Mr. James Anderson reports

GUANAJUATO SILVER ENTERS OPTION AGREEMENT ON ITS LOURDES PROPERTY IN MEXICO

Through Guanajuato Silver Company Ltd.'s wholly owned subsidiary, Mina Bolanitos S.A. de C.V. (MBO), has entered into a property option agreement dated Oct. 5, 2026, with Zacatecas Silver Corp. to acquire a 100-per-cent interest in the company's Loudes project located in the state of Guanajuato, Mexico. Zacatecas Silver will pay MBO $225,000 (U.S.) and issue to Guanajuato Silver $600,000 (U.S.) in common shares of Zacatecas Silver and grant to MBO a 2-per-cent net smelter return royalty.

James Anderson, chief executive officer and chairman, said: "The purchase of the Bolanitos Mine from Endeavour Silver in January of this year included the Lourdes project comprising three contiguous concessions in northern Guanajuato totalling 509 hectares. Lourdes is a prospective property containing several historic mine workings; however, we are choosing to advantageously monetize this asset at this time as we focus on our El Horcon exploration project where an initial 5,000 m surface drilling program is now under way."

In order for Zacatecas Silver to earn 100 per cent of the Lourdes property, the following terms must be fulfilled.

The Zacatecas shares to be issued on the TSX Venture Exchange approval date shall be issued at the market price (as defined by the TSX-V). The Zacatecas shares to be issued on the first and second anniversary will be issued at a price equal to the greater of (i) the market price (as defined by the TSX-V), less the maximum discount permitted by the TSX-V, converted to United States dollars and (ii) the 10-day volume-weighted average price immediately prior to the applicable share issuance converted to United States dollars (the VWAP). If applicable, Zacatecas will make a cash payment to GSilver equal to any shortfall between the aggregate deferred share issue price and the VWAP, at the time of each payment.

The transaction is arm's length and no finders' fees were paid in connection with the transaction.

Royalty retention

Upon exercise of the option, Zacatecas Silver will grant MBO a 2-per-cent net smelter return royalty on the Lourdes property. Zacatecas may repurchase 50 per cent of the royalty, at any time prior to the commencement of production on the property, with a one-time payment of $1-million (U.S.).

About Guanajuato Silver Company Ltd.

Guanajuato Silver is a precious metals producer with a portfolio of producing silver and gold mines in central Mexico. The company produces silver and gold concentrates from two processing facilities in 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.

We seek Safe Harbor.