Mr. James Anderson reports

GUANAJUATO SILVER REPORTS YEAR END 2023 FINANCIAL RESULTS

Guanajuato Silver Company Ltd. has released selected financial information and consolidated production results for the year ended Dec. 31, 2023. The company's consolidated financial statements for the year ended Dec. 31, 2023, and management's discussion and analysis (MD&A) thereon can be viewed under the company's profile on SEDAR+. All dollar amounts are in U.S. dollars and prepared in accordance with IFRS (international financing reporting standards) accounting standards as issued by the International Accounting Standards Board. Production results are from the company's wholly owned El Cubo mines complex, Valenciana mines complex (VMC) and San Ignacio mine located in Guanajuato, Mexico, and the Topia mine located in Durango, Mexico.

Selected 2023 highlights:

• Record production for 2023 of 3.5 million silver equivalent ounces (AgEq) representing a 64-per-cent increase over 2022; total AgEq ounces are derived from 1,756,911 ounces of silver, 16,987 ounces of gold, 3,555,466 pounds of lead and 3,868,262 pounds of zinc (see note to attached table for assumptions regarding the company's AgEq calculations).
• Silver production of over 1.7 million ounces is a 74-per-cent increase over 2022; Guanajuato Silver is a primary silver producer; approximately 52 per cent of revenues were derived from silver production in 2023, and approximately 40 per cent of revenue came from gold.
• Record lead and zinc production of 3.5 million pounds and 3.8 million pounds, respectively; zinc production demonstrated a 100-per-cent increase over 2022, while lead production was 164 per cent higher over the same period. All lead and zinc production comes exclusively from the company's Topia mine located in northwest Durango.
• Two thousand twenty-three saw average silver recoveries of 84.5 per cent and average gold recoveries of 88.8 per cent.
• Total tonnes mined was up 46 per cent over 2022, reflecting the continued ramp-up of production at all four producing silver mines; total tonnes milled was up 42 per cent over same period.
• Record revenue for 2023 of $66.1-million representing a 79-per-cent increase over 2022; consolidated revenue for the year was generated by a realized average price of $23.41 per silver ounce, $1,947 per gold ounce, 97 cents per pound of lead and $1.22 per pound of zinc.

James Anderson, chairman and chief executive officer, said: "We have successfully navigated through a particularly challenging year for the junior mining industry; we emerge from this period with vastly improved assets in terms of production efficiency, scale and economics. All four of our producing silver mines were the beneficiaries of major capex investments in 2022; these adjustments and upgrades are already positively impacting performance as we continue to build Guanajuato Silver into a mid-tier precious metals producer."

Selected 2023 financial highlights:

• Cash costs of $18.22 per AgEq ounce and AISC (all-in sustaining costs) (5) of $22.91 per AgEq ounce reflected higher capital expenditures during the year as the company made significant investments designed to improve efficiencies across all operations (see note to attached table for assumptions regarding the company's AgEq calculations).
• Over 45 per cent of the 2023 net loss of $31.9-million comprised non-cash items (8).
• As of Dec. 31, 2023, the company had cash and cash equivalents of $1,956,616, and negative working capital (5) of $18,441,913 compared with cash of $8,832,936 and negative working capital (5) of $5,972,704 as of Dec. 31, 2021.

Consolidated annual production

Please refer to footnote 1 under the attached table for the assumptions on the AqEq calculations.

The attached table summarizes the company's consolidated operating and financial results for the years ended Dec. 31, 2023, and 2022.

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, 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.

Technical information

Reynaldo Rivera, vice-president of exploration of Guanajuato Silver, has approved the scientific and technical information contained in this news release. Mr. Rivera is a fellow of the Australasian Institute of Mining and Metallurgy (AusIMM registration No. 220979) and a qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. Mr. Rivera has verified the data that support the technical information disclosed in this press release by reviewing production reports from each of the company's mining operations.

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