Mr. Marcio Fonseca reports

GR SILVER MINING COMMENCES DRILLING AT THE PLOMOSAS PROJECT IN MEXICO AND PROVIDES A CORPORATE UPDATE

GR Silver Mining Ltd. has started a surface drilling program at its 100-per-cent-owned Plomosas silver project in Sinaloa, Mexico. The company has mobilized three drill rigs, with one rig already on site.

GR Silver Mining's president and chief executive officer, Marcio Fonseca, commented: "We are very pleased with the progress of our exploration program at both the Plomosas and San Marcial projects. At Plomosas, we have not only six areas already drilled, where we are initiating surface drilling to expand mineralized zones along strike, but also 11 very promising priority exploration targets with evidence of veining. The exploration programs to date have discovered multiple veins, providing the company with new drilling targets at both projects. The existing infrastructure and permits at Plomosas will allow the company to accelerate not only surface but also future underground drilling. The advance of the underground development at San Marcial represents a completion of a major milestone, allowing underground drill access to deeper high-grade hydrothermal breccia zones for future resource expansion."

The initial 4,500-metre surface core drilling program is expected to continue through 2020 and will have a dual focus: (i) shallow drilling (up to 150 m below surface) to expand the known mineralized zones along strike at the Plomosas mine and San Juan-La Colorada areas; and (ii) follow-up drilling on several new, high-grade, low-sulphidation epithermal gold-silver vein occurrences at Yecora and El Saltito.

The initial drill sites on the Plomosas project are planned in areas where historic drilling was completed by previous owners, and recent investigations by GR Silver Mining have delineated additional epithermal veins along the strike and at shallow depth.

In addition to drill testing the areas with historic drill holes at the Plomosas project, the company will also commence initial reconnaissance and surface exploration on 11 priority targets identified as displaying potential for new discoveries. These targets, which show evidence of vein systems but attracted little exploration follow-up by previous owners, will be added to the company's drilling program later in the year. More information on these new vein discoveries will be made available in future news releases.

The surface drilling program on the Plomosas project is designed to demonstrate the potential for the extension of known high-grade Ag-Au veins recently released by the company in both the Plomosas mine area and the San Juan-La Colorada area. The program aims to confirm the potential of the project to host multiple low-sulphidation epithermal mineralized systems, which, when combined, could define zones for future resource estimation.

Plomosas mine area

Drilling at the Plomosas mine area will test shallow mineralization along strike from a stepout section, where drill results returned intervals that included 11 m of 1,235 grams per tonne silver (see news release dated June 22, 2020), aiming to expand the known mineralized system by up to 500 m.

San Juan area

The San Juan discovery, where drill results returned assays including 3.5 m at 1,419 g/t Ag and 15.5 g/t Au (see news release dated April 13, 2020), represents a set of subvertical silver-gold-rich veins that has been mapped on surface over a strike length of 500 m and remains largely undrilled. The company plans to carry out shallow drilling along the mineralized structure in order to confirm the modelled geometry and Ag-Au grades.

At Yecora and El Saltito, recent surface exploration, including mapping and a review of existing old workings, has confirmed the presence of a large epithermal system and multiple veins and veinlets at, or close to, the surface. An initial 1,000 m program of scout drilling to a depth of 150 m is planned for these two areas to allow the company to develop a 3-D geological model integrating the various mineralized zones.

Corporate update

Following completion of the acquisition of the Plomosas project, the company has completed a detailed data review and compilation of all available exploration data related to the geological, geochemical and geophysical exploration programs completed by previous owners. This work is being integrated in a GIS platform, and external consultants have been engaged to work together with management and exploration staff to prioritize the 11 exploration targets delineated outside of the drilled areas with evidence of low-sulphidation epithermal veining.

Fieldwork has advanced with the definition of multiple veins and a large epithermal system in the San Juan-La Colorada area, where, to date, the company has expanded the footprint of the low-sulphidation epithermal system for approximately one kilometre (see news release dated July 7, 2020). Underground mapping and sampling are progressing at the Plomosas mine area, where channel sampling is supporting the potential existence of silver-gold-mineralized systems with potential to delineate prospective zones for drilling and resource estimation. More information on the underground channel sampling program will be made available in future news releases.

The company has engaged independent mining consultants to review all drawings related to the historic mining voids at the Plomosas mine area, aiming to integrate them into a new survey and create a 3-D underground mine model. This model will be used, together with existing information related to historic run-of-mine zones unmined by Grupo Mexico, to identify potential targets for bulk sampling and to source large tonnages of mineralized material for metallurgical testwork.

On the San Marcial project, the company has extended the rock (lithogeochemical) sampling to over 750 hectares, collecting more than 13,000 samples on a 25 m by 25 m grid, representing a valuable geochemical database for future shallow drilling follow-up. This database will assist with the interpretation of new drill targets as well as the mapping of lithologies, alteration signatures and structures hosting silver and gold mineralization in the San Marcial project. The company has completed over 220 m of tunnel widening and underground development at San Marcial and anticipates the start of underground drilling in the third quarter of 2020.

The company continues to advance the due diligence review on areas under exclusivity for acquisition immediately adjacent to both the Plomosas and San Marcial projects, representing additional potential acquisitions in the Rosario mining district.

Qualified person

The scientific and technical data contained in this news release related to the Plomosas and San Marcial projects have been reviewed and/or prepared under the supervision of Marcio Fonseca, PGeo. He has approved the disclosure herein.

About GR Silver Mining Ltd.

GR Silver Mining is a Mexico-focused company engaged in cost-effective silver-gold resource expansion on its key assets, which lie on the eastern edge of the Rosario mining district, Sinaloa, Mexico.

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