Mr. Alexander Langer reports

SIERRA MADRE ONSITE POWER GENERATION FULLY FUNCTIONAL AT LA GUITARRA

The twin diesel electric generators have been installed at Sierra Madre Gold and Silver Ltd.'s producing La Guitarra silver-gold complex in Mexico. All components, the generators, substation and the machine control centre have been tested, and are fully functional and are performing at manufacturer design levels. Each generator is capable of producing 1,500 kilowatts.

As announced on Aug. 27, 2026, Sierra Madre is adding backup power generation capacity across La Guitarra, including the two 1,500 kW generators for the plant detailed in this release, plus a 1,250 kW diesel generator for Coloso and Nazareno, to mitigate the impact of weather-related power outages.

Gregory K. Liller, chief operating officer, commented: "Between January and August of this year, the production facility was down a total of 278 hours due to grid power interruptions. This equates to over 11 days of lost production. With the successful commissioning of the generating plant, the lost production revenue plus down time personnel and associated costs are now expected to be behind us. The company has implemented an aggressive program to reduce operating costs and the backup generating capacity is a major milestone in achieving this."

Marketing and investor awareness

The company has entered into a marketing and investor awareness agreement dated Sept. 8, 2026, with New Era Publishing Inc. Under the terms of the agreement, New Era will provide marketing and promotional services to the company for a period of two months in exchange for a fee of $250,000 (U.S.). New Era is a digital marketing and media firm established in 2016 based in Vancouver, B.C. New Era provides digital marketing, e-mail and market awareness services, and assist its clients with reaching potential investors. New Era will further engage Carbon Credits to connect North American and European audiences to bolster awareness of the company through the Carbon Credits website, articles and e-mail newsletters. New Era and Carbon Credits and the company are unrelated and unaffiliated entities at arm's length of each other, and neither New Era, nor its principals have an interest, directly or indirectly, in the securities of the company. The services under the marketing and investor awareness agreement are expected to commence toward the end of September, 2026, and will continue for a period of two months.

Grant of stock options

Pursuant to its stock option plan, the company has granted stock options to employees of La Guitarra Compania Minera S.A. de C.V., and consultants of the company to purchase an aggregate of 350,000 common shares of the company at a price of $1.56 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 company's stock option plan and subject to the rules and policies of the exchange. The remaining options will vest 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.

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 producer and exploration company focused on the 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 companies.

We seek Safe Harbor.