Mr. Dale Andres reports

GATOS SILVER FILES FINANCIAL RESULTS FOR FIRST QUARTER OF 2023 AND ANNOUNCES INVESTOR CONFERENCE CALL

Gatos Silver Inc. has filed its quarterly report on Form 10-Q for the quarter ended March 31, 2023, on both the EDGAR and SEDAR systems, and it is posted on the company's website. The company will host an investor and analyst call on June 28, 2023, details of which are provided below.

The Company has a 70% interest in the Los Gatos Joint Venture ("LGJV"), which in turn owns the Cerro Los Gatos ("CLG") mine in Mexico. Production for the first quarter of 2023 was disclosed on April 12, 2023. The Company's reporting currency is US dollars.

As a result of this filing, Gatos Silver is now current with its U.S. and Canadian securities regulatory filing requirements for its financial statements. The Company will therefore request the Ontario Securities Commission to revoke the related Management Cease Trade Orders.

Dale Andres, CEO of Gatos Silver, said: "CLG delivered strong free cash flow in the first quarter of 2023 helped by stable cost of sales and lower sustaining capital expenditures compared to a year ago. We continue to maintain our current annual production and cost guidance for the full year. The LGJV is focused on mine life extension in 2023 with six active surface drill rigs on the South-East Deeps zone and three underground drill rigs operating in the NW and Central zones. We are on track to provide an updated mineral resource and reserve estimate in the third quarter of this year, including a new life of mine plan."

LGJV Q1 2023 results compared to Q1 2022 (100% basis):

• Revenue of $69.9 million, down 20% from $87.6 million
• Cost of sales of $26.0 million, up 4% from $25.1 million
• Cash flow from operations of $40.0 million, down 5% from $42.1 million (1)
• Net income of $12.7 million, down 51% from $26.1 million
• EBITDA of $39.6 million, down 30% from $56.5 million (2)
• Free cash flow of $28.7 million, up 25% from $22.9 million (2)
• By-product cash cost of $2.66 per payable ounce of silver, up from ($0.19) ( 2 )
• By-product all-in sustaining costs ("AISC") of $6.11 per ounce of payable silver, down 22% from $7.88 ( 2 )

(1) Previously disclosed cash flow from operations for Q1 2023 at $44.5 million. Reduction due to reclassification from investing activities with no change in overall cash flow for the period.

(2) These measures are non-GAAP measures. See "Non-GAAP Financial Performance Measures" below for additional information.

In Q1 2023, Gatos Silver's net income was $0.8 million or $0.01 per share compared with net income of $1.1 million or $0.02 per share in Q1 2022. The decline is attributable to lower equity income from the LGJV primarily driven by negative provisional pricing adjustments at quarter end at the LGJV.

2023 Guidance Unchanged

Gatos Silver is not changing its 2023 guidance even though silver production was higher in the first quarter of 2023 than the annual guidance run rate. Based on current mine plan sequencing at CLG, the Company expects the quarterly production run rate for silver to be lower and zinc and lead to be slightly higher for the remainder of the year.

The Company continues to expect sustaining capital expenditures at CLG of $45 million in 2023 ($8 million spent in Q1 2023). As a result, quarterly by-product cash costs and by-product AISC are expected to be higher for the remainder of the year compared to the first quarter. The Company expects ongoing cost reduction initiatives to help offset impacts from current lower by-product prices compared to the first quarter.

In addition, exploration and resource definition drilling expenditures are expected to be $13 million in 2023, with South-East Deeps resource drilling being capitalized as a development expenditure associated with future mine life extension.

Financial Results Webcast and Conference Call

Investors and analysts are invited to attend the financial results webcast and conference call as follows:

Date:  Wednesday, June 28, 2023

Time:  9:00 a.m. ET

An archive of the webcast will be available on the company's website within 24 hours.

About Gatos Silver

Gatos Silver is a silver dominant exploration, development and production company that discovered a new silver and zinc-rich mineral district in southern Chihuahua State, Mexico. As a 70% owner of the Los Gatos Joint Venture, the Company is primarily focused on operating the Cerro Los Gatos mine and on growth and development of the Los Gatos district. The LGJV consists of approximately 103,000 hectares of mineral rights, representing a highly prospective and under-explored district with numerous silver-zinc-lead epithermal mineralized zones identified as priority targets.

Qualified Person

Scientific and technical disclosure in this press release was approved by Anthony (Tony) Scott, P.Geo., Senior Vice President of Corporate Development and Technical Services of Gatos Silver who is a "Qualified Person" as defined in S-K 1300 and NI 43-101.

We seek Safe Harbor.