Mr. Alexander Langer reports

SIERRA MADRE ANNOUNCES GUITARRA PROCESSING PLANT ACHIEVES THROUGHPUTS OF UP TO 720 TONNES PER DAY AS DEVELOPMENT AT NAZARENO AND GUITARRA MINES ACCELERATES

Sierra Madre Gold and Silver Ltd. has provided an operational update on activities at its Guitarra silver-gold mine complex in Estado de Mexico, Mexico.

Throughput at the Guitarra processing plant has significantly increased following phase 1 expansion modifications to the existing crushing and milling circuits. Daily production has reached up to a steady 720 tonnes per day (tpd). This represents more than a 40-per-cent increase versus the previous nameplate capacity of 500 tpd. Further modifications to increase capacity are scheduled to be made following the commissioning of the new 11-by-12 ball mill.

Greg Liller, chief operating officer and executive chairman, commented: "We continue to advance our phase 1 and phase 2 expansions at Guitarra. With the new ball mill now installed, Sierra Madre has also accelerated underground development. We have started groundworks for the permitted dry stack tailings facility expansion, a key component of our phase 2 plan to increase throughputs to 1,200 tpd to 1,500 tpd. We look forward to updating the market as we advance towards phase 2 expansion."

Foundation construction and installation of the 11-by-12 ball mill has been completed. The foundation and cement base required the pouring of 400 cubic metres of cement along with 16 tonnes of steel rebar.

Installation of the drive motor, cyclones and instrumentation is under way with commissioning expected in November, 2026. This ball mill, combined with the existing ones, is expected to achieve the phase 2 goal of 1,200 tpd to 1,500 tpd of milling capacity, more than eight months ahead of schedule.

Coloso and Nazareno development

Development has been accelerated at all three of the mines within La Guitarra -- Guitarra, Nazareno and Coloso -- to provide feed to the expanded plant. Approximately 2.6 kilometres of development drives have been completed since June, 2026. As haulage ramps are being driven both vertically and downward from the 180-access level, this ramp development is expected to allow for additional production areas to be developed. Since July, 2026, over 800 metres of access and production drives have been completed. Based on the 2023 mineral resource estimate, the Nazareno measured resource stood at 309,877 tonnes grading 215 grams per tonne (g/t) silver and 0.55 g/t gold, for 257 g/t silver equivalent (AgEq). Inferred resources are at 753,784 tonnes grading 229.2 g/t silver, 0.29 g/t gold for 251 g/t AgEq. AgEq calculated at a 77.27:1 silver gold ratio. Reconciliation from actual stope mining to date has shown higher gold grades.

Guitarra development

At the Guitarra mine, over 1.5 kilometres of development has been completed since June, 2026. Work in the lower central mine area has been accelerated and this area now contributes an important portion of mill feed. Development work needed to bring the Los Angeles bulk tonnage deposit into production has been started. The new design is expected to allow easier access and haulage alongside a lower mining cost in the future. The development and dewatering of the San Raphael I and II areas has been accelerated with the purchase of additional pumps. The current mine plan calls for initial production from higher-grade blocks by the end of October, 2026.

East district development

The company is also examining the possibility of bringing a small portion of the east district into production. At Santa Ana, an initial mine design has been completed and the company is contemplating beginning construction of a portal in 2027. The Santa Ana mineralization is wide and mining is planned using long-hole methods. The 2023 resource estimate for the Santa Ana deposit stands at 761,292 tonnes in the measured category, grading 159 g/t silver and 0.19 g/t gold, or 174 g/t AgEq. The inferred resource is 544,892 tonnes grading 178 g/t silver, 0.13 g/t gold and an AgEq grade of 188 g/t (AgEq calculated at a 77.27:1 silver gold ratio).

Dry stack tailings facility

Ground work for the fully permitted phase 4 tailings expansion has begun. Per Semernat (Secretaria del Medio Ambiente y Recursos Naturales, the federal Mexican regulatory agency in charge of environmental permitting) requirements, trees have been measured and marked for cutting and the required paperwork submitted. Clearing of trees and vegetation is scheduled for October. Bid documents for earthworks have been prepared and sent out with mobilization of the chosen contractor scheduled for November, 2026. The first construction phase consists of three parts with a capacity of 877,000 tonnes. Total capacity within the permitted area is on the order of over five million tonnes.

Qualified person

Gregory Smith, PGeo, director of Sierra Madre, is a qualified person as defined by National Instrument 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 is a precious metals producer and exploration company focused on the operation, exploration and development at its Guitarra mine complex in the Temascaltepec mining district, 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.

In June, 2026, Sierra Madre closed the acquisition of the Del Toro silver mine, adding a past-producing, fully permitted asset to its Mexico-focused silver and gold portfolio.

The company also holds the 2,600-plus-hectare Tepic project, which hosts low-sulphidation epithermal gold and silver mineralization with an existing historic resource.

Sierra Madre's management team has played key roles in managing the exploration and development of silver and gold mineral reserves and mineral resources. Sierra Madre's team of professionals has collectively raised over $1-billion for mining companies.

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