Mr. James Anderson reports

GUANAJUATO SILVER RECOGNISED FOR SOCIAL RESPONSIBILITY IN MEXICO

Guanajuato Silver Company Ltd. has received Mexico's Socially Responsible Enterprise certification, which recognizes the quality of the company's community outreach and integration programs throughout 2024; and as previously announced on April 28, 2025, the company confirms that the amended terms of its gold credit facility with Ocean Partners U.K. Ltd. have been finalized.

Socially responsible enterprise (ESR certification)

Guanajuato Silver's Mexican operating subsidiary, Minera Mexicana El Rosario, has been awarded the Socially Responsible Enterprise (Empresa Socialmente Responsible ESR) Award for 2024. This certification was granted by the Mexican Center for Philanthropy and is based on excellence in the areas of environment, social responsibility, governance and global context.

New gold credit facility

As previously announced, the company has amended the terms of its gold credit facility with Ocean Partners U.K. Ltd. (see Guanajuato Silver news release April 28, 2025). The new gold credit facility (as of today's date) has an outstanding balance of 7,182 ounces of gold bullion; under the terms of the new facility, two-thirds of the outstanding balance will be amortized over 36 months starting April, 2025, and is repayable in equal fixed monthly instalments of 131.7 ounces of gold bullion, representing approximately 10 per cent of Guanajuato Silver's modelled monthly gold production. In connection with the terms of the new gold credit facility, the company will issue to Ocean Partners 4.55 million non-transferable warrants exercisable into one common share of the company with an exercise price of 24 cents. Each warrant has a 36-month term that expires on June 16, 2028. The warrants, and the common shares issuable upon exercise, are subject to a statutory hold period that ends on Oct. 17, 2025.

James Anderson, chairman and chief executive officer, said, "The reduction of our monthly loan payments by over 200 ounces of gold per month provides the company with improved financial flexibility as we pursue opportunities to grow our business at a time of increasing interest in precious metals."

About Guanajuato Silver Company Ltd.

GSilver 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.

We seek Safe Harbor.