Mr. Alexander Langer reports

SIERRA MADRE COMMENCES MINING AT COLOSO, EXPANDING MINING OPERATIONS

Sierra Madre Gold and Silver Ltd. has commenced underground mining at the Coloso mine, located within the producing Guitarra complex in the state of Mexico, Mexico.

The Coloso silver-gold mine is located four kilometres northwest of the Guitarra processing plant. Coloso was developed and mined by First Majestic Silver from 2014 to 2018. The mine has over 12 kilometres of underground workings. This underground development has allowed Sierra Madre to restart the Coloso mine with minimal preproduction expenditures and seven months ahead of schedule.

Greg Liller, chief operating officer, commented: "This marks another milestone event in the restart of the Guitarra mine complex. The Coloso estimated resource grades are on average 1.7 times higher in silver and 1.2 times higher in gold compared to the Guitarra veins. As the widths of the veins vary from less than one metre to over two metres, ramp-up mining will employ various mining methods and blasting techniques to determine the best combination of mining method costs versus grade dilution."

Mr. Liller continued: "In conjunction with processing of Coloso material, the company has hired a degreed metallurgist with extensive flotation experience as process plant superintendent. Their goal will be to determine the best ratio of Coloso to Guitarra mill feed material to achieve maximum economic benefit. During the ramp-up of Coloso mining, various blending percentages for mill feed will be tested to ascertain best recovery procedures."

Mining has started on the Jessica vein system and stope development in the Joya Larga system is under way. Operations have commenced at a rate of 50 tonnes per day of mineralized material and will ramp up to 150 tonnes per day by year-end; these tonnages would replace some of the mill feed currently sourced from the Guitarra mine while the processing plant continues to operate at a rate of 500 tonnes per day.

The average indicated grade of the 2023 Coloso resource estimate is 221 grams per tonne silver and 1.61 grams per tonne gold (432,000 indicated tonnes grading 221 grams per tonne silver and 1.61 grams per tonne gold), compared with the Guitarra vein averages of 123 grams per tonne silver and 1.25 grams per tonne gold (1,649,000 indicated tonnes grading 123 grams per tonne silver and 1.25 grams per tonne gold). Please refer to press release dated Dec. 15, 2023, and the National Instrument 43-101 La Guitarra resource estimate for details).

Notes for mineral resource estimate:

1. Canadian Institute of Mining Metallurgy and Petroleum (CIM) definition standards were followed for the resource estimate.
2. The 2023 resource models used nominal cut-off grades, which are based on mining and milling costs of $50 (U.S.) for cut-and-fill mining and $38 (U.S.) per tonne for long-hole mining.
3. A net payable recovery of 70 per cent (historical plant recovery plus an allowance for smelter deductions, refining costs and concentrate transportation) was used.
4. The estimate used a silver price of $22 (U.S.), a gold price of $1,700 (U.S.) and a gold-silver ratio of 77.27:1.
5. Assays were capped at 825 grams per tonne for silver and 6.55 grams per tonne for gold.
6. Variable cut-off by deposit were as follows:
   1. Nazareno and Coloso -- block model: 135-gram-per-tonne-silver-equivalent cut-off grade and a one-metre minimum true thickness;
   2. Guitarra -- polygonal estimates: 135-gram-per-tonne-silver-equivalent cut-off grade and a one-metre minimum horizontal width;
   3. Los Angeles -- block model long hole mining: 90-gram-per-tonne-silver-equivalent cut-off grade;
   4. Mina De Agua/East District polygonal estimate: 135-gram-per-tonne-silver-equivalent cut-off grade or 90-gram-per-tonne-silver-equivalent cut-off grade and greater-than-two-metre horizontal width;
   5. The tailings used a 30-gram-per-tonne-silver-equivalent cut-off grade.
7. Mineral resources that are not mineral reserves do not have economic viability. Numbers may not add due to rounding.
8. The indicated resource is 3.84 million tonnes grading 220 grams per tonne silver equivalent (146 grams per tonne silver and 0.96 gram per tonne gold) and inferred resource is 4.11 million tonnes grading 153 grams per tonne silver equivalent (113 grams per tonne silver ad 0.52 gram per tonne gold). Numbers may not add due to rounding.
9. The estimate of mineral resources may be materially affected by: metal prices and exchange rate assumptions; changes in local interpretations of mineralization geometry and continuity; changes to grade capping, density and domain assignments; changes to geotechnical, mining and metallurgical recovery assumptions; ability to maintain environmental and other regulatory permits; and ability to maintain the social licence to operate.
10. The 2023 resource estimate is prepared by David Thomas, PGeo, qualified person, and Cristian Garcia, PEng, qualified person, of TechSer in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects. Mr. Thomas and Mr. Garcia are independent qualified person as defined by NI 43-101. The technical report, titled "NI 43-101 -- La Guitarra Technical Report, La Guitarra Mineral Resource Estimate, Guitarra Silver-Gold Project, Temascaltepec, Estado de Mexico, Mexico," has been prepared in accordance with NI 43-101 and has been filed and is available under the company's SEDAR+ profile.

Qualified person

Gregory Smith, PGeo, director of Sierra Madre, is a qualified person as defined by NI 43-101 and has reviewed and approved the technical data and information contained in this news release. Mr. Smith has verified the technical and scientific data disclosed herein.

About Sierra Madre Gold and Silver Ltd.

Sierra Madre Gold and Silver is a precious metals development and exploration company focused on 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 underground mine, which includes a 500-tonne-per-day processing facility that operated until mid-2018 and restarted commercial production in January, 2025.

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 silver and gold mineral reserves and mineral resources. Sierra Madre's team of professionals has collectively raised over $1-billion for mining companies.

We seek Safe Harbor.