New Mineral Resource Estimate For The San Ignacio Mine

VANCOUVER - Guanajuato Silver Company Ltd. (GSilver) reported that as part of a scheduled program to update GSilver's NI 43-101 technical reports and resource estimates for all of its producing mines in Mexico, the Company is presenting a new mineral resource estimate (2023 MRE) for GSilver's San Ignacio mine located in Guanajuato, Mexico. The 2023 MRE was prepared by APEX Geoscience Ltd. The 2023 MRE supersedes the historical mineral resource estimate for the San Ignacio mine, disclosed previously by the Company in the technical report entitled "Technical Report on the Valenciana Mine Complex, Guanajuato, Mexico".

James Anderson, Chairman and CEO, said, "The significant increase in the San Ignacio mineral resource across all categories can be attributed to the exceptional work on the part of our Mexican exploration teams; their efforts over the past year have expanded our understanding of the mineralized systems in place at San Ignacio while returning consistently high-grade results, some of which are highlighted below, that have led to an increase of 130% in the measured & indicated category and 283% in the inferred category.

With this new resource estimate for San Ignacio, we are advancing the important work of upgrading all of our resource estimates for our four producing silver mines in Mexico. Because of the rapid pace of Guanajuato Silver's growth through our mine acquisition strategy, all of our mineral resources were originally categorized as historical. In June of this year, we presented a new Preliminary Economic Assessment for our El Cubo Mines Complex (see Guanajuato Silver news release dated June 26, 2023 - Guanajuato Silver Provides Updated PEA for the El Cubo Mines Complex); upgrading all of our historical mineral resource estimates is a priority as this ensures our data is reliable and relevant, which is crucial for operational efficiency and strategic planning."

Selected 2023 San Ignacio Drill Results: Drill Hole UGSI22-006 (Melladito Vein) returned 4.92 metres (m) true width of 1,219 g/t Silver Equivalent (AgEq)ii , including 0.42 metres true width of 6,981 g/t AgEq ii; Drill Hole UGSI23-010 (Melladito Vein) returned 4.89 m true width of 359 g/t AgEqii; and Drill Hole UGSU23-009 (Purisima Vein) returned 1.93 m true width of 516 g/t AgEqii.

Mineralization at San Ignacio exists within quartz and calcite veins; four distinct mineralized domains exist at San Ignacio, characterized by four primary veins: Melladito, Intermedia, Nombre de Dios, and the Purisima vein. In addition to reinterpreting the primary vein domains, the 2023 MRE includes mineralization from twenty-two additional vein domain models, contributing to the significant expansion of the San Ignacio mineral resources. The 2023 MRE is based on the newly constructed domain models and uses drilling and underground channel sampling databases. The updated database now includes an additional 5,350 drillhole samples and 9,784 underground channel samples since the last MRE.

The 2023 MRE comprises Measured and Indicated Mineral Resources of 7.621 million ("M") troy ounces ("oz") AgEqii at 300 g/t AgEqii within 0.79M tonnes (t), and Inferred Resources of 22.167M oz AgEqii at 318 g/t AgEq ii within 2.166M t. These represent increases in contained metals of approximately 4.318M oz AgEqii in the Measured and Indicated category (130% increase), and 16.385M oz AgEqii in the Inferred category (283% increase) versus the previously reported historical resource estimatei.