Mr. James Anderson reports

GUANAJUATO SILVER PROVIDES CORPORATE UPDATE

Guanajuato Silver Company Ltd. is providing an update on current activities in its mining operations in the Guanajuato area in advance of the closing of the acquisition of Bolanitos S.A. de C.V.

James Anderson, chairman and chief executive officer, said: "As we continue moving towards closing of the recently announced Bolanitos acquisition, management has started executing an optimization program to ensure maximum performance of our Guanajuato district assets. With the addition of a third processing plant within a 20 km radius, we are realigning our mineral transport routes within our hub-and-spoke processing model. A key step in this process is the temporary closure of the Cata processing plant, which will no longer receive mineralized material from San Ignacio once that mine and Bolanitos become an integrated operation. Mineralized material mined at our Valenciana mines complex will now be rerouted to El Cubo for processing. For comparison, in 2024, the last full year in which information is available, Bolanitos plant utilization averaged 73 per cent; while Cata and Cubo plant utilization was 60 per cent and 66 per cent, respectively. This rerouting measure will ensure maximum utilization of the Bolanitos and Cubo mills while reducing costs incurred by having Cata on standby."

On Nov. 24, 2025, the company announced the signing of a definitive agreement to acquire the Bolanitos gold-silver mine located in Guanajuato, Mexico, from Endeavour Silver Corp. (see GSilver news release dated Nov. 24, 2025 -- Guanajuato Silver to Acquire Bolanitos Gold-Silver Mine in Mexico). Mineralized material from the Valenciana mines complex (VMC) will now be sent to the El Cubo mill, which is located approximately 10 kilometres away. Placing the Cata mill on care and maintenance is a process that is expected to take approximately 15 days to complete. The company will continue to evaluate the future of the Cata facility, while it studies other potential synergistic measures within the Guanajuato region, including reactivating Cebada, the past-producing mine located contiguous and to the north of VMC.

Closing the transaction is subject to customary conditions for a transaction of this nature, including the approval of the TSX Venture Exchange, and is expected to occur in January, 2026.

The company also announces an update on the previously announced lawsuit that NucTech Mexico S.A. de C.V. (see GSilver news release dated July 22, 2025) has commenced in Mexico City, Mexico, against the company's subsidiary, Minera Mexicana Rosario S.A. de C.V. (MMR). NucTech alleges that MMR has not compensated it for the installation and use of NucTech's mineral sorting equipment at the San Ignacio mine in Guanajuato, Mexico, and is claiming compensation for future equipment rentals over a 10-year period.

The court in Mexico City has issued an initial ruling that MMR is liable to pay NucTech $6.96-million (U.S.) in damages and reimburse the Mexican peso equivalent of approximately $3.34-million (U.S.) in costs. The company has assessed that the court was not presented with the technical evidence demonstrating the failures of the NucTech equipment and intends to file a direct appeal (Amparo Directo), citing procedural issues, including incomplete expert evidence. A filed appeal will have the effect of staying the payment of any damages or costs until the appeal is resolved. An appeal would be heard by a collegiate tribunal of three magistrates, with an average resolution time of approximately eight months. The company will provide further updates on this matter as developments warrant.

About Guanajuato Silver Company Ltd.

GSilver is a precious metals producer engaged in reactivating past producing silver and gold mines in central Mexico. The company produces silver and gold concentrates from the El Cubo mines complex, the Valenciana mines complex and the San Ignacio mine; all three mines are located within the state of Guanajuato, which has an established 480-year mining history. Additionally, the company produces silver, gold, lead and zinc concentrates from the Topia mine in northwestern Durango. With four operating mines and three processing facilities, Guanajuato Silver is one of the fastest-growing silver producers in Mexico.

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