Guanajuato Silver Company Ltd. (TSX-V:GSVR) (AQUIS:GSVR) (OTCQX:GSVRF) is pleased to announce that it has closed the second and final tranche of its non-brokered private placement offering totaling C$8.5 million announced on December 12, 2022 and expanded on January 5, 2023. The Company issued 4,080,486 units for gross proceeds of C$1,734,206.55 in the second tranche for a total Offering of 20,032,682 Units for gross proceeds of C$8,513,889.85. Each Unit consisted of one common share of the Company and one-half of one transferable share purchase warrant; each whole warrant exercisable to purchase an additional Share at C$0.60 for a period of two years after closing. The Shares and Warrants were issued by the Company pursuant to the Listed Issuer Financing Exemption under Part 5A of National Instrument 45-106 – Prospectus Exemptions and therefore are “free-trading” under applicable Canadian securities laws.

Chairman and CEO, James Anderson, said, “The strengthening of our balance sheet at this time gives us the flexibility to deploy targeted capex at specific areas of our business that we believe will prove accretive to shareholders as we aim to expand production across all four of our producing silver mines in Mexico.”

The net proceeds of the Offering will be used to, among other things, ramp up production at the Company’s existing mines in and about Guanajuato, Mexico including El Cubo, San Ignacio and Valenciana, expand and modernize the processing facilities at the Topia mine in Durango, Mexico, increase brownfields’ exploration programs, and fund general and administrative expenses as more particularly described in the Company’s amended and restated offering document dated December 31, 2022 prepared in connection with the expanded Offering. The Amended Offering Document related to this Offering can be accessed under the Company’s profile at www.sedar.com and at the Company’s website at www.gsilver.com.

The Company has paid total finder’s fees in connection with the first and second tranches of the Offering of $238,262.13 cash and finder warrants to purchase up to 550,591 common shares of the Company on the same terms as the Warrants in accordance with the policies of the TSX Venture Exchange.

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.