Mr. Chris Wright reports

DEFIANCE SILVER DELINEATES HIGH-GRADE POLYMETALLIC AND PRECIOUS METAL SYSTEMS AT ITS LUCITA PROPERTY

Defiance Silver Corp. has provided an update on the results from the continuing mapping and surface sampling campaign at its Lucita property in Zacatecas, Mexico. Work to date includes surface geochemical sampling in both new and historically sampled zones and has led to a revised interpretation of the geology at Lucita. The surface work will be used to support further delineation of drill targets for future exploration. The results presented in this release demonstrate the district-scale potential of Defiance's Zacatecas district land package.

Highlights

Lucita North: Widespread, high-grade, polymetallic Ag-Zn-Pbplus or minusAuplus or minusCu mineralization was encountered over a multi-kilometer strike length, suggesting the presence of a large mineral system with multiple mineralizing events.

Lucita South: High-grade Ag-Au dominant mineralization has been encountered in drilling and surface sampling along multiple structures. The mineralization is characteristic of low-sulfidation epithermal vein systems.

Individual surface sampling highlights include:

Lucita North

Gloria Zone

Sample 430012: 331 g/t Ag, 0.15 Au, 6.94% Pb, 14.70% Zn, and 0.35% Cu

Sample 430009: 552 g/t Ag, 1.34% Pb

Aurora Zone

Sample 430179: 298 g/t Ag, 3.15% Pb, 0.14% Zn

Sample 430027: 795 g/t Ag

Plomosa Zone

Sample 430106: 652 g/t Ag, 0.32 g/t Au, 6.48% Pb, 2.26% Zn, and 0.60% Cu

Lucero Vein

Sample 110785: 460 g/t Ag, 4.76 g/t Au, 6.33% Pb, 31.50 % Zn, and 0.87% Cu

Lucita South

Paty Vein

Sample 4208: 2350 g/t Ag and 0.27 Au

Lucita Vein

Sample 110895: 497 g/t Ag, 1.28 g/t Au

Palenque Vein

Sample 110834: 712 g/t Ag, 0.26 g/t Au

Lucita Property Overview

The Lucita property is the northernmost portion of the Company's Zacatecas district land package (Figure 1). The Lucita property was acquired under an option agreement with Pan American Silver Corp. (Pan American or PanAm) in 2020 and is now 100% owned by Defiance (see News Releases December 2, 2020, and January 10, 2024). Pan American completed several work programs at Lucita, including surface sampling and reconnaissance drilling in 1996, 2011, and 2012. These work programs identified numerous near-surface vein systems with high-grade Ag, Au, Zn, and Pb values.

Defiance's Lucita North (previously called Panuco) and Lucita South projects are located in the Zacatecas mining district within the Central Mexican Silver Belt, a northwest-trending belt of world-class mining districts including Sombrerete, Fresnillo, Zacatecas, and Guanajuato. The mineralized systems at both Lucita and Defiance's San Acacio project have similar characteristics to other ore deposits in the belt, such as Juanicipio (Mag Silver/Fresnillo), Santo Nino (Fresnillo), Cozamin (Capstone), Francisco I. Madero (Penoles), and San Nicolas (Agnico Eagle/Teck).

Surface Work

The Company has been actively exploring at the Lucita property since 2021. Recent work has been focused on property-wide systematic data collection using industry best practices. Surface work to date includes geological mapping at various detailed scales, surface geochemical rock sampling, and spectral mineral alteration mapping. As of this release approximately sixty percent of the first-pass surface geological work at the Lucita property has been completed.

Surface work commenced at Lucita South and led to a first-pass drill program along the Palenque structure (see News Release April 13th, 2022 and August 9th, 2022). Recent surface work has focused on the Lucita North project. Surface geochemical results (Table 1) and the abundance of mapped veins demonstrate the potential for undiscovered and untested to poorly-tested, high-grade Ag-Au vein systems and Ag-Zn-Pbplus or minusAuplus or minusCu polymetallic mineralized systems at Lucita South and Lucita North, respectively.

Quality Assurance and Quality Control (QAQC)Defiance Silver sampling (2021-2024)- surface rock sampling QAQC procedures discussed at the end of this news release.In Situ: outcrop composite chip samples perpendicular to the strike of the exposed structurePreviously Mined Material: selective grab samples from dumps of previously mined materialHistoric Pan American sampling (2011-2012)- surface rock sampling QAQC procedures discussed at the end of this news release.In Situ: outcrop channel samplesPreviously Mined Material: selective grab samples from dumps of previously mined material

Lucita North

The mineralized systems at Lucita North show a strongly polymetallic signature, both at surface and in shallow, historic drill holes. Multiple mapped structures have returned high-grade Ag and highly anomalous to high-grade Pb, Zn, Au plus or minus Cu along the majority of their exposed strike length (e.g., Gloria-Aurora-Plomosa, Lucero, Pilitas, and Chucho Blanco; Table 1 and Figure 2). Various highlighted surface results from in situ and previously mined material are presented in Table 1. Vein system widths at surface in Lucita North range from 0.1 - 19 meters.

In particular, the Gloria-Aurora-Plomosa system is a high-priority target for the Company. This system contains 3 distinct zones from northwest to southeast: Gloria, Aurora, and Plomosa. This system has one of the best polymetallic surface geochemical anomalies in the district and is prospective for both intermediate-sulfidation epithermal vein and potential carbonate-replacement-style mineralization at depth.

Lucita South

Mapping and sampling at Lucita South have highlighted east-west vein systems with a dominantly silver and gold signature at surface. Several mapped structures have returned high-grade samples (e.g., Paty, Palenque, and Lucita; Table 1 and Figure 3), including a sample from the Paty vein grading 2350 g/t Ag. Additionally, substantial historic workings and multiple mineralized surface samples were encountered along the Palenque structure. Widths of these structures at surface in Lucita South range from 0.1 - 4 meters.

These encouraging surface results led to the Company's first-pass diamond drill program at Palenque (see News Release April 13th, 2022 and August 9th, 2022). Drilling along the Palenque structure confirms the continuation of silver and gold grades at depth and identified blind mineralization in low-angle faults and within specific stratigraphic units.

Well-mineralized samples from both surface and drill core, as well as the potential for very high grades as demonstrated in the Palenque, Paty, and Lucita veins, present significant exploration upside in the Lucita South project.

Chris Wright, Chairman & CEO, noted:"These surface results indicate that there is a robust polymetallic system present at Lucita North. When coupled with our excellent first-pass drilling results on the Palenque structure in Lucita South, the exploration prospectivity of the Lucita property remains high. We believe that the property contains several of the top targets in the Zacatecas district."

Previous Drilling summary

Lucita South

In 2021 and 2022 the Company completed a first-pass, 3801.8m diamond drill program on the undrilled Palenque vein system (Figure 3). The widely spaced drill holes returned very encouraging results over a multi-kilometer strike length. Highlights include:DDLU-21-05: 3.48m of 513.57 g/t Ag from 152.52 to 156.00m, including 0.25m of 3260.00 g/t Ag (See News Release April 13th, 2022)DDLU-22-10: blind discovery of a wide 49.87m zone with 58.79 g/t Ag from 370.23m to 420.1m including 3.05m of 264.29 g/t Ag and 2.25m of 235.29 g/t Ag (See News Release August 9th, 2022)

Lucita North

Pan American previously conducted two diamond drill programs in 1996 and 2011-2012 for a total of 5103.35m (Figure 2). These programs shallowly tested several vein systems, including Plomosa near the historic Plomosa silver mine and Lucero. Drilling encountered positive results (see News Release December 2nd 2020). Ongoing relogging and sampling of the historic drill core continue to reveal high-level alteration zones and high-grade intercepts that warrant follow-up both down dip and along strike.

Discussion of Results

The most prominent structures at Defiance's Lucita property are northwest-southeast and east-west trending mineralized veins, breccias, and alteration zones. These structural orientations are characteristic of the most important mineralizing events of the world-class ore deposits in the Central Mexican Silver Belt. Intersections of these two mineralizing events often localize zones of significant mineralization.

A remarkable feature of the Lucita property is the presence of both polymetallic Ag-Zn-Pbplus or minusAuplus or minusCu style mineralization and Ag-Au dominant low-sulfidation epithermal-style mineralization. The most prospective targets in the Lucita North project are the Gloria-Aurora-Plomosa system, the Pilitas-Tules intersection zone, and the Lucero vein. In Lucita South the Palenque, Lucita, and Paty veins are high-priority follow-up drill targets.

Lucita North

The Gloria-Aurora-Plomosa vein system is a large, regional structure similar in orientation and length to Defiance's Veta Grande system. The Gloria-Aurora-Plomosa system contains a high-density of altered and mineralized structures with high grades at and near surface.

The mineralization style is dominantly multiphase, intermediate-sulfidation epithermal style veins and breccias; this is best exhibited in the Aurora zone. The Gloria zone also contains an outstanding example of polymetallic, breccia-style mineralization with metal assemblages and textures reminiscent of carbonate-replacement style deposits. The eastern portion of the Plomosa remains to be mapped, but preliminary findings indicate the presence of multiple mineralization styles (Figure 4). Figure 4. Photos of various polymetallic mineralization along the Gloria-Aurora-Plomosa system, representing high-grade to highly anomalous Ag, Pb, Zn, Au and Cu in semi-massive sulfides and oxide material in Gloria (A & B), Aurora (C) and Plomosa (D). Samples are highlighted in Table 1.

The Pilitas-Tules intersection zone is of particular interest due to the presence of east-west Ag-rich structures that intersect earlier northwest-southeast structures. The northwest-southeast breccia-vein zones are understood to be exposed at a high-level of the epithermal system, and therefore present important drill targets at depth. This architecture and mineralization style is reminiscent of the structures that are known to host significant mineralization in the Fresnillo district.

Lucita South

The Palenque, Lucita, and Paty veins are east-west structures that display Ag-Au dominant mineralization characteristic of low-sulfidation epithermal vein systems. This style of mineralization was targeted by Mag Silver in the Fresnillo district and led the discovery of the Juanicipio mine.

An important intersection of the east-west Paty vein, which contains the highest-grade surface sample from previously mined material (2350 g/t Ag), with a northwest-southeast trending structure represents an additional Fresnillo-style target.

Discussion of Quality Assurance/Quality Control (QAQC) and Analytical ProceduresQAQC for Defiance rock sampling (2021-2024): Samples were selected based on the lithology, alteration, and mineralization characteristics; sample size averaged 3.3 kg. At least one blank or one standard was included within every 20 samples. Standard materials are certified reference materials (CRMs) from OREAS; the suite of standards contains a range of Ag, Au, Cu, Pb, and Zn values. Blanks and standards have been used to confirm the validity of the analytical results.Samples were analyzed by ALS Limited. Sample preparation was performed at their Zacatecas, Mexico, prep facility, and analyses were performed at the Vancouver, Canada, analytical facility. All elements except Au and Hg were analyzed by a multi-element 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 (multi-acid digest with ICP-AES/AAS finish). Gold was measured by fire-assay with an ICP-AES finish [50g sample, Au-ICP22].QAQC for historical Pan American sampling (2011-2012): Details of sample selection are understood to be in accordance with industry best practice; however, detailed procedures of historical sampling are not recorded. The Pan American Lucita property report states that standards and blanks were included in laboratory submissions of surface samples. This report also describes the QAQC protocol for the drilling conducted in 2011 and 2012; certified reference material from GEOSTAT was used as a standard, and sterile basalt drill core from the La Preciosa project in Durango was used as blank material.

Both sample preparation and sample analysis were performed by SGS Labs in Durango, Mexico. All elements except Au were analyzed first by a multi-element geochemistry method utilizing a two-acid Aqua Regia digest with an ICP-AES finish [ICP14B]. Reported Ag values were assayed using AAS21E (3 acid digest with AAS finish), and overlimit Ag samples (>300 ppm) were analyzed by fire-assay with a gravimetric finish [30g sample, AAS21E]. Method ICP90Q (sodium peroxide fusion with ICP-OES finish) was used for overlimit samples of other elements (e.g. Pb, Zn, Cu). Gold was measured by fire assay with an AAS finish [30g sample, FAA313].

Corporate Announcement

Defiance also announces that it has granted the following awards pursuant to the Company's Omnibus Equity Incentive Plan (the "Plan"):

Incentive Stock Options - an aggregate of 3,188,750 incentive stock options ("Options") have been granted to certain directors, officers, employees, and consultants to purchase an aggregate of 3,188,750 common shares of the Company (each, a "Common Share") at an exercise price $0.18, in accordance with the Plan. The Options are exercisable for five years from the date of grant and vest equally over a three-year period beginning on the date of grant.

Deferred Share Units - an aggregate of 715,000 Deferred Share Units ("DSUs") have been granted to directors, in accordance with the Plan. Each DSU represents a right of the holder to receive one Common Share effective as at the date the holder ceases to serve as a director of the Company. The DSUs vest on the one-year anniversary of the date of grant.

Performance Share Units - an aggregate of 45,000 Performance Share Units ("PSUs") have been granted to certain officers of the Company, in accordance with the Plan. Each PSU entitles the holder to acquire one Common Share on the vesting date. The PSUs vest on the one-year anniversary of the date of grant, subject to certain corporate and individual performance criteria.

Restricted Share Units - an aggregate of 538,750 Restricted Share Units ("RSUs") have been granted, to certain directors, officers, employees, and consultants, in accordance with the Plan. Each RSU entitles the holder to acquire one Common Share on vesting. The RSUs vest equally over a three-year period beginning on the one-year anniversary of the date of grant.

All of the forgoing Options, DSUs, PSUs and RSUs are subject to the terms of the Plan, the applicable grant agreement, and the requirements of the TSX Venture Exchange.

About Defiance Silver Corp.

Defiance Silver Corp. (TSXV: DEF) (OTCQX: DNCVF ) (FSE: D4E) is an exploration company advancing the district-scale Zacatecas project, located in the historic Zacatecas Silver District, and the 100% owned Tepal Gold/Copper Project in Michoacan state, Mexico. Defiance is managed by a team of proven mine developers with a track record of exploring, advancing, and developing several operating mines and advanced resource projects. Defiance Silver's corporate mandate is to advance its projects through capital-efficient exploration focused on resource growth and new mineral discoveries.

Mr. George Cavey, P. Geo, is a Qualified Person within the meaning of National Instrument 43-101 and has approved the technical information concerning the Company's material mineral properties contained in this press release.

We seek Safe Harbor.