Mr. James Anderson reports

GUANAJUATO SILVER FILES TECHNICAL REPORT FOR EL CUBO MINERAL RESOURCE ESTIMATE

Guanajuato Silver Company Ltd. (GSilver) has filed on SEDAR+ a new National Instrument 43-101 technical report titled "NI 43-101 Technical Report On The El Cubo And El Pinguico Silver Gold Complex, Guanajuato, Mexico" and dated effective Aug. 1, 2024. The report presents a new mineral resource estimate for GSilver's 100-per-cent-owned El Cubo mine complex, located in Guanajuato, Mexico (see GSilver's news release dated Dec. 19, 2024).

Highlights of the report:

• Inferred mineral resources increased 85 per cent over previous resource estimate to 35.6 million silver equivalent ounces, See table below for assumptions regarding the calculation of silver equivalent.
• Inferred mineral resource tonnes of 3,711,000 tonnes represents a 179-per-cent increase over the previous resource estimate.
• Indicated mineral resources of 3.9 million million ounces silver equivalent; after three years of substantial mining activity at El Cubo, the resources within the indicated resource category have declined by just 23 per cent from the previous estimate.
• Exploration expansion potential remains high; drilling to convert inferred resources to indicated resources commenced in January, 2025.

The new El Cubo mineral resource estimate is part of a scheduled program to update GSilver's NI 43-101 technical reports and resource estimates for all of its producing mines in Mexico, which includes the El Cubo mine complex, the Valenciana mine complex and the San Ignacio mine, all located within the state of Guanajuato, and the Topia mine, located in northwestern Durango.

The 2024 MRE was prepared by Apex Geoscience Ltd. with an effective date of Aug. 1, 2024. The 2024 MRE supersedes and updates the previous mineral resource estimate for the El Cubo mine, disclosed previously by the company in the technical report entitled "Technical Report -- El Cubo/El Pinguico Silver Gold Complex Project" with an effective date of Dec. 31, 2023. The report replaces the prior technical report as the current NI 43-101 technical report on El Cubo.

2024 mineral resource estimate

Mineralization at El Cubo consists of silver and gold occurring in several stratigraphic formations, with the middle Tertiary La Bufa, Guanajuato and Calderones formations being the most important hosts. Mineralization at El Cubo is typical of classic high-grade silver-gold banded epithermal vein deposits, with the most productive veins being subparallel to the Veta Madre system as north-northwest-striking veins and local stockwork-style mineralization. Several transverse, northeast-striking veins with high-grade gold mineralization also occur. The 2024 MRE includes 44 vein domain models based on underground mapping and sampling, drill hole geological logging, along with the silver and gold assays. The updated El Cubo database now includes a total of 43,919 underground channel samples and 24,602 drill hole samples. Included in these totals, GSilver has collected a total of 26,806 underground channel samples totalling 16,824 metres and 4,157 drill hole samples from 129 drill holes since it took over the project in 2021. As of the effective date of the 2024 MRE, the company has collected a total of 17,402 underground chip channel samples from 4,863 channels, totalling 11,076 metres of channel length, that are from the Villalpando and Santa Cecilia areas of El Cubo and are within the mineral estimation domains. A total of 445 drill hole samples collected by the company are from within the mineral estimation domains.

The 2024 MRE comprises indicated mineral resources of 3.9 million ounces silver equivalent at 283.9 grams per tonne silver equivalent within 429,000 tonnes, and inferred mineral resources of 35.6 million ounces silver equivalent at 298.5 grams per tonne silver equivalent within 3,711,000 tonnes. The attached table presents the complete 2024 El Cubo MRE statement.

Mineral resource estimate methodology

Apex personnel used ordinary kriging with locally varying anisotropy to estimate silver and gold grades in a parent block model measuring 1.5 metres (x) by 1.5 metres (y) by 1.5 metres (z). This model is subblocked to 0.5 metre by 0.5 metre by 0.5 metre for stope optimization and resource reporting. Kriging considers capped drill hole and underground channel composites.

Three types of material were identified during the calculation of the MRE: (1) in situ; (2) remnant; and (3) mined out. Blocks within, in contact with or adjacent to underground workings were flagged as mined out using a 10-metre-by-five-metre-by-one-metre search ellipse, aligned along the dip direction of the domain's trend at zero-degree dip with no third-axis rotation. Blocks within 10 metres of the underground workings wireframe in any direction were classified as remnant material, which is under evaluation but not included in the 2024 MRE. Only in situ material, unaffected by mining, is included in the 2024 MRE.

For indicated resources, blocks require a minimum of three drill holes within a search ellipse measuring 30 metres by 30 metres by 15 metres. For inferred resources, blocks need at least one drill hole or underground channel within a search ellipse of 60 metres by 50 metres by 15 metres, based primarily on the second variogram structure. Only channel composites with centroids within the workings wireframe and all core composites are considered for indicated classification. All channel composites are considered for inferred classification.

Measured resources are currently not defined. The MRE relies heavily on underground channel samples, often in areas flagged as mined out or remnant, limiting their ability to inform domain locations for in situ material. Additional underground or surface drilling is needed away from the channel samples to assist in better defining the estimation domains.

Sampling and quality assurance/quality control

The El Cubo underground channel samples were analyzed at Corporacion Quimica Platinum SA de CV (QPSV) in Silao, Guanajuato, until the establishment of the on-site El Cubo laboratory in December, 2021. Corporacion Quimica Platinum is independent of GSilver and is accredited by Entidad Mexicana de Acreditacion AC (EMA), which is part of the International Accreditation Forum (IAF). EMA also works in conjunction with the International Organization for Standardization (ISO) Committee for Conformity Assessment (CASCO). The El Cubo laboratory remains under GSilver management and is not independent of the company.

Drill core was first reviewed by a company geologist, who identified and marked intervals for sampling. The marked sample intervals were then cut in half with a diamond saw; half of the core was left in the core box and the other half was removed, placed in plastic bags, sealed and labelled. Intervals and unique sample numbers are recorded on the drill logs and the samples are sequenced with standards and blanks inserted according to a predefined QA/QC procedure. The samples are maintained under security on site until they are shipped to the analytical lab.

The El Cubo drill core samples were submitted to QPSV in Silao, Guanajuato, Mexico, for preparation and analysis. To validate assay results and preparation procedures, GSilver systematically sent additional random samples representing approximately 20 per cent of all analytical samples to Bureau Veritas (BV) in Hermosillo, Sonora, Mexico, and approximately 10 per cent of all analytical samples to SGS Mexico SA de CV in Durango, Mexico. BV and SGS are ISO/IEC geoanalytical laboratories and are independent of GSilver.

At the QPSV El Cubo laboratory, gold and silver determination was by standard atomic absorption (AA) finish 30-gram fire assay (FA) analysis. Overlimit results were rerun with a gravimetric finish. Multielement analysis of 33 elements (including silver) of select samples was by multiacid digestion followed by inductively coupled plasma atomic emission spectroscopy (ICP-AES).

At BV and SGS, gold determination was by standard AA finish 30-gram FA analysis. Silver was analyzed by four-acid digestion followed by ICP-AES or by FA with a gravimetric finish and 34-element analysis was performed by four-acid digestion followed by ICP-AES.

GSilver's QA/QC protocol for underground channel and drill core sampling programs at El Cubo consisted of an insertion rate of approximately one QA/QC sample in every batch of 20 samples.

Qualified person

The 2024 MRE was completed by Warren Black, MSc, PGeo, senior consultant, mineral resources, with Apex Geoscience. Mr. Black is a qualified person as defined by NI 43-101, Standards of Disclosure for Mineral Projects, and he is independent of the company. Mr. Black has reviewed and verified technical data disclosed in this news release related to the 2024 MRE.

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 NI 43-101.

Mr. Gehlen has reviewed and verified technical data disclosed in this news release and detected no significant QA/QC 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 include reviewing compiled assay data; QA/QC performance of blank samples, duplicates and certified reference materials; and grade calculation formulas.

About Guanajuato Silver Company Ltd.

GSilver 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, 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. 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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