Galena Complex Development Positioned To Access High-Grade Silver Ore Early Next Year

TORONTO - “The quarter was challenging with multiple lost operating days due to severe weather at the Cosalá Operations, in Mexico, and the decision to focus on development priorities to access high-grade silver ore early next year at the Galena Complex in Idaho. The lack of operational flexibility with only one shaft available for ore and waste impacted production during the quarter. However, I am thoroughly excited for the future of the Company,” stated Americas Gold and Silver Corporation’s President and CEO Darren Blasutti. “We have seen a tremendous response from shareholders following the announcement in October on the acquisition of the remaining 40% interest in the Galena Complex and highly successful equity raise to recapitalize this project moving forward. As a result, the Board of Directors has made the decision to expediate Paul’s transition to CEO allowing for a timelier operational strategy to be implemented aimed at maximizing the Company’s assets moving forward.”

“I am excited to join Americas Gold and Silver and keen to get to work on the 2025 work plan we have been developing for the Galena Complex,” stated incoming Americas CEO Paul Andre Huet. “The Galena Complex is a tremendous operation with huge potential that has been handcuffed for years due to a lack of proper capitalization. With the raise that was recently completed, we are excited to get to work on reviewing the current operation and building on a solid base to deliver what we believe to be one of the premier silver mines in the Americas. I would like to thank Darren Blasutti for his tireless work over the last decade at the helm of the Company during what has been a very difficult silver price environment. Darren will remain as President of the Company and will help me, together with fresh capital and a strong, technical management team, to deliver a revitalized North American based silver mining company during a period of exciting increases in silver prices.”

Consolidated attributable silver production during Q3-2024 and Q3-2023 were comparable at approximately 386,000 ounces and 387,000 ounces, respectively. The Company also produced 8.4 million pounds of zinc and 4.1 million attributable pounds of lead during Q3-2024. Consolidated attributable silver equivalent production during Q3-2024 decreased by 11% compared to Q3-2023 due to higher silver prices in Q3-2024 compared to Q3-2023 as the Company uses realized quarterly prices in its equivalency calculations. The Company’s goal is to generate more than 80% of its revenue from silver production by the end of 2025 which would be among the silver industry leaders in percentage revenue from silver.

At the Cosalá Operations the Company focused on increasing silver while maintaining base metal production from the San Rafael Main and Upper Zones to maximize its revenue and cash flow generation to benefit from the recent increase in silver and zinc prices as the mine prepares for its next evolution of operations in the EC120 silver-copper deposit. Silver production increased in Q3-2024 by 8% to approximately 192,000 ounces of silver compared to approximately 178,000 ounces of silver in Q3-2023 primarily due to increased tonnage offset by lower recoveries. Production during the quarter was impacted primarily by heavy rains and other factors which caused the mill to be shut down for 10.5 days. Silver production is expected to increase in Q4-2024 with more predictable weather and further into 2025 as the development into EC120 progresses with the operation continuing to batch higher development grade ore through the mill.

Production of base metals decreased to 8.4 million pounds of zinc and 2.6 million pounds of lead in Q3-2024, compared to 9.0 million pounds of zinc, and 2.8 million pounds of lead in Q3-2023 which was similarly impacted by the 10.5 missed operating days as noted above.

The Galena Complex produced approximately 323,000 ounces of silver in Q3-2024 compared to approximately 349,000 ounces of silver in Q3-2023 (a 7% decrease in silver production), and 2.6 million pounds of lead in Q3-2024, compared to 3.1 million pounds of lead in Q3-2023 (a 15% decrease in lead production). Tonnage and silver production both decreased during Q3-2024 primarily due to a focus on development during the quarter which included continued work on the 55-179 decline to develop deeper higher-grade production stopes which will drive long-term production goals, as well as equipment issues and changes to mining sequence and design. Tonnage was also negatively impacted by the build up of waste rock caused by continued hoisting limitations due to the delay in repairs to the Galena shaft.