Guanajuato Silver Company Ltd. (TSX-V:GSVR) (AQUIS:GSVR) (OTCQX:GSVRF) is pleased to announce selected financial information and consolidated production results for the year ended December 31, 2023. The Company’s consolidated financial statements for the year ended December 31, 2023 and Management’s Discussion and Analysis thereon can be viewed under the Company’s profile at www.sedarplus.com. All dollar amounts are in US dollars (US$) and prepared in accordance with IFRS Accounting Standards (IFRS) 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 located in Guanajuato, Mexico, and the Topia Mine located in Durango, Mexico.

Selected 2023 Highlights:

• Record production for 2023 of 3.5 million silver-equivalent ounces representing a 64% increase over 2022; total AgEq ounces are derived from 1,756,911 ounces of silver, 16,987 ounces of gold, 3,555,466 pounds of lead and 3,868,262 pounds of zinc. (See note to table below for assumptions regarding the Company’s AgEq calculations).
• Silver production of over 1.7 million ounces is a 74% increase over 2022; Guanajuato Silver is a primary silver producer; approximately 52% of revenues were derived from silver production in 2023, and approximately 40% of revenue came from gold.
• Record lead and zinc production of 3.5M pounds and 3.8M pounds respectively; zinc production demonstrated a 100% increase over 2022, while lead production was 164% higher over the same period. All lead and zinc production comes exclusively from the Company’s Topia mine located in northwest Durango.
• 2023 saw average silver recoveries of 84.5% and average gold recoveries of 88.8%.
• Total tonnes mined was up 46% over 2022, reflecting the continued ramp-up of production at all four producing silver mines; total tonnes milled was up 42% over same period.
• Record revenue for 2023 of $66.1M representing a 79% increase over 2022; consolidated revenue for the year was generated by a realized average price of $23.41 per silver ounce, $1,947 per gold ounce, $0.97 per pound of lead, and $1.22 per pound of zinc.

James Anderson, Chairman and CEO said, “We have successfully navigated through a particularly challenging year for the junior mining industry; we emerge from this period with vastly improved assets in terms of production efficiency, scale, and economics. All four of our producing silver mines were the beneficiaries of major capex investments in 2022; these adjustments and upgrades are already positively impacting performance as we continue to build Guanajuato Silver into a mid-tier precious metals producer.”

Selected 2023 Financial Highlights:

• Cash costs of $18.22 per AgEq ounce, and AISC⁽⁵⁾ of $22.91 per AgEq ounce reflected higher capital expenditures during the year as the Company made significant investments designed to improve efficiencies across all operations. (See note to table below for assumptions regarding the Company’s AgEq calculations).
• Over 45% of the 2023 net loss of $31.9M is comprised of non-cash items⁽⁸⁾.
• As of December 31, 2023, the Company had cash and cash equivalents of $1,956,616 and negative working capital⁽⁵⁾ of $18,441,913 compared with cash of $8,832,936 and negative working capital⁽⁵⁾ of $5,972,704 as of December 31, 2021.

Consolidated Annual Production

Please refer to footnote 1 under the table below for the assumptions on the AqEq calculations.

The following table summarizes the Company’s consolidated operating and financial results for the years ended December 31, 2023 and 2022:

1. Silver equivalents set out in this news release are calculated using 82.91:1 (Ag/Au), 0.04:1 (Ag/Pb) and 0.05:1 (Ag/Zn) ratio for YTD 2023 and an 83.22:1 (Ag/Au), 0.05:1 (Ag/Pb) and 0.07:1 (Ag/Zn) ratio for YTD 2022, respectively. Silver equivalents for 2021 are calculated using 80:1 (Ag/Au) for Q4 2021.
2. Cash cost per silver equivalent ounce include mining, processing, and direct overhead.
3. AlSC per Ag/Eq oz include mining, processing, direct overhead, corporate general and administration expenses, on-site exploration, reclamation, and sustaining capital.
4. See Reconciliation of earnings before interest, taxes, depreciation, and amortization on page 29 of the MD&A and below in this news release.
5. Mine Operating Cashflow Before Taxes, Cash cost per silver equivalent, cost per tonne, AISC per Ag/Eq ounce, EBITDA, Adjusted EBITDA and working capital are non-IFRS financial measure with no standardized meaning under IFRS, and therefore they may not be comparable to similar measures presented by other issuers. For further information and detailed reconciliations of non-IFRS financial measures to the most directly comparable IFRS measures see “Non-IFRS Financial Measures” below in this news release.
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.
8. Non-cash items include depreciation, stock-based compensation, loss or gain on derivatives, change of fair value on contingent payments and unrealized FX.

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 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