Santacruz Silver Mining Ltd. (TSX-V: SCZ) reports its operating results for the second quarter 2021 from the Zimapan Mine located in Zimapan, Hidalgo, Mexico and the Rosario Project located in Charcas, San Luis Potosi, Mexico.

Production Highlights:

• 13.0% increase in silver equivalent production to 799,057 AgEq ounces as compared to Q1 2021
• Zimapan tonnage through-put from Lomo del Toro increase to 12,000/month from 6,000/month when compared to Q1 2021
• Zimapan average head grades increased from 182 g/t Ag Eq in Q1 2021 to 202 g/t Ag Eq in Q2 2021

Carlos Silva, Santacruz’s CEO, stated, “At Zimapan we continue to execute on our strategy of increasing the tonnage mined from the Lomo del Toro mineralized zone and we are now starting to see the benefits of blending this mineralized material with that from the Carrizal and Monte mines. We have also completed adjustments to the milling facility which have improved the operation of the crushing and filtration circuits.” Mr. Silva added; “While Zimapan is making very positive progress, Rosario continues to present challenges due to the combination of poor rock conditions and a narrow vein system. As a result, we are actively reviewing our strategy for Rosario.”

COVID-19 Update

The Company continues to take all appropriate measures to prevent COVID-19 among the work force and local communities and to monitor the effectiveness of these measures in mitigating any potential impact on business activities. The Company’s actions have been successful to date and the pandemic has not had any material impact on the business.

CONSOLIDATED PRODUCTION RESULTS

ZIMAPAN MINE PRODUCTION RESULTS

ROSARIO MINE PRODUCTION RESULTS

* In the above tables Ag Eq has been calculated as follows:

2021 Ag Eq was calculated using metal prices of: Ag $25.00/oz, Au $1,925/oz, Pb $0.85/lb, Zn $1.05/lb and Cu $3.00/lb.
2020 Ag Eq was calculated using metal prices of: Ag $17.85/oz, Au $1,480/oz, Pb $0.92/lb, Zn $1.09/lb and Cu $2.80/lb.

Silver Equivalent Comparative Production

As noted in the tables above, there is a significant increase in silver equivalent ounces produced in Q2 2021 as compared to that produced in Q2 2020 and Q1 2021. Substantially all this positive change in production is due to increased silver equivalent production from the Zimapan Mine. In particular, as compared to Q2 2020, Zimapan tonnes processed increased by 46% while silver head grade and silver recovery increased by 12% and 5% respectively. As compared to Q1 2021, the Zimapan Mine production increase reflects increased zinc head grade and recovery. It should also be noted that if the Q2 2021 silver equivalent production had been calculated using the 2020 metal price deck the reported silver equivalent ounces produced from Zimapan would have been 945,533, an increase of 25% over the current reported balance. On a comparative basis within any particular fiscal year or between periods in different fiscal years where the metal price decks are relatively equivalent, the computation of silver equivalent is useful for comparing production from one period to another. When the price decks are not relatively equivalent, the usefulness of this production indicator is diminished.

The improved metal head grades in Q2 2021 reflect increased production from the Lomo del Toro zone (12,000 tonnes per month in Q2 2021 as compared to 6,000 tonnes per month in Q1 2021). Management expects production to continue to increase from Lomo del Toro over the coming months.

About Santacruz Silver Mining Ltd.

Santacruz is a Mexican focused silver company with two producing silver projects (Zimapan and Rosario) and two exploration properties, the La Pechuga property and Santa Gorgonia prospect. The Company is managed by a technical team of professionals with proven track records in developing, operating and discovering silver mines in Mexico. Our corporate objective is to become a mid-tier silver producer.