Mr. Arturo Prestamo reports

SANTACRUZ UPDATE REPORT ON STOCK HALTING

Santacruz Silver Mining Ltd. has provided an update with respect to the previously announced proposed acquisition of a portfolio of Bolivian mining assets from Glencore disclosed in the company's news release dated Oct. 12, 2021.

In accordance with TSX Venture Exchange Policy 5.3 -- Acquisitions and Dispositions of Non-Cash Assets (Policy 5.3), the trading of the common shares of the company on the TSX-V was halted on Oct. 12, 2021, pending TSX-V review, as the acquisition is expected to constitute a fundamental acquisition for the company, as defined in Policy 5.3. The trading halt will be lifted by the TSX-V once certain conditions have been met under Section 5.6 of Policy 5.3, including the delivery to the TSX-V of technical reports prepared in compliance with National Instrument 43-101 -- Standards of Disclosure for Mineral Projects with respect to the material mineral properties to be acquired. The company is continuing to advance the technical reports with the technical report author and expects to submit drafts to the TSX-V in the coming weeks. The company will also continue to work toward satisfying the requirements of Section 5.7 of Policy 5.3 after trading resumes and prior to closing of the acquisition.

Once the trading halt is lifted, the company intends to complete a financing to finance the upfront consideration of $20-million (U.S.) in cash payable on closing (subject to customary working capital adjustments). In the event that the company is unable to raise the funds necessary to complete the acquisition and Glencore elects to terminate the share purchase agreement, the company is required to pay Glencore a fee of $2-million (U.S.) within five business days of such termination.

About Santacruz Silver Mining Ltd.

Santacruz is a Mexican-focused silver company with one producing silver project (Zimapan) and two exploration properties, the La Pechuga property and Santa Gorgonia prospect. The company is managed by a technical team of professionals with proven records in developing, operating and discovering silver mines in Mexico. The company's corporate objective is to become a mid-tier silver producer.

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