Guanajuato Silver Company Ltd.  (TSX-V:GSVR) (OTCQX:GSVRF) is providing an update on exploration and development work at the Company’s wholly-owned Valenciana Mines Complex located in Guanajuato, Mexico.

Highlights

• High-grade veins and associated breccias have been intercepted at the Santa Margarita zone including:
  • 0.98 metres true width grading 16.7 g/t gold and 12 g/t silver for 1,432 g/t AgEq*
  • 0.26 metres true width grading 45.3 g/t gold and 38 g/t silver for 3,886 g/t AgEq
• Drilling at Santa Margarita has demonstrated comparatively higher gold values than the historical average seen at the Valenciana Mines Complex.
• These highly encouraging results will form the basis for a new mining block that will be prepared for development in 2025.

James Anderson, Chairman & CEO, said, “Valenciana’s 500-year mining history shows no sign of slowing down; the latest drill program has generated solid results that positions the Santa Margarita area as a near-term source of production grade material.”

During the first quarter of 2025, a total of approximately 475 metres of diamond drilling was completed in the Santa Margarita and Maravillas areas at the Valenciana Mines Complex; the results of which are presented below:

*(All AgEq calculations in this news release use a silver to gold ratio of 85:1; some AgEq figures may vary slightly due to rounding)

Drilling of the Santa Margarita Vein occurred in the Veta Madre hanging wall, where results show indications of an in-situ block of potentially economic material within the contact of the area of the Veta Madre structure.

Figure 1 – Long section of eastern portion of the Valenciana Mines Complex highlighting the current drilling location within the Santa Margarita area, and the location of UGM25-001 within the Maravillas area.

A drilling program was completed at the Maravillas zone which tested for new vein shoots; this area of VMC has historically seen very limited exploration. UGM25-001, which targeted the Veta Madre, intersected a wide vein intercept with a true width of 7.06 metres.  (See Guanajuato Silver news release dated November 20, 2024 titled “Guanajuato Silver Drills 3.19m of 492 g/t AgEq* at Valenciana Mines Complex”). Results for UGM25-001 showed a zone of moderately mineralized material; additional drilling in this area will look to expand the known vein footprint and seek to determine if other high-grade mineralized shoots are located within this portion of the vein system.

Sampling and quality assurance/quality control

Guanajuato Silver adheres to thorough QA/QC procedures and practices that exceed standard regulatory requirements when managing the Company’s testing and sampling. 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 Guanajuato Silver’s local laboratory, located at the Valenciana Mines Complex at Ex-Hacienda de Bustos in Guanajuato City. This laboratory is owned and operated by the Company and is not independent. To validate the Company’s assay results and preparation procedures, GSilver customarily sends additional random samples representing approximately 20% of all analytical samples to one of two ISO certified labs: Quimico Platinum, located at Silao, Guanajuato or Bureau Veritas located in Hermosillo, Sonora, Mexico. Both laboratories are certified at the ISO/IEC (International Organization for Standardization/International Electrotechnical Commission) geo-analytical laboratory and are independent of GSilver and its “qualified person”. Core samples were subject to crushing at a minimum of 70% passing two millimeters, followed by pulverizing of a 250-gram split to 85% 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. As of the date of this press release, the Company has not yet received the results of the random samples sent to the independent laboratory.

Qualified Person 

William Gehlen, a Director of Guanajuato Silver, is a Certified Professional Geologist with the American Institute of Professional Geologists (No. 10626), and a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.

Mr. Gehlen has reviewed and verified technical data disclosed in this news release and has not detected any 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 drilling data referred to herein. The verification of data underlying the disclosed information includes reviewing compiled assay data; QA-QC performance of blank samples, duplicates and certified reference materials; and grade calculation formulas.

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.