Mr. James Anderson reports

GUANAJUATO SILVER REPORTS 2ND CONSECUTIVE QUARTER OF POSITIVE MINE OPERATING INCOME

Guanajuato Silver Company Ltd. has released its financial and operating results for the three-month and nine-month periods ending Sept. 30, 2024. All dollar amounts are in U.S. dollars and prepared in accordance with IFRS (international financial reporting standards) as issued by the International Accounting Standards Board. This news release should be read in conjunction with the company's unaudited condensed consolidated interim financial statements for the period ended Sept. 30, 2024, and the management's discussion and analysis (MD&A) thereon, which can be viewed under the company's profile on SEDAR+. Production results are from the company's wholly owned El Cubo mines complex, Valenciana mines complex (VMC), Pinguico project and San Ignacio mine in Guanajuato, Mexico, the Horcon project, located in Jalisco, Mexico, and the Topia mine, located in Durango, Mexico.

Selected Q3 (third quarter) 2024 (three-month period) highlights:

• Positive mine operating income of $515,576; Q3 represents the second consecutive quarter of positive income from mining operations;
• All-in sustaining cost (AISC)* of $23.88 per silver equivalent (AgEq) ounce; this represents a 7-per-cent improvement over the previous quarter;
• Cash cost per AgEq ounce was $18.78; this was a 6-per-cent improvement over the previous quarter. Over the past 12 months, Guanajuato Silver has made significant capex investments designed to improve operational efficiencies at all four of the company's producing silver mines (except as otherwise noted, see the notes to the attached table for details regarding the company's AgEq calculations);
• Production for the quarter of 779,797 AgEq ounces derived from 413,607 ounces of silver, 3,617 ounces of gold, 806,945 pounds of lead and 926,056 pounds of zinc;
• Silver production of 413,607 ounces was an increase of 4 per cent over the previous quarter. Silver production accounted for 50 per cent of Q3 revenue; 43 per cent of revenue was generated by gold production. Guanajuato Silver is a primary silver and gold producer with over 90 per cent of revenues being derived from the sale of precious metals. All lead and zinc production comes exclusively from the company's Topia mine located in northwestern Durango;
• During the quarter, the company confirmed an important production milestone; over three million AgEq ounces had been produced at El Cubo since the restart of operations in late 2021. For this purpose, AgEq has been calculated using an 82.77:1 (silver/gold (Ag/Au)) ratio from Oct. 1, 2021, until Sept. 20, 2024;
• In the quarter, the company announced the complete repayment of its $7.5-million (U.S.) silver and gold prepayment facility to Swiss-based precious metals trading firm, OCIM Metals & Mining S.A.; this followed the Q2 (second quarter) repayment in full of the $5-million (U.S.) concentrate prepayment facility owed to Ocean Partners U.K. Ltd.;
• Total tonnes milled at the company's three production facilities was 144,537 tonnes, which was a decrease of 10 per cent from the previous quarter. The majority of this decrease is attributable to outstanding fleet and mill maintenance requirements; during the quarter, the company undertook an enhanced maintenance and repairs program at all operations that is expected to continue into Q4 (fourth quarter);
• Revenue for the quarter of $18.3-million represented a 17-per-cent increase over Q3 2023 and a decrease of 11 per cent over the previous quarter. Consolidated revenue for the quarter was generated by a realized average price of $29.43 per silver ounce, $2,477 per gold ounce, 93 cents per pound of lead and $1.25 per pound of zinc;
• Positive adjusted EBITDA* (earnings before interest, taxes, depreciation and amortization) of $892,277; the second consecutive quarter of positive adjusted EBITDA confirms that cash flow from mining operations is improving;
• Net loss for the quarter of $4.8-million. Non-cash items accounted for nearly 40 per cent of this loss; as an example, the non-cash derivative loss related to the company's gold loan with Ocean Partners was $1.66-million. Importantly, as the gold spot price rises, derivative losses are more than offset by higher revenue from the sale precious metals concentrates;
• As of Sept. 30, 2024, the company had cash and cash equivalents of $1.6-million and negative working capital of $20.4-million; subsequent to the end of the quarter, the company closed an equity financing on Oct. 30 for $8.72-million (Canadian).

*EBITDA, adjusted EBITDA, AISC and working capital are non-IFRS financial measures with no standardized meaning under IFRS, and therefore they may not be comparable with similar measures presented by other issuers.

Operating and financial highlights

Commercial production at the El Cubo mines complex commenced on Oct. 1, 2021. The Valenciana mines complex, the San Ignacio mine and the Cata mill facility, and the Topia mines complex, were acquired on Aug. 4, 2022. Topia had continuous production throughout the acquisition. The San Ignacio mine recommenced production in August, 2022, and production at the Valenciana mine also began in August, 2022. Recommissioning of the Cata plant began in December, 2022, with processing commencing in January, 2023.

The attached table summarizes the company's consolidated operating and financial results for the three and nine months ended Sept. 30, 2024, and Sept. 30, 2023.

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.

Qualified person

William Gehlen, a director of Guanajuato Silver, is a certified professional geologist with the American Institute of Professional Geologists (No. 10626) and a qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.

Mr. Gehlen has reviewed and verified technical data disclosed in this news release and detected no significant QA/QC (quality assurance/quality control) issues during review of the data, and is not aware of any sampling, recovery or other factors that could materially affect the accuracy or reliability of the drilling data referred to herein. Verified data underlying the disclosed information includes reviewing compiled assay data, QA/QC performance of blank samples, duplicates and certified reference materials, and grade calculation formulas.

We seek Safe Harbor.