Mr. Arturo Prestamo reports

SANTACRUZ SILVER PRODUCES 5,669,905 SILVER EQUIVALENT OUNCES IN Q3 2023

Santacruz Silver Mining Ltd. has released its Q3 2023 production results from its Bolivar mine, Porco mine, Caballo Blanco group of mines and the San Lucas feed sourcing business, all located in Bolivia, and the Zimapan mine located in Mexico.

Highlights:

• Q3 2023 metals production included:
  • 1,728,863 ounces of silver;
  • 3,370 tonnes of lead;
  • 23,095 tonnes of zinc;
  • 252 tonnes of copper;
  • For silver equivalent production of 5,669,905 ounces.
• Bolivar mine processed 77,298 tonnes of mineralized material and produced 1,343,000 silver equivalent ounces in Q3 2023, a 16-per-cent and 40-per-cent increase, respectively, when compared with Q2 2023.
• Zimapan mine processed 192,158 tonnes of mineralized material and produced 1,183,606 silver equivalent ounces in Q3 2023, a 12-per-cent and 35-per-cent increase, respectively, when compared with Q2 2023.

Arturo Prestamo, executive chairman and interim chief executive officer of Santacruz, commented: "Our multiasset portfolio has been able to deliver consistent production so far this year, and in total we have produced almost 17 million silver equivalent ounces, including just over five million ounces of silver. While we do expect operations to vary by asset quarter to quarter, our objective is to deliver stable production throughout the year, while at the same time reviewing and streamlining operations to achieve efficiencies and reduce costs."

Santacruz processed 467,563 tonnes of material in Q3 2023, a slight increase from the previous quarter. Silver equivalent ounces produced of 5,669,905 included 1,728,863 ounces of silver, 3,370 tonnes of lead, 23,095 tonnes of zinc and 252 tonnes of copper. The positive impact of a slight increase in material processed combined with an increase in metal production from the Zimapan and Bolivar mines resulted in stable silver equivalent ounce production over all.

The upgraded water handling infrastructure servicing the higher-grade Central zone of the Bolivar mine installed last quarter helped stabilize production from this area, and the mine processed 77,298 tonnes of mineralized material, a 16-per-cent increase when compared with the 66,689 tonnes processed in Q2 2023. This resulted in 1,343,000 silver equivalent ounces being produced in Q3 2023, a 40-per-cent increase when compared with the 961,580 silver equivalent ounces produced in Q2 2023.

The Zimapan mine is realizing benefits from a shift in mining strategy to higher-grade areas, which is part of the continuing optimization of the mine plan in response to metals prices. In Q3 2023, the mine processed 192,158 tonnes of mineralized material, a 12-per-cent increase when compared with the 171,668 tonnes processed during Q2 2023. Zimapan also produced 1,183,606 silver equivalent ounces during Q3 2023, a 35-per-cent increase when compared with the 878,854 silver equivalent ounces produced in Q2 2023.

The integration ramp connecting the Tres Amigos and Colquechaquita mines at the Caballo Blanco group of mines continues to progress well and is now 73 per cent complete. The integration ramp consists of approximately 1,177 metres of development, including primary ramp and auxiliary drives, and it is designed to facilitate increased productivity from Colquechaquita and total production from the Caballo Blanco group of mines. This project is expected to be completed by the end of Q1 2024.

In Q3 2022, 500,956 tonnes of material were processed, and 5,832,882 silver equivalent ounces were produced. While total material processed in Q3 2023 was 7 per cent less compared with Q3 2022, total silver equivalent ounce production was down only 3 per cent. This was a result of higher grades mined and an increase in metal recoveries at Bolivar and Zimapan.

Qualified person

Wayne Corso, chief operating officer of the company, is a qualified person under National Instrument 43-101 and has approved the scientific and technical information related to operational matters contained in this news release.

About Santacruz Silver Mining Ltd.

Santacruz Silver is engaged in the operation, acquisition, exploration and development of mineral properties in Latin America. The Bolivian operations comprise the Bolivar, Porco and the Caballo Blanco group, which consists of the Tres Amigos, Reserva and Colquechaquita mines. The Soracaya exploration project and San Lucas ore sourcing and trading business are also in Bolivia. The Zimapan mine is in Mexico.

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