Guanajuato Silver Company Ltd. (TSX-V:GSVR) (OTCQX:GSVRF), a growing Mexican-based precious metals producer, is pleased to provide an update on its 2024 exploration drilling program at the Valenciana Mines Complex in Guanajuato, Mexico. The Company anticipates providing exploration highlights from its El Pinguico Project and San Ignacio mine located in Guanajuato Mexico, and its Horcon Project located in Jalisco, Mexico, prior to year end.

James Anderson, Chairman & CEO, said, “Our exploration programs continue to align with our production goals as we look to use our exploration successes to support our mid to long-term production growth. The district scale potential of the substantial Veta Madre system in Guanajuato remains the focus of our efforts; we are privileged to have the opportunity to run advanced exploration programs within the heart of one of Mexico’s richest silver mining camps.”

Guanajuato Mining District Map

*All references in this news release to silver equivalent or AgEq have been calculated using 85:1 gold/silver (Ag/Au).

Valenciana Mines Complex

In Q2, 2024, drilling began at VMC, with a total of 679 meters of infill drilling completed across seven drill holes, using the Company’s Ingetrol underground drill rig. These holes were drilled into the upper vein system of Veta Madre, in the Cata mine area. The Cata deposit is located at an inflection point of the Veta Madre structure; in this area, a vein system has been identified with crystalline texture and stockwork, oriented northwest-southeast, parallel to Veta Madre.

Long Section – Valenciana Mines Complex – Cata Area Highlighted

Mining operations at Cata are currently underway at the 667 Stope, which corresponds to the Alto 3 vein of the Veta Madre system. Exploration work at the Valenciana Mines Complex during Q3 2024 focused on two key areas: the evaluation and reinterpretation of stope extensions and the analysis of the historical high-grade pillars along the Veta Madre vein and its associated hanging wall veins; these potential blocks are situated within favorable geological zones. With the drilling of seven holes at the 320 level, four main veins have been identified: Alto1, Alto2, Alto3, and Alto 4. The most significant results from the drilling in this area are as follows:

Cata Diamond Drill Results

Maravillas

The Maravillas section is the most under-explored area of the Valenciana Mines Complex. Despite being located in the exact centre of VMC’s 4.2km strike length along Veta Madre, and despite forming the connection between the two most prolific mineralized zones at VMC (the Valenciana and Cata mines), only limited drilling has been conducted at Maravillas over the past two centuries.

Long Section Valenciana Mines Complex – Maravillas Highlighted

Three holes have been drilled into the centrally located Maravillas zone, with the best assay result being 2808 grams per tonne silver-equivalent over a true width of just under one half of a meter, within a true width interval of 3.19m grading 492 gpt AgEq*. The objective of this drilling was to intercept the stockwork in the hanging wall of the Veta Madre vein system; a total of 615 meters of diamond drilling has been concluded. Assay results for the first drill hole (UGM24-001) are posted below; assay results for the two additional drillholes are expected later in Q4. Following this, an analysis will be conducted within the relevant operational areas to develop additional exploration and development plans for this area of VMC. Given the proximity of this area to existing ramps and the main Cata production shaft infrastructure, integrating the Maravillas area into the VMC mine could be completed with minimal additional development.

Carlos Silva, COO, said, “Drilling success in this underexplored area of Valenciana has exciting potential. An assay result of over two kilograms within one of Mexico’s most famous and prolific mines is always noteworthy; we will quickly follow up on these initial results.”

Maravillas Diamond Drill Results

Drill Collar Information

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 which is independent of GSilver. To validate the Company’s assay results and its 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 the Company’s assay results and its 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.

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 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 drilling data referred to herein. Verified 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.