Mr. Alexander Langer reports

SIERRA MADRE ANNOUNCES $10 MILLION BEST EFFORTS PRIVATE PLACEMENT OF UNITS

Sierra Madre Gold and Silver Ltd. has entered into an agreement with Beacon Securities Ltd. to act as lead agent and sole bookrunner, on behalf of a syndicate of agents to be formed (together with Beacon, the agents) in connection with a best efforts private placement of up to 14.29 million units of the company at a price of 70 cents per unit for aggregate gross proceeds to the company of up to $10,003,000.

Each unit to be issued pursuant to Part 5A of National Instrument 45-106 -- Prospectus Exemptions, as amended and supplemented by Coordinated Blanket Order 45-935 -- Exemptions from Certain Conditions of the Listed Issuer Financing Exemption will consist of one common share in the capital of the company and one-half of one common share purchase warrant of the company. Each warrant will entitle the holder thereof to acquire one common share at a price per warrant share of 85 cents for a period of 12 months from the date of issuance.

The company intends to use the net proceeds of the offering to expand the capacity of the Guitarra mine, and for working capital and general corporate purposes.

There is an offering document dated July 15, 2025, related to the offering and the use by the company of the listed issuer financing exemption that can be accessed under the company's profile at SEDAR+ and on the company's website. Prospective investors should read this offering document before making an investment decision.

The offering is expected to close on or about July 24, 2025, and is subject to the company receiving all necessary regulatory approvals, including the approval of the TSX Venture Exchange.

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, 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 2,600-plus-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.