Mr. Bryan Slusarchuk reports

ZACATECAS SHAREHOLDERS APPROVE ALL MATTERS AT THE ANNUAL GENERAL MEETING

Zacatecas Silver Corp. has released the results of the annual general meeting of the shareholders on Aug. 8, 2023.

At the annual general meeting, shareholders approved all motions put forth, including the re-election of Bryan Slusarchuk, John Lewins, Jonathan Richards, Christopher Wilson, Luis Chavez, Nancy La Couvee and Charles Hethey to the board of directors. The shareholders also approved the appointment of Davidson & Company LLP as the auditor of the company, the 10 per cent rolling stock option plan and the securities-based compensation (SBC) plan.

The SBC plan's purpose is to: (i) provide the company with a mechanism to attract, retain and motivate highly qualified directors, officers, employees and consultants; (ii) align the interest of such directors, officers, employees and consultants with that of other shareholders of the company; and (iii) enable and encourage them to participate in the long-term growth of the company.

The SBC plan permits the grant of restricted share units (as defined in the equity plan) and deferred share units (as defined in the SBC plan) (restricted share units and deferred share units are collectively referred to as awards). The maximum number of awards that may be granted under the SBC plan is fixed at 9,041,099. Further, the maximum number of shares for which awards and other share compensation issuable to: (i) any participant shall not exceed 5 per cent of the outstanding shares within any one-year period; (ii) a consultant shall not exceed 2 per cent of the outstanding shares within any one-year period; and (ii) insiders as a group shall not exceed 10 per cent of the outstanding shares. No persons providing investor relations activities may be granted awards under the SBC plan. All awards are subject to a mandatory one-year vesting requirement. Additional details of the SBC plan are set forth in the company's information circular dated July 7, 2023.

About Zacatecas Silver Corp.

The company has two key projects: the Esperanza gold project in Morelos state, Mexico, and the Zacatecas silver project in Zacatecas state, Mexico.

Esperanza is an advanced stage, attractive, low-cost, low-capital-intensity and low-technical-risk growth project located in Morelos state, Mexico. Alamos has progressed the project through advanced engineering, including metallurgical work, while also focusing on stakeholder engagement, including building community relations. The company announced a mineral resource estimate at Esperanza consisting of a measured and indicated mineral resource estimate of 30.5 million tonnes at 0.97 gram per tonne (g/t) gold equivalent (AuEq) for 956,000 ounces AuEq, and an inferred mineral resource estimate of 8.7 million tonnes at 0.98 g/t AuEq for 277,000 ounces AuEq (see news release dated Nov. 16, 2022).

The Zacatecas silver project is located in Zacatecas state, Mexico, within the highly prospective Fresnillo silver belt, which has produced over 6.2 billion ounces of silver. The company holds 7,826 hectares (19,338 acres) of ground that is highly prospective for low-sulphidation and intermediate-sulphidation silver base metal mineralization and potentially low-sulphidation gold-dominant mineralization. The company announced a mineral resource estimate at the Panuco deposit consisting of 2.7 million tonnes at 187 g/t silver equivalent (AgEq) (171 g/t silver (Ag) and 0.17 g/t gold (Au)) for 16.4 million ounces AgEq (15 million ounces silver and 15,000 ounces gold) (see news release dated Dec. 14, 2021).

The property is 25 kilometres southeast of Mag Silver Corp.'s Juanicipio mine and Fresnillo PLC's Fresnillo mine. The property shares common boundaries with Pan American Silver Corp. claims and El Orito, which is owned by Endeavour Silver.

We seek Safe Harbor.