Guanajuato Silver Company Ltd. (TSX-V:GSVR), a growing Mexican-based precious metals producer,is pleased to announce that it has closed its previously announced “bought deal” public offering of 87,000,000 units of the Company at a price of C$0.50 per Unit for gross proceeds of C$43,500,000. The Offering was conducted by Canaccord Genuity Corp. and Red Cloud Securities Inc. as co-lead underwriters and joint bookrunners.

Each Unit consists of one common share of the Company and one-half of one common share purchase warrant. Each Warrant entitles the holder thereof to acquire one Common Share of the Company at a price of C$0.65 at any time before 5:00 p.m. (Vancouver time) on October 9, 2028.

The net proceeds of the Offering will be used for sustaining and development capital for the Company’s four operating mines in Mexico, working capital and general corporate purposes.

The Units were offered by way of a prospectus supplement dated October 3, 2025 to the Company’s short form base shelf prospectus dated August 21, 2024 to purchasers in each of the provinces and territories of Canada (other than Québec) and were also offered by way of private placement in the United States.

In connection with the Offering, the Company has granted the Underwriters an option to purchase, on the same terms and conditions of the Offering, up to an additional 13,050,000 Units issued in connection with the Offering. The Underwriter Option is exercisable, in whole or in part, by the Underwriters at any time until and including November 8, 2025. The maximum gross proceeds raised under the Offering would be C$50,025,000 in the event the Underwriter Option is fully exercised.

No new insiders, or control persons, were created as a result of the Offering.

In consideration for their services in connection with the Offering, the Underwriters received a total cash commission of C$2,595,000 and were each issued 2,587,500 non-transferable warrants of the Company. Each Broker Warrant entitles the holder thereof to purchase one Common Share at a price of C$0.50 at any time before 5:00 p.m. (Vancouver time) on October 9, 2028.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws or an exemption from such registrations are available. No public offering of securities is being made in the United States. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Guanajuato Silver

GSilver is a precious metals producer engaged in reactivating past producing silver and gold mines in central Mexico. The Company produces silver and gold concentrates from the El Cubo Mine, Valenciana Mines Complex, and the San Ignacio Mine; all three mines are located within the state of Guanajuato, which has an established 480-year mining history. Additionally, the Company produces silver, gold, lead, and zinc concentrates from the Topia mine in northwestern Durango. With four operating mines and three processing facilities, Guanajuato Silver is one of the fastest growing silver producers in Mexico.