Mr. James Anderson reports

GUANAJUATO SILVER RECEIVES DRILLING PERMITS FOR EL HORCON PROJECT

Guanajuato Silver Company Ltd. has received formal approval from Mexican government agencies to commence a surface drilling program at the company's wholly owned El Horcon project located in Jalisco, Mexico, approximately 60 kilometres to the northwest of the city of Guanajuato.

Drill permits have been received from the Mexican Ministry of the Environment, authorizing the company to establish as many as 45 drill pads along a 3.7-kilometre trend that covers approximately one-third of the total length of the structural prospectivity within the Horcon property. Earlier this year, the company acquired two large Nevada-style diamond drill rigs, capable of drilling up to 1,000 metres in depth recovering HQ diameter drill core. One of these drill rigs, which is currently active on surface at the company's EL Cubo mine, will be redeployed to Horcon in August. The company expects to drill a total of 5,000 metres at Horcon in 2026 as the first phase of a surface drilling program. Drill depth is expected to average approximately 260 metres per hole. There is one deeper drill hole planned to test 500 metres in depth. This exploration program will primarily aim to validate and expand upon the property's historical resource, both laterally and at depth, and expand the company's geological knowledge of the numerous en echelon veins that exist on the property.

Acquired as part of the purchase of Great Panther's Mexican assets (see GSilver's news release dated Aug. 4, 2022 -- GSilver Closes Acquisition of Great Panther's Mexican Mining Assets), the Horcon mining concessions cover 7,908 hectares comprising 17 contiguous mining concessions located approximately 60 kilometres to the northwest of the company's Bolanitos mine. Mineralization at Horcon is dominated by the regional extension of the prolific Veta Madre vein system and consists of numerous quartz-dominated gold-silver-bearing veins. Mineralization also often contains significant base metal values.

The Horcon mine is a past producer dating back to the 16th century, with most recent production occurring in the mid-1900s. Several underground workings, drifts and access points are known to exist and total approximately five kilometres of underground tunnelling. In 2017, the previous operator established a historical inferred mineral resource that was prepared in accordance with National Instrument 43-101 of over 2.0 million silver equivalent ounces from 162,140 tonnes grading 3.44 grams per tonne gold, 76 g/t silver and 2.69 per cent lead, and 3.79 per cent zinc (see table below -- the inferred mineral resource is considered historical in nature). The geologic resource focused on a 650-metre section of the Diamantillo vein from surface to approximately 100-metre depth. Twenty-four drill holes were drilled at approximately 50-metre vertical spacing on sections spaced 50 to 100 metres apart.

The Horcon mineral resource estimate is a historical estimate, and the reader is cautioned not to treat them, or any part of them, as a current resource. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, and the company is not treating the historical estimate as current mineral resources or mineral reserves. The mineral resource is taken from a Great Panther technical report dated Feb. 20, 2017. However, based on the assumptions and methods in the prior technical report, as well as literature and data review, the company considers such estimate to be relevant and reliable, and provides an indication of the extent of mineralization identified by previous operators at El Horcon mine. To verify the historical mineral resource estimate as a current mineral resource, a qualified person would need to complete database validation, undertake a full review of estimation procedures, and complete an updated mineral resource estimate and a National Instrument 43-101 technical report incorporating additional production, drilling, sampling and reassaying of core completed at El Horcon since February, 2017.

Guanajuato Silver is also providing an update on the previously announced lawsuit with NucTech Mexico SA de CV against the company's subsidiary, Minera Mexicana Rosario SA de CV. As previously disclosed, the company sought an appeal against a ruling of a Mexican court holding MMR liable to pay damages to NucTech. The appeal was denied, thereby confirming the previously issued judgment. The company will continue to evaluate and pursue legal remedies available to it in this matter. The company notes that it has already accrued the liability in the company's financial statements for the year ended Dec. 31, 2025. See GSilver news release dated Dec. 4, 2025, for additional details.

Technical information

Additional information regarding the Bolanitos mine project can be found in the technical report dated April 23, 2026 (effective date March 19, 2026), titled "NI 43-101 Technical Report: Updated Mineral Resource and Reserve Estimates for the Bolanitos Project, Guanajuato State, Mexico," and prepared by Richard A. Schwering, SME-RM, PG, Jeffery Choquette, PE, Brian Arthur, SME-RM, each an employee or contractor of Hard Rock Consulting LLC, and Douglas Grant Feasby, PEng, of P&E Mining Consultants Inc., which is 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), 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, detected no significant 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 data referred to herein. The verification of data underlying the disclosed information includes reviewing production reports from each of the company's mining operations.

About Guanajuato Silver Company Ltd.

Guanajuato Silver is a precious metal producer with a portfolio of producing silver and gold mines in central Mexico. The company has a core operational footprint of four operating silver-gold assets in 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.

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