Zacatecas Silver Corp. Reports Multiple High Grade Silver Drill Intercepts at Panuco North

• Angled diamond drilling at Panuco North targeted the down-dip strike extension of near surface mineralization reported by Zacatecas on the February 16, 2022.
• Panuco North results include:
• • 1.25 m @ 1440 g/t Ag Eq (1423.2 g/t Ag and 0.23 g/t Au) from 27.48 m downhole (Hole PAN2022-042)
  • 4.35 m @ 375 g/t Ag Eq (353 g/t Ag and 0.29 g/t Au) from 56.38 m downhole (Hole PAN2022-044)
  • 1.55 m @ 379 g/t Ag Eq (358 g/t Ag and 0.28 g/t Au) from 70 m downhole (Hole PAN2022-043)
  • 1.05 m @ 222 g/t Ag Eq (201 g/t Ag and 0.28 g/t Au) from 97.3 m downhole (Hole PAN2022-046)
  • 5.96 m @ 179 g/t Ag Eq (114.9 g/t Ag and 0.85 g/t Au) from 107.28 m downhole (Hole PAN2022-045)
• Drilling continues and more assay results are pending.

Dr. Chris Wilson, Chief Operating Officer and a Director of Zacatecas comments, "The most recent round of drilling in the south-eastern part of the Panuco North Vein has continued to intercept robust silver grades over down-hole widths of up to 5.96 metres. Although most holes targeted the down-dip extension of the near surface high grade silver mineralization intercepted in the initial scout drilling program, drilling has only tested the uppermost parts of the vein to a maximum downhole depth of 107 m (approximately 90 m vertical). Mineralization is open in all directions and depth potential is excellent."

Mineralization at Panuco North is of an intermediate sulphidation epithermal type, characterized by two main veins and several vein splays, with similar orientation to other silver-gold-base metal veins in the Zacatecas region. Vein textures, gangue mineralogy and metal signature of the near surface mineralization intercepted in drill holes at Panuco Central are consistent with the uppermost part or "top" of an intermediate sulphidation system (Figure 1). Similar veins at Zacatecas, and intermediate sulphidation deposits within the broader Mexican silver belt, and worldwide, have demonstrated vertical extents of between to 400 to >600 vertical metres. Mineralization at Panuco North has excellent depth potential and only the uppermost part of the south-eastern extension of the vein has been tested.

Dr. Wilson, further comments, "Mineralization at Panuco North has intercepted silver equivalent grades that are generally higher than the silver equivalent grade of the current Panuco resource estimate. Moreover, mineralization is being intercepted generally over wider widths. This is significant and further outlines the exploration potential of Panuco North."

Following the recent grant of 27 additional drill pads (see news release on March 23, 2022), Zacatecas will be able to test the depth extension of mineralization at south-eastern Panuco North over a strike length of 600 m, and to complete a maiden drill program along the central part of the Panuco North vein over a strike length of 1.4 km.

Assay results for six closely spaced holes (PAN 2022-026, 028, 029, 030, 032, and 033) drilled in the northwest of the Panuco North returned narrow zones of low-grade silver-gold mineralization. These holes tested shallow surface workings over a strike of 200 m strike to a maximum vertical depth of 60 m. Vein textures and metal signatures are consistent with the uppermost part of an intermediate sulphidation system. The vein has not been tested below these depths and remains open at depth.

At the Panuco Central Vein, seven angled diamond drill holes (totalling 1385 m) were drilled in the Panuco Central Vein system to test up-dip extension of mineralization included in the Panuco Resource Estimate. Results have been received for five holes and include 2.25 m @ 185 g/t Ag Eq (50 g/t Ag and 1.8 g/t Au) from 120.57 m downhole (Hole PAN2022-038) including: 0.49 m @ 545 g/t Ag Eq (156 g/t Ag and 5.18 g/t Au) from 120.57 m downhole; and 2.30 m @ 161 g/t Ag Eq (156 g/t Ag and 0.07 g/t Au) from 103.44 m downhole (Hole PAN2022-040).

The results of these holes are highly significant as the near surface (<150 m vertical) portion of the Panuco Central vein has never been tested above the current resource. Zacatecas is currently applying for additional drill pads to test the near surface extension of the entire Panuco Central Vein.

Additional drilling is required to determine true widths as all hole intercepted veins at an oblique angle. The assays are not capped. Assumptions used in USD for the silver equivalent calculation were metal prices of $24/oz silver, $1,800/oz gold and 100% recovery. At Panuco North drill holes PAN 2022-026, 028, 029, 030, 032 and 033 returned narrow zones of low-grade silver-gold mineralization and hole PAN 2022-027 did not encounter any significant mineralization. At Panuco central holes PAN 2022-036 and 037 returned narrow zones of low-grade silver-gold mineralization and holes PAN 2022-034 and 035 did not encounter any significant mineralization.

Zacatecas follows industry-recognized standards of Best Practice and Quality Assurance/Quality Control. Samples are submitted to ALS in batches of 20 - comprising 16 half cut core samples, one field blank, two certified reference material standards and one staged duplicate. Samples are sealed in plastic bags using single use tie-locks and delivered to ALS Zacatecas - thereby ensuring chain of custody. Since the ALS facility in Zacatecas is only a preparation facility, sample pulps were sent to ALS Ireland for fire assay. To date all batches have passed QAQC and blanks and CRM's were within acceptable tolerance limits. All diamond holes were drilled HQ diameter. Core recovery across all veins was better than 98%.

The contents of this news release have been reviewed and approved by Chris Wilson, B.Sc. (Hons), PhD, FAusIMM (CP), FSEG, Chief Operating Officer of Zacatecas. Dr. Wilson is a Qualified Person as defined by NI 43-101 and is responsible for all technical information in this news release.

The Zacatecas silver property 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. On December 15, 2021, Zacatecas 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).

The 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 Pan American Silver Corp. claims and El Orito, which is owned by Endeavour Silver. There are four main high-grade silver target areas within the Zacatecas concessions: the Panuco deposit, Muleros, El Cristo and San Manuel-San Gill. The property also includes El Oro, El Orito, La Cantera, Monserrat, El Penon, San Judas and San Juan silver base metal vein targets. These targets are unexplored.

Additionally, Zacatecas has recently announced a transaction to acquire the Esperanza Gold Project from Alamos Gold Inc. 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.

To date, significant core and reverse circulation drilling has occurred at the Esperanza gold project, resulting in a total of 389 drill holes for 69,716 metres. Four targets adjacent to or close to the historical resource were identified to potentially expand the historical resource. The project also hosts seven regional exploration targets, largely untested, that also merit drill testing.

Alamos reported in its most recent annual information form a resource estimate of a measured and indicated resource of 34,352,000 tonnes at 0.98 g/t gold and 8.09 g/t silver for 1,083,366 ounces of gold and 8,936,201 ounces of silver and inferred resource of 718,000 tonnes at 0.80 g/t gold and 15.04 g/t silver for 18,375 ounces of gold and 347,192 ounces of silver. The Company considers this to be an historical resource for the purposes of National Instrument 43-101. Resource blocks were defined using with dimensions of 10 metres (m) by 10 m by five m. The estimation of grades was performed with the ordinary kriging method on capped composites. An added step in the estimation strategy was the utilization of the dynamic anisotropy technique in Vulcan's unfolding options. This added capability allows for a more realistic outcome of the estimated grade's spatial distribution as it follows the folded shape of the deposit. Assumptions used in the resource include the following metal prices: gold price of $1,400 (U.S.) per ounce (oz) and silver price of $22 (U.S.) per oz. The resource assumed the following economic assumptions: recovery of 60.4 per cent at 0.2 g/t to 71.9 per cent at 1.6 g/t for gold, 25 per cent for silver, $2.60-per-tonne mining costs, 64-cents-per-tonne general and administrative costs, $4.20-per-tonne milling costs and a pit slope of 45 degrees. The Company considers the resource relevant due to its identification and modelling of the Esperanza deposit.

The Company has not done sufficient work to classify the resource as a current mineral resource or mineral reserves and the Company is not treating the historical estimate as current mineral resources or mineral reserves. Although the resource estimate is considered reliable, the Company will resample a portion of the drill core for the purpose of carrying out a new resource estimate. Furthermore, additional data verification, including resurveying of select diamond drill holes collars; review of graphic drill core logs, comparison of these logs with remaining half-cut core and a cross check of select geological logs agonist database entries; and a check of original assay certificates against the assays and drill hole database.

On behalf of the Company
Bryan Slusarchuk
Chief Executive Officer and Director

Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Zacatecas cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by many material factors, many of which are beyond their respective control. Such factors include, among other things: risks and uncertainties relating to Zacatecas' limited operating history, its proposed exploration and development activities on is Zacatecas Properties and the need to comply with environmental and governmental regulations. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, Zacatecas does not undertake to publicly update or revise forward-looking information.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Zacatecas Silver Corp.



Contact
Adam Ross, Investor Relations, Direct: (604) 229-9445, Toll Free: 1(833) 923-3334, Email: info@zacatecassilver.com