~ Q1 Production of Over 938,000 AgEq Ounces ~

Guanajuato Silver Company Ltd. (TSX-V:GSVR) (AQUIS:GSVR) (OTCQX:GSVRF) is pleased to announce financial and operating results for the three months ended March 31, 2023. All dollar amounts are in US dollars. Production results are from the Company’s wholly owned El Cubo Mines Complex, Valenciana Mines Complex and San Ignacio mine in Guanajuato, Mexico, and Topia mine located in Durango, Mexico.

James Anderson, Chairman & CEO of Guanajuato Silver, said, “We continue investing aggressively in our assets as we build what we feel is Mexico’s fastest growing silver mining company. Operating results for Q1 continue to demonstrate growth and are aligned with our expectations for this phase of the ramp-up; I commend our 100% Mexican operations team for their technical excellence as we optimize production at all four of our producing silver mines. With quarter-over-quarter increases in silver-equivalent production expected to continue, we remain on-pace to meet our stated full year production guidance of 4.6 to 4.8 million silver-equivalent ounces in 2023. We expect to end 2023 at a production run-rate of over 5 million AgEq ounces per year.”

Q1 2023 Highlights

• Record production during the quarter of 938,047 AgEq ounces derived from 458,803 ounces of silver; 4,413 ounces of gold; 906,696 pounds of lead; and 1,153,138 pounds of zinc.
• Record Revenue of $17.1M, up from $15.4M in Q4 2022; revenues grew from increased production of AgEq ounces, as well as higher realized silver and gold prices during the quarter.
• Net Loss narrowed to $8.7M from $9.9M in Q4 2022.
• Reduced environmental footprint through the implementation of an underground hydraulic-fill tailings system at VMC; tailings material is now being placed underground in some of the numerous voids that have been created over VMC’s 450-year mining history.
• All-in sustaining cost of $21.83 per AgEq ounce produced was slightly higher than $20.80 for Q4 2022; this increase was due primarily to targeted capex investments designed to accelerate the ramp-up of operations at the three Guanajuato mines; operating costs were also impacted by a strengthening Mexican currency as approximately 75% of operating costs are denominated in pesos.
• Infrastructure upgrades are poised to deliver substantial improvements in 2023; these upgrades include:
• The new Falcon concentrators at El Cubo and VMC are now fully operational and set to generate improvements to precious metal recoveries going forward.
• The Cata shaft at VMC has been rehabilitated and is now fully operational; over 300 tonnes per day of mineralized material is now moving through this shaft which has reduced the time to move material to surface by approximately 80%.
• The implementation of hydraulic backfilling of tailings at VMC has allowed for an acceleration in the operations at the Cata mill.

1. Silver equivalents are calculated using an 83.78:1 (Ag/Au), 0.04:1 (Ag/Pb) and 0.06:1 (Ag/Zn) ratio for Q1 2023; an 81.35:1 (Ag/Au), 0.05:1 (Ag/Pb) and 0.06:1 (Ag/Zn) ratio for Q4 2022; 89.97:1 (Ag/Au), 0.05:1 (Ag/Pb) and 0.08:1 (Ag/Zn) ratio for Q3 2022; an 83.4:1 (Ag/Au) ratio for Q2 2022; and an 80:1 (Ag/Au) ratio for Q1 2022, respectively.
2. Cash cost per AgEq ounce includes mining, processing, and direct overhead. See Reconciliation to IFRS on page 33 of GSilver’s management’s discussion and analysis of the condensed consolidated interim financial statements for the three months ended March 31, 2023 as filed on SEDAR.
3. AlSC per AgEq oz includes mining, processing, direct overhead, corporate general and administration expenses, on-site exploration, reclamation and sustaining capital. See Reconciliation to IFRS on page 33 of the Interim MD&A.
4. See reconciliation of earnings before interest, taxes, depreciation, and amortization on page 32 of the Interim MD&A.
5. See “Non-IFRS Financial Measures” on page 32 of the Interim MD&A.
6. Based on provisional sales before final price adjustments, before payable metal deductions, treatment, and refining charges.
7. Mine operating cash flow before taxes is calculated by adding back depreciation, depletion, and inventory write-downs to mine operating loss. See Reconciliation to IFRS on page 32 of the Interim MD&A.

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.

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.