Mr. James Anderson reports

GUANAJUATO SILVER COMMENCES PROCESSING 3RD PARTY GOLD AND SILVER AT EL CUBO

Guanajuato Silver Company Ltd. has commenced a relationship with a Mexican silver mining company to process a portion of its surface inventory of mineralized material at Guanajuato Silver's wholly owned El Cubo mines complex located in Guanajuato, Mexico.

Guanajuato Silver's chairman and chief executive officer James Anderson said: "We are excited to have reached this agreement which will utilize a considerable amount of the excess capacity that exists at our El Cubo mill. We believe both parties will mutually benefit from this agreement, as we collectively look to expand silver production in the Guanajuato area through the processing of low-cost and readily available material. With additional unutilized capacity still available at El Cubo, we continue to pursue similar business agreements with other mining groups in the area."

This material has been demonstrated compatible with the El Cubo processing circuit through comprehensive metallurgical testing; the first silver and gold concentrates from this processing agreement are expected to be generated prior to the end of January, 2024.

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.

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