Mr. Bryan Slusarchuk reports

ZACATECAS SILVER CLOSES BOOK ON UPSIZED FINANCING

Zacatecas Silver Corp. has upsized and closed the book on its previously announced private placement financing (see news release dated Jan. 29, 2024). The financing, originally consisting of an issuance of 18 million units at a price of 10 cents per unit for total proceeds of $1.8-million has been upsized to 25 million units at a price of 10 cents per unit for total proceeds of $2.5-million. The company will now proceed to immediately close the financing, by way of receiving subscription agreements and funds and intends to close within the next week.

As previously disclosed, under the offering, each unit will consist of one common share and one-half of one common share purchase warrant. Each warrant will entitle the holder to purchase a common share at an exercise price of 15 cents for a period of two years from the date of issue.

The securities under the offering will be subject to restrictions on resale expiring four months and day after issue. The company may pay registered finders a fee in cash and/or share purchase warrants. The company intends to use the net proceeds to satisfy continuing costs associated with its properties as well as general working capital purposes.

Qualified person

The contents of this news release have been reviewed and approved by Chris Wilson, BSc (honours), PhD, FAusIMM (CP), FSEG, FGS, chief operating officer of Zacatecas Silver. Dr. Wilson is qualified persons as defined by National Instrument 43-101.

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.

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 initially announced a mineral resource estimate at the Panuco deposit consisting of 2.7 million tonnes at 187 grams per tonne silver equivalent (171 grams per tonne silver and 0.17 gram per tonne gold) for 16.4 million ounces silver equivalent (15 million ounces silver and 15,000 ounces gold) (see news release dated Dec. 14, 2021). On May 31, 2023, the company announced an updated inferred mineral resource estimate of 3.41 million tonnes at 187 grams per tonne silver equivalent (173 grams per tonne silver and 0.18 gram per tonne gold) for 20.5 million ounces silver equivalent (19 million ounces silver and 19,200 ounces gold) (see news release dated May 31, 2023).

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.

Esperanza is an advanced-stage, attractive, low-cost, low-capital-intensity and low-technical-risk growth project located in Morelos state, Mexico. 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 gold equivalent for 956,000 ounces gold equivalent and an inferred mineral resource estimate of 8.7 million tonnes at 0.98 gram per tonne gold equivalent for 277,000 gold equivalent (see news release dated Nov. 16, 2022).

We seek Safe Harbor.