Guanajuato Silver Company Ltd. (TSX-V:GSVR) (OTCQX:GSVRF) is pleased to provide selected 2021 production and exploration highlights.

2021 Highlights:

• Approximately 238,000 AgEq ounces produced during November and December 2021;199,500 AgEq ounces sold during the same period.
• With first concentrate sales in late October, 2021 revenue to December 31, 2021 totaled approximately US$4.1M.
• A total of 76,000 tonnes mined from different locations at El Cubo and the El Pinguico above ground stockpile.
• Material processed at the El Cubo mill reached a high of 33,000 tonnes during the month of December.
• 6,796 meters of exploration drilling completed at combined El Cubo/El Pinguico operation.
• The Santa Cecilia area commenced production in December, joining Villalpando and El Pinguico as the Company’s third source of mineralized material.
• El Pinguico above ground stockpile metallurgical recoveries averaged 74% for gold and 72% for silver; silver recoveries are considerably better than the 2020 bulk sample (see the Company’s news release dated June 9, 2020)

After completing the purchase of the El Cubo mining complex in April 2021, the Company has swiftly brought the mine and processing facility back into commercial production. Mining commenced at El Cubo in August 2021; the hauling of stockpiled material from the Company’s nearby El Pinguico property, and the restart of crushing and milling operations at the El Cubo plant commenced in October.

Hernan Dorado, Director and COO said: “We are very pleased with the swift pace with which we have brought the combined El Cubo and El Pinguico operation back into commercial production. The ongoing ramp-up, and continual improvements of tonnes mined and processed, head grade, and metallurgical recoveries is continuing.”

Current Operations:

At El Cubo, the Company is currently deriving mineralized material from the 4-1500, 1850, and 2175 stope areas of the Villalpando vein, and the San Nicolasand Soledadveins of the Santa Cecilia area of north El Cubo, while additional tonnage is being sourced from the El Pinguico above-ground stockpile. Altogether, the Company is currently treating approximately 30,000 tonnes per month through its El Cubo processing plant.

James Anderson, GSilver’s Chairman and CEO, commented, “2021 was an exciting and successful year for our Company, as it marked our evolution from exploration company to silver-gold producer. As we continue meeting or exceeding our production goals, we will carry on with our steady and continuous ramp-up of operations well into 2022. We are well positioned to continue our growth strategy this year.”

Additional Progress:

By the beginning of 2022, GSilver had employed over 280 full-time personnel; of which over 80% are from the Guanajuato area. More than 40 of GSilver’s employees are graduates of the University of Guanajuato, and the Company has established regular bi-weekly meetings with representatives from the city of Guanajuato.

Exploration:

The Company completed exploration drilling totalling 6,796m in 2021; 4,203m at El Pinguico, and 2,593m at El Cubo. Currently the Company has three drills in operation: one at El Pinguico and two at El Cubo. The Company plans to complete over 22,000m of exploration drilling on its Guanajuato properties in 2022; further details of exact targets and timelines will be outlined in subsequent news releases.

(Underground Drilling At El Pinguico)

(Underground Drilling At El Cubo)

(Surface Drilling At El Cubo)

Hernan Dorado Smith, a director and officer of GSilver and a “qualified person” as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects, has approved the scientific and technical information contained in this news release.

About Guanajuato Silver Company Ltd.:

GSilver is a precious metals producer engaged in reactivating past producing silver and gold mines near the city of Guanajuato, Mexico. The Company is currently producing silver and gold from its 100% owned El Cubo and El Pinguico projects, while simultaneously advancing the El Pinguico Mine to restart. Both projects are located within 11km of the city of Guanajuato, which has an established 480-year mining history.