~ Q1 Silver-Equivalent Production Up 16.1% Over Previous Quarter ~

Guanajuato Silver Company Ltd. (TSX-V:GSVR) (OTCQX:GSVRF) is pleased to announce consolidated production results for the three months ended March 31, 2024. Production results are generated from the Company’s wholly owned El Cubo Mines Complex, Valenciana Mines Complex, and San Ignacio Mine in Guanajuato, Mexico, the El Horcon Mine in Jalisco, Mexico, and the Topia Mine in Durango, Mexico.

Q1 2024 Production Highlights

• Production during the quarter of 987,312 silver-equivalent ounces is the best quarter in the Company’s history since production began at the Company’s El Cubo mines complex in Q4 2021; production is derived from 428,279 ounces of silver; 5,384 ounces of gold; 879,242 pounds of lead; and 922,927 pounds of zinc.
• Tonnes milled increased by 20.1% over the previous quarter; a total of 165,079 tonnes were processed among GSilver’s three production facilities.
• Average silver and gold recoveries increased to 88.6% and 89.2% respectively as compared to 84.5% silver recovery and 88.8% gold recovery in Q4, 2023.

James Anderson, Chairman and CEO, said, “Q1 generated our best production performance to date and continues the trend of demonstrable quarter-over-quarter increases in precious metals production. In 2023, we made significant capex investments aimed at improving efficiencies across all of our producing assets; the impact from these improvements is now being realized as evidenced by our strong start to the year. We look forward to building upon our success as we continue to grow Guanajuato Silver into a prominent producer of silver and gold.”

Silver equivalents are calculated using an 88.72 (Ag/Au), 0.04:1 (Ag/Pb) and 0.05:1 (Ag/Zn) ratio for Q1 2024; silver equivalents are calculated using an 85.10:1 (Ag/Au), 0.04:1 (Ag/Pb) and 0.05:1 (Ag/Zn) ratio for Q4 2023; silver equivalents are calculated at 80:1 for Q4, 2021.

Q1 2024 Production Demonstrates Significant Improvements Over Previous Quarter

Total tonnes milled was up 20.1% over the previous quarter; the increase in total milled tonnage was partly due to the processing of mineralized material from the Company’s El Horcon mine and from the processing of 3^rd party gold and silver (See GSilver news release dated January 17, 2024 – Guanajuato Silver Commences Processing 3^rd Party Gold and Silver at El Cubo). During the quarter, 117,043 silver-equivalent ounces were generated through the processing of 3^rd party mineralized material, and 59,914 silver-equivalent ounces were generated from the processing of stockpiled material at Horcon.

Gold production of 5,384 ounces in Q1 denotes a 22.5% increase from the previous quarter; this increase was primarily the result of increased tonnage over the quarter coupled with strong gold recoveries of 89.2%.

Silver production of 428,279 ounces in Q1 was an 8.4% increase from the previous quarter; silver production for the quarter generated 43.3% of total AgEq production.

At Topia, lead production of 879,242 pounds in Q1 was up 5% over the previous quarter; zinc production declined 4% to 922,297 pounds. During Q1, 2024, Topia generated 288,579 silver-equivalent ounces, which represented 29.2% of total production. Topia is the only polymetallic mine within Guanajuato Silver’s asset portfolio; all of the Company’s other mines are pure precious metals producers.

1. Silver equivalents are calculated using an 88.72 (Ag/Au), 0.04:1 (Ag/Pb) and 0.05:1 (Ag/Zn) ratio for Q1 2024; silver equivalents are calculated using an 85.10:1 (Ag/Au), 0.04:1 (Ag/Pb) and 0.05:1 (Ag/Zn) ratio for Q4 2023.
2. All figures are rounded to reflect the relative accuracy of the estimates. Minor discrepancies may occur due to rounding to appropriate significant figures.

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 Fellow 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. Mr. Rivera has verified the data that supports the technical information disclosed in this press release by reviewing production reports from each of the Company’s mining operations.

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 Complex, 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.