Mr. James Anderson reports

GUANAJUATO SILVER ADDS ADDITIONAL 3RD PARTY PROCESSING AGREEMENT

Guanajuato Silver Company Ltd. has signed a new third party gold and silver processing agreement with a local Guanajuato-based miner, REM Marfil SA de CV. The agreement contemplates the processing of mineralized material from the past-producing La Providencia mine project at Guanajuato Silver's wholly owned El Cubo and Cata processing facilities located in Guanajuato, Mexico.

Guanajuato Silver's chairman and chief executive officer, James Anderson, said: "During the month of February, we generated over 50,000 ounces of silver equivalent through our first third party processing agreement (see GSilver news release dated Jan. 17); with this new agreement, we will have moved our milling facilities one step closer to full operating capacity through the processing of additional low-cost, locally sourced, mineralized material."

The agreement covers the processing of an initial 80,000 dry metric tonnes of mineralized material with a minimum head grade of 0.43 gram per tonne gold and 192 grams per tonne silver. This material will be sourced from historical mining facilities located in the municipality of Guanajuato and in the municipality of San Felipe, located approximately 30 kilometres north of the city of Guanajuato, Mexico. The first concentrates from this agreement are anticipated to be generated in April, 2024.

About Guanajuato Silver Company Ltd.

Guanajuato Silver is a precious metal 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, the Valenciana mine 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.

Technical information

Hernan Dorado Smith (qualified professional -- MMSA), 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.

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