Mr. James Anderson reports

GUANAJUATO SILVER REPORTS Q2 2023 FINANCIAL AND OPERATING RESULTS

Guanajuato Silver Company Ltd. has released its financial and operating results for the six months ended June 30, 2023. All dollar amounts are in United States dollars and are prepared in accordance with international financial reporting standards (IFRS), as issued by the International Accounting Standards Board. Production results are from the company's wholly owned El Cubo mines complex, Valenciana mines complex (VMC) and San Ignacio mine in Guanajuato, Mexico, and the Topia mine located in Durango, Mexico.

James Anderson, chairman and chief executive officer of Guanajuato Silver, said: "Over the past 12 months, we have made great strides in bringing our newly purchased mining assets back into optimal production. Significant infrastructure investments made since August of last year include: the rehabilitation of the Cata shaft; the installation of a new locomotive haulage system and the establishment of an environmentally superior tailings backfill system at VMC; the installation of new Falcon concentrators at both of our Guanajuato processing facilities; and the development of new mining areas at Santa Cecilia, San Ignacio and Topia. These capex [capital expenditure] investments are now poised to deliver improved efficiencies as we head into the second half of the year. The ramp-up at our four producing silver mines remains on schedule, however, our business is not immune to inflationary pressures and extraordinary currency market volatility -- most notably the remarkable rise of the Mexican peso, which has appreciated approximately 20 per cent against the U.S. dollar over the past year. Our Q2 cash flows have been impacted as approximately 75 per cent of our expenditures are denominated in Mexican pesos -- we have therefore implemented a number of cost reductions, including some staff reductions, and will continue to prioritize cost controls going forward."

Q2 2023 highlights:

• Record production during the quarter of 941,338 AgEq (silver equivalent) ounces, derived from 477,649 ounces of silver, 4,719 ounces of gold, 875,802 pounds of lead and 897,258 pounds of zinc (see the footnote to the associated table for assumptions regarding the calculation of silver equivalents).
• Net loss narrowed by 2 per cent in Q2 to $8.5-million, compared with $8.6-million in Q1. Revenue of $16.8-million for the quarter was down 2 per cent compared with Q1.
• All-in sustaining cost (AISC) of $22.47 per AgEq ounce produced was slightly higher than $21.83 for Q1 2023. Operating costs were impacted by a strong Mexican currency -- approximately 75 per cent of operating costs are denominated in Mexican pesos. Realized metal prices in Q2 were 8 per cent higher for silver, 5 per cent higher for gold and 1 per cent higher for lead, but notably 20 per cent lower for zinc, compared with Q1.
• Tonnes mined and milled increased 3 per cent and 2 per cent, respectively, from Q1 to Q2. Over the quarter, a total of 166,171 tonnes were mined across the four producing silver mines and a total of 163,793 tonnes were milled.
• Silver and gold recoveries back to near-historical highs as newly installed Falcon concentrators improved over all efficiency. Average silver and gold recoveries for Q2 were 84.9 per cent and 83.1 per cent, respectively, compared with Q1 average recovery for silver of 83.9 per cent and 81.1 per cent for gold.

This news release should be read in conjunction with the company's condensed interim consolidated financial statements for the six-month period ended June 30, 2023, and related management's discussion and analysis (MD&A) available at SEDAR+.

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.

Technical information

Reynaldo Rivera, vice-president of exploration for Guanajuato Silver, has approved the scientific and technical information contained in this news release. Mr. Rivera is a member of the Australasian Institute of Mining and Metallurgy (AusIMM -- registration No. 220979) and a qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

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