~Silver-Equivalent Production Up 8% from Previous Quarter~

Guanajuato Silver Company Ltd. (TSX-V:GSVR) (OTCQX:GSVRF) is pleased to announce consolidated production results for the three months ended December 31, 2023. Production results are generated from the Company’s wholly-owned El Cubo Mines Complex, Valenciana Mines Complex, and San Ignacio Mine in Guanajuato, Mexico, and the Topia Mine in Durango, Mexico.

Q4 2023 Production Highlights

• Production during the quarter of 850,214 silver-equivalent ounces is the 3^rd best quarter in the Company’s history, and is derived from 394,971 ounces of silver; 4,395 ounces of gold; 837,230 pounds of lead; and 960,206 pounds of zinc.
• Tonnes milled increased 3.6% from Q3 to Q4; during the fourth quarter; a total of 137,339 tonnes were milled across GSilver’s four producing silver mines.
• Average silver and gold recoveries were 84.5% and 88.8% respectively for Q4 as compared to 83.3% silver recovery and 81.6% gold recovery in Q3, 2023. Current metallurgical recoveries reflect historical all-time highs.
• Gold production was up 27.7% over the previous quarter driven by higher gold grades, better recoveries, and the inclusion of gold-rich material from the recently added production of the El Horcon mine.
• 2023 AgEq* Production of 3,516,685 ounces falls within revised guidance figures and represents a 63% increase over the previous year.

*See footnote to table below for assumptions associated with the calculation of AgEq ounces.

James Anderson, Chairman and CEO, said, “Performance in the quarter demonstrated increasing improvement driven by the successful implementation of a number of modifications designed to improve overall efficiencies at our Mexican mining operations. The adjustment of various operating procedures, such as improving the stope rotation at El Cubo, the shifting of our business model at Topia, and the addition of a new source of mineralized material from El Horcon, have improved production figures at all of our assets. With the impact of significant capex investments still to be realized, such as the dewatering at El Cubo targeting higher-grade mineralized zones located in deeper areas of the mine, we expect to be able to resume the trend of quarter-over-quarter increases in precious metals production throughout 2024.”

1. 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, an 81.83:1 (Ag/Au), 0.04:1 (Ag/Pb) and 0.05:1 (Ag/Zn) ratio for Q3 2023, an 82.91:1 (Ag/Au), 0.04:1 (Ag/Pb) and 0.05:1 (Ag/Zn) ratio for YTD 2023 and an 82:78:1 (Ag/Au) ratio for YTD 2022.
2. All figures are rounded to reflect the relative accuracy of the estimates. Minor discrepancies may occur due to rounding to appropriate significant figures.

Q4 Production Demonstrates Significant Improvements Over Previous Quarter
Total tonnes mined during Q4 was 133,497 tonnes; this was down nominally from Q3 production of 134,865 tonnes primarily due to the change of business model at Topia; however, total tonnes milled during Q4 of 137,330 tonnes represents an increase of 3.7% over Q3. The increase in total milled tonnage during the quarter was partly due to the commencement of the processing of mineralized material from the Company’s El Horcon mine located approximately 60km northwest of the Valencian Mines Complex (See GSilver news release dated November 27, 2023 – “Guanajuato Silver Initiates Processing of Mineralized Material from El Horcon Mine“).

Gold production of 4,395 ounces in Q4 denotes a 27.7% increase from the previous quarter. This increase was the result of higher gold grades in Q4, which were up over 15%, and superior gold recoveries of 88.8%, which is an 8.8% improvement over Q3.

At Topia, lead and zinc grades during the quarter improved dramatically compared to Q3; in Q4 lead grade increased by 33.5% and zinc grades increased by 61.4%, though silver grades at Topia were somewhat lower. Lead and zinc recoveries also increased compared to the previous quarter; lead recovery in Q4 was up 2% to 91.7% recovery – also to all-time highs, whereas zinc recovery increased by 5.8% to 82.5% recovery. Within GSilver’s mine portfolio, Topia is the only polymetallic mine; all the Company’s other mines are pure precious metals producers.

*See footnote to table above for assumptions associated with the calculation of AgEq ounces.

Technical Information

Hernan Dorado Smith, a director and officer of GSilver and a “qualified person” as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects, has approved the scientific and technical information contained in this news release.

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.