Guanajuato Silver Company Ltd. (TSX-V:GSVR) (OTCQX:GSVRF), a growing Mexican-based precious metals producer, announces that over 3,000,000 ounces of silver-Equivalent ⁽¹⁾ have now been produced at the El Cubo mill; this significant milestone has triggered the last remaining contingent payment owed to Endeavour Silver Corp. as part of the purchase of the El Cubo mine and mill complex located in Guanajuato, Mexico.

In 2021, Guanajuato Silver purchased El Cubo from Endeavour for US$15,000,000; the transaction included a contingent payment that would see Endeavour paid an additional US$1,000,000 once 3,000,000 AgEq ounces had been produced at El Cubo (the “Contingent Payment“)(See GSilver news release dated December 21, 2020 – “GSilver to Acquire El Cubo Mine & Mill from Endeavour Silver Corp). As part of the agreement, Guanajuato Silver has the right to settle one half of the Contingent Payment through the issuance to Endeavour of 2,753,265 common shares in the capital of the Company at a deemed price of C$0.245 per share, this being the 10-day VWAP price of the shares 30 days after the milestone was reached. As part of a shares for debt agreement, Endeavour has agreed to settle the balance of the contingent payment through the issuance of approximately 2,720,000 common shares in the capital of the Company at a deemed price of C$0.25 per share.

Additionally, Ocean Partners UK Limited, a metals off-take and trading firm, has agreed to accept shares for debt for two months’ of outstanding payments on the existing Gold Loan Credit Facility which the Company began paying down in June 2024 (See GSilver news releases dated December 5, 2023 and February 29, 2024). Ocean Partners will receive approximately 9,771,635 shares for total consideration of approximately US$1.8M under the same terms as the Endeavour Debt Settlement. The Expanded Facility is Guanajuato Silver’s only remaining outstanding loan and is repayable in equal fixed monthly installments of gold totalling approximately 338 troy ounces per month for a period of 30 months which commenced in June 2024.

James Anderson, Chairman & CEO, said, “Guanajuato Silver has been able to rapidly advance production at our four producing silver mines in large part because of the willingness of our financial partners to provide flexibility and solutions that do not inhibit growth. Ocean Partners has been our preferred metals trader from inception; and we are pleased that they are now one of our larger shareholders with approximately 4.9% of all shares outstanding. We look forward to continuing our relationship with Ocean Partners; we see this as a genuine partnership that is central to our continued success.”

Guanajuato Silver has also arranged to settle approximately US$250,000 in outstanding liabilities of the Company by the issuance of approximately 1,360,000 common shares in the capital of the Company to an arm’s length third party under the same terms as the Endeavour Debt Settlement.

The Endeavour Debt Settlement, OP Debt Settlement and Third Party Debt Settlement are subject to acceptance of the TSX Venture Exchange and all shares issued thereunder will be subject to a statutory hold period of four months and a day from the date of issuance in accordance with applicable securities legislation.

(1) AgEq has been calculated using an 82.77:1 (Ag/Au) ratio from October 1, 2021, until September 20, 2024.

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.