Mr. James Anderson reports

GUANAJUATO SILVER INITIATES PROCESSING OF MINERALIZED MATERIAL FROM EL HORCON MINE

Guanajuato Silver Company Ltd. has commenced development work and the processing of mineralized material from an existing stockpile at its 100-per-cent-owned El Horcon mine located approximately 60 kilometres northwest of Guanajuato, Mexico.

James Anderson, chairman and chief executive officer, said: "The past-producing El Horcon mine is ideally situated to become a satellite mining operation that could significantly expand Guanajuato Silver's production profile. The El Horcon mine fits well within our strategy of further consolidating the Guanajuato mining district as we look to take advantage of the excess processing capacity of our two operating mills in the area. In addition to being able to immediately access low-cost mineralized material from the existing stockpile, we are confident that the development programs we have planned for 2024 will add value to El Horcon and allow us to rapidly advance this exciting project."

Starting in mid-November, thus far the company has shipped and processed 350 tonnes of material on a trial basis from the historical stockpile. Head grades from different batches of this material were approximately 30 grams per tonne (g/t) to 50 g/t Ag (silver) and 1.6 g/t to 3.0 g/t Au (gold). Initial processing runs gave recoveries of approximately 70 per cent for Ag and 82 per cent for Au. Note: This first batch of material was taken from a higher-grade area of the stockpile -- future shipments are likely to be of somewhat lower grades. The Horcon stockpile is expected to add approximately 4,000 tonnes of mineralized material per month over a six-to-10-month period. Metallurgical testing of the mineralized material at Horcon has been demonstrated compatible with the Cata mill processing circuit and is currently being blended with mineralized production from the Valenciana mines complex (VMC).

In other development work, the company earlier reassayed previous core samples, and conducted an extensive mapping and sampling program in advance of a diamond drill exploration program that is scheduled to commence in Q2 2024.

Acquired as part of the purchase of Great Panther's Mexican assets (see Guanajuato Silver's news release dated Aug. 4, 2022), the El Horcon mining concessions cover 7,908 hectares comprising 17 contiguous mining concessions located approximately 60 kilometres to the northwest of the VMC. Mineralization at El Horcon is dominated by the regional extension of the prolific Veta Madre vein system and consists of numerous quartz-dominated gold-silver-bearing veins; mineralization at El Horcon also contains significant lead and zinc values. The El Horcon mine is a past producer dating back to the 16th century, and several underground workings, tunnels and access points are known to exist. In 2017, the previous operator established a historical inferred mineral resource that was prepared in accordance with National Instrument 43-101 of two million silver-equivalent (AgEq) ounces (see notes to table for silver-equivalent calculations) from 162,140 tonnes grading 3.44 g/t gold, 76 g/t silver, 2.69 per cent lead and 3.79 per cent zinc, based on 42 drill holes and 463 underground channel samples (see the table entitled "Historical inferred resource El Horcon project" and description below -- the inferred mineral resource is considered historical in nature).

The El Horcon mineral resource estimate is a historical estimate and the reader is cautioned not to treat them, or any part of them, as a current resource. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and the company is not treating the historical estimate as current mineral resources or mineral reserves. The mineral resource is taken from a Great Panther technical report dated Feb. 20, 2017. However, based on the assumptions, parameters and methods in the prior technical report, as well as literature and data review, the company considers such estimate to be relevant and reliable, and provides an indication of the extent of mineralization identified by previous operators at the El Horcon mine. To verify the historical mineral resource estimate as a current mineral resource, a qualified person would need to complete database validation, undertake a full review of estimation parameters and procedures, and complete an updated mineral resource estimate and a National Instrument 43-101 technical report incorporating additional production, drilling, sampling and reassaying of core completed at El Horcon since February, 2017.

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 complex, 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 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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