Mr. James Anderson reports

GUANAJUATO SILVER PRODUCES 329,934 SILVER-EQUIVALENT OUNCES IN JANUARY 2024

Guanajuato Silver Company Ltd. has provided a production update for the month of January, 2024. Production results are generated from the Company's wholly owned El Cubo Mines Complex ("El Cubo"), Valenciana Mines Complex ("VMC"), and San Ignacio Mine ("San Ignacio") in Guanajuato, Mexico, the Topia Mine ("Topia") in Durango, Mexico, and the El Horcon Mine ("Horcon") located in Jalisco, Mexico.

January 2024 Operations Highlights

• Production during the month of 329,934 silver-equivalent ounces ("AgEq*") is the 2ND highest level of production in the Company's history, and is derived from 141,854 ounces of silver; 1,843 ounces of gold; 279,726 pounds of lead; and 269,276 pounds of zinc. Guanajuato Silver is primarily a precious metals producer; over 90% of silver-equivalent production for the month was derived from silver and gold.
• First month of recently announced 3rd party processing agreement adds 40,862 AgEq* ounces, this represented 12% of total consolidated production for the month. (See Guanajuato Silver news release dated January 17th - "Guanajuato Silver Commences Processing 3rd Party Gold and Silver at El Cubo").
• Total tonnes mined in January over December increased by 32% to total 56,691 tonnes. Guanajuato Silver processes mineralized material at three production facilities: El Cubo, Cata (VMC), and Topia.
• Horcon generated 10,183 AgEq* ounces for the month; to date, the El Horcon mine has produced over 37,000 AgEq* ounces since processing of stockpiled material commenced in late 2023, (See GSilver news release dated November 7, 2023 - "Guanajuato Silver Initiates Processing of Mineralized Material from El Horcon Mine"). Additional stockpiles exist in the immediate El Horcon area; moreover, the processing of mineralized material from El Horcon is providing valuable information for understanding the potential for underground mining operations.
• Dewatering of the Villalpando area of El Cubo is opening up new zones of deeper, higher-grade material; mining teams are already working in new areas of the mine that have recently become accessible. By April, dewatering of additional sections of Villalpando is projected to open-up mining blocks that have demonstrated historical grades of over 350g/t AgEq**.
• At Topia, changes to the business model are proving successful; the adding of additional mine contractors is currently underway and is expected to increase current production volumes by up to 20%. For the month of January, Topia produced 85,083 AgEq* ounces.

James Anderson, Chairman and CEO, said, "The processing of 3rd party mineralized material is already having a substantial impact on total production output; furthermore, El Horcon is generating consistent results and was responsible for over 3% of total AgEq production for the month. These two sources of mineralized material represent a significant component of total production and have contributed to generate our highest volume of silver-equivalent production since May 2023. January's results are further confirmation that the adjustments and efficiency upgrades implemented at our mines during the later-half of 2023 have us on-track in terms of quarter-over-quarter increases in precious metals production. In addition to maintaining a steady ramp-up at our three production facilities, we will continue to make the securing of additional 3rd party processing agreements a focus for 2024."

Technical Information

Hernan Dorado Smith, a director and officer of GSilver 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. Mr. Smith has verified the data that supports the technical information disclosed in this press release by reviewing production reports from each of the Company's mining operations.

About Guanajuato Silver

GSilver 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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