Sierra Madre Gold and Silver Ltd. (TSX-V: SM) is pleased to announce it has closed the second and final tranche of its previously announced brokered private placement offering of up to 27,858,000 units of the Company at a price of $0.70 per Unit. The Second Tranche consisted of 2,500,000 Units for gross proceeds of $1,750,000 and for aggregate gross proceeds, together with the closing of the first tranche, of $19,500,600. Beacon Securities Limited acted as lead agent and sole bookrunner, on behalf of a syndicate of agents including Canaccord Genuity Corp. in connection with the Offering.

Each Unit issued pursuant to Part 5A of National Instrument 45-106 – Prospectus Exemptions, as amended and supplemented by Coordinated Blanket Order 45-935 – Exemptions from Certain Conditions of the Listed Issuer Financing Exemption consists of one common share in the capital of the Company, and one half of one common share purchase warrant of the Company. Each Warrant entitles the holder thereof to acquire one common share at a price per Warrant Share of $0.85 for a period of 12 months from the closing of the First Tranche.

The Company intends to use the net proceeds of the Offering to expand the capacity of the Guitarra mine, conduct a detailed exploration program, including drilling, at the East District, and for working capital and general corporate purposes.

In connection with the closing of the Second Tranche, the Company paid the Agents a cash fee of $61,250 and issued to the Agents 87,500 compensation options. Each Compensation Option entitles the Agents to purchase one common share at the Issue Price during a term of 12 months from the closing of the First Tranche.

Subject to compliance with applicable regulatory requirements and in accordance with NI 45-106, the Units were offered for sale (i) to purchasers resident in Canada, other than Quebec, pursuant to the Listed Issuer Financing Exemption, (ii) in the United States pursuant to available exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the “U.S. Securities Act“), and applicable U.S. state securities laws, and (iii) in such other jurisdictions outside of Canada and the United States, provided that no prospectus, registration statement or similar document is required to be filed in such foreign jurisdiction. The securities issued under the Listed Issuer Financing Exemption to Canadian subscribers are not subject to a hold period in Canada.

The securities have not been registered under the U.S. Securities Act, or any U.S. state securities laws, and were not offered or sold in the “United States” (as such term is defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable U.S. state securities laws or an exemption from such registration is available. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Sierra Madre

Sierra Madre Gold and Silver Ltd. is a precious metals development and exploration company focused on the Guitarra mine in the Temascaltepec mining district, Mexico, and the exploration and development of its Tepic property in Nayarit, Mexico. The Guitarra mine is a permitted underground mine, which includes a 500 t/d processing facility that operated until mid-2018 and restarted commercial production in January 2025.

The +2,600 ha Tepic Project hosts low-sulphidation epithermal gold and silver mineralization with an existing historic resource.

Sierra Madre’s management team has played key roles in managing the exploration and development of silver and gold mineral reserves and mineral resources. Sierra Madre’s team of professionals has collectively raised over $1 billion for mining companies.