Mr. James Anderson reports

GUANAJUATO SILVER PROVIDES CORPORATE UPDATE

Guanajuato Silver Company Ltd. has provided a corporate update highlighted by the appointment of Carlos A. Silva as chief operating officer (COO).

Appointment of COO

With a career spanning over 35 years, Mr. Silva has proven serially successful at advancing, expanding and managing mining operations within Mexico and Bolivia. Like many of Guanajuato Silver's employees, Mr. Silva is a graduate of mine engineering from the University of Guanajuato; he holds an MBA from ITESM, and he is a graduate of IPADE Business School. After an initial career of continually taking roles of greater responsibility overseeing different types of deposits such as gypsum, manganese, gold, silver and polymetallic deposits, notably with the La Fortuna mine in Sinaloa and the San Dimas mine in Durango, he began working with Trafigura in 2007, where he expanded the Zimapan mine project in the state of Hidalgo. Mr. Silva co-founded Carrizal Mining in 2009, where he led the restart and expansion of the Zimapan mine. In 2017 he joined Santacruz Silver Mining Ltd., first as COO, and then as chief executive officer, vending his company Carrizal Mining into Santacruz Silver in the process. Mr. Silva left Santacruz Silver in August of this year, having helped that company expand its production profile from just 815,000 silver equivalent ounces in 2018 to 19.6 million ounces of silver equivalent production in 2022. Mr. Silva replaces Mario Valdez Bustillos, who was promoted from vice-president, operations, to co-chief operating officer in April, 2023.

Commenting on this appointment, James Anderson, chairman and CEO, said: "We are building one of the best mine operating teams in Mexico -- and the addition of Carlos makes us one giant step better. Carlos is the ideal candidate to secure and expand upon the significant progress we have made over the past 12 months; he brings a wealth of experience not just in terms of underground mining operations, but also in terms of his demonstrated entrepreneurial insight, which will serve Guanajuato Silver well as we enter our next phase of growth."

Agreement with Great Panther trustee to terminate contingency payments

The company has signed an agreement with the court-appointed insolvency trustee of the Great Panther Estate to terminate all obligations of the company to make contingency payments totalling $2-million (U.S.) in exchange for the offset of a working capital adjustment receivable owed to the company by Great Panther. In August, 2022, Guanajuato Silver closed the purchase of Great Panther Mining Ltd.'s Mexican subsidiary Minera Mexicana Rosario SA de CV (MMR), which owned the Topia mine in the state of Durango, Mexico, the San Ignacio mine and the Valenciana mine complex (VMC) in Guanajuato, Mexico (see Guanajuato Silver news release dated Aug. 4, 2022 -- "GSilver Closes Acquisition of Great Panther's Mexican Mining Assets"). At that time, the MMR acquisition included three contingency payments due from Guanajuato Silver to Great Panther, specifically:

• $500,000 (U.S.) upon Guanajuato Silver producing 2.5 million ounces of silver from the purchased MMR assets;
• $750,000 (U.S.)if the price of silver closes at or above $27.50 (U.S.) per ounce for 30 consecutive days within two years after closing;
• $750,000 (U.S.) if the price of silver closes at or above $30 (U.S.) per ounce for 30 consecutive days within three years after closing.

On Dec. 16, 2022, Great Panther made a voluntary assignment into bankruptcy under the Bankruptcy and Insolvency Act of Canada, and the licensed insolvency trustee was appointed by the Supreme Court of British Columbia. The agreement to terminate the obligation to make contingency payments is necessary to allow the trustee to complete the insolvency process and provides a substantial benefit to Guanajuato Silver through the elimination of these obligations.

Withdrawal from Aquis Exchange

Guanajuato Silver also announces that it has submitted a request to the Aquis Stock Exchange Growth Market for its common shares be withdrawn from trading on Aquis, with such withdrawal to take effect as of market close on Dec. 29, 2023.

The company has its primary listing on the TSX Venture Exchange. The Aquis quotation was sought as a secondary listing to further enhance the liquidity and fundraising ability of the company. The Aquis quotation gives U.K. shareholders the ability to hold common shares through a CREST Depositary Interest (CDI), allowing for full fungibility between the two markets. However, the company no longer believes it can justify the cost of being quoted on both exchanges. The company is headquartered in Canada and is of the opinion that its TSX-V listing provides sufficient access for investors to trade its common shares.

After Dec. 29, 2023, any holders of CDIs representing common shares in the company will no longer be able to trade those CDIs on Aquis in the United Kingdom; however, the company's common shares will continue to trade on the TSX-V in Canada and the OTCQX in the United States. Holders of CDIs should contact an independent financial adviser if they have any doubt about what action to take either before or after withdrawal.

The company notes that under the AQSE rules for issuers, if an issuer has its shares traded on another market of equivalent regulatory standing, including a qualifying market, shareholder approval at a general meeting will not be required to be sought. The company's common shares are traded on the TSX-V, a qualifying market, and accordingly a circular is not being posted to shareholders as there is no need to obtain shareholder approval.

Stock options and restricted shares grant

The company announces the granting of stock options and restricted share units (RSUs) to an officer under the company's stock option plan and omnibus equity compensation plan, respectively.

The company has granted stock options under its stock option plan to purchase up to an aggregate of 750,000 common shares of the company. The stock options will be exercisable for a term of five years at a price per share equal to today's closing price of the company's common shares on the TSX Venture Exchange, subject to vesting on the basis of one-third on the date of grant, one-third after 12 months and one-third after 24 months.

In addition, the company has granted an aggregate of up to 230,000 RSUs vesting after 12 months. Each RSU entitles the holder to receive, upon vesting, one common share of the company.

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. In addition, 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.