Sierra Madre begins exploration at Guitarra

Executive Summary

• Sierra Madre Gold and Silver Ltd. has launched a $3.5 million exploration program at the East District of its Guitarra project in Mexico, focusing on the historic Temascaltepec mining area.
• The program is structured in two stages: a nine-month target definition phase involving surface mapping and structural analysis, followed by a 20,000–25,000-meter drill program expected to take 12–18 months.
• The company has appointed CFO Ken Scott as Corporate Secretary and entered into marketing agreements with New Era Publishing and Departures Capital to enhance investor awareness.

Key Details

• Exploration Budget: $3.5 million (U.S.), funded from treasury and cash flow, supported by a $19.5 million private placement closed in July 2025.
• Program Scope (East District):
  • Phase 1 (Target Definition): Estimated 9 months. Includes detailed geologic surface mapping (including historic El Rincon mine), surveying, mapping/sampling of historic workings, and structural analysis.
  • Phase 2 (Drilling): Estimated 12–18 months. Planned 20,000–25,000-meter drill program to assess economic potential. Potential for larger delineation drilling based on results.
• Historic Data & Potential:
  • 2023 NI 43-101 report estimates exploration potential for six vein systems (Nuevo Descubrimiento, Las Animas-Socorro, Marmajas-Echada, Magdalena-Zayas, Purisima).
  • Tonnage Estimate: 0.77 million to 1.54 million tonnes.
  • Grade Estimates: Silver 440–670 g/t Ag; Gold 2.4–3.6 g/t Au.
  • Total Strike Length: 7.7 km.
  • Current Resources (Mina de Agua): Indicated resource of 761,000 tonnes at 159 g/t Ag and 0.19 g/t Au; Inferred resource of 545,000 tonnes at 178 g/t Ag and 0.13 g/t Au.
• Operational Updates:
  • New senior-level geologists hired.
  • Access regained to Rampa Carolina on the Santa Ana vein system (300+ meters of workings constructed in 2007).
  • Sampling for metallurgical tests underway.
• Corporate Governance:
  • Ken Scott appointed Corporate Secretary effective Nov. 1, 2025.
  • Kerry Spong retains positions as Controller and Senior Manager of Finance.
• Marketing Agreements:
  • New Era Publishing Inc.: 2-month agreement for marketing/investor awareness services for $225,000 USD. Includes engagement with Carbon Credits for North American/European audience reach.
  • Departures Capital Inc.: 6-month service agreement for investor communications and digital media production. Fee of $8,500 USD plus taxes, payable in advance. Includes YouTube content and Google ad campaigns.

Notable Quotes

• Greg Liller, Chief Operating Officer and Executive Chair: "We are very pleased to be restarting exploration within the underexplored East district portion of the company's concessions holdings, following the successful restart of the Guitarra and Coloso mines. The East district is the last of the six major Spanish colonial production centres in Mexico that has not been systematically mapped, drilled and evaluated using modern tools and methods."
• Alex Langer, Chief Executive Officer: "Restarting exploration at the East district is a key step to unlocking the full value of Guitarra. With a fully funded two-stage plant expansion under way in the West district, we see potential for additional discoveries in this eastern portion of the property."