Anticipates Closing Private Placement First Tranche December 21^st

Guanajuato Silver Company Ltd.  (TSX-V:GSVR) (AQUIS:GSVR) (OTCQX:GSVRF) is pleased to provide recent drill results from the Company’s wholly owned Topia mine in Durango, Mexico.

Since the acquisition of the Topia mine in August (see GSilver news release dated August 4, 2022 – “GSilver Closes Acquisition of Great Panther’s Mexican Mining Assets”) the Company has continued with exploration programs centered on delineating resources and increasing mine life. These new drill results focus on the La Prieta, Rosario, and Dos Amigos vein structures in the central part of the district and are part of an infill and resource delineation drill program that commenced after the acquisition of the Topia mine and is ongoing.

Note: All silver equivalent (AgEq) values are calculated using an 81.08:1 (Ag/Au), 0.04:1 (Ag/Pb), and 0.06:1 (Ag/Zn). Abbreviations used in this news release include the following: g/t: grams per tonne; gpt: grams per tonne; Au: gold; Ag: silver; m: metre, and AgEq: silver equivalent.

James Anderson, Chairman & CEO said, “These results demonstrate the continuity of mineralization along the lateral extent of the target horizon and outside the boundaries of our current mining areas. Mining has been ongoing at Topia for roughly 70 years and these high-grade intercepts strengthen our commitment to expand milling capacity from 7,500 tonnes per month to over 10,000 tonnes per month through 2023-24.”

Epithermal mineralization at Topia exists as a system of narrow, high-grade veins measuring up to 1.50m in thickness and occurring within an undulating band of mineralized material that ranges vertically from 100m to 200m, within a lateral extension continuing for several kilometers.  The drilling completed over the last three months has provided a better understanding of the control and trend of the mineralized bodies in the La Prieta, Rosario and Dos Amigos vein systems.

Equity Financing Update:

The Company also announces its plan to close an initial tranche representing the majority of its non-brokered C$7,500,000 private placement, first announced on December 12^th, 2022 (see GSilver news release of the same date – Guanajuato Silver Announces L.I.F.E. Equity Financing), on Wednesday, December 21, 2022.

Sampling and quality assurance/quality control

Drill core is first reviewed by a Company geologist, who identifies and marks intervals for sampling. The marked sample intervals are then cut in half with a diamond saw; half of the core is left in the core box and the other half is 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. Core samples are 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 is 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.

Technical Information

Reynaldo Rivera, VP of Exploration of GSilver, has approved the scientific and technical information contained in this news release. Mr. Rivera is a member of the Australasian Institute of Mining and Metallurgy (AusIMM – Registration Number 220979) and a “qualified person” as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.

About Guanajuato Silver

GSilver is a precious metals producer engaged in reactivating past producing silver and gold mines near the city of Guanajuato, Mexico, which has an established 480-year mining history. With five mines and three processing facilities, the Company is one of the fastest growing silver producers in Mexico.