Company Expands Private Placement

Guanajuato Silver Company Ltd. (TSX-V:GSVR)(OTCQX:GSVRF) is pleased to provide a production update on the continuing ramp-up at its 100% owned El Cubo silver and gold mine in Guanajuato, Mexico.

Concentrate Sales:

On November 15, 2021, the Company received provisional proceeds of approximately US$750,000 from the sale of a second delivery of precious metals concentrate from El Cubo. This second shipment consisted of approximately 90 tonnes of bulk silver and gold concentrate grading approximately 220 ounces per tonne silver and 2.2 ounces per tonne gold; the Company continues to ramp up both in terms of tonnes processed and head-grade. Additionally, the Company has now delivered and invoiced approximately 175 additional tonnes of concentrate at similar grades and anticipates receiving a third provisional payment of approximately US$1,300,000 on or about Dec. 3, 2021.

James Anderson, Chairman and CEO, said, “As Mexico’s newest precious metals producer, we continue to advance towards the successful completion of this ramp-up stage at El Cubo. Because of the technical excellence and deep commitment of our Mexican operations team, we remain ahead of our planned production schedule, and our goal of becoming EBITA positive in Q1 remains on-track.”

Mine Production:

Since October 15, 2021, the Company has mined mineralized material at the rate of approximately 450 tonnes per day from the El Cubo mine. For the week ending November 21, 2021, the Company averaged 950 tonnes per day while combining mining from El Cubo and deliveries from the El Pinguico stockpile, showing GSilver’s ability and flexibility to accelerate production as desired and as warranted. The current mined output from El Cubo remains on target with the Company’s ramp-up schedule.

The El Cubo processing complex is currently operating at approximately 1,000 tonnes per day and the Company expects the plant to operate for 22 to 24 days per month, with 6 to 8 days per month of downtime for further refurbishment and mill maintenance, for an average monthly operating rate of 22,500 tonnes for the next 6 months.

Recoveries:

Since the recommencement of production, silver recoveries have averaged approximately 85%; this is approximately 99% of the recovery target rate and represents a remarkable achievement coming so soon after the re-start. Gold recoveries are also improving; recoveries have averaged approximately 74%, which is approximately 84% of the targeted historical recovery rate. GSilver has implemented and continues to implement several procedures to boost gold recoveries and is confident that gold recoveries will continue to increase to more than 80% in the near future.

Private Placement:

GSilver also announces that due to increased demand the Company has expanded the size of its non-brokered private placement financing announced November 18, 2021. Subject to acceptance of the TSX Venture Exchange, the Private Placement will now consist of a total of 16,000,000 units at a price of $0.55 per Unit for gross proceeds of $8,800,000. Each Unit will consist of one common share of the Company and one half of a common share purchase warrant; with each Warrant entitling the holder to purchase an additional common share of the Company at a price of $0.75 within two years of closing, subject to acceleration in certain events. All other terms of the Private Placement as announced on November 18, 2021 remain the same with an initial closing of the Private Placement planned for tomorrow, November 30, 2021.

About Guanajuato Silver Co. 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 at its 100% owned El Cubo Mine, while simultaneously advancing the nearby El Pinguico Mine to restart. Both projects are located within 11km of the city of Guanajuato, which has an established 480-year mining history.