Mr. Andre van Niekerk reports

GATOS SILVER REPORTS Q2 2023 PRODUCTION RESULTS

Gatos Silver Inc. has released production results for the quarter and six months ended June 30, 2023, with continued strong mill throughput rates at its 70-per-cent-owned Cerro Los Gatos (CLG) mine in Mexico.

Dale Andres, chief executive officer of Gatos Silver, commented: "The CLG mine continues to perform very well with another record for mill throughput rate during the quarter, supported by further mine debottlenecking and plant optimization efforts. We remain on track to achieve 2023 production guidance at CLG and to provide an updated mineral resource and reserve estimate before the end of the third quarter of this year, including a new life-of-mine plan."

Mill throughput set a new quarterly record, averaging 2,916 tonnes per day during the second quarter of 2023, an increase of 26 per cent compared with the second quarter of 2022.

Silver production was 2.00 million ounces in the second quarter of 2023, 13 per cent below the 2.30 million ounces in the second quarter of 2022. The reduction is mainly attributable to a 29-per-cent decline in silver grades in Q2 2023, as expected in the mine plan, and partially offset by the 26-per-cent increase in mill throughput. Zinc production decreased by 5 per cent, lead production declined by 18 per cent and gold production decreased by 6 per cent compared with the second quarter of 2022 due to lower mill feed grades, as expected in the mine plan. Recoveries for the second quarter of 2023 were marginally lower than in the comparable quarter for 2022 due to lower grades and metallurgical characteristics, which can vary quarter over quarter.

The paste backfill plant operated well during the quarter and is expected to be a key enabler for continued mine optimization, providing increased operational flexibility and productivity and helping to lower operating costs going forward. Development progress is enabling sufficient production flexibility to maintain current mill throughput rates, with continued focus on accessing the lower levels of the Central and Northwest zones and on initial development in the Southeast zone. Construction of the fluorine leach plant for zinc concentrate is complete with commissioning activities progressing well.

About Gatos Silver Inc.

Gatos Silver is a silver-dominant exploration, development and production company that discovered a new silver-rich and zinc-rich mineral district in southern Chihuahua state, Mexico. As a 70-per-cent 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 Los Gatos joint venture consists of approximately 103,000 hectares of mineral rights, representing a highly prospective and underexplored 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, PGeo, senior vice-president of corporate development and technical services of Gatos Silver, who is a qualified person as defined in S-K 1300 and National Instrument 43-101.

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