Mr. Andre van Niekerk reports

GATOS SILVER REPORTS Q3 2023 PRODUCTION RESULTS

Gatos Silver Inc. has released production results for the quarter and nine months ended Sept. 30, 2023, 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 achieved strong production results in the third quarter, with the mill equalling the record throughput rate achieved last quarter. Consistent with the first half of the year, silver equivalent production in the third quarter and nine months tracked to the high end of our 2023 production guidance range. We are continuing to progress further life extension opportunities beyond 2030 by advancing conversion drilling of the South-East Deeps inferred resource and ramping up exploration efforts on near-mine targets in the Los Gatos district."

The mill throughput rate equalled the record achieved last quarter, averaging 2,916 tonnes per day during the third quarter of 2023, an increase of 2 per cent compared with the third quarter of 2022. The fluorine leach plant for zinc concentrate was fully commissioned during the quarter and is operating well.

Silver production was 2.22 million ounces in the third quarter of 2023, 18 per cent below the 2.7 million ounces in the third quarter of 2022. The reduction is attributable to a 20-per-cent decline in silver grades in Q3 2023, as expected in the mine plan, and partially offset by the 2-per-cent increase in mill throughput and improved recoveries. Zinc and lead production each decreased by 22 per cent, and gold production decreased by 9 per cent, compared with the third quarter of 2022, primarily due to lower mill feed grades as expected.

On Sept. 6, 2023, the company announced updated mineral reserve and mineral resource estimates, and new life-of-mine plan for CLG with an extended mine life through to the end of 2030. The company expects to file updated technical reports later this month that support these new estimates. Exploration and definition drilling continued in the third quarter, with the focus on CLG mine life extension. A seventh surface drill rig has been mobilized to site, with five of these rigs continuing to be active on conversion drilling of the South-East Deeps inferred resource. The other two rigs will be focused on near-mine exploration targets during the fourth quarter.

About Gatos Silver Inc.

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-per-cent owner of the Los Gatos joint venture (LGJV), 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 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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