Mr. Alexander Langer reports

SIERRA MADRE FULLY REPAYS FIRST MAJESTIC LOAN

Sierra Madre Gold and Silver Ltd. has fully repaid the $5-million (U.S.) non-revolving, secured term loan between First Majestic Silver Corp. and the company.

Please see the company's press release dated May 8, 2024, for details of the original loan announcement, the company's press release dated June 5, 2025, for details of a term extension setting a new maturity date of May 8, 2027, and the company's press release dated March 24, 2026, announcing a partial prepayment of the loan.

Alex Langer, Sierra Madre's president and chief executive officer, stated: "We are happy to announce the full repayment of our loan facility with First Majestic, which reflects the strong cash generation from our La Guitarra operation. The company is currently debt-free and producing positive operating cash flows. By reducing our financial obligations, we are on a strong path to advance exploration and development activities at both La Guitarra and Del Toro."

Grant of stock options

Pursuant to its stock option plan, the company has granted stock options to employees of La Guitarra Compania Minera SA de CV, certain directors, members of management and consultants of the company to purchase an aggregate of 8.8 million common shares of the company at a price of $1.38 per share for a period of five years from the grant date. The options shall be granted under and subject to the terms and conditions of the plan and subject to the rules and policies of the TSX Venture Exchange. The grant includes 150,000 options granted to the company's investor relations consultant, Adelaide Capital Markets Inc., which will vest as to one-fourth three months after the date of the grant; one-fourth six months after the date of the grant; one-fourth nine months after the date of the grant; and one-fourth 12 months after the date of the grant. The remaining options will vest as to one-third immediately on the date of the grant; one-third six months after the date of the grant; and one-third 12 months after the date of the grant. This stock option grant is subject to acceptance by the TSX Venture Exchange.

About Sierra Madre Gold and Silver Ltd.

Sierra Madre is a precious metal producer and exploration company focused on operation, exploration and development at its Guitarra mine complex in the Temascaltepec mining district, 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.

In June, 2026, Sierra Madre closed the acquisition of the Del Toro silver mine, adding a past-producing, fully permitted asset to its Mexico-focused silver and gold portfolio.

The company also holds the 2,600-plus-hectare Tepic project, which 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 and exploration companies.

We seek Safe Harbor.