Mr. Alexander Langer reports

SIERRA MADRE PROVIDES POSITIVE UPDATE TO TEST MINING AND PROCESSING

Sierra Madre Gold and Silver Ltd. has provided an update on the progress of test mining and processing at the Guitarra mine complex.

The testing of the flotation plant began on June 25, 2024, and has been in continuous daily operation. A total of 20,401 tonnes of material containing economically interesting silver and gold mineralization has been processed as of Aug. 31, 2024, for an average production rate of 300 tonnes per day since inception of test mining. Five shipments totalling 335 dry metric tonnes of silver-gold concentrate have been delivered to MRI Trading AG under the company's 24-month contract. Provisional payment gold and silver concentrate grades ranged from 2,752 grams per tonne to 3,442 grams per tonne silver and 28.6 grams per tonne to 36 grams per tonne gold. Final assay grades will be determined upon shipment to the smelters.

Test mining began with development mineralization from the Guitarra mine, transitioning to economically attractive in situ mined material from both long-hole and shrinkage stopes in August. Production of backfill material (retaques) from stopes mined in the 1990s and early 2000s was increased as planned. These retaques were derived from material below the eight-to-10-gram per-tonne-gold-equivalent cut-off used at the time, which had to be blasted in order to mine the cut-off ore. Once emptied, these stopes are scheduled to receive tailings paste fill, for which the mine is fully permitted.

Chief operating officer Greg Liller commented: "I am very pleased with the operating results to date. The Guitarra team is doing an excellent job of moving operations towards a sustained production rate of 350 tonnes per day, our next test production goal. Upon achieving 350 tonnes per day, the team has an orderly plan in place to move towards 410 tonnes per day, then to the commercial mining and processing rate of 500 tonnes per day before year-end."

About Sierra Madre Gold and Silver Ltd.

Sierra Madre Gold and Silver is a precious metal development and exploration company focused on evaluating the potential of restarting the Guitarra mine in the Temascaltepec mining district in Mexico and the exploration and development of its Tepic property in Nayarit, Mexico. The Guitarra mine is a permitted, past-producing underground mine, which includes a 500-tonne-per-day processing facility that operated until mid-2018.

The plus-2,600-hectare Tepic project hosts low-sulphidation epithermal gold and silver mineralization with an existing historic resource.

Sierra Madre's management team has played key roles in managing the exploration and development of more than 22 million ounces gold and 600 million ounces silver in combined mineral reserves and mineral resources. Sierra Madre's team of professionals has collectively raised over $1-billion for mining companies.

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