Mr. Alexander Langer reports

SIERRA MADRE RECEIVES PERMIT TO START EAST DISTRICT EXPLORATION DRILLING

Sierra Madre Gold and Silver Ltd. has received Semarnat (Secretaria del Medio Ambiente y Recursos Naturales, the federal Mexican regulatory agency in charge of environmental permitting) approval for drilling in the East district of the Guitarra silver-gold mine complex. The approval is for 22 drill pads from which multiple holes can be drilled.

Based on detailed surface mapping, exposures in the accessible old workings, along with historic data and maps, a 3-D model of the East district vein systems has been developed. The drilling will test up to 30 different mapped vein systems and will be the first phase of a fully budgeted 30,000-metre drill program.

The company is currently receiving bids from multiple drill contractors for phase 1 of the drilling program. Once a contractor has been selected, the company expects drilling to start within 60 days.

Greg Liller, chief operating officer, commented: "The exploration team has done a very thorough job of surface and underground mapping, locating and compiling old reports, maps and sections and developing a structural model. We were aware of multiple vein systems from the initial round of surface mapping in the East district and now have a better understanding of the complex structural systems controlling mineralization. This information has allowed us to build a 3-D model, which will be used to guide the upcoming drill program.

"The 2023 NI [National Instrument] 43-101 La Guitarra report contains an exploration potential estimate for the East district of 770,000 to 1.54 million tonnes grading 2.4 to 3.6 grams per tonne gold and 440 to 670 g/t silver. This estimate is only for five of the vein systems in the East district and covers a combined strike length of just 7.7 kilometres. Our systematic work and modelling to date have defined numerous additional vein systems over a much broader area, many of which contain significant historic workings. We acquired La Guitarra in part because of our belief that the East district was one of the best exploration opportunities in Mexico. I am very excited to begin a drilling campaign to test that idea."

Exploration potential: The 2023 NI 43-101 report contains an estimate of the exploration potential for the East district. See quote from Section 9.6 of the report for an estimate of the exploration target range at the East district: "In 2002, Luismin completed an assessment of the exploration potential in the East district (Nuevo Descubrimiento, Las Animas-Socorro, Marmajas-Echada, Magdalena-Zayas and Purisima veins) using the results of surface mapping, historical mine records and preliminary drilling at Santa Ana (Mina de Agua). The QP [qualified person] has used Luismin's estimates of the strike length, the width of the veins, an assumption of a 200-metre vertical depth, an assumed bulk density of 2.6 and a range of 20 per cent to 40 per cent of the vein being mineralized to estimate a tonnage of between 770,000 tonnes and 1.54 million tonnes. A grade range of plus or minus 20 per cent Luismin's average grades was used to estimate silver grades between 440 g/t to 670 g/t Ag and to estimate gold grades of between 2.4 g/t and 3.6 g/t Au. Combined total strike length of these vein systems is 7.7 km. The potential quantity and grade are conceptual in nature; there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource." The 2023 mineral resource estimate included an East district component at Mina de Agua, with an indicated resource of 761,000 tonnes grading 159 g/t silver and 0.19 g/t gold and an inferred resource of 545,000 tonnes grading 178 g/t silver and 0.13 g/t gold.

East district drill plans

Initial drilling would be done from the Tlacotal area, for which the company has surface ownership and is permitted for mining activities (see press release dated Jan. 27, 2026). The first seven drill holes would be subhorizontal and 1,000 to 1,500 metres in length each.

Phase 1 drilling details

The four holes planned to be drilled from the same pad are designed to test the Magdalena vein system, a significant past producer below the historic workings and in the same elevational zone that was most productive in the Rincon mine.

The additional three holes planned to be drilled from separate pads would test the veins that were productive in the Los Locos mine. Once assays are received, these holes would be used for wedge drilling to provide infill and offset drill holes, along with further drilling from the additionally permitted pads.

Discussions are under way to secure surface access in the Rincon mine area, which would allow Sierra Madre to secure a separate drill permit. Initial drilling in the Rincon mine would consist of nine holes, 600 to 1,000 metres in length each, designed to intersect multiple veins. The location of historic underground workings was estimated by combining multiple maps and sections from old reports with surveying and mapping of historic workings.

A second round of drilling will be based on the results of these initial nine holes.

In addition, drilling is planned for the Inca and La Palma vein systems north of the Guitarra mine. Permits for this area have already been received.

Qualified person

Gregory Smith, PGeo, director of Sierra Madre, is a qualified person as defined by NI 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 is a precious metals producer and exploration company focused on the operation, exploration and development at its Guitarra mine complex in the Temascaltepec mining district in 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 greater-than-2,600-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 companies.

Cautionary note regarding production decisions

The company's decision to place the mine into commercial production, expand a mine, make other production-related decisions, or otherwise carry out mining and processing operations is largely based on internal non-public company data and reports from previous operations and the results of test mining and processing. The company is not basing any production decisions on NI 43-101-compliant reserve estimates, preliminary economic assessments or feasibility studies, and, as a result, there is greater risk and uncertainty as to future economic results from the Guitarra mine complex, including increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially minable deposit and a higher technical risk of failure than would be the case if a feasibility study were completed and relied upon to make a production decision.

We seek Safe Harbor.