~ Q2 Production of Over 941,338 AgEq Ounces ~

Guanajuato Silver Company Ltd. (TSX-V:GSVR) (AQUIS:GSVR) (OTCQX:GSVRF) is pleased to announce financial and operating results for the six months ended June 30, 2023. All dollar amounts are in US dollars and prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. Production results are from the Company’s wholly owned El Cubo Mines Complex, Valenciana Mines Complex and San Ignacio mine in Guanajuato, Mexico, and the Topia mine located in Durango, Mexico.

James Anderson, Chairman & CEO of Guanajuato Silver, said, “Over the past twelve months we have made great strides in bringing our newly purchased mining assets back into optimal production. Significant infrastructure investments made since August of last year include: the rehabilitation of the Cata shaft; the installation of a new locomotive haulage system and the establishment of an environmentally superior tailings backfill system at VMC; the installation of new Falcon concentrators at both of our Guanajuato processing facilities; and the development of new mining areas at Santa Cecilia, San Ignacio, and Topia. These capex investments are now poised to deliver improved efficiencies as we head into the second half of the year. The ramp-up at our four producing silver mines remains on schedule; however, our business is not immune to inflationary pressures and extraordinary currency market volatility – most notably the remarkable rise of the Mexican peso, which has appreciated approximately 20% against the US dollar over the past year. Our Q2 cash flows have been impacted as approximately 75% of our expenditures are denominated in Mexican pesos; we have therefore implemented a number of cost reductions, including some staff reductions, and will continue to prioritize cost controls going forward.”

Q2 2023 Highlights

• Record production during the quarter of 941,338 AgEq (silver equivalent) ounces derived from 477,649 ounces of silver; 4,719 ounces of gold; 875,802 pounds of lead; and 897,258 pounds of zinc (see footnote to table below for assumptions regarding the calculation of silver equivalents).
• Net loss narrowed by 2% in Q2 to $8.5M compared to $8.6M in Q1; revenue of $16.8M for the quarter was down 2% compared to Q1.
• All-in sustaining cost of $22.47 per AgEq ounce produced was slightly higher than $21.83 for Q1 2023; operating costs were impacted by a strong Mexican currency; approximately 75% of operating costs are denominated in Mexican pesos. Realized metal prices in Q2 were 8% higher for silver, 5% higher for gold, 1% higher for lead, but notably 20% lower for zinc compared to Q1.
• Tonnes mined and milled increased 3% and 2% respectively from Q1 to Q2; over the quarter; a total of 166,171 tonnes were mined across the four producing silver mines, and a total of 163,793 tonnes were milled.
• Silver and gold recoveries back to near-historical highs as newly installed Falcon concentrators improved overall efficiency. Average silver and gold recoveries for Q2 were 84.9% and 83.1% respectively, compared to Q1 average recovery for silver of 83.9% and 81.1% for gold.

1. Silver equivalents are calculated using an 81.33:1 (Ag/Au), 0.04:1 (Ag/Pb) and 0.05:1 (Ag/Zn) ratio for Q2 2023, an 83.4:1 (Ag/Au) ratio for Q2 2022; an 82.51:1 (Ag/Au), 0.04:1 (Ag/Pb) and 0.06:1 (Ag/Zn) ratio for YTD 2023, an 82:22:1 (Ag/Au) ratio for YTD 2022, respectively and an 83.78:1 (Ag/Au), 0.04:1 (Ag/Pb) and 0.06:1 (Ag/Zn) ratio for Q1 2023.
2. Cash cost per silver equivalent ounce include mining, processing, and direct overhead. See Reconciliation to IFRS on page 31 of the interim MD&A.
3. AlSC per Ag/Eq oz include mining, processing, direct overhead, corporate general and administration expenses, on-site exploration, reclamation and sustaining capital. See Reconciliation to IFRS on page 31 of the interim MD&A.
4. Reconciliation of earnings before interest, taxes, depreciation, and amortization on page 30 of the interim MD&A.
5. See “Non-IFRS Financial Measures” on page 29 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 29 of the interim MD&A.

This news release should be read in conjunction with the Company’s condensed interim consolidated financial statements for the six-month period ended June 30, 2023 and related Management’s Discussion and Analysis (“MD&A”) available at www.sedarplus.com.

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.