Guanajuato Silver Company Ltd. (TSX-V:GSVR) (OTCQX:GSVRF) is pleased to announce that its first shipment of precious metals concentrate from its newly refurbished El Cubo mill has been delivered and sold as per the Company’s previously announced concentrate sales agreement with Ocean Partners UK Ltd. (see Sept. 23, 2021 news release).

Concentrate Sales:

A total of approximately 75 tonnes of bulk silver and gold concentrate worth approximately US$480,000.00 was delivered and sold during the week of October 18. The concentrate graded approximately 200 ounces per tonne silver and 2 ounces per tonne gold and was milled and produced at the Company’s newly refurbished El Cubo processing plant from silver and gold bearing material currently stockpiled at the El Cubo storage yard (see Oct. 12, 2021 news release). GSilver has received an initial provisional payment for the concentrate, representing 90% of its payable value. The additional 10% payment will be paid when remaining details regarding this initial shipment are finalized. Future shipments are anticipated to be larger and of higher grade as the Company ramps-up production to its planned mineral processing levels of ~ 22,500 tonnes per month by the end of January 2022.

“With this first sale of concentrate, we have completed the transition to the status of a silver and gold producer and established a new precious metals company in the heart of Mexico,” said GSilver Chairman and CEO James Anderson. The success of the El Cubo Mine re-start is due to the technical excellence of our Mexican operations team. It highlights a company focused on business execution, while honouring social and environmental obligations and I applaud everyone at Guanajuato Silver as we work to complete the ramp-up phase at El Cubo with the same level of efficiency that has defined our progress to date.”

Production Ramp-Up:

In the first few weeks of production, GSilver has achieved several important milestones. Silver recoveries have averaged 82% with gold recoveries averaging approximately 74%. The Company anticipates that recoveries will improve over the next several weeks as the ramp-up continues. Also, during the ramp-up, the number of tonnes put through the plant on a daily basis had continued to increase. Starting with an average of approximately 600 tonnes per day of throughput, on October 17^th the Company achieved daily throughput of over 1000 tonnes for the first time – another important achievement.

Financial Liquidity:

The Company has received the provisional proceeds of its first sale of concentrate from El Cubo and contemporaneously received an additional US$1,500,000 from Ocean Partners UK Ltd., as part of an 18-month financing facility described in the Company’s Sept. 23^rd news release. The Company currently has over US$5.0m in cash, with additional silver and gold concentrate sales now ongoing.

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.