Guanajuato Silver obtains permit for Pinguico restart

Mr. James Anderson reports GUANAJUATO SILVER RECEIVES KEY PERMIT AT PINGUICO MINE Guanajuato Silver Company Ltd. has provided an update on one of the company's key development projects within its core portfolio of Guanajuato district holdings in central Mexico. The Pinguico epithermal gold-silver vein project, a satellite project to the nearby El Cubo mines complex, has received a key development permit that allows the company to advance this wholly owned project. Highlights Receipt of a general use explosives permit, issued by the Ministry of Defense, allows for restart of development work at Pinguico. Drifting along the mineralized San Jose vein structure toward the Pinguico underground stockpile is expected to recommence in Q4 2025. Pinguico's historic underground stockpile represents a significant tonnage of potentially low-cost mineralized material within 10 kilometres of the company's El Cubo processing facility. Once drill headings are established underground, the development team will shift focus to accessing and extracting additional historic mineralized backfill within the mine, which is believed to be economic in today's silver and gold price environment. Economic mineralization encountered during development work will be sent to the El Cubo plant for processing, which is expected to pay for a portion of the 2025/2026 underground development program. Previous exploration work by GSilver has returned numerous high-grade results that justify a 2026 underground exploration drilling program aimed at discovering new mineralized shoots within the multiple vein structures. Under the New York Stock Exchange-listed Pinguico Mines Company, the Pinguico mine was the highest-grade gold/silver mine in the Guanajuato region from 1890 to 1913. James Anderson, chairman and chief executive officer, said: "We are excited to restart work at our Pinguico mine. The timely granting of this explosives permit allows underground development to restart at what was once the Guanajuato district's highest-grade mine. This permit was obtained several months earlier than anticipated and we congratulate our permitting and government liaison teams for achieving this welcomed milestone." The Ministry of Defense has executed the request for a general explosives consumption permit for Guanajuato Silver's operating subsidiary, Compania Obras Mineras El Pinguico SA de CV. Underground mining activities are now poised to recommence this year. The objective will be to construct a decline from Level 4 toward the historical underground stockpile. Last year, the company advanced over 75 metres from the adit entrance with a four-metre-by-four-metre fully serviceable crosscut before operations were ceased in December pending renewal of the explosives permit. Approximately 500 metres remain to be developed. Planned development work will consist of drifting along the San Jose vein structure, which is expected to contribute to silver and gold production totals, and will thereby partially offset development costs. The company is currently interviewing local mining contractors, preparing capital cost estimates and completing detailed engineering ahead of anticipated project approval by the board in late September. Additional information from historic sampling campaigns of the stockpiled material can be found in the news release dated Nov. 26, 2024 (Guanajuato Silver Provides Pinguico Project Development Update), as well as the technical report entitled: "On The El Cubo And El Pinguico Silver Gold Complex" prepared by APEX Geoscience, with the effective date of Aug. 1, 2024, and filed on SEDAR+. In addition to providing access to the underground stockpile, the completion of the adit and ramp will open up the Pinguico mine for further exploration and development of stopes in material that was below cut-off grade in the early 20th century. Previous drilling programs conducted by Guanajuato Silver have returned numerous high-grade results, including drill hole P21-10 (from the El Pinguico vein structure): 5.96 grams per tonne gold and 476 g/t silver for 953 g/t AgEq (silver equivalent) over 0.90 metre (see Guanajuato Silver news releases dated July 7, 2021 -- "GSilver Drills 0.90m of 953 gpt AgEq" and dated May 5, 2022 -- "GSilver Drills 2,988 gpt AgEq Over 0.35m Estimated True Width at El Cubo"); AgEq calculations used an 80:1 silver to gold ratio. Disclaimer: There are no current estimates of mineral reserves at Pinguico. The company made decisions to enter production at Pinguico without having completed final feasibility studies. Accordingly, the company did not base its production decisions on any feasibility studies of mineral reserves demonstrating economic and technical viability of the Pinguico property, with positive cash flow. As a result, there is increased uncertainty and risks of achieving any level of recovery of minerals from Pinguico or the costs of such recovery. As Pinguico does not have established mineral reserves, the company faces higher risks that anticipated rates of production and production costs, such as those provided in the technical report, will not be achieved. These risks could have a material adverse impact on the company's ability to continue to generate anticipated revenues and cash flows to finance operations from and ultimately achieve or maintain profitable operations at Pinguico. Sampling and quality assurance/quality control Guanajuato Silver adheres to thorough QA/QC procedures and practices that exceed standard regulatory requirements when managing the company's testing and sampling. Drill core was first reviewed by a company geologist, who identified and marked intervals for sampling. The marked sample intervals were then cut in half with a diamond saw; half of the core was left in the core box and the other half was removed, placed in plastic bags, sealed and labelled. Intervals and unique sample numbers are recorded on the drill logs and the samples are sequenced with standards and blanks inserted according to a predefined QA/QC procedure. The samples are maintained under security on site until they are shipped to the analytical lab. The analytical work reported on herein was performed by Guanajuato Silver's local laboratory, located at the Valenciana mines complex at Ex-Hacienda de Bustos in Guanajuato City. This laboratory is owned and operated by the company and is not independent. To validate the company's assay results and preparation procedures, GSilver customarily sends additional random samples representing approximately 20 per cent of all analytical samples to one of two ISO certified labs: Quimico Platinum, located at Silao, Guanajuato or Bureau Veritas located in Hermosillo, Sonora, Mexico. Both laboratories are certified at the ISO/IEC (International Organization for Standardization/International Electrotechnical Commission) geoanalytical laboratory and are independent of GSilver and its qualified person. Core samples were subject to crushing at a minimum of 70 per cent passing two millimetres, followed by pulverizing of a 250-gram split to 85 per cent passing 75 micron. Gold determination was via standard atomic absorption (AA) finish 30-gram fire assay (FA) analysis, in addition to silver and 34-element analysis using fire assay and gravimetry termination. Following industry-standard procedures, blank and standard samples were inserted into the sample sequence and sent to the laboratory for analysis. Data verification of the analytical results included a statistical analysis of the standards and blanks that must pass certain parameters for acceptance to ensure accurate and verifiable results. As of the date of this press release, the company has not yet received the results of the random samples sent to the independent laboratory. Qualified person William Gehlen, a director of Guanajuato Silver, is a certified professional geologist with the American Institute of Professional Geologists (No. 10626), and a qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. Mr. Gehlen has reviewed and verified technical data disclosed in this news release and has not detected any significant QA/QC issues during review of the data and is not aware of any sampling, recovery or other factors that could materially affect the accuracy or reliability of the drilling data referred to herein. The verification of data underlying the disclosed information includes reviewing compiled assay data; QA/QC performance of blank samples, duplicates and certified reference materials; and grade calculation formulas. About Guanajuato Silver Company Ltd. 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, 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. We seek Safe Harbor.