Mr. Dale Andres reports

GATOS SILVER REPORTS Q1 2024 PRODUCTION RESULTS AT TOP END OF GUIDANCE

Gatos Silver Inc. has released production results for the quarter ended March 31, 2024, at its 70-peer-cent-owned Cerro Los Gatos (CLG) mine in Mexico.

Dale Andres, chief executive officer of Gatos Silver, commented: "The CLG mine delivered another strong quarter of operational results. Mill throughput for the quarter was more than 3,200 tonnes per day, an increase of 11 per cent from the first quarter of 2023 and another quarterly record. Silver equivalent production for the quarter was at the top end of guidance with the higher throughput offsetting lower grades for silver, lead and gold as expected in the mine plan.

"We made good progress on mine debottlenecking and productivity improvements as we continue to advance towards our medium-term target to sustain throughput rates of 3,500 tonnes per day. We are also progressing our life extension opportunities beyond 2030, with an updated life-of-mine plan expected in the third quarter of 2024 and increased exploration efforts on near-mine targets in the Los Gatos district during the quarter."

Production results (100-per-cent basis)

CLG comparative production highlights are summarized in the attached table.

Mill throughput averaged 3,210 tonnes per day during the first quarter of 2024, which was the fifth consecutive quarterly increase and was 11 per cent higher than the first quarter of 2023. In March, mill throughput averaged 3,360 tonnes per day, which was the best monthly performance on record.

Silver equivalent (1) production for the first quarter of 2024 was 3.70 million ounces, similar to the first quarter of 2023 and tracking to the top end of the previously disclosed 2024 guidance range of 13.5 million ounces to 15.0 million ounces. Higher-than-anticipated silver grades, combined with the mill throughput rates noted above, contributed to the strong production level compared with guidance for the first quarter of 2024.

Silver production in the first quarter of 2024 was 2.37 million ounces, 2 per cent lower than the first quarter of 2023. Zinc, lead and gold production increased by 13 per cent, 7 per cent and 1 per cent, respectively, compared with the first quarter of 2023.

Increased mill throughput rates were the result of continued debottlenecking and optimization efforts focused on achieving higher mining rates through increased productivity and improved mine plan flexibility. Higher milling rates were also a result of drawing down the surface stockpile during the quarter. Expectations were originally for a gradual increase in mill throughput and production through the year, but mill throughput in the first quarter was higher than anticipated. The company's goal in the second quarter and remainder of the year is to sustain current mill throughput rates, although there may be potential to achieve additional increases with continued mine debottlenecking efforts.

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 includes 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 news 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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