Mr. Alexander Langer reports

SIERRA MADRE COMMENCES 30,000 METRE DRILL PROGRAM IN THE EAST DISTRICT OF LA GUITARRA

Sierra Madre Gold and Silver Ltd. has commenced a 30,000-metre drill program in the East district of the Guitarra silver-gold mine complex in Estado de Mexico, Mexico. Historic mines in the East district were some of the most prolific silver producers during the Spanish colonial period. Only limited exploration has been conducted in this area by previous operators. The detailed mapping done by the company has delineated multiple vein systems with a total strike length of over 39 kilometres.

Greg Liller, chief operating officer, states: "Since I first worked at Guitarra 20 years ago, I have felt this major historic silver district to be one of the best exploration opportunities in Mexico. With the first rig now on site, I am truly excited to be finally testing that idea. Through the mapping and modelling work completed by our team, Sierra Madre has developed a 3-D geological model to guide this program. Using a specialized drilling approach, the initial holes will target multiple structures to efficiently evaluate vein systems and test targets below historic workings."

As announced on July 14, 2026, the mapping enabled the company to develop a 3-D geologic model of the East district, which was used to optimize the design of the drill program. Initial drilling will focus on the metasediment-hosted veins using the fully permitted area for mining, Tlacotal, as a staging point. Subhorizontal drilling was determined to be the most effective method for testing the multiple vein systems at the same elevation as the productive horizon of the historic El Rincon mine and below the lowest drainage level of historic mines in these areas. This strategy required the contractor to build a specialized rig specifically for the program as part of the drilling contract. The rig arrived on site on Oct. 29.

The 2023 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 km. The company's systematic work and modelling to date have defined numerous additional vein systems over a much broader area, many of which contain significant historic workings.

Drill plans

Initial drilling from Tlacotal will target the Magdalena and Los Locos vein systems, and consist of 11 holes with projected target depths in excess of 1,000 metres each. As assay results are received, wedge holes will be planned off of the original 11 holes.

Production update

The company is also pleased to announce that mill throughput for October, 2026, averaged 751 tonnes per day (tpd). This represents a 50-per-cent increase from the previous 500 tpd nameplate capacity and is in line with the phase 1 expansion goal announced on Sept. 8, 2025. Additional production details will be released with the company's Q3 2026 financial results, expected in mid-November.

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 tpd 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.

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