Zacatecas Silver Corp. (TSX-V: ZAC) (OTC: ZCTSF) (Frankfurt: 7TV) is pleased to announce the closing of its over-subscribed non-brokered private placement financing of 62,500,000 units at a price of $0.06 per Unit for total gross proceeds of C$3.75 million. The Financing was previously upsized from C$2.5 million to C$3.75 million in order to include a strategic order from a highly regarded global mining investment fund, underscoring confidence in the Company’s high-grade silver and gold portfolio in Mexico.

Summary

• C$3.75 million private placement closed – over-subscribed and backed by a strategic order from highly regarded mining investment fund
• 4,000-metre drill program preparation is underway to drill high-priority El Cristo and Panuco vein systems.
• El Cristo: testing a large, underexplored vein system geologically linked to the historic Veta Grande, which produced >200 Moz Ag historically.
• Panuco: follow-up drilling on strong high-grade intercepts and a 20.5 Moz AgEq resource (19 Moz Ag and 19.2 Koz Au) (3.41 million tonnes at 187 grams per tonne AgEq (173 g/t Ag and 0.18 g/t Au). See news release issued on May 30, 2023.
• Pipeline growth: Company actively reviewing new acquisition opportunities in Mexico to further strengthen portfolio.

Eric Vanderleeuw, CEO and Director states: “This marks a pivotal step in our aggressive growth strategy focused on unlocking the full potential of the El Cristo and Panuco vein systems—two high-priority, high-impact targets in one of Mexico’s most prolific silver districts. Today, Zacatecas Silver is revitalized and fully funded to aggressively advance drilling in what appears to be the early innings of a historic metals market.”

Each Unit consists of one common share and one common share purchase warrant, with each Warrant exercisable at $0.10 per Share for a period of two years from the date of issue. The Company has the right to accelerate the Expiry Date if, at any time, the volume weighted average price of the Shares on the principal exchange or market on which the Shares trade is equal to or greater than $0.20 for 20 consecutive trading days. In the event of acceleration, the Expiry Date will be accelerated to a date that is 30 days after the Company issues the acceleration notice through a news release, provided that the acceleration notice is issued within 10 business days after the end of the particular 20-Day Period.

Under the first tranche of the private placement, the Company paid finders fees of $117,417.33 and issued 1,962,955 non-transferable finders share purchase warrants exercisable for a period of two years from the date of issue. The securities issued under the first tranche are subject to restrictions on resale for a period four months from the date of issue.

The net proceeds of the Financing will be used to advance exploration activities, including drilling at the Company’s flagship Zacatecas Silver Project, as well as for community engagement initiatives, corporate purposes, and working capital.

Insiders subscribed for 1,000,000 Units for $60,000. This participation constitutes a “related party transaction” as defined under Multilateral Instrument 61-101. However, the Company expects to be exempt from formal valuation and minority shareholder approval requirements under Sections 5.5(a) and 5.7(a) of MI 61-101, as his participation does not exceed 25% of the Company’s market capitalization.

Exploration Path Forward

• A 4,000-metre drill program is currently in preparation stages with commencement anticipated in the coming months. Drilling will focus on high-priority targets at both the El Cristo and Panuco North vein systems.
• At El Cristo, drilling will test a large, underexplored vein system geologically linked to the prolific Veta Grande system, where historic mining produced over 200 million ounces of silver.
• At Panuco, drilling follows up on strong high-grade results and the updated resource estimate of 20.5 Moz AgEq resource (19 Moz Ag and 19.2 Koz Au) (3.41 million tonnes at 187 grams per tonne AgEq (173 g/t Ag and 0.18 g/t Au). See news release issued on May 30, 2023.

In addition, Zacatecas continues to actively evaluate acquisition and consolidation opportunities in Mexico to strengthen and diversify its project pipeline.

Community Engagement and Drill Readiness

Surface access and community engagement agreements are being supported by the previously announced engagement of Mesoamerican Explore S.A.S. de C.V. to provide environmental and social services and liaise with landowners. This work is underway and completion is expected in the coming months. Roadwork and drill pad construction are complete, and final contractor mobilization is scheduled for late Q4 2025.

Esperanza Gold Project

Regarding the company’s Esperanza Gold Project, Eric Vanderleeuw, CEO, stated:

“Esperanza is an attrative oxide heap leach deposit, low CAPEX and high-grade, with significant scalability. Federal permitting headwinds regarding open-pit permits had required us to pause PEA activities and focus on keeping the project in good standing and at minimum cost – that strategy has worked. We’ve successfully preserved the project at minimal cost, giving us optionality as the policy environment evolves. Few undeveloped assets of this quality and size remain in the sector and we are excited to move forward again.”

About Zacatecas Silver Corp.

The Company has two key projects: the Zacatecas Silver Project in Zacatecas State, Mexico, and The Esperanza Gold Project in Morelos State, Mexico.

The Zacatecas Silver Project is located in Zacatecas state, Mexico, within the highly prospective Fresnillo silver belt, which has produced over 6.2 billion ounces of silver. The Company holds 7,826 hectares (19,338 acres) of ground that is highly prospective for low-sulphidation and intermediate-sulphidation silver base metal mineralization and potentially low-sulphidation gold-dominant mineralization. The Company announced an increase in silver resource at the Panuco South and North underground Mineral Resource Estimate now consisting of 3.41 million tonnes at 187 g/t AgEq (173 g/t Ag and 0.18 g/t Au) for 20.5 million ounces AgEq (19.0 million ounces silver and 19.2 thousand ounces gold) (see news release dated May 31, 2023).

The silver property is 25 kilometres (km) southeast of MAG Silver Corp.’s Juanicipio Mine and Fresnillo PLC’s Fresnillo Mine. The Property shares common boundaries with former Pan American Silver Corp., now Defiance Silver claims and El Orito, which is owned by Endeavour Silver.

Esperanza is an advanced stage, attractive low-cost, low-capital-intensity and low-technical-risk growth project located in Morelos state, Mexico. Alamos has progressed the project through advanced engineering, including metallurgical work, while also focusing on stakeholder engagement, including building community relations. The Company announced a Mineral Resource Estimate at Esperanza consisting of a Measured and Indicated Mineral Resource Estimate of 30.5 million tonnes at 0.97 g/t AuEq for 956 thousand ounces AuEq and an Inferred Mineral Resource estimate of 8.7 million tonnes at 0.98 g/t AuEq for 277 thousand ounces AuEq (see news release dated November 16, 2022).

Qualified Person

The technical information in this news release has been reviewed and approved by Chris Wilson, B.Sc. (Hons), PhD, FAusIMM (CP), FSEG, FGS, Chief Operating Officer of Zacatecas Silver. Dr. Wilson is a Qualified Person as defined by NI 43-101 and is not independent due being Chief Operating Officer and a director.

On behalf of the Company

Eric Vanderleeuw
Chief Executive Officer
Zacatecas Silver Corp.
(519) 729 2440