Mr. Ramon Davila reports

GUANAJUATO SILVER REPORTS FATAL ACCIDENT AT SAN IGNACIO MINE

An employee fatality occurred on Saturday, Aug. 12, due to an accident at Guanajuato Silver Company Ltd.'s San Ignacio mine in Guanajuato, Mexico.

The area of the incident was shut down temporarily as the company works with Mexican authorities to conduct a thorough investigation; the company will review the conclusions and implement any additional safety measures recommended to prevent such an accident from reoccurring. The safety and well-being of Guanajuato Silver's employees, contractors and neighbours remains the company's highest priority.

Ramon Davila, president, stated: "We offer our prayers and condolences to the family at this tragic time. We are currently providing support to all those impacted, while at the same time we are working with local authorities to fully understand the specific details of this incident."

We seek Safe Harbor.