Mr. Alexander Langer reports

SIERRA MADRE SECURES LAND USE AUTHORIZATION AND EXPANDS LAND HOLDINGS AT TLACOTAL

Authorization has been received for a change of land use for Sierra Madre Gold and Silver Ltd.'s Tlacotal property, located within the East district of the La Guitarra silver-gold complex in Estado de Mexico, Mexico. In addition, land purchase agreements covering the Tlacotal permit area plus an adjacent 33.1 hectares have been executed.

Adjacent to existing operations, Sierra Madre has entered into an option to purchase private lands southwest of the current tailings impoundment facility (TFS) along with the private lands under the current TFS -- the Lopez extension.

Alex Langer, chief executive officer, commented: "Receiving authorization for the Tlacotal land use change provides us with optionality for future mine development pathways in the East district. The land purchase agreements over the Lopez expansion area are also conductive to starting a permitting process for an expansion of the current tailings facility."

Greg Liller, chief operating officer and chair, commented: "We are very pleased with the land use authorization and expanded landholdings. These two milestones support the vision of building out a production centre at the East district concessions. Drilling is on schedule to start in the second half of 2026 with 20,000 to 25,000 metres planned."

Tlacotal land use authorization

The Cambia de Suelos (CUS) designation covers a 34.7-hectare area. It is a federal change in land use status from agriculture/forestry to mining.

This CUS will allow the company to use this land as a staging area for East district exploration in the near term and is ideally situated for potential future mine development and support facilities for the Mina de Aqua -- Santa Ana vein deposit.

The 2023 National Instrument 43-101 resource estimation for the Santa Ana vein in the East district is shown in Table 1.

Depending on exploration results, the permitted area is ideal for developing potential production crosscuts to the Magdalena-Candaleria system, an important Spanish Colonial production centre, along with the Quabradeas and other potential economically interesting veins.

This land is secured via a 30-year lease and the option to purchase will be exercised upon receipt of ownership transfer documentation.

Lopez extension

The Lopez option to purchase covers the existing TFS and the adjacent private lands to the south. Concurrent with the execution of the option to purchase, the lease agreement for the private land beneath the current TFS has been extended for an additional 30 years.

The company is exploring the possibilities of permitting an expansion of the current TFS in the area between the active tailings area and the utility easement. The area southeast of the utility easement is being evaluated for use as the main security entrance to the mine and employee parking. This would free up valuable space in the area immediately adjacent to operational facilities.

Qualified person

Gregory Smith, PGeo, director of Sierra Madre, is a qualified person as defined by National Instrument 43-101, and has reviewed and approved the technical data and information contained in this news release. Mr. Smith has verified the technical and scientific data disclosed herein.

About Sierra Madre Gold and Silver Ltd.

Sierra Madre Gold and Silver is a precious metals precious metals producer and exploration company focused on the Guitarra mine in the Temascaltepec mining district, Mexico, and the exploration and development of its Tepic property in Nayarit, Mexico. The Guitarra mine is a permitted underground mine, which includes a 500-tonne-per-day processing facility that operated until mid-2018 and restarted commercial production in January, 2025.

The 2,600-plus-hectare Tepic project hosts low-sulphidation epithermal gold and silver mineralization with an existing historic resource.

Sierra Madre's management team has played key roles in managing the exploration and development of silver and gold mineral reserves and mineral resources. Sierra Madre's team of professionals has collectively raised over $1-billion for mining companies.

We seek Safe Harbor.