Mr. James Anderson reports

GUANAJUATO SILVER EXPANDS EQUITY FINANCING TO C$8.5M

Guanajuato Silver Company Ltd., in response to additional demand, is expanding its non-brokered private placement announced on Dec. 12, 2022 (see Guanajuato Silver news release -- "Guanajuato Silver Announces L.I.F.E. Equity Financing"). Subject to acceptance of the TSX Venture Exchange, the private placement will now consist of a total of 20,032,682 units at a price of 42.5 cents per unit for maximum gross proceeds of $8,513,889.85. Each unit consists of one common share of the company and one-half of one transferable share purchase warrant; each whole warrant is exercisable to purchase an additional share at 60 cents for a period of two years after closing.

On Dec. 21, 2022, the company closed an initial tranche of 15,952,196 units for gross proceeds of $6,779,683 (see Guanajuato Silver news release -- "Guanajuato Silver Closes C$6.8 Million First Tranche Equity Financing"). It is anticipated that a second and final tranche for the balance of the offering will be completed on Jan. 10, 2023. The units are being offered for sale by the company pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 -- Prospectus Exemptions in all provinces of Canada, except Quebec, and other qualifying jurisdictions such that the underlying shares and warrants will be free trading under applicable Canadian securities laws. The units will also be eligible for sale in the United States to accredited investors under the United States Securities Act of 1933, as amended, by way of private placement pursuant to available exemptions from the registration requirements of the 1933 act, and resales of the shares and warrants will be permitted outside the United States pursuant to Regulation S under the 1933 act.

The net proceeds of the offering will be used to, among other things, ramp up production at the company's existing mines in and about Guanajuato, Mexico, including El Cubo, San Ignacio and Valenciana; expand and modernize the processing facilities at the Topia mine in Durango, Mexico; increase brownfields exploration programs; and finance general and administrative expenses as more particularly described in the company's amended and restated offering document dated Dec. 31, 2022, prepared in connection with the expanded offering. The amended offering document related to this offering can be accessed under the company's profile on SEDAR and at the company's website.

About Guanajuato Silver Company Ltd.

Guanajuato Silver is a precious metals producer engaged in reactivating past-producing silver and gold mines in central Mexico. The company produces silver and gold concentrates from the El Cubo mine, Valenciana mines complex and the San Ignacio mine; all three mines are located within the state of Guanajuato, which has an established 480-year mining history. Additionally, the company produces silver, gold, lead and zinc concentrates from the Topia mine in northwestern Durango. With four operating mines and three processing facilities, Guanajuato Silver is one of the fastest-growing silver producers in Mexico.

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