Mr. Alexander Langer of Sierra Madre reports

SIERRA MADRE REPAYS US$2.5 MILLION OF FIRST MAJESTIC LOAN

To date, Sierra Madre Gold and Silver Ltd. has repaid $2.5-million (U.S.) of the $5-million (U.S.) non-revolving, secured term loan between First Majestic Silver Corp. and the company.

Please see the company's press release dated May 8, 2024, for details of the original loan announcement and the company's press release dated June 5, 2025, for details of a term extension setting a new maturity date of May, 2027.

Alex Langer, Sierra Madre's president and chief executive officer, stated: "We are proud to announce the early repayment of half of our loan facility with First Majestic, driven by a strong silver and gold price environment, which has been reflected in an acceleration of cash generation from La Guitarra. This repayment is ahead of schedule and we expect to repay the remainder of the loan in the coming months."

Mr. Langer continued: "We continue to look forward to the next phase of growth with the first stage of the La Guitarra production expansion expected to come on line at the end of Q2 2026, which is expected to increase throughputs by a minimum of 50 per cent from the current 500-tonnes-per-day run rate."

Sierra Madre expects to report fourth quarter and year-end 2025 financial and operating results in mid-April, 2026.

Qualified person

Gregory Smith, PGeo, director of Sierra Madre, is a qualified person as defined by NI 43-101, and has reviewed and approved the technical data and information contained in this news release. Mr. Smith has verified the technical and scientific data disclosed herein.

About Sierra Madre and Silver Ltd.

Sierra Madre Gold and Silver is a precious metals producer and exploration company focused on the operation, exploration and development of the Guitarra mine in the Temascaltepec mining district in Mexico and the exploration and development of its Tepic property in Nayarit, Mexico. The Guitarra mine is a permitted underground mine, which includes a 500-tonne-per-day processing facility that operated until mid-2018 and restarted commercial production in January, 2025.

The greater-than-2,600-hectare Tepic project hosts low-sulphidation epithermal gold and silver mineralization with an existing historic resource.

Sierra Madre's management team has played key roles in managing the exploration and development of silver and gold mineral reserves and mineral resources. Sierra Madre's team of professionals has collectively raised over $1-billion for mining companies.

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