Mr. James Anderson reports

GUANAJUATO SILVER ANNOUNCES AT-THE-MARKET EQUITY PROGRAM

Guanajuato Silver Company Ltd. has entered into an equity distribution agreement with Research Capital Corp. to establish an at-the-market (ATM) equity program.

The company may issue up to $7.5-million of common shares of the company from treasury under the ATM program. The offered shares will be issued by the company to the public from time to time, through the agent, at the company's discretion. The offered shares sold under the ATM program, if any, will be sold at the prevailing market price at the time of sale. Since the offered shares will be distributed at trading prices prevailing at the time of the sale, prices may vary between purchasers and during the period of distribution. The company intends to use the net proceeds from any sales of offered shares under the ATM program, if any, to advance the company's business objectives and for general corporate purposes, including, without limitation, financing continuing operations or working capital requirements, repaying indebtedness outstanding from time to time, discretionary capital programs, and potential future acquisitions.

Sales of offered shares, if any, will be made through the agent in transactions that are deemed to be at-the-market distributions as defined in National Instrument 44-102, Shelf Distributions, on the TSX Venture Exchange or any other applicable marketplace (as such term is defined in National Instrument 21-101, Marketplace Operation) for the offered shares in Canada. The company is not obligated to make any sales of offered shares under the distribution agreement. Unless earlier terminated by the company or the agent as permitted therein, the distribution agreement will terminate upon the date that the aggregate gross sales proceeds of the offered shares sold under the ATM program reaches $7.5-million.

The company will pay the agent a commission of 2.5 per cent of the gross offering proceeds from each sale of offered shares and has agreed to provide the agent with customary indemnification and contribution rights. The company will also reimburse the agent for certain specified expenses in connection with the entering into and performance of the distribution agreement.

The ATM program is being made pursuant to a prospectus supplement dated Nov. 28, 2024, to the company's final short form base shelf prospectus dated Aug. 21, 2024.

Copies of the prospectus supplement, base prospectus and distribution agreement may be obtained on request, without charge, from the corporate secretary of Guanajuato Silver at Suite 578, 999 Canada Place, Vancouver, B.C., V6C 3E1 (telephone at 604-273-1433), and are available on SEDAR+.

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, the 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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