Mr. James Anderson reports

GUANAJUATO SILVER CLOSES PREVIOUSLY ANNOUNCED SHARES FOR DEBT SETTLEMENT

Guanajuato Silver Company Ltd. has completed its previously announced shares for debt transaction totalling $937,065.60 (see Guanajuato Silver's news release dated Aug. 23, 2023) through the issuance of 2,928,330 common shares, including 468,750 shares issued to one non-arm's-length party to settle of indebtedness totalling $150,000. The shares issued for this debt settlement are subject to a four-month hold period expiring Feb. 13, 2024.

The issuance of 468,750 shares indirectly to Hernan Dorado, who is an insider of the company (a related party), is considered a related party transaction within the meaning of Policy 5.9 of the TSX Venture Exchange and Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, adopted in the policy. The company is relying on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of such related party's participation in the transaction as neither the fair market value of the transaction nor the fair market value of the shares to be issued thereunder, insofar as it involves related parties, exceeds 25 per cent of the company's market capitalization (all as determined under MI 61-101). The material change report of Guanajuato Silver to be filed in connection with this announcement of the transaction will be filed less than 21 days in advance of the closing of the transaction, which Guanajuato Silver considers reasonable within the context of current market conditions and the desire of all parties to complete the transaction as expeditiously as possible. The securities of the company that have been acquired by the related party were acquired pursuant to an exemption from the prospectus requirement in Section 2.14 of National Instrument 45-106, Prospectus Exemptions.

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, 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.

We seek Safe Harbor.