Mr. Arturo Prestamo reports

SANTACRUZ SILVER MINING LTD. ANNOUNCES SETTLEMENT OF DEBTS WITH THIRD PARTY CREDITORS

Santacruz Silver Mining Ltd. intends to issue an aggregate of 10,342,604 common shares of the company at a price of 43.2 cents per share in settlement of outstanding debts totalling $4,468,005.

Pursuant to the terms of a debt settlement agreement dated as of the date hereof, the company has agreed to issue 9,907,530 common shares of the company in settlement of outstanding debts totalling $4,280,053 ($3,545,438 (U.S.)) owing to Empresa Minera Manquiri SA. The Manquiri debt was accrued pursuant to a loan agreement dated March 6, 2018, among Impulsora Minera Santacruz SA de CV, a wholly owned subsidiary of the company, the company, as guarantor, and Manquiri, as amended by a first amendment agreement dated July 2, 2018, as amended by a second amendment agreement dated Oct. 2, 2018, and further amended by a third amendment agreement dated Jan. 30, 2020. Pursuant to the loan agreement, Manquiri advanced to the borrower the sum of $2.3-million (U.S.) that accrued interest at the rate of 9 per cent per annum, which was subsequently amended to 12 per cent per annum. The Manquiri loan had a maturity date of March 31, 2021; however, pursuant to a debt acknowledgment and obligation of payment agreement dated April 21, 2021, the parties agreed to settle the Manquiri debt by July 21, 2021.

Pursuant to a debt NSR settlement agreement dated as of the date hereof, the company has also agreed to issue 435,074 common shares of the company in settlement of outstanding debts totalling $187,952 ($156,000 (U.S.)) owing to Minas Guilloyna SA de CV. The Guilloyna debt was accrued pursuant to a net smelter return agreement dated Sept. 19, 2014, among the borrower, the company, as guarantor, and Guilloyna, that was entered into in connection with the company's acquisition of the Rosario mine from Guilloyna. Pursuant to the NSR agreement, the borrower agreed to pay a net smelter return royalty for up to 1.0 per cent on precious metals produced from the Rosario mine. On Dec. 31, 2016, the net smelter return royalty in the amount of $156,000 (U.S.) became due and owing to Guilloyna.

By issuing the settlement shares, the Manquiri debt and Guilloyna debt will be definitively extinguished. The company is proposing to issue the settlement shares to preserve cash to finance future operations.

The debt settlements are subject to all necessary regulatory approvals, including acceptance from the TSX Venture Exchange. All securities issued in connection with the debt settlements will be subject to a four-month hold period from the closing date under applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada.

About Santacruz Silver Mining Ltd.

Santacruz is a Mexican-focused silver company that currently owns and operates the Rosario project and the Zimapan mine.

The company is managed by a technical team of professionals with proven records in developing, operating and discovering silver mines in Mexico. Its corporate objective is to become a mid-tier silver producer.

We seek Safe Harbor.