 217 g/t AgEq (from 73.44 m to 107.2 m). This includes a 4.47 m interval of 265.31 g/t Ag, 0.75 g/t gold (Au), 5.10 per cent Pb, 3.29 per cent Zn and 0.31 per cent Cu from 91.44 m, and a 0.62 m subinterval of 1,345 g/t Ag from 91.44 m.
  • Increasing copper grades and the presence of semi-massive to massive sulphide mineralization near surface is encouraging, particularly given the location of the San Acacio project. The project is adjacent to Capstone Mining's Cozamin Cu-Ag mine, an operating copper mine located approximately three kilometres away.
  • Both in situ and previously mined material (backfill) were encountered in this zone. Backfill represents significant mine/mill feed in operating mines in Mexico. Previously mined material drilled in the holes reported in this release is on par with material currently being mined in the district.
• San Acacio Southeast:
  • DDSA-23-72 -- represents the deepest interception of the VG system at the San Acacio project to date and encountered anomalous epithermal-style silver mineralization, including 0.97 m of 130 g/t AgEq and 117 g/t Ag (from 655.02 m to 655.99 m), within 1.76 m grading 94 g/t AgEq (from 654.23 m to 655.99 m).

Chris Wright, chairman and chief executive officer, commented: "We continue to be impressed by the strength of mineralization in the Veta Grande system, both near surface and at deeper levels. Our understanding of the mineralization controls continues to guide both resource development and resource expansion drilling. Follow-up drilling at San Acacio will focus on adding ounces within the resource area -- including recently identified zones likely to contain shallow, intact mineralization -- and, on further testing, the deep extensions of the Veta Grande system."

Discussion of results

Northwest San Acacio project -- Almaden zone

DDSA-23-68 was designed as an infill hole between historic holes SAD95-10 and SAD95-11. It was the first of several holes in the Almaden zone targeting the Veta Grande system at previously undrilled shallow levels. DDSA-23-68 encountered three levels of mineralization: five m of 173 g/t AgEq from surface (surface waste dump material), 2.47 m of 114 g/t AgEq from 31.35 m, including 0.25 m at 877 g/t AgEq from 33.57 m (hanging wall veinlet array beneath surface amethyst veinlet zone), and 12.82 m of 310 g/t AgEq (from 53.26 m to 66.08 m) in the main Veta Grande structure. The main Veta Grande (VG) structure appears historically mined from 53.26 m to 61.05 m downhole and contains possible previously mined material with recoveries greater than 80 per cent.

DDSA-23-69 was drilled approximately 45 m southeast of DDSA-23-68 and approximately 60 m above hole DDSA-21-47. Hole DDSA-23-69 was targeted to test below outcropping amethyst stockwork zones and the main Veta Grande at the Almaden pit. The hole encountered 9.4 m of 128 g/t AgEq (from 12.2 m to 21.6 m) in an amethyst-bearing hanging wall veinlet array, which appears to contain previously mined material with recoveries greater than 80 per cent.

A wide intercept of the main Veta Grande structure returned 32.32 m of 195 g/t AgEq (from 43.18 m to 75.7 m) and encountered three distinct zones within the Veta Grande structure: an upper veinlet array zone, a possible previously mined material zone and a base-metal-rich zone that historic miners left in place, likely due to processing constraints. The base metal phase encountered in this hole returned a polymetallic interval of 6.39 m of 316 g/t AgEq with 4.56 per cent Zn, 1.70 per cent Pb and 0.26 per cent Cu (from 69.11 m), including 1.67 m of 419 g/t AgEq (with 2.61 per cent Pb, 6.81 per cent Zn and 0.44 per cent Cu from 73.83 m). Possible previously mined material was encountered from 50.22 m to 69.11 m; recoveries were greater than 80 per cent.

DDSA-23-70, approximately 100 m southeast of DDSA-23-69, encountered a 31.57 m wide, very-well-mineralized zone of intact Veta Grande mineralization (from 73.44 m to 97.7 m). A small historic working (2.19 m from 97.7 m) was encountered near the footwall contact of the Veta Grande structure, containing possible previously mined material; a mineralized veinlet array zone was encountered in the footwall to the VG. This hole followed up on encouraging down-dip results from previous holes DDSA-21-36, DDSA-21-37 and DDSA-21-48.

A precious- and base-metal-rich intercept of the Veta Grande returned 33.76 m of 217 g/t AgEq (from 73.44 m to 107.2 m), including 15.02 m of 353 g/t AgEq (from 86.96 m) within the intact, in situ portion of the VG. Included in this zone is an intercept of 4.47 m of 574 g/t AgEq from 91.44 m, which contains high-grade polymetallic mineralization of 265.31 g/t Ag, 0.75 g/t Au, 5.10 per cent Pb, 3.29 per cent Zn and 0.31 per cent Cu, hosted in a semi-massive to massive sulphide phase; this mineralization phase appears to be correlated with increasing copper grades. The highest grades of lead and copper to date at San Acacio were encountered in this hole (0.33 m of 13.9 per cent Pb and 0.87 per cent Cu from 92.06 m); a 0.62 m interval with 1,345 g/t Ag was drilled from 91.44 m.

DDSA-23-71 was targeted to test the eastern extent of the Almaden zone and investigate potential structural offsets. The hole encountered 4.28 m of 143 g/t AgEq in a hanging wall veinlet array zone above the Veta Grande. It also intercepted the Veta Grande structure approximately 65 m down-dip of DDSA-23-70. An interval of 5.06 m of 139 g/t AgEq was encountered in the Veta Grande, including 0.55 m of 605 g/t AgEq.

The mineralized Veta Grande structure appears faulted in this location, and the massive-sulphide phase is not present. Oriented core structural data are currently being used in conjunction with mapping data to understand potential structural offsets and to plan future drilling in this zone.

Southeast San Acacio project

DDSA-23-72 was drilled near the far southeastern extent of the resource area and was designed to test the Veta Grade system deep, below underground workings encountered in hole DDSA-21-43. Hole DDSA-23-72 deviated away from its projected target -- an interpreted mineralized shoot -- but still encountered the projected Veta Grande system. The hole intersected significant epithermal-style silver mineralization and strong hydrothermal alteration, returning 1.76 m of 94 g/t AgEq, including 0.97 m of 130 g/t AgEq. This intersection is 61 m below the deepest known underground workings at the historical San Acacio mine and demonstrates the prospectivity of the system at depth.

DDSA-23-67 was drilled directly southeast of the resource area near the end of the historic San Acacio mine. This hole was drilled to collect the oriented structural data required to advance the structural model in the southeast zone, which is an area of structural discontinuity. Several anomalous zones were encountered. Valuable structural data were collected and are being used to more effectively target the continuation of the Veta Grande system.

Discussion of quality assurance/quality control (QA/QC) and analytical procedures

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 (CRMs) from OREAS and CDN Resource Laboratories Ltd., and the suite of standards contains a range of Ag, Au, Cu, Pb and Zn 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 its Zacatecas, Mexico, prep facility, and analyses were performed at the Vancouver, Canada, analytical facility. All elements except Au and Hg (mercury) were analyzed by a multielement geochemistry method utilizing a four-acid digestion followed by ICP-MS (inductively coupled plasma mass spectrometry) 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 (inductively coupled plasma atomic emission spectroscopy)/AAS (atomic absorption spectroscopy) finish). Gold was measured by fire assay with an ICP-AES finish (50-gram sample, Au-ICP22).

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.