Guanajuato Silver Company Ltd. (TSX-V:GSVR) (OTCQX:GSVRF) is pleased to provide drilling results from its ongoing diamond drill program at its 100% owned El Cubo Mine located east of the city of Guanajuato, Mexico.

Highlights include:

• Drill results at El Cubo remain consistent with modeled ramp-up projections.
• A sub-parallel vein to Villalpando – the Asuncion Vein – has returned notable results.
• Drilling continues with two rigs operating at El Cubo and one operating at El Pinguico.

Conclusion of 2021 El Cubo Dill Program Maintains Consistency with Ramp-up Expectations:

Drilling at El Cubo has focused on the main Villalpando vein structure, specifically the 4-1500 stope area that forms a continuation of the Cebolletas and 2175 stope areas. Drill results represented below conclude GSilver’s 2021 drill program at El Cubo and are in-line with the Company’s ramp-up modeling. For 2022, Guanajuato Silver envisions an additional 8,000 metres of drilling at EL Cubo’s primary NW striking veins of Villalpando and Dolores. In parallel, GSilver is also planning over 9,000 metres of drilling in 2022 to target the transverse veins (NE striking) of El Cubo’s Santa Cecelia section; this area is underexplored and represents a primary zone for resource expansion. (See GSilver news release dated December 21, 2021 – GSilver Drills 17.4m of 327gpt AgEq).

Infill (Grade Control) & Expansion Drilling Continues at El Cubo

Both drill holes VPO21-07 and VPO-08 drilled into a secondary vein structure to Villalpando, called the Asuncion Vein; results here were among the best returned for this portion of the drill program. Notably, VPO21-07 returned 2.15 metres of 213 AgEq, demonstrating the potential of any of the 19 known vein structures at El Cubo to provide high grade results.

James Anderson, Chairman and CEO said: “All drill results remain consistent the with ramp-up expectations and position our mining operations at El Cubo to continue the current trajectory of delivering rising tonnage, grade, recoveries, and revenue from precious metals concentrate sales.”

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 Preliminary Economic Assessment report dated May 6, 2021 (effective date: January 31, 2021); a copy of which is available for review on SEDAR.

Hernan Dorado, Director and COO said: “These are solid results; GSilver geologists are learning more and more about the El Cubo deposit mineralisation, and are gaining the confidence to try more exploratory efforts into untested areas – especially at Santa Cecilia on the northern end of our El Cubo concessions.”

Figure 1: Long Section: Drill Results

Figure 2: Long Section of the entire south portion of the Villalpando Vein
The drill holes reported in in this news release are all within the stope area marked “4-1500”.

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.