Guanajuato Silver Company Ltd. (TSX-V:GSVR) (OTCQX:GSVRF) is providing an update on exploration progress at the Company’s wholly-owned El Cubo Mines Complex and the San Ignacio Mine located in Guanajuato, Mexico.

El Cubo

Chairman and CEO, James Anderson said, “The San Luis vein continues to return results that confirm the southern portion of our El Cubo mine will remain a focal point for silver and gold production in 2025 and beyond. Additionally, our drill program for 2025 includes numerous vein intervals that demonstrate why El Cubo has been a centre of precious metals mining for over a century.”

In January 2025, an underground diamond drilling campaign commenced that was centered on the transverse San Luis vein in the southern part of the Villalpando mine area. During the first quarter of 2025, a total of 971.8 meters were drilled with the goal of confirming lateral and vertical continuity of the San Luis orebody. Drilling assays are shown in the table below with some of the strongest results coming from splays extending from the San Luis vein

¹AgEq is calculated using a silver to gold ratio of 90:1.

For 2025, the Company plans to drill a total of 6,500 meters in approximately 30 drillholes at El Cubo; at least five of these proposed drillholes will continue to target the San Luis vein and associated structures.

The San Luis vein was discovered by Guanajuato Silver in 2022; now, after several drilling campaigns and mine developments, San Luis represents one of the most productive areas at El Cubo. The San Luis vein has an average width of 1.0 to 1.2 meters comprising consistent silver and gold grades that average 116 g/t silver and 1.05 g/t gold for an average silver-equivalent grade of 210 g/t AgEq (using a gold to silver ratio of 85:1).

In addition to San Luis, the Company’s drill plans for 2025 also include intersecting the Villalpando vein, which is the main vein controlling the Sierra Vein System; this drilling is expected to total 2500 meters. The parallel Dolores vein will also be targeted with approximately 1350 meters of diamond drilling. Furthermore, 1500 meters of drilling is planned to target the San Nicolas vein, with 1150 meters of drilling planned for both the San Eusebio and La Loca veins.

Image 1: El Cubo Mines Complex primary vein systems.

San Ignacio

The Company is also pleased to announce the completion of a geophysical study to the west of the Santo Nino mining block at San Ignacio; the survey was conducted by Nevada-based Zonge International Inc. and consisted of a combined Induced Polarization (IP) survey and a Controlled-source Audio-frequency Magnetotellurics survey. Guanajuato Silver recently announced the completion of development work that intersected a significant new mining block centered on the Santo Nino vein at the San Ignacio Mine (See GSilver News Release dated February 28, 2025). The Zonge geophysics study helps to delineate vein systems known from surface mapping, west of the main San Ignacio production areas. This data will support further exploration activities including drilling at this highly prospective area west of the Santo Nino vein mining block, which has demonstrated comparatively high gold content. The Company expects to share results from the Zonge geophysical study soon.

Image 2: San Ignacio Mine showing major mining areas.

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.