Mr. James Anderson reports

GUANAJUATO SILVER REPORTS Q3 2023 FINANCIAL AND OPERATING RESULTS

Guanajuato Silver Company Ltd. has released financial and operating results for the three and nine months ended Sept. 30, 2023. All dollar amounts are in U.S. dollars and prepared in accordance with IFRS (international financial reporting standards) accounting 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: "Guanajuato Silver remains committed to achieving mid-tier producer status through a rapid combination of accretive mine acquisitions and the optimization of our existing mine portfolio. Over the third quarter we conducted a shift in operating tactics as we adjusted mining operations to target higher grades at Valenciana and El Cubo, and to achieve better efficiencies at Topia through an entirely new business model. All of our mines continue to progress through the ramp-up phase, and as we move our assets forward, we will continue to rely heavily on the business and technical acumen of our 100 per cent Mexican operating team. The fourth quarter represents a turning point in our operations, and we are already seeing better performance at all our mines; with the precious metals market entering a new phase, we see tremendous opportunities to significantly expand upon our production profile so that we are able to offer investors direct exposure to silver and gold production."

Q3 2023 highlights:

• Metals production during the quarter of 787,086 AgEq (silver equivalent) ounces derived from 425,488 ounces of silver, 3,441 ounces of gold, 935,738 pounds of lead and 857,660 pounds of zinc.
• Net loss decreased by 21 per cent in Q3 to $7-million compared with $8.5-million in Q2; revenue of $15.6-million for the quarter was down 7 per cent compared with Q2.
• All-in sustaining cost (AISC) of $26.22 per AgEq ounce produced was higher than $22.47 for Q2 2023 because of lower mined tonnage during the quarter due to a reworking of stope rotation at El Cubo, the initial capital costs in changing the business model at Topia and a temporary mine closure at San Ignacio; realized metal prices in Q3 were 3 per cent lower for silver, 3 per cent lower for gold, 2 per cent higher for lead and 4 per cent lower for zinc as compared with Q2.
• Tonnes mined and milled decreased 23 per cent and 24 per cent, respectively, from Q2 to Q3; over the third quarter, a total of 134,865 tonnes were mined across the four producing silver mines, and a total of 132,484 tonnes were milled.
• Average silver and gold recoveries were 83.3 per cent and 81.5 per cent, respectively, for Q3 as compared with 88.5-per-cent silver recovery and 86.3-per-cent gold recovery in Q2 2023.

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 on SEDAR+.

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.

Technical information

Reynaldo Rivera, vice-president of exploration of 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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