Zacatecas Silver Corp. (TSX-V: ZAC) (OTC: ZCTSF) is pleased to announce that it has closed the first tranche of its previously announced private placement financing by issuing a total of 38,449,335 units at a price of $0.06 per Unit for gross proceeds of $2,306,960. The Company anticipates it will complete the final tranche by September 29, 2025.

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 $113,297.19 and issued 1,888,286 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 proceeds of the offering will be used to fund a drilling campaign on the Zacatecas Silver Project, strategic initiatives and working capital purposes. The Offering is subject to the acceptance of the TSX Venture Exchange.

A holding corporation of Eric Vanderleeuw, the Company’s CEO and a director, subscribed for 500,000 Units for $30,000. 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.

About Zacatecas Silver Corp.

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

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).

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 a Mineral Resource Estimate at the Panuco Deposit consisting of 2.7 million tonnes at 187 grams per tonne (g/t) silver equivalent (AgEq) (171 g/t silver (Ag) and 0.17 g/t gold (Au)) for 16.4 million ounces AgEq (15 million ounces silver and 15,000 ounces gold) (see news release dated December 14, 2021).

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