Mr. Alexander Langer reports

SIERRA MADRE PROVIDES UPDATE ON DISTRICT-SCALE EXPLORATION AT LA GUITARRA AND EXTENSION TO SUBSCRIPTION RECEIPTS

Sierra Madre Gold and Silver Ltd. has provided an update on its exploration activities at the 100-per-cent-owned past-producing La Guitarra silver-gold mine complex in Estado de Mexico, Mexico, 130 kilometres southwest of Mexico City.

Beginning in February of this year, the company started a 2,000-scale geologic mapping program, first in the eastern portion of the Temascaltepec mining district and then progressing to the west side. This mapping program is the first-ever project-wide undertaking. It provides additional data for understanding the structural controls on the vein-hosted silver and gold mineralization.

Gregory K. Liller, executive chairman and chief operating officer, commented: "Since acquiring the La Guitarra property in March, 2023, we have completed the first-ever district-wide mapping exercise of the Temascaltepec mining district. The data will provide valuable information as we work on interpreting the controls on mineralization, advance our understanding of project-scale systems, and plan future drill programs in the Eastern and Western districts."

The company's mining concessions cover the entire Temascaltepec mining district and contain numerous Spanish Colonial, 19th- and early 20th-century mines.

District-scale mapping by Sierra Madre

To date, surface mapping has delineated nearly 53 km of mineralized quartz veins, breccias and stockwork zones. Mapping in the Eastern district has delineated over 37.9 km of veining. The dominant strike direction of veining is to the northwest, accompanied by a second set of veins, known as antithetic structures, striking more easterly. Both groups of veins host gold and silver mineralization, with hundreds of old shafts, crosscuts, adits and prospect pits having been located. Host rocks for the veins are metasediments and andesites. Approximately one-half of the area mapped thus far is covered by recent basalt flows, with the veins exposed in erosional windows.

Mapping has been completed over a significant portion of the West district. Thus far, over 15 km of veins have been located at the surface. While the principal vein systems -- Guitarra, Coloso and Nazareno -- have been exploited, the vein swarm north of Guitarra has yet to be drill tested, despite having numerous old shafts, adits and prospect pits.

History of Temascaltepec district

The Temascaltepec district was one of the six most important silver districts in Mexico (New Spain) during the 1600s and 1700s, as evidenced by the Spanish crown appointing a special overseer to monitor activities in the district.

Mines, backed by European and American capital, were in operation during the late 1800s and early 1900s. Allan Nordstrom, in 1938, reported that the Rincon mine, in the easternmost part of the district, produced 281,642 tonnes at an average grade of 6.7 grams per tonne (g/t) gold and 860 g/t silver between 1926 and 1937. Vein width was between two metres and five metres.

Production between 1993 and 2018 came from the Guitarra, Coloso and Nazareno mines, the focus of the company's production restart activities, with only limited exploration work completed outside of these areas. Previous operators LuisMin and Genco Resources drilled 76 drill holes in the East district, focusing primarily on the Santa Ana vein system. Drill results sufficiently encouraged Genco to start a production ramp in the Mina de Agua area. While First Majestic did no drilling, it followed up activities in the area, securing surface rights, completing an environmental impact statement (MIA), and permitting a production centre on the Santa Ana, Cascaras and associated veins.

Next steps

A surface and underground sampling program will commence as soon as the rainy season is over. The results of this program will provide information on the most favourable structural settings for silver and gold deposition. Results from this work will be used to plan exploration drilling programs in the East and West districts.

Extension of subscription receipts

Sierra Madre announces that, further to the company's news release dated May 31, 2023, the company has amended the terms of all 5,123,092 subscription receipts in order to extend the escrow release conditions and termination (as both terms are defined in the May 31, 2023, news release) for an additional 30-day period.

Pursuant to the amended terms, each subscription receipt shall have met the escrow release conditions and be eligible to, without the payment of any additional consideration, automatically convert into one common share in the capital of the company upon the earlier of: (i) the holder of the subscription receipt receiving written notice from the company of conversion; or (ii) Oct. 15, 2023. Termination shall occur on the date that is three business days following the day on which the escrow release conditions occur, which shall be no later than Oct. 18, 2023. For additional information on the subscription receipts, refer to the May 31, 2023, news release.

About Sierra Madre Gold and Silver Ltd.

Sierra Madre Gold and Silver is a precious metals development and exploration company focused on evaluating the potential of restarting the La Guitarra mine in the Temascaltepec mining district, Mexico, and the exploration and development of its Tepic and La Tigra properties in Nayarit, Mexico. The La Guitarra mine is a permitted, past-producing, underground mine which includes a 550-tonne-per-day processing facility that operated until mid-2018.

The greater-than-2,600-hectare Tepic project hosts low-sulphidation epithermal gold and silver mineralization with an existing historical resource. La Tigra, located 148 kilometres north of Tepic, has been mined historically; Sierra Madre's maiden 2022 drill program at the site intercepted shallow mineralization.

Sierra Madre's management has played key roles for managing exploration and development of more than 22 million ounces of gold and 600 million ounces of silver in combined reserves and resources. Sierra Madre's team of professionals has collectively raised over $1-billion for mining companies.

Sierra Madre Gold and Silver best practices

Sierra Madre is committed to best practice standards for all exploration and sampling activities. The company's exploration programs have been conducted following CIM (Canadian Institute of Mining, Metallurgy and Petroleum) exploration best practice guidelines, which are incorporated by reference in National Instrument 43-101. Analytical quality assurance and quality control procedures include the systematic insertion of blanks, standards and duplicates into the sample strings. Samples are placed in sealed bags and shipped directly to Bureau Veritas in Durango, Mexico, or ALS Chemex in Guadalajara, Mexico, for 30-gram gold fire assay, aqua regia digestion for silver and multielement analyses by four-acid digestion.

Qualified person

Gregory Smith, PGeo, director of Sierra Madre, a qualified person as defined by NI 43-101, has reviewed and approved the technical data and information contained in this news release. Mr. Smith has verified the technical and scientific data disclosed herein.

We seek Safe Harbor.