Mr. Dale Andres reports

GATOS SILVER REPORTS SOUTH-EAST DEEPS DRILLING RESULTS AT CERRO LOS GATOS AND ANNOUNCES EXECUTIVE APPOINTMENT

Gatos Silver Inc. today provided an update on the drilling and exploration programs in the Los Gatos district (LGD) in Mexico. The update includes new intercepts of mineralization in the South-East Deeps (SE Deeps) zone of its 70-per-cent-owned Cerro Los Gatos (CLG) mine. The company also announced the appointment of Chad Yuhasz as vice-president, exploration and technical services.

"These latest results will add to the potential of the South-East Deeps zone for the next update of our reserve and resource estimates, which we continue to expect to complete in the third quarter of 2024," said Dale Andres, chief executive officer of Gatos Silver. "As our work on the Greenfields drilling increases over the coming months it is great to have Chad Yuhasz joining our team to guide our exploration activities."

Q1 2024 highlights

• Resource definition drilling in the SE Deeps zone of CLG intercepted additional high-grade mineralization below the existing mineral reserve (see Table 1 for complete intercept details):
  • 3.0 metres (2.6 m estimated true width, or ETW) at 85 grams per tonne Ag (silver), 8.77 per cent Zn (zinc), 3.60 per cent Pb (lead), 0.13 g/t Au (gold) and 0.23 per cent Cu (copper) (SE-568);
  • 1.5 m (1.2 m ETW) at 157 g/t Ag, 3.30 per cent Zn, 13.45 per cent Pb, 0.13 g/t Au and 0.23 per cent Cu (SE-581);
  • 5.7 m (4.7 m ETW) at 81 g/t Ag, 8.62 per cent Zn, 6.65 per cent Pb, 1.83 g/t Au and 0.23 per cent Cu (SE-582);
  • 8.9 m (6.0 m ETW) at 338 g/t Ag, 8.15 per cent Zn, 4.18 per cent Pb, 0.29 g/t Au and 0.87 per cent Cu (SE-590);
  • 2.0 m (1.7 m ETW) at 594 g/t Ag, 5.47 per cent Zn, 14.50 per cent Pb, 0.16 g/t Au and 0.04 per cent Cu (SE-592).
• Greenfields exploration work in the LGD continues to advance in preparation for increased drilling starting in Q2 2024:
  • Two holes were completed at Portigueno that both intercepted veining and alteration with anomalous grades of silver, gold, zinc and lead but low copper. The metal composition intercepted is consistent with a location high in the profile indicating potential for further mineralization deeper in the zone (see Table 2 for complete intercept details). The drill rigs have currently stepped south along the Dragon fault to test the Tule and Roja fault zones within the Portigueno area.
  • Detailed mapping and rock geochemistry was completed at the San Luis, Lince, Portigueno, San Agustin and La Paula areas to support drill target generation.

Executive appointment of Chad Yuhasz as vice-president, exploration and technical services

Mr. Yuhasz has more than 20 years of geoscience experience in the resource industry spanning operations, exploration, resource modelling and corporate development. Most recently he held an executive position at Barrick Gold, serving as the head of mineral resource management for the Latin America and Asia Pacific regions, responsible for overseeing brownfields exploration, operational geology, mine planning, feasibility studies, and M&A (merger and acquisition) growth. In this role, he successfully replaced annual production and increased the resource base in the regions. He also previously played a key technical role as a director of evaluations with Barrick in the successful 2019 Barrick-Randgold merger. Prior to joining Barrick in 2016, Mr. Yuhasz held various geoscience and exploration roles with consulting firm SRK, private equity group Waterton Global, and mining companies, Teck Resources Ltd. and Claude Resources.

CLG South-East Deeps resource definition drilling

The SE Deeps mineralization extends approximately one km laterally and 400 m vertically, which adjoins the existing SE mineral reserve and remains open along strike. Since Q2 2023 drilling has focused on infilling the higher-grade areas of the SE Deeps zone to 50 m spacing. The company has completed 66,300 m of diamond drilling since the cut-off date for the 2023 reserve and resource update, which has demonstrated excellent potential for a multiyear mine life extension. The additional drilling data will be used in the mineral reserve and mineral resource update planned for the third quarter of 2024. Preparation for this update has commenced with the database cut-off at the end of the first quarter.

As expected, the tighter drill spacing has shown that variability within the zone exists, with higher grade in some areas and lower grade in other areas. On average, silver grades are lower than the central and northwest zones and base metals including copper, represent a higher proportion of the in situ value.

Los Gatos district exploration update: current near-mine focus plus district-scale potential

The LGD is comprised of a large land package covering over 103,000 hectares with an established pipeline of prospects and more than 50 targets identified to date. In conjunction with initiating increased drilling in Q2 2024, the company is continuing to advance with detailed mapping and drill testing of the highest-priority known targets. The company is also advancing with district mapping and geophysics to identify additional targets.

During the first quarter of 2024 we progressed with mapping at five prospective areas: San Luis, Lince, La Paula, San Agustin and Portigueno.

Two drill holes were finalized during the quarter at Portigueno, PO-02 and PO-03.

The Portigueno area is located approximately two kilometres southeast of CLG. Drill holes PO-02 and PO-03 were completed along strike to the south-east of CLG. The drill holes intercepted good widths of brecciation, alteration and veining, with the veining predominantly calcite. Both drill holes intercepted anomalous silver, gold, lead and zinc grades, as shown in Table 2. The structure is interpreted to continue along strike to the south-east into the basin. The next drill holes in the Portigueno area are planned to be further south on the Dragon, Tule and Roja fault structures. There are currently two drill rigs operating on these targets.

The San Luis area, located approximately five km northwest of CLG along the Los Gatos fault, continues to be an important target area for the company's greenfields exploration crew. A large width of quartz-calcite veining exists in the area with indications of multiple pulses of fluid flow, similar to what is observed in the South-East zone at CLG. Mapping and historic core relogging has taken place and drilling is expected to start during the second quarter of 2024.

Detailed mapping and rock geochemistry have been completed in the Lince area, approximately 22 km northwest of CLG. This mapping has identified multiple veins with small-scale artisanal workings, prospective alteration and anomalous silver in rock samples. Drilling is planned in the area later in the year.

Analysis and interpretation of the magneto-telluric geophysical survey information captured in late 2023 are continuing. Drone air photography work is currently being completed along the Los Gatos fault between CLG and Esperanza. Drone air photography is expected to occur in the Los Veranos area during May and June.

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.

Quality assurance/quality control

The half core samples from the LGJV's surface exploration drill holes are shipped directly in sealed bags to the ALS Ltd. preparation facilities in Chihuahua City, Mexico. After sample preparation in Chihuahua, sample pulps are shipped to ALS in North Vancouver, Canada, for analysis. The remaining half core is retained on site. Samples sent for analysis are sawn half-core NQ or HQ in diameter and normally two m in length but varied based on geological contacts. Samples are prepared using a method whereby the entire sample is crushed, and a subset is pulverized. Samples are analyzed for base metals and silver using inductively coupled plasma methods. Gold and overlimit silver are assayed using fire assay techniques. Sample batches include intermittent blanks, duplicates and certified standards. The results of the assaying of the QA/QC material included in each batch are tracked to ensure the integrity of the assay data. ALS is a third party independent laboratory.

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.

Qualification regarding exploration and drilling results

Any statements herein regarding ranges of potential tonnage and grade or quality of any exploration target are conceptual in nature, there has been insufficient exploration of the relevant properties to estimate a mineral resource; it is uncertain whether further exploration will result in the estimation of a mineral resource; and any exploration target therefore does not represent, and should not be construed to be, an estimate of a mineral resource or mineral reserve (mineral resource and mineral reserve estimates are stated exclusively in the Los Gatos technical report).

We seek Safe Harbor.