Guanajuato Silver Company Ltd. Reports Best Ever Quarterly Production

Q1 2024 Production Highlights

• Production during the quarter of 987,312 silver-equivalent ounces ("AgEq*") is the best quarter in the Company's history since production began at the Company's El Cubo mines complex in Q4 2021; production is derived from 428,279 ounces of silver; 5,384 ounces of gold; 879,242 pounds of lead; and 922,927 pounds of zinc.
• Tonnes milled increased by 20.1% over the previous quarter; a total of 165,079 tonnes were processed among GSilver's three production facilities.
• Average silver and gold recoveries increased to 88.6% and 89.2% respectively as compared to 84.5% silver recovery and 88.8% gold recovery in Q4, 2023.

James Anderson, Chairman and CEO, said, "Q1 generated our best production performance to date and continues the trend of demonstrable quarter-over-quarter increases in precious metals production. In 2023, we made significant capex investments aimed at improving efficiencies across all of our producing assets; the impact from these improvements is now being realized as evidenced by our strong start to the year. We look forward to building upon our success as we continue to grow Guanajuato Silver into a prominent producer of silver and gold."

Silver equivalents are calculated using an 88.72 (Ag/Au), 0.04:1 (Ag/Pb) and 0.05:1 (Ag/Zn) ratio for Q1 2024; silver equivalents are calculated using an 85.10:1 (Ag/Au), 0.04:1 (Ag/Pb) and 0.05:1 (Ag/Zn) ratio for Q4 2023; silver equivalents are calculated at 80:1 for Q4, 2021.

Q1 2024 Production Demonstrates Significant Improvements Over Previous Quarter

Total tonnes milled was up 20.1% over the previous quarter; the increase in total milled tonnage was partly due to the processing of mineralized material from the Company's El Horcon mine and from the processing of 3^rd party gold and silver (See GSilver news release dated January 17, 2024 - Guanajuato Silver Commences Processing 3^rd Party Gold and Silver at El Cubo). During the quarter, 117,043 silver-equivalent ounces were generated through the processing of 3^rd party mineralized material, and 59,914 silver-equivalent ounces were generated from the processing of stockpiled material at Horcon.

Gold production of 5,384 ounces in Q1 denotes a 22.5% increase from the previous quarter; this increase was primarily the result of increased tonnage over the quarter coupled with strong gold recoveries of 89.2%.

Silver production of 428,279 ounces in Q1 was an 8.4% increase from the previous quarter; silver production for the quarter generated 43.3% of total AgEq production.

At Topia, lead production of 879,242 pounds in Q1 was up 5% over the previous quarter; zinc production declined 4% to 922,297 pounds. During Q1, 2024, Topia generated 288,579 silver-equivalent ounces, which represented 29.2% of total production. Topia is the only polymetallic mine within Guanajuato Silver's asset portfolio; all of the Company's other mines are pure precious metals producers.

1. Silver equivalents are calculated using an 88.72 (Ag/Au), 0.04:1 (Ag/Pb) and 0.05:1 (Ag/Zn) ratio for Q1 2024; silver equivalents are calculated using an 85.10:1 (Ag/Au), 0.04:1 (Ag/Pb) and 0.05:1 (Ag/Zn) ratio for Q4 2023.
2. All figures are rounded to reflect the relative accuracy of the estimates. Minor discrepancies may occur due to rounding to appropriate significant figures.

Technical Information
Reynaldo Rivera, VP of Exploration of GSilver, has approved the scientific and technical information contained in this news release. Mr. Rivera is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM - Registration Number 220979) and a "qualified person" as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects. Mr. Rivera has verified the data that supports the technical information disclosed in this press release by reviewing production reports from each of the Company's mining operations.

About Guanajuato Silver
GSilver is a precious metals producer engaged in reactivating past producing silver and gold mines in central Mexico. The Company produces silver and gold concentrates from the El Cubo Mine Complex, Valenciana Mines Complex, and the San Ignacio mine; all three mines are located within the state of Guanajuato, which has an established 480-year mining history. Additionally, the Company produces silver, gold, lead, and zinc concentrates from the Topia mine in northwestern Durango. With four operating mines and three processing facilities, Guanajuato Silver is one of the fastest growing silver producers in Mexico.

ON BEHALF OF THE BOARD OF DIRECTORS
"James Anderson"
Chairman and CEO

For further information regarding Guanajuato Silver Company Ltd., please contact:

JJ Jennex, Gerente de Comunicaciones, T: 604 723 1433
E: jjj@GSilver.com
Gsilver.com

Guanajuato Silver Bullion Store
Please visit our Bullion Store, where Guanajuato Silver coins and bars can be purchased.

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

Forward-Looking Statements

This news release contains certain forward-looking statements and information, which relate to future events or future performance including, but not limited to, growth of the Company's operating presence within Mexico, improvement in overall efficiencies at its Mexican mining operations, the addition of a new source of mineralized material from El Horcon, the impact of significant capex investments aimed at improving efficiencies across all of producing assets, the growth of Guanajuato Silver into a prominent producer of silver and gold, and the Company's status as one of the fastest growing silver producers in Mexico.

Such forward-looking statements and information reflect management's current beliefs and expectations and are based on information currently available to and assumptions made by the Company; which assumptions, while considered reasonable by the Company, are inherently subject to significant operational, business, economic and regulatory uncertainties and contingencies. These assumptions include: our estimates of mineralized material at El Cubo, VMC, San Ignacio and Topia and the assumptions upon which they are based, including geotechnical and metallurgical characteristics of rock conforming to sampled results and metallurgical performance; available tonnage of mineralized material to be mined and processed; resource grades and recoveries; assumptions and discount rates being appropriately applied to production estimates; the ability of the Company to ramp up processing of mineralized material at Cata at the projected rates and source sufficient high grade mineralized material to fill such processing capacity; prices for silver, gold and other metals remaining as estimated; currency exchange rates remaining as estimated; availability of funds for the Company's projects and to satisfy current liabilities and obligations including debt repayments; capital cost estimates; decommissioning and reclamation estimates; prices for energy inputs, labour, materials, supplies and services (including transportation) and inflation rates remaining as estimated; no labour-related disruptions; no unplanned delays or interruptions in scheduled construction and production; all necessary permits, licenses and regulatory approvals are received in a timely manner; and the ability to comply with environmental, health and safety laws. The foregoing list of assumptions is not exhaustive.

Readers are cautioned that such forward-looking statements and information are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results, level of activity, production levels, performance or achievements of GSilver to differ materially from those expected including, but not limited to, market conditions, availability of financing, future prices of gold, silver and other metals, currency rate fluctuations, rising inflation and interest rates, actual results of production, exploration and development activities, actual resource grades and recoveries of silver, gold and other metals, availability of third party mineralized material for processing, unanticipated geological or structural formations and characteristics, geopolitical conflicts including wars, environmental risks, operating risks, accidents, labor issues, equipment or personnel delays, delays in obtaining governmental or regulatory approvals and permits, inadequate insurance, and other risks in the mining industry. There are no assurances that GSilver will be able to successfully discover and mine sufficient quantities of high grade mineralized material at El Cubo, VMC, San Ignacio and Topia for processing at its existing mills to increase production, tonnage milled and recoveries rates of gold, silver, and other metals in the amounts, grades, recoveries, costs and timetable anticipated. In addition, GSilver's decision to process mineralized material from El Cubo, VMC, San Ignacio, Topia and its other mines is not based on a feasibility study of mineral reserves demonstrating economic and technical viability and therefore is subject to increased uncertainty and risk of failure, both economically and technically. Mineral resources and mineralized material that are not Mineral Reserves do not have demonstrated economic viability, are considered too speculative geologically to have the economic considerations applied to them, and may be materially affected by environmental, permitting, legal, title, socio-political, marketing, and other relevant issues. There are no assurances that the Company's projected production of silver, gold and other metals will be realized. In addition, there are no assurances that the Company will meet its production forecasts or generate the anticipated cash flows from operations to satisfy its scheduled debt payments or other liabilities when due or meet financial covenants to which the Company is subject or to fund its exploration programs and corporate initiatives as planned. There is also uncertainty about the continued spread and severity of COVID-19, the ongoing war in Ukraine and rising inflation and interest rates and the impact they will have on the Company's operations, supply chains, ability to access mining projects or procure equipment, supplies, contractors and other personnel on a timely basis or at all and economic activity in general. Accordingly, readers should not place undue reliance on forward-looking statements or information. All forward-looking statements and information made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com including the Company's annual information form for the year ended December 31, 2022. These forward-looking statements and information are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required by law.

SOURCE: Guanajuato Silver Company Ltd.