Mr. Arturo Prestamo reports

SANTACRUZ SILVER SELLS NON-CORE MEXICAN SUBSIDIARY

Santacruz Silver Mining Ltd. has sold its shares in Santacruz Holdings Ltd., which has 100-per-cent ownership in Impulsora Minera Santacruz SA de CV, a non-core Mexican subsidiary of the company, to a private Mexican group.

The sale of this non-core asset is part of the company's continuing restructuring efforts as it aims to streamline its core business focus. The company received a nominal cash consideration in addition to the buyer agreeing to accept certain obligations and liabilities from the company as consideration for the sale of Santacruz Holdings (see Note 9 of Santacruz's Q3 2023 financial statements filed on SEDAR+ on Nov. 29, 2023).

Arturo Prestamo, executive chairman and interim chief executive officer of Santacruz, commented: "The divestment of this non-core asset is expected to reduce our current liabilities and strengthen our balance sheet. Going forward, Santacruz will continue to assess opportunities to deleverage the company and improve its financial position.

"In addition, the company wishes to announce the retirement of its chief operating officer, Wayne Corso, effective Dec. 31, 2023. In support of ensuring a seamless transition, Mr. Corso has agreed to continue offering his expertise to the company as a consultant. His responsibilities will encompass overseeing ongoing projects, including providing guidance for key initiatives like the management of various operational aspects and acting as a qualified person for the company."

Mr. Prestamo added: "Wayne made significant contributions during his tenure as COO, playing a fundamental role in incorporating the Bolivian operations into Santacruz and participating in the recent management restructuring at Zimapan. On behalf of the board and management, we express our gratitude to Wayne for his valuable contributions and extend our best wishes for his future endeavours."

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.

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