Mr. James Anderson reports

GUANAJUATO SILVER ACCELERATES GOLD LOAN REPAYMENT

Guanajuato Silver Company Ltd. has accelerated partial repayment of the company's gold loan with Ocean Partners U.K. Ltd. The company announces that it has repaid 1,580.4 ounces of gold, which represents one full year of payments. This repayment was made from cash on hand, and the company's obligations under the gold loan are now fully paid until May, 2027. For clarity, the gold loan's maturity date is April, 2028 (see Guanajuato Silver news release dated April 28, 2025).

James Anderson, chairman and chief executive officer, said: "We are pleased to have advantageously capitalized on both the recent decline in the gold price and on an early repayment discount to significantly reduce the amount outstanding on our sole remaining debt facility. With our portfolio of five producing precious metals mines demonstrating rapidly improving economics within the new silver and gold pricing environment, the company has ample liquidity to take advantage of the recent downswing in gold prices to reduce our debt obligation."

Since the inception of the gold loan, the company has repaid to Ocean Partners 3,292.5 gold ounces, representing 46 per cent of the original balance. There remains a total of 3,814.5 ounces of gold to be repaid under the facility; repayment will first be done in monthly instalments of 131.7 gold ounces, recommencing in May, 2027, for a period of 11 months, with monthly instalments totalling 1,448.7 ounces; then at maturity in March, 2028, a final bullet payment of 2,365.8 ounces would be owing. The company intends to use any future weakness in the gold price to continue to aggressively reduce the amount of gold owing within the loan facility.

Brent Omland, CEO of Ocean Partners, added, "We have had a successful and mutually beneficial relationship with Guanajuato Silver for over five years; moreover, we enthusiastically look forward to supporting their continued growth in the future."

We seek Safe Harbor.