Santacruz Silver Mining Ltd. (TSX-V: SCZ) reports its financial and operating results for the first quarter of 2024. The full version of the financial statements and accompanying Management’s Discussion and Analysis can be viewed on the Company’s website at www.santacruzsilver.com or on SEDAR+ at www.sedarplus.ca.

Q1 2024 Highlights

• Processed 470,749 tonnes of material and produced 4,478,122 silver equivalent ounces, including:

• • 1,581,949 ounces of silver
  • 22,847 tonnes of zinc
  • 2,953 tonnes of lead
  • 256 tonnes of copper

• Cash cost per silver equivalent ounce sold of $21.19
• AISC per silver equivalent ounce sold of $24.12
• Revenue of $52,589,000
• Adjusted EBITDA of ($215,000)

Arturo Préstamo, Executive Chairman and CEO of Santacruz, commented, “Santacruz has successfully restructured its debt with Glencore, resulting in enhanced financial flexibility and a more robust balance sheet.  This strategic move has bolstered the Company´s financial position and should allow for better optimization of Santacruz’s core business activities and the pursuit of long-term growth initiatives.”

Mr. Préstamo continued, “During the first quarter, production at our Bolivian mines faced several disruptions due to various events, including national holidays, and the national population census. Caballo Blanco experienced a challenging quarter due to additional production disruptions caused by safety training and mining in areas with lower silver grades. However, the preparation of new areas is progressing well, thanks to the integration ramp. Caballo Blanco is expected to mine areas with higher silver grades in the coming months and together with less operational disruptions, the Company expects a better performance. Our AISC per silver equivalent ounces sold increased due to the decrease in silver equivalent ounce sold, with the most impact being from Caballo Blanco. However, our Zimapan mine in Mexico experienced no production variances during the quarter, with the efficiency strategies implemented in late 2023 continuing to deliver improvements.”

Selected consolidated financial and operating information for the quarter ended March 31, 2024 are presented below. All financial information is prepared in accordance with International Financial Reporting Standards, and all dollar amounts are expressed in thousands of US dollars, except per unit amounts, unless otherwise indicated.

2024 First Quarter Highlights

First Quarter 2024 Production Summary – By Mine

Notes for both tables above:

Silver Equivalent Ounces Produced

Q1 2024 vs Q1 2023

In Q1 2024, the Company processed 470,749 tonnes of material and produced 4,478,112 silver equivalent ounces including 1,581,949 ounces of silver, 22,847 tonnes of zinc, 2,953 tonnes of lead and 256 tonnes of copper.  When compared to Q1 2023, total material processed was slightly less, however silver equivalent ounce production decreased 5% due primarily to lower production, silver grade and plant recovery at Caballo Blanco.

Q1 2024 vs Q4 2023

When compared to the previous quarter total material processed was slightly less. Silver equivalent ounce production decreased 6% quarter-over-quarter as a result of less material processed, along with lower silver grades from the Bolivar and Caballo Blanco mines in Bolivia.

Cash Cost of Production per Tonne

Q1 2024 vs Q1 2023

Consolidated cash cost of production per tonne of mineralized material processed was $93.18 in Q1 2024 compared to $84.11 in Q1 2023.  Increases in unit production costs at the Bolivian operations, a result of lower production rates  have driven the consolidated net increase in cash costs of 11% per tonne.

Q1 2024 vs Q4 2023

Consolidated cash cost of production per tonne of mineralized material processed remained stable with a slight decrease of 2% driven mostly by incremental decreases across all operations. Cash cost per tonne at San Lucas increased 12%, which was offset by the 2% decrease at all other Bolivian operations. In Mexico, cash cost of production has decreased from the Q4 2023 high to be relatively in line with the other quarters of 2023.

Cash Cost per Silver Equivalent Ounce Sold

Q1 2024 vs Q1 2023

Cash cost per silver equivalent ounce sold was $21.19 in Q1 2024 compared to $17.29 in Q1 2023. There was an increase in unit costs together with a decrease of silver equivalent ounces sold mainly due to the silver equivalent conversion ratio of base metals to silver, which was higher due to the changes in realized metal prices and resulted in the reduction of silver equivalent ounces sold.

Q1 2024 vs Q4 2023

Consolidated results for Q1 2024 show an 19% increase in cash costs per silver equivalent ounce sold compared to Q4 2023. There was an increase in unit costs together with a decrease of silver equivalent ounces sold.

All-In Sustaining Cash Cost per Silver Equivalent Ounce Sold

Q1 2024 vs Q1 2023

Q1 2024 AISC per silver equivalent ounce sold was $24.12, compared to Q1 2023 of $20.77. This 16% increase in unit cost was due primarily to the 17% decrease in silver equivalent ounces sold.

Q1 2024 vs Q4 2023

Consolidated AISC per silver equivalent ounce sold increased 13% from Q4 2023, mainly a result of higher unit operating costs, partly offset by lower sustaining capital expenditures mostly related to the completion of the integration ramp at Caballo Blanco in Q1 2024.

Corporate Update

On May 13, 2024, the Board of Directors appointed Arturo Préstamo as CEO of the Company.

About Santacruz Silver Mining Ltd.

Santacruz Silver is engaged in the operation, acquisition, exploration, and development of mineral properties in Latin America. The Bolivian operations are comprised of the Bolivar, Porco and the Caballo Blanco Group, which consists of the Tres Amigos, Reserva and Colquechaquita mines.  The Soracaya exploration project and San Lucas ore sourcing and trading business are also in Bolivia.  The Zimapan mine is in Mexico.