Mr. James Anderson reports

GUANAJUATO SILVER COMPLETES DEVELOPMENT TO HIGH GRADE SANTO NINO VEIN AT SAN IGNACIO

Guanajuato Silver Company Ltd. is providing an update on development and exploration progress at the company's wholly owned San Ignacio mine located in Guanajuato, Mexico.

Chairman and chief executive officer James Anderson said: "We have identified a greater than two-metre-wide mining block at Santo Nino consisting of significant tonnage and grade. Further exploration potential west of this new production area is highly prospective and will remain at the forefront of our exploration campaigns throughout 2025."

After several months of development work, the 430 ramp has reached the Purisima vein where mining activity has been initiated. The advance of the ramp then continued to the west approximately another 10 metres where the Santo Nino vein was contacted. The Santo Nino vein offers the company access to an entirely new mining area with comparatively higher gold content.

Exploration at San Ignacio for 2025 will focus on infill drilling in the Melladito North area, exploring deeper extensions to the Nombre de Dios veins and evaluating additional veins to the west of Santo Nino, supported by geophysics and geological surface mapping.

Mineralization at San Ignacio is related to the powerful and prolific La Luz structure, which runs parallel to the primary system in Guanajuato -- the Veta Madre vein located approximately 10 kilometres to the east. The La Luz system has a known strike length of over eight km and consists of 18 identified veins, including Santo Nino. The La Luz mineralization was the first silver and gold mineralization identified by the Spanish in the Guanajuato area as early as the 1540s.

In September, 2023, the company issued a mineral resource estimate (the 2023 MRE) for GSilver's 100-per-cent-owned San Ignacio mine. The 2023 MRE was prepared by Apex Geoscience Ltd. (Apex), with an effective date of Sept. 21, 2023.

The 2023 MRE comprises measured and indicated mineral Resources of 7,621,000 (M) troy ounces (oz) AgEq (silver equivalent) at 300 g/t (grams per tonne) AgEq within 790,000 tonnes (t), and inferred resources of 22,167,000 oz AgEq at 318 g/t AgEq within 2,166,000 tonnes. These figures represent increases in contained metals of approximately 4,318,000 oz AgEq in the measured and indicated category (130-per-cent increase), and 16,385,000 oz AgEq in the inferred category (283-per-cent increase) versus the previously reported historical resource estimate. The 2023 MRE for the San Ignacio mine is presented in Table 1.

For additional details on the 2023 MRE and San Igancio property please refer to the technical report dated March 7, 2024 (effective date Dec. 31, 2023), titled "Technical Report on the San Ignacio Property, Guanajuato, Mexico" available on SEDAR+.

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 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.

About Guanajuato Silver Company Ltd.

Guanajuato 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 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 is one of the fastest-growing silver producers in Mexico.

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