Mr. Alex Langer reports

SIERRA MADRE RECEIVES MEXICAN ANTITRUST APPROVAL FOR THE ACQUISITION OF THE DEL TORO MINE

Sierra Madre Gold and Silver Ltd. has received approval for the acquisition of the Del Toro silver mine in the Chalchihuites district in Mexico from Mexico's antitrust agency, the Comision Federal de Competencia Economica (COFECE).

Alex Langer, chief executive officer, commented: "Receiving COFECE approval is a key regulatory milestone and a strong validation of our strategy of building a multiasset producing silver and gold portfolio in Mexico. With this clearance, we are well positioned to finalize the acquisition and move forward with our plans to advance exploration ahead of a possible planned restart of Del Toro."

Upon closing of the acquisition, Sierra Madre would hold the producing La Guitarra mine -- where a two-stage expansion is under way to more than double throughputs by mid-2027 -- as well as Del Toro. Current plans are to commence the mine restart process at Del Toro in mid-2027, with first production expected in mid-2028.

Del Toro is a fully permitted, past-producing underground silver-gold-lead mine with an on-site process plant that operated between 2013 and 2019. It features three underground centres, with a total of over 62.5 kilometres of development in place. The site includes a functional process circuit: three mills with a total capacity of 3,000 tonnes per day, sulphide and oxide flotation circuits, as well as a new dry stack tailings storage facility.

Please see the company's Dec. 17, 2025, press release for details of the Del Toro acquisition.

Qualified person

Gregory Smith, PGeo, director of Sierra Madre, is a qualified person as defined by NI 43-101, and 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.

About Sierra Madre Gold and Silver Ltd.

Sierra Madre Gold and Silver is a precious metals development, extraction and exploration company focused on the Guitarra mine in the Temascaltepec mining district, Mexico, and the exploration and development of its Tepic property in Nayarit, Mexico. The Guitarra mine is a permitted underground mine, which includes a 500 tpd processing facility that operated until mid-2018 and restarted commercial production in January, 2025. The over 2,600-hectar Tepic project hosts low-sulphidation epithermal gold and silver mineralization with an existing historic resource.

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