Reports Successful Drilling from Three Different Guanajuato Areas

Guanajuato Silver Company Ltd. (TSX-V:GSVR)(OTCQX:GSVRF) is pleased to report drill results from its ongoing exploration programs at the Company’s wholly owned El Cubo Mine Complex and El Pinguico project in Guanajuato, Mexico.

Highlights from Recent Drilling at the Company’s Guanajuato properties:

• Hole VP022-002: 1,956 grams per tonne (gpt) Ag and 12.90 gpt Au for 2,988 gpt AgEq over 0.55m (0.35m est. true width) from the Villalpando vein, at the Capulin area, at El Cubo.
• Holes SC22-001 and SC22-002: 42 gpt Ag and 7.56 gpt Au for 647 gpt AgEq over 0.35m (0.3m est. true width) in hole SC22-001 and 276 gpt Ag and 4.49 gpt Au for 636 gpt AgEq over 0.30m (0.13m est. true width) and 194 gpt Ag and 2.60 gpt Au for 402 gpt AgEq over 0.55m (0.30m est. true width) in hole SC22-002from the ‘680′ vein, and the Tuberos and Poniente veins, respectively, at the Santa Cecilia area, at El Cubo.
• Hole P21-22: 227 gpt Ag and 2.11 gpt Au for 396 gpt AgEq over 1.5m (0.60m est. true width) and 193 gpt Ag and 1.15 gpt Au for 285 gpt AgEq over 0.6m (0.24 m est. true width) from the Arroyo vein and El Pinguico vein, respectively, at the El Pinguico project.

“These results serve to build confidence in our understanding of geological controls of high-grade mineralisation within the various veins and different zones of our Guanajuato mine holdings. Further, drilling at the El Cubo mine continues to identify mineralisation that the Company can quickly build into its near-term mining plans,” commented James Anderson, Chairman and CEO of Guanajuato Silver.

GSilver continues infill and expansion drilling at the El Cubo Mine targeting the Villalpando, Asuncion, Tuberos and ‘680′ veins at the Villalpando and Santa Cecilia areas; in parallel, GSilver is continuing exploration at the El Pinguico project targeting the Arroyo and Pinguico veins. From late January to end of March 2022, a total of 3,130 meters in 14 holes were drilled from underground at the Guanajuato properties.

The drill results announced today include the last two holes drilled at El Pinguico in 2021, and six of the 14 diamond drillholes drilled so far this year. The Company is reporting results for a total of eight drill holes from the three areas.

Villalpando Exploration

Drilling at the Capulin area of El Cubo, targeting the Villalpando and Asuncion vein structures, has been very successful. Overlooked by previous operators, this area boasts ample development work with easy access to newly defined mineralised material. The Asuncion vein occasionally exhibits bonanza grades as highlighted by VPO22-002, which returned over 95 troy ounces of silver-equivalent over an estimated true width of 0.35 metres. At Capulin, drill holes VPO22-04 and VPO22-05 have been drilled and are out for assay. Drilling remains ongoing in this area.

Figure 1: Capulin Area, El Cubo Mine

Santa Cecilia Exploration and Development

Drilling in the Santa Cecilia area of El Cubo targets numerous vein structures; these include ‘680′, Tuberos, Poniente, and the northern extension of Villalpando. In this area, productive veins are often perpendicular (transverse) to the regional NW structure and frequently carry proportionally higher gold content.

As mine production in the Santa Cecilia area continues to take on a more important role within GSilver’s El Cubo mining strategy, and in view of the area’s important grade potential, the decision has been made to join the southern Villalpando area with the northern Santa Cecilia area at depth. With only approximately 150m of development tunnelling to complete before this connection is made, management estimates that the work necessary for this task will take only approximately 6 to 8 weeks. Upon completion, haulage trucks, which currently need to travel on gravel roads for 6.7km from Santa Cecilia to our processing plant, will now need only to travel 2.5km within the mine; thereby reducing fuel costs, tire wear, and road maintenance costs significantly and immediately.

At Santa Cecilia, drill holes SC22-03 to SC22-08 have been drilled and are out for assay. Drilling at Santa Cecilia, an area that was largely discounted by previous operators, remains ongoing.

Figure 2: Santa Cecilia Area, El Cubo Mine

Commenting on these results, James Anderson added, “The gold-bearing transverse veins at Santa Cecilia are demonstrative of the numerous opportunities that exist at El Cubo where we can take advantage of rich mineralization that was largely overlooked in recent years. Remarkably, we are already producing precious metals concentrate from backfill and stacked material that was previously left behind at Santa Cecilia. Evidence of additional similar transverse veins are present throughout El Cubo, and we expect that these systems will form a major component of our mining operations into the future.”

El Pinguico Exploration

Drill results from the El Pinguico project included two drill holes drilled from the San Jose #2 crosscut in 2021. P21-22 encountered the Pinguico system and returned 0.60m estimated true width (ETW) at 285 gpt AgEq. Importantly, both holes cut good widths of very good grade in the Arroyo vein; this vein was encountered previously but until now had only returned moderate results. These results will be thoroughly studied and interpreted by GSilver geological staff prior to additional targeting of this area.

Figure 3: Pinguico Project (2021)

2022 drilling at El Pinguico was targeted from a drill site located within the old mine workings at Adit Level 1 for the first time. Good widths of moderate grade were encountered in P22-01. P22-02 encountered no significant results; P22-03 is out for assay, while drilling of P22-04 is ongoing.

Figure 4: El Pinguico Project (2022)

Note: All silver equivalent (AgEq) values are calculated based on a long-term gold to silver price ratio of 80:1 as used by mineral industry advisors, Behre Dolbear and Company (USA), Inc., in the Company’s NI 43-101 PEA report with the effective date of January 31, 2021; a copy of which is available for review on SEDAR. Abbreviations used in this news release include: gpt: grams per tonne; Au: gold; Ag: silver; ETW: estimated true width; m: metre, AgEq: silver equivalent, Est.: estimated, FW: Footwall.

Sampling and quality assurance/quality control

Drill core was first reviewed by a Company geologist, who identified and marked intervals for sampling. The marked sample intervals were then cut in half with a diamond saw; half of the core was left in the core box and the other half was removed, placed in plastic bags, sealed and labeled. Intervals and unique sample numbers are recorded on the drill logs and the samples are sequenced with standards and blanks inserted according to a predefined QA/QC procedure. The samples are maintained under security on site until they are shipped to the analytical lab. The analytical work reported on herein was performed by Corporacion Quimica Platinum S.A de C.V., Silao, Guanajuato, Mexico. To validate our assay results and our preparation procedures, GSilver sends additional random samples representing approximately 20% of all analytical samples to Bureau Veritas in Hermosillo, Sonora, Mexico. Bureau Veritas is an ISO/IEC (International Organization for Standardization/International Electrotechnical Commission) geo-analytical laboratory and is independent of GSilver and its “qualified person”. In order to further validate our assay results and our preparation procedures GSilver sent additional random samples representing approximately 10% of all analytical samples to SGS Mexico, S.A de C.V, Durango, Mexico. SGS is also an ISO/IEC geo-analytical laboratory and is independent of GSilver and its “qualified person”. Core samples were subject to crushing at a minimum of 70 per cent passing two millimeters, followed by pulverizing of a 250-gram split to 85 per cent passing 75 microns. Gold determination was via standard atomic absorption (AA) finish 30-gram fire assay (FA) analysis, in addition to silver and 34-element using fire assay and gravimetry termination. Following industry-standard procedures, blank and standard samples were inserted into the sample sequence and sent to the laboratory for analysis. Data verification of the analytical results included a statistical analysis of the standards and blanks that must pass certain parameters for acceptance to ensure accurate and verifiable results. GSilver detected no significant QA/QC issues during review of the data and is not aware of any sampling, recovery or other factors that could materially affect the accuracy or reliability of the data referred to herein.

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 Co. Ltd.:

GSilver mines and processes silver and gold concentrate from its El Cubo mine and mill. The Company continues to delineate for additional silver and gold resources through underground drilling at El Cubo and its nearby El Pinguico project. Both projects are located within 11km of the city of Guanajuato, Mexico, which has an established 480-year mining history.