Mr. Alexander Langer reports

SIERRA MADRE ANNOUNCES NAZARENO SILVER AND GOLD MINE PREPARING FOR PRODUCTION

Underground development has started at Sierra Madre Gold and Silver Ltd.'s Nazareno silver and gold mine within the La Guitarra silver-gold complex in Estado de Mexico, Mexico. To date, over 700 tonnes of mineralized material have been delivered to the Guitarra processing plant from Nazareno. This material was not included in the mineral resource estimate.

Alex Langer, chief executive officer, commented: "We are excited to be opening a third mining centre at La Guitarra, less than a year after achieving commercial production at our first mine within the complex. We expect Nazareno to be a significant contributor to silver and gold production as we advance our fully funded plant expansion plans, which would more than double capacity from current 500 t/d levels by Q3 2027."

Nazareno mapping by Sierra Madre

Development blasting at Nazareno, followed by detailed mapping, has revealed that several silver and gold-bearing veins merge in this area to form a zone up to eight metres wide.

Development reconciliation to resource model

In a reconciliation of the silver-gold material produced from development blasting to the surrounding resource blocks contained in the 2023 Nazareno resource model, the production silver grades are 40 per cent higher, and gold grades are 30 per cent higher, based a comparison of the grades delivered to the mill versus the 2023 resource block model for the surrounding area. Table 1 shows the 2023 resource estimate for Nazareno.

Details of the resources can be found in a press release dated Dec. 15, 2023, and in the National Instrument 43-101 -- La Guitarra Technical Report La Guitarra Mineral Resource Estimate on the company website or on SEDAR+.

Nazareno development plan

Development work at the Nazareno access drive level will initially consist of blasting the sides of existing workings to the full width of the mineralized silver-gold zone and then advancing the sill drive on the structure in both directions. This will determine if long hole mining is feasible for this area of closely spaced veins.

To further aid in mine plan and development work, the company is pleased to announce the purchase of a new Ingertrol Sandy 50 drill rig. This rig has the capacity to drill 150 metres with NWL pipe, 47.6-millimetre core and 250 metres with BWL pipe, 47.6 mm core. The rig is highly portable and can be used both underground and at surface. For surface drilling, it does not require the construction of access roads as its components are man portable as the company demonstrated in drilling at its Tepic project.

Drilling is being planned for the Nazareno veins and in the central Guitarra mine area. Both areas involve close spaced parallel silver-gold vein sets that thus far have required parallel exploratory sill drives. This drilling rig will allow the company to reduce current development costs by drilling short holes from one drive instead of needing to develop costly parallel drives or crosscuts.

Sierra Madre engages Capital Analytica for marketing and social media services

The company has engaged Triomphe Holdings Ltd., doing business as Capital Analytica, an arm's-length service provider, to provide certain marketing and social media services to the company, in accordance with the policies of the TSX Venture Exchange and applicable securities laws. Based in Nanaimo, B.C., Capital Analytica specializes in marketing, social media and public awareness within the mining and metals sector. Under a consulting services agreement dated Sept. 29, 2025, Capital Analytica will provide social media services, capital markets consultation and social engagement reporting for an initial six-month term for a fee of $120,000 (U.S.), payable in two tranches. The engagement remains subject to the approval of the TSX-V.

Capital Analytica has no direct or indirect interest in the company or its securities and has no current intention or right to acquire any such interest during the engagement, other than the potential grant of stock options in the future.

Qualified person

Gregory Smith, PGeo, director of Sierra Madre, is a qualified person as defined by National Instrument 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, 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.