Mr. Alexander Langer reports

SIERRA MADRE HIRES STANTEC CONSULTING TO REVIEW TAILINGS DEPOSITION OPTIONS

Sierra Madre Gold and Silver Ltd. has engaged Stantec Consulting International LLC to examine tailings deposition options 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. The agreement was signed on Sept. 12, 2023, with detailed work commencing earlier this month. Results are expected toward the end of Q4 2023. Stantec is completing two studies for the company.

The first is a global stability evaluation of the permitted existing tailings storage facility (TSF) to determine the amount of additional capacity within the TSF if converted to dry stack tailings deposition. This work will use stability factors which meet or exceed stability factor of safety values provided by the Canadian Dam Association. The second is a scoping-level study on the layout and capacity of a new TSF within the current boundaries of the Environmental Impact Assessment (MIA).

Dry stack tailings deposition has several environmental advantages. Process water is removed and returned directly to the plant during the filtration process. The per-tonne impoundment area is reduced compared with conventional wet deposition. Dry tailings are more stable and the potential for liquification during a seismic event is reduced compared to a saturated conventional tailings facility.

The new TSF at La Guitarra, which is fully permitted for dry stack tailings would have an ultimate capacity of 5.8 million tonnes, which is in addition to the existing TSF. The company is undertaking this work in order to examine possibilities to reduce capital outlays necessary to reopen the mine. If the existing TSF or a new TSF within the existing permit can be opened using dry stack tailings deposition, the company believes construction of the larger permitted TSF has the potential to be financed out of future cash flows.

Extension of subscription receipts

Sierra Madre announces that, further to the company's news releases dated May 31, 2023, and Sept. 14, 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 and September 14 news releases) 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) Nov. 14, 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 Nov. 17, 2023. For additional information on the subscription receipts, refer to the May 31 news release.

About Sierra Madre Gold and Silver Ltd.

Sierra Madre 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 500-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.

We seek Safe Harbor.