Santacruz Silver Mining Ltd. (TSX-V: SCZ) reports its financial and operating results for the first quarter of 2023. 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.sedar.com. 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.

Q1 2023 Highlights

• Processed 482,497 tonnes of material, in line with the previous quarter;
• Silver equivalent ounces produced of 5,644,383, a 2% decrease from the previous quarter;
• Cash cost per silver ounce sold of $17.30, a 9% decrease from the previous quarter;
• AISC per silver ounce sold of $20.76, a 4% decrease from the previous quarter;
• Revenue of $65,378,000, a 2% increase from the previous quarter; and
• Adjusted EBITDA of $12,602,000 a 335% increase from the previous quarter.

Arturo Préstamo, Executive Chairman of Santacruz, commented, “The first quarter has provided us with a strong start to the year. We maintained production levels while considerably improving our cash position, which provides us with a solid base from which we will keep moving forward.”

Mr. Préstamo continued, “We also have several projects we are advancing this year, all of which are expected to provide significant value to the Company. The team is preparing updated NI 43-101 technical reports for all the operating mines, and this is anticipated to be completed in Q3 2023. In addition, we are working towards completing the ‘integration drift’ to connect the Colquechaquita and Tres Amigos mines at Caballo Blanco, which is expected to be completed in Q1 2024, and increasing the dewatering capacity at Bolivar. Both these initiatives are expected to significantly improve operations at each mine.”

Selected consolidated financial and operating information for the quarter ended March 31, 2023 are presented below. The Bolivian Assets have been consolidated from March 18, 2022.

2023 First Quarter Highlights

First Quarter 2023 Production Summary – By Mine

Notes for both tables above:

⁽¹⁾ Silver Equivalent Produced (ounces) have been calculated using prices of $21.86/oz, $0.91/lb, $1.52/lb and $3.67/lb for silver, lead, zinc and copper respectively applied to the metal production divided by the silver price.
⁽²⁾ Silver Equivalent Sold (payable ounces) have been calculated using the Average Realized Price per Ounce of Silver Equivalent Sold stated in the table above, applied to the payable metal content of the concentrates sold from Zimapan, Bolivar, Porco, the Caballo Blanco Group, and San Lucas.
⁽³⁾ The Company reports non-GAAP measures, which include Cash Cost of Production per Tonne, Cash Cost per Silver Equivalent Ounce Sold, All-in Sustaining Cash Cost per Silver Equivalent Ounce Sold, Average Realized Price per Ounce of Silver Equivalent Sold, Adjusted EBITDA. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning and may differ from methods used by other companies with similar descriptions. See the ”Non-GAAP Measures” section in the MD&A for definitions.
⁽⁴⁾ Average Realized Price per Ounce of Silver Equivalent Sold is prior to all treatment, smelting and refining charges.
⁽⁵⁾ Bolivar and Porco are presented at 100% whereas the Company records 45% of revenues and expenses in its consolidated financial statements.

Cease Trade Order Update

Further to the Company’s news release dated May 8, 2023, the Company has notified the British Columbia Securities Commission that it has filed its audited annual financial statements and corresponding management’s discussion and analysis for the year ended December 31, 2022, and its unaudited financial statements and corresponding management’s discussion and analysis for the three months ended March 31, 2023, including the respective CEO and CFO certificates. The Company expects the cease trade order to be lifted after market close on Friday, June 9, 2023, followed shortly by the resumption of trading of the Company’s shares on the TSX Venture Exchange early next week.

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.