Mr. John Miniotis reports

ABRASILVER REPORTS 258 MILLION SILVER-EQUIVALENT OUNCES CONTAINED IN M&I CATEGORIES, SUBSTANTIALLY INCREASING THE DIABLILLOS MINERAL RESOURCE ESTIMATE

Abrasilver Resource Corp. has made a substantial increase to the mineral resource estimate on the company's wholly owned Diablillos property in Salta province, Argentina. The MRE comprises an updated estimate for the Oculto deposit plus estimates for the JAC, Fantasma and Laderas deposits, all of which are located to the west/southwest of Oculto. All four deposits are located at Diablillos.

Key highlights of the updated MRE compared with the MRE announced Nov. 3, 2022:

• A 36-per-cent increase in total contained silver in measured plus indicated mineral resources to 148 million ounces silver (from 109 Moz Ag), primarily due to the recently discovered JAC deposit;
• Significant contained gold resource totalling 1.36 Moz Au in M+I, representing a 5-per-cent increase in contained Au;
• A 32-per-cent increase in average silver grades in M+I mineral resources to 87 grams per tonne Ag (from 66 g/t Ag) due to higher silver grades at the JAC deposit and higher equivalent cut-off grades at Oculto;
• Maiden M+I MRE for the JAC deposit of 5.3 million tonnes at 202 g/t Ag and 0.13 g/t Au, containing 34 Moz silver and 22 koz gold;
• The increased contained metal in the MRE comes despite the adoption of a net value per block methodology and an increased equivalent average cut-off grade of 45 g/t silver equivalent compared with the 35 g/t silver equivalent used previously, and further demonstrates the robustness and high grade of the mineralization at Diablillos.

Key highlights of the updated MRE:

• Significant growth: Inferred mineral resources at Diablillos now contain an estimated 258 Moz AgEq, and the inferred mineral resource contains an additional eight Moz AgEq;
• Four conceptual open pits: the addition of the new high-grade JAC deposit, which will ultimately join the Oculto deposit, has further enhanced the overall quality of the mineral resource, and is expected to boost flexibility and the economic strength of the project in the coming prefeasibility study;
• Industry-leading discovery costs: The phase 3 drill program cost approximately $7.3-million (U.S.) and added approximately 43 Moz AgEq to the M+I mineral resources, representing an impressive cost of only 17 U.S. cents per ounce AgEq added;
• Extensive exploration upside potential: Future drilling will focus on exploration targets which include: JAC North, Alpaca and the Oculto-Fantasma trends, each of which has the potential to continue to increase and add additional silver/gold mineralization.

John Miniotis, president and chief executive officer, commented: "We are delighted to announce that M&I mineral resources at Diablillos are now estimated to contain approximately 260 Moz AgEq. The substantial increase in contained silver, despite the increased cut-off grade, is a testament to the exceptional quality of our Diablillos asset and the ability of our technical team to consistently add value through our exploration efforts. The updated MRE will form the basis for the PFS, which remains on track to be completed early in [first quarter] 2024."

David O'Connor, chief geologist, stated: "The updated MRE at Diablillos represents a major milestone for the company, and we are very pleased to see a significant increase in both the quantity and grade of silver mineralization, stemming from our discovery of the high-grade JAC zone. Looking forward, we are very excited by the upside potential of future near-pit and regional exploration programs at Diablillos, where we have already identified multiple new mineralized zones that we expect could further significantly enhance our mineral inventory beyond the current mineral resource estimate."

Mineral resource estimate methodology:

• The November, 2023, MRE was completed by Luis Rodrigo Peralta, BSc, FAusIMM CP (geo), independent consultant, in accordance with Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards incorporated, by reference, and in compliance with National Instrument 43-101, and has been reviewed internally by Abrasilver.
• The MRE is the result of approximately 133,000 metres of drilling in 630 drill holes (historical and current). This includes the latest phase 3 drill campaign, conducted in 2022/2023, which totalled 24,077 metres.
• The MRE is based on the Oculto, JAC, Fantasma and Laderas deposits within the broader Diablillos property, and is reported inside a conceptual Whittle open-pit shell. The cut-off grade was calculated using a net block value calculation, based on the economic limits outlined in the footnotes.
• Gold and silver grades were estimated into the block model using reverse circulation drill holes, diamond drill holes including the recent drilling between 2019 and July 30, 2022. They were estimated applying the industry-standard estimation methodology of ordinary kriging, and bias was reviewed using an inverse distance squared estimate for comparison. Drill hole intervals have been composited to a length of one m, which is the average sampling length for core sampling.
• Grade capping has been applied to composited grade intervals on a case-by-case basis within each estimation domain. The estimation domains were defined using a combination of lithology domains, alteration domains and oxide/sulphide state, defining a set of 24 domains for gold and silver.

Significant exploration upside potential

Numerous opportunities exist to further expand the mineral resources within the existing deposits, in addition to defining new mineralized zones through a stepout exploration drill campaign. The company is currently prioritizing and sequencing the various targets ahead of the next exploration campaign, which is expected to commence in first quarter 2024.

• Oculto: MRE is based on a total of 457 drill holes, or approximately 104,800 metres. Additional drilling would focus on expansion of the highest-grade portion of Oculto, the Tesoro zone, and exploration of potential continuation of mineralization along known zones toward the northeast.
• JAC: The new high-grade JAC deposit was discovered in August, 2022, and the maiden MRE is based on a total of 112 drill holes, or approximately 20,800 metres. Additional drilling would focus additional mineralized zones within the JAC magnetic low zone.
• Fantasma: MRE is based on a total of 39 drill holes, or approximately 4,300 metres. Additional drilling would focus on the potential continuity of mineralization along the approximately one-kilometre zone connecting the Fantasma body to the Oculto deposit.
• Laderas: MRE is based on a total of 22 drill holes, or approximately 3,200 metres. Additional drilling would focus on continuity of the higher-grade parts of the zone, as well as northeast extensions.
• Other priority targets beyond the current MRE: Reconnaissance exploration, in combination with structural mapping and magnetic surveys, continues to generate new targets in other underexplored areas of Diablillos. These targets include JAC North and Alpaca, neither of which has been included in the MRE due to insufficient drilling, as well as other zones with similar geological characteristics, where additional drilling is also warranted:
  • JAC North: Initial drilling on the northern edge of the JAC deposit intersected a new zone of silver mineralization, JAC North, suggesting the possibility of a structure within the magnetic low anomaly parallel to the JAC deposit. This new target will be followed up in the next drill program.
  • Alpaca: Historical drilling intersected silver mineralization in the Alpaca area, located several hundred metres northwest of JAC. An interpretation of the magnetic signature suggests that a perpendicular zone of silver mineralization may connect JAC with Alpaca. This is a high priority for the next drilling campaign.

Supporting technical information:

• Metallurgical recoveries: Metallurgical recoveries used in the MRE and open-pit optimization were based on a new geometallurgical model built using recent metallurgical testwork performed at the SGS laboratory in Vancouver. This new model incorporates five domains, based on a master composite for each, composed of approximately 15 samples per domain. A fixed value of metallurgical recovery has been applied to each domain. Overall weighted-average recoveries of these five domains are 82.6 per cent for silver and 86.5 per cent for gold.
• Open-pit slopes: Open-pit shell slope angles at Oculto are based on the 2022 geotechnical drilling and subsequent modelling. Six geotechnical sectors have been defined for use in the open-pit optimization with the angles varying between 35 degrees in the unconsolidated overburden to 55 degrees in the granitic rock type, with the average overall angle being 51 degrees. As the JAC deposit is covered with unconsolidated colluvium, a conservative pit slope angle of 35 degrees was used. Importantly, the overburden at the JAC deposit is expected to be free-digging, resulting in lower mining costs.
• Updated operating cost estimates from the continuing PFS have been used in the net value per block method, totalling $28.23 (U.S.) per tonne processed, and these have been based on 73 per cent in firm quotations.
• A full technical report in respect of the November, 2023, MRE will be prepared in accordance with National Instrument 43-101 and will be filed on SEDAR+ within 45 days of this news release.

Quality assurance/quality control and core sampling protocols

Abrasilver applies industry standard exploration methodologies and techniques, and all drill core samples are collected under the supervision of the company's geologists in accordance with industry best practices. Drill core is transported from the drill platform to the logging facility where drill data are compared and verified with the core in the trays. Thereafter, it is logged, photographed and split by diamond saw prior to being sampled. Samples are then bagged, and quality control materials are inserted at regular intervals at site. These include blanks and certified reference materials, as well as duplicate core samples, which are collected to assess sampling precision and reproducibility. Groups of samples are then placed in large bags, which are sealed with numbered tags to maintain a chain of custody during the transport of the samples from the project site to the laboratory.

All samples are received by the SGS preparation laboratory in Salta, where they are prepared, and then, the pulp sachets are dispatched directly to its facility in Lima, Peru, for analysis. All samples are analyzed using a multielement technique consisting of a four-acid digestion followed by ICP/AES detection, and gold is analyzed by a 50-gram fire assay with an AAS finish. Silver results greater than 100 g/t are reanalyzed using four-acid digestion with an ore grade AAS finish.

Qualified persons and technical information

The site visit, review of various geological aspects, including sampling techniques, drill core, logging, assay laboratory and secondary laboratory check samples, and the November, 2023, MRE were done by Luis Rodrigo Peralta, BSc, FAusIMM CP (geo). Mr. Peralta is an independent qualified person as defined by the NI 43-101. Mr. Peralta has reviewed and approved the technical content of this news release.

The full technical report, supporting the November, 2023, MRE, which is being prepared in accordance with NI 43-101 by Mr. Peralta, will be available on SEDAR+ under the company's issuer profile within 45 days from this news release. The effective date of the MRE is Nov. 22, 2023.

About Abrasilver Resource Corp.

Abrasilver is an advanced-stage exploration company focused on rapidly advancing its 100-per-cent-owned Diablillos silver-gold project in the mining-friendly Salta province of Argentina. The current measured and indicated mineral resource estimate for Diablillos consists of 53.3 million tonnes grading 87 g/t Ag and 0.79 g/t Au, containing approximately 148 Moz silver and 1.4 Moz gold, with significant further upside potential based on recent exploration drilling. The company is led by an experienced management team and has long-term supportive shareholders including Eric Sprott. In addition, Abrasilver owns a portfolio of earlier-stage copper-gold projects, including La Coipita copper-gold project in the San Juan province of Argentina. Abrasilver is listed on the TSX Venture Exchange under the symbol ABRA and in the United States under the symbol ABBRF.

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