Mr. James Anderson reports

GUANAJUATO SILVER REPORTS INCREASED Q4 2023 PRODUCTION

Guanajuato Silver Company Ltd. has released consolidated production results for the three months ended Dec. 31, 2023. Production results are generated 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 in Durango, Mexico.

Q4 2023 production highlights:

• Production during the quarter of 850,214 silver equivalent ounces (AgEq) is the third best quarter in the company's history, and is derived from 394,971 ounces of silver, 4,395 ounces of gold, 837,230 pounds of lead and 960,206 pounds of zinc.
• Tonnes milled increased 3.6 per cent from Q3 to Q4; during the fourth quarter a total of 137,339 tonnes were milled across Guanajuato Silver's four producing silver mines.
• Average silver and gold recoveries were 84.5 per cent and 88.8 per cent, respectively, for Q4 as compared with 83.3-per-cent silver recovery and 81.6-per cent gold recovery in Q3 2023. Current metallurgical recoveries reflect historical all-time highs.
• Gold production was up 27.7 per cent over the previous quarter driven by higher gold grades, better recoveries and the inclusion of gold-rich material from the recently added production of the El Horcon mine.
• AgEq production in 2023 of 3,516,685 ounces falls within revised guidance figures and represents a 63-per-cent increase over the previous year.

James Anderson, chairman and chief executive officer, said: "Performance in the quarter demonstrated increasing improvement driven by the successful implementation of a number of modifications designed to improve overall efficiencies at our Mexican mining operations. The adjustment of various operating procedures, such as improving the stope rotation at El Cubo, the shifting of our business model at Topia and the addition of a new source of mineralized material from El Horcon, have improved production figures at all of our assets. With the impact of significant capex investments still to be realized, such as the dewatering at El Cubo targeting higher-grade mineralized zones located in deeper areas of the mine, we expect to be able to resume the trend of quarter-over-quarter increases in precious metals production throughout 2024."

Q4 production demonstrates significant improvements over previous quarter

Total tonnes mined during Q4 was 133,497 tonnes; this was down nominally from Q3 production of 134,865 tonnes primarily due to the change of business model at Topia; however, total tonnes milled during Q4 of 137,330 tonnes represents an increase of 3.7 per cent over Q3. The increase in total milled tonnage during the quarter was partly due to the commencement of the processing of mineralized material from the company's El Horcon mine located approximately 60 kilometres northwest of the Valencian mines complex (see Guanajuato Silver news release dated Nov. 27, 2023).

Gold production of 4,395 ounces in Q4 denotes a 27.7-per-cent increase from the previous quarter. This increase was the result of higher gold grades in Q4, which were up over 15 per cent, and superior gold recoveries of 88.8 per cent, which is an 8.8-per-cent improvement over Q3.

At Topia, lead and zinc grades during the quarter improved dramatically compared with Q3; in Q4 lead grade increased by 33.5 per cent and zinc grades increased by 61.4 per cent, though silver grades at Topia were somewhat lower. Lead and zinc recoveries also increased compared with the previous quarter; lead recovery in Q4 was up 2 per cent to 91.7-per-cent recovery -- also to all-time highs, whereas zinc recovery increased by 5.8 per cent to 82.5-per-cent recovery. Within Guanajuato Silver's mine portfolio, Topia is the only polymetallic mine; all the company's other mines are pure precious metals producers.

Technical information

Hernan Dorado Smith, a director and officer of Guanajuato Silver and a qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, has approved the scientific and technical information contained in this news release.

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.

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