Mr. Arturo Prestamo reports

SANTACRUZ SILVER REPORTS THIRD QUARTER FINANCIAL RESULTS

Santacruz Silver Mining Ltd. has released its financial and operating results for the third quarter (Q3) of 2023. The full version of the financial statements and the management's discussion and analysis (MD&A) can be viewed on the company's website or on SEDAR+.

Q3 2023 highlights:

• Processed 467,563 tonnes of material in the quarter and 1,394,029 tonnes in the first nine months of 2023;
• Produced of 5,669,905 silver equivalent ounces in the quarter and 16,883,823 silver equivalent ounces in the first nine months of 2023;
• Cash cost per silver ounce sold of $21.68 in the quarter and $19.34 in the first nine months of 2023;
• AISC (all-in sustaining cost) per silver ounce sold of $25.98 in the quarter and $23.10 in the first nine months of 2023;
• Revenue of $64,408,000 in the quarter and $193.64-million in the first nine month of 2023;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $4,628,000 in the quarter and $26,368,000 in the first nine months of 2023.

Arturo Prestamo, executive chairman and interim chief executive officer of Santacruz, commented, "The company had a solid quarter in the face of a challenging commodity price environment." Mr. Prestamo continued: "While we continue to identify and implement efficiencies at all our assets, it is important to highlight the significant changes that were made at the Zimapan mine in Mexico during the quarter. By streamlining the management team and shifting to more owner-operated mining, we were able to increase productivity and decrease costs, and expect to continue to see the benefits from these changes in the next quarter."

Selected consolidated financial and operating information for the quarter ended Sept. 30, 2023, are presented in the attached tables. All financial information is prepared in accordance with international financial reporting standards (IFRS) and all dollar amounts are expressed in thousands of U.S. dollars, except per-unit amounts, unless otherwise indicated.

YTD (year-to-date) 2022 numbers are affected by the partial quarter of Bolivian production in Q1 2022. On March 18, 2022, the company closed the acquisition of the Bolivian assets from Glencore and the results of the operations of the Bolivian assets are included in the consolidated operational and financial results of the company from that date. However, combined Q2 and Q3 results show a 5-per-cent increase in silver equivalent ounces produced from 2022 to 2023, despite lower tonnages processed. This is a reflection of the company starting to benefit from its efforts to increase mined grades and metallurgical recoveries at all operations.

Production

In Q3 2022, 500,956 tonnes of material was processed and 5,832,882 silver equivalent ounces were produced, and in Q3 2023, 467,563 tonnes of material was produced and 5,669,905 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.

In Q3 2023, the company processed 467,563 tonnes of material, 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.

Cash cost of production per tonne

Consolidated cash cost of production per tonne of mineralized material processed was $93.73 in Q3 2023, compared with $148.51 for the same period last year. Since acquiring the Bolivian assets, the steady increase in unit production costs at Zimapan have been offset by significant decreases in unit production costs at the Bolivian operations for a net reduction in cash costs of 37 per cent per tonne.

When compared with the previous quarter, consolidated cash cost of production per tonne of mineralized material processed decreased by 7 per cent as a result of several factors, including the increase in production at Zimapan after recovering from a two-week haulage stoppage that took place last quarter, incremental decreases in unit costs from the company's Bolivian mining operations and less mineralized material purchased by San Lucas feed sourcing.

Cash cost per silver equivalent ounce sold

Cash cost per silver equivalent ounce sold was $21.68 in Q3 2023, compared with $20.79 for the same period last year. This 4-per-cent increase in unit cost was due primarily to a 13-per-cent decrease in silver equivalent ounces sold, which is a function of realized metal prices. While the metal production only decreased 3 per cent for the same period, the silver equivalent conversion ratio of base metals to silver was higher due to the changes in realized metal prices quarter over quarter, which resulted in the additional 10-per-cent reduction in silver equivalent ounces sold.

Consolidated results for Q3 2023 show a 12-per-cent increase in cash costs per silver equivalent ounce sold compared with Q2 2023. This increase is primarily a result of 6 per cent lower silver equivalent ounces sold based on realized pricing for metals, which decreased silver equivalents sold for Q3 2023. Total costs were comparable with Q2 2023 and silver equivalent ounce production actually increased 2 per cent versus Q2 2023.

All-in sustaining cash cost (AISC) per silver equivalent ounce sold

Q3 2023 AISC per silver equivalent ounce sold was $25.98, compared with Q3 2022 of $24.90. This 4-per-cent increase in unit cost was due primarily to a 13-per-cent decrease in silver equivalents sold, which is a function of realized metal prices. While the metal production only decreased 3 per cent for the same period, the silver equivalent conversion ratio of base metals to silver was higher due to the changes in realized metal prices quarter over quarter, which resulted in the additional 10-per-cent reduction in silver equivalent sold.

Consolidated AISC per silver equivalent ounce sold increased 13 per cent quarter on quarter to $25.98, mainly a result of the 6-per-cent decrease in silver equivalent ounces sold based on changes in the silver equivalent conversion ratio as described above, coupled with higher sustaining capital expenditures and higher sustaining general and administrative costs. Bolivian consolidated AISC per silver equivalent ounce sold increased 21 per cent versus Q2 2023 due to the lower silver equivalent ounces sold, however, this was partially offset by a 21-per-cent decrease at Zimapan, resulting from lower capital expenditures and sustaining general and administrative expenditures.

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 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.

We seek Safe Harbor.