High-grade Silver Mineralization Below The San Marcial Resource

VANCOUVER - GR Silver Mining Ltd. reported high-grade silver (Ag) results from diamond core drilling from the recently expanded underground tunnel in the San Marcial Area, at the Plomosas Project, Sinaloa, Mexico. These assay results are from the initial three holes of an eight-hole program and confirm extensions of high-grade Ag mineralization along strike, as well as up to 170 m down dip, below the San Marcial NI 43-101 mineral resource. The successful results extend the mineralization from the initial 250 m to approximately 420 m down dip from surface. These results also suggest that the compilation of modern and historical data, combined with advanced geological modeling, has been successful in targeting higher grade mineralization on the project.

The Company has successfully completed the first ever underground drill program at San Marcial, confirming extensions of the high-grade Ag mineralization at attractive widths and grades to support future resource expansion.

All eight holes in the resource expansion program have now been successfully completed with assays pending for five holes. First phase of San Marcial resource expansion drilling successfully completed, defining not only continuity of high-grade Ag mineralization but also delineating new, wide hydrothermal breccias carrying Au mineralization on the footwall of the San Marcial Ag-rich hydrothermal breccia. Ag results from the San Marcial Breccia include: 881 g/t Ag over 2.0 m from 118.0 m downhole (SMI21-01); 773 g/t Ag over 18.5 m from 179.4 m downhole (SMI21-03), including 1,792 g/t Ag over 5.6 m from 184.5 m downhole, and 516 g/t Ag over 7.9 m from 190.0 m downhole.

Initial resource expansion drilling consists of 8 holes for 2,436 m drilled from recently completed underground development in the current resource area. Discovery of disseminated Au mineralization on the footwall of the San Marcial Ag-rich Breccia hosted in multiple hydrothermal breccias delineating new target for future drilling aiming to define wide Au only mineralized system, 0.19 g/t Au over 77.5 m from 138.3 m downhole (SMI21-01).

Full integration of the recently completed ground geophysical survey (IP-MAG), covering the trend from San Marcial to San Juan, combined with new geological discoveries, has proven essential for definition of the exploration program for 2022, including surface and underground drilling in new target areas. Definition of a multi-event mineralized hydrothermal system with multiple styles of hydrothermal breccia indicating a large geological setting to support resource expansion and additional discoveries in the vicinities of the current NI 43-101.

President and CEO, Marcio Fonseca, said, "The first drill results from our resource expansion program at San Marcial have proven the consistency and continuity of the Ag-rich San Marcial Breccia mineralization, along strike and down dip. Based on such encouraging initial assay results we are anticipating continued positive results for the remainder of the drill core currently at the laboratory. The introduction of a modern exploration approach by the GR Silver Team is delineating an extensive hydrothermal system with presence of high-grade silver mineralization, proving continuity of the San Marcial Breccia down dip to support resource expansion. It is also delineating wide Au mineralized zones, which will be the subject of additional drilling in 2022. I congratulate the GR Silver Team for its exploration achievement at San Marcial by discovering the down dip extension of the San Marcial Breccia.”

The first phase resource expansion drill program included 2,436 m with eight diamond drill holes completed from one platform at the end of the 280 m of underground development at the San Marcial tunnel. This underground drill station makes it cost-effective to drill additional extensions of the San Marcial Breccia down dip and down plunge. Oriented drill core was logged in detail, given the large hydrothermal system encountered in most of the eight holes drilled in this program. Assay results for the initial three drill holes have been received, and results for the remaining five drill holes are pending.