Mr. James Anderson reports

GUANAJUATO SILVER CLOSES C$8,010,000 "BOUGHT DEAL" FINANCING

Guanajuato Silver Company Ltd. has closed its previously announced bought deal offering of 22.25 million units of the company at a price of 36 cents per unit for gross proceeds of $8.01-million with Cantor Fitzgerald Canada Corp., which acted as the sole underwriter and bookrunner.

James Anderson, chairman and chief executive officer, said: "We are pleased to have worked with Cantor Fitzgerald, a financial services firm with over 70 years of market experience, on this bought deal financing, which will help us execute our growth strategy as we continue to build Guanajuato Silver into Mexico's next mid-tier silver producer."

Each unit consisted of one common share of the company and one common share purchase warrant. Each warrant entitles the holder to acquire one common share of the company for 18 months from the date of closing at a price of 55 cents. The company has paid Cantor Fitzgerald a cash commission totalling $480,600, or 6.0 per cent of the gross proceeds of the offering, and 1,335,000 broker warrants, representing 6.0 per cent of the total number of units sold. The broker warrants are exercisable on the same terms as the warrants. The net proceeds from the offering will be used for working capital and general corporate purposes.

The offering also included a lead order from a large U.S.-based investment fund totalling 8.5 million units, or $3.06-million. In accordance with the fund's internal investment policies, the fund could accept only a reduced number of warrants, being 7,396,381 warrants, as part of its subscription. The remaining 1,103,619 warrants were issued to Cantor Fitzgerald, as underwriter, in consideration for, among other services, guaranteeing the offering on a bought deal basis.

All securities issued under the offering are subject to a four-month hold period expiring Dec. 11, 2023.

About Guanajuato Silver Company Ltd.

Guanajuato Silver is a precious metal 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 complex, the Valenciana mine 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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