Mr. Arturo Prestamo reports

SANTACRUZ SILVER PRODUCES 22,641,051 SILVER EQUIVALENT OUNCES IN 2023

Santacruz Silver Mining Ltd. has released its Q4 and annual 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:

• Q4 2023 metals production included:
  • 1,719,737 ounces of silver;
  • 23,777 tonnes of zinc;
  • 3,129 tonnes of lead;
  • 290 tonnes of copper;
  • For silver equivalent production of 5,757,228 ounces.
• 2023 annual metals production included:
  • 7,004,582 ounces of silver;
  • 91,616 tonnes of zinc;
  • 2,366 tonnes of lead;
  • 1,254 tonnes of copper;
  • For silver equivalent production of 22,641,051 ounces.
• Zimapan mine continued to implement operational improvements and processed 204,507 tonnes of material in Q4 2023, a 6-per-cent increase from the previous quarter and the most on a quarterly basis this year.

Arturo Prestamo, executive chairman and interim chief executive officer of Santacruz, commented: "Our team's dedication enabled us to achieve steady quarterly operations, which resulted in 5.7 million silver equivalent ounces produced in the fourth quarter, and 22.6 million silver equivalent ounces produced in 2023. The improved production results in the fourth quarter at the Zimapan mine are a direct result of the comprehensive management and operational restructuring carried out in September and October. The objective of this restructuring process was to enhance production tonnage and operational efficiency across both mines and the mill. Further efficiencies are expected to be captured in Q1 2024."

Mr. Prestamo continued: "Complementing our successes in Mexico, in Bolivia, the Caballo Blanco group of mines just achieved a significant milestone with the completion of the integration ramp connecting the Tres Amigos and Colquechaquita mines on time and on budget. The 1,177-metre ramp was designed to facilitate increased productivity and safety at both the Colquechaquita and Tres Amigos mines, and is expected to contribute to overall production improvements at Caballo Blanco."

Mr. Prestamo concluded, "I would like to commend the dedicated and professional management teams in Mexico and Bolivia for their instrumental role in achieving these significant milestones."

Santacruz processed 489,417 tonnes of material in Q4 2023, a 5-per-cent increase from the previous quarter. Silver equivalent ounce production increased 2 per cent to 5,757,228, including 1,719,737 ounces of silver, 23,777 tonnes of zinc, 3,129 tonnes of lead and 290 tonnes of copper. While average throughputs, head grades and recoveries varied slightly across all operations, the increase in material processed at Zimapan, and increases in mineralized material purchased by San Lucas drove consistent metal production quarter-on-quarter.

At Zimapan, major maintenance to the grinding circuit allowed for increased plant throughput. In addition, two new underground loaders arrived at the mine in September, which enabled more efficient mining operations. As a result, the mine processed 204,507 tonnes of material, a 6-per-cent increase when compared with the previous quarter.

In mid-October, the SAG (semi-autogenous grinding) mill motor at Porco was removed to be rebuilt. A 25-day period of approximately 50 per cent grinding capacity followed as the company was able to feed the ball mills directly with fine material until the rebuilt motor was reinstalled and full production was attained on Nov. 14, 2023. While the company expected production at Porco to be reduced during the quarter, increased throughput in December was able to significantly offset the reductions experienced in October and November as result of the SAG mill maintenance.

When compared with Q4 2022 material processed was in line with the previous year. This resulted in silver equivalent ounce and all metal production being in line quarter-over-quarter, with the exception of copper. Average copper head grades in Q4 2023 were 25 per cent lower and as a result copper production decreased.

Annual 2023 production results benefited from a full Q1 2023 production from the Bolivian operations. Annual 2022 figures 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 from that date.

The company continues to progress the National Instrument 43-101 technical reports for all its assets, and they are expected to be completed by the end of Q1 2024.

Qualified person

Wayne Corso, a consultant to the company, is a qualified person under NI 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 feed sourcing business are also in Bolivia. The Zimapan mine is located in Mexico.

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