Mr. Alexander Langer reports

SIERRA MADRE STARTS US$3.5 MILLION EXPLORATION PROGRAM AT THE EAST DISTRICT OF GUITARRA PROJECT

Sierra Madre Gold and Silver Ltd. has begun exploration work at the East district of the Guitarra silver-gold project in Estado de Mexico, Mexico. This district covers the historic Temascaltepec mining area.

Greg Liller, chief operating officer and executive chair, commented: "We are very pleased to be restarting exploration within the underexplored East district portion of the company's concessions holdings, following the successful restart of the Guitarra and Coloso mines. The East district is the last of the six major Spanish colonial production centres in Mexico that has not been systematically mapped, drilled and evaluated using modern tools and methods. Based on historic data, the company sees strong potential for additional resources in this district, with over 39 km of structures mapped to date, numerous historic mines and a current deposit already defined at Mina de Agua."

Alex Langer, chief executive officer, added: "Restarting exploration at the East district is a key step to unlocking the full value of Guitarra. With a fully funded two-stage plant expansion under way in the West district, we see potential for additional discoveries in this eastern portion of the property. We anticipate funding this exploration program from our treasury and cash flow, with a $19.5-million private placement closed in July, 2025."

Exploration program plans

With a $3.5-million (U.S.) budget, the East district exploration program will consist of two parts: first, drill target definition through additional detailed geologic surface mapping, including the historic El Rincon mine (Marmajas-Echada system), surveying, mapping and sampling of historic workings, and a structural analysis to determine the geologic controls of historically mined mineralization. This program is estimated to take nine months to complete.

Upon completion of the target definition program, a 20,000- to 25,000-metre drill program would then be undertaken to further assess the targets' economic potential. The drilling will be conducted over a period of 12 to 18 months. Based on the results of this program, the company then may undertake a larger delineation drilling program.

Exploration potential

The 2023 National Instrument 43-101 report contains an estimate of the exploration potential for six of the vein systems in the East district.

"In 2002, Luismin completed an assessment of the exploration potential in the East district (Nuevo Descubrimiento, Las Animas-Socorro, Marmajas-Echada, Magdalena-Zayas and Purisima veins) using the results of surface mapping, historical mine records and preliminary drilling at Santa Ana (Mina de Agua). The QP has used Luismin's estimates of the strike length, the width of the veins, an assumption of a 200-metre vertical depth, an assumed bulk density of 2.6, and a range of 20 per cent to 40 per cent of the vein being mineralized to estimate a tonnage of between 0.77 million tonnes and 1.54 million tonnes. A grade range of plus-or-minus-20-per-cent Luismin's average grades was used to estimate silver grades between 440 g/t [and] 670 g/t Ag and to estimate gold grades of between 2.4 g/t and 3.6 g/t Au. Combined total strike length of these vein systems is 7.7 km.

"The potential quantity and grade are conceptual in nature. There has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the target being delineated as a mineral resource."

The 2023 mineral resource estimate included an East district component at Mina de Agua, with an indicated resource of 761,000 tonnes grading 159 g/t silver and 0.19 g/t gold and an inferred resource of 545,000 tonnes grading 178 g/t silver and 0.13 g/t gold.

Program progress

New senior-level geologists, along with support personnel, have been hired, and fieldwork has begun to determine the condition of historic workings.

In addition, access has been regained to the Rampa Carolina on the Santa Ana vein system. The ramp and associated crosscuts and drives were constructed in 2007 and contain more than 300 metres of workings. The development was sized for modern production mining and haulage equipment. Sampling for metallurgical tests is under way.

Marketing and investor awareness

The company has entered into a marketing and investor awareness agreement dated Oct. 9, 2025, with New Era Publishing Inc. Under the terms of the agreement, New Era will provide marketing and promotional services to the company for a period of two months in exchange for a fee of $225,000 (U.S.). New Era is a digital marketing and media firm established in 2016 based in Vancouver, B.C. New Era provides digital marketing, e-mail and market awareness services, and assists its clients with reaching potential investors. New Era will further engage Carbon Credits to connect North American and European audiences to bolster awareness of the company through the Carbon Credits website, articles and e-mail newsletters. New Era and Carbon Credits and the company are unrelated and unaffiliated entities at arm's length of each other, and neither New Era, nor its principals have an interest, directly or indirectly, in the securities of the company.

The company has entered into a service agreement dated effective Oct. 23, 2025, with Departures Capital Inc., under which DC will provide investor communications, digital media production and investor marketing-related promotional services to Sierra Madre for a six-month term. Under the agreement, Sierra Madre will pay DC $8,500 (U.S.) plus applicable taxes in advance of the provision of any services. The promotional activities will include the creation and distribution of video content on the Departures Capital YouTube channel and associated e-mail list, as well as Google ad campaigns designed to increase investor awareness of Sierra Madre's story and visibility of the content. DC is arm's length to Sierra Madre, and, to the knowledge of the company, neither DC nor its principals have any present equity interest in Sierra Madre's securities, directly or indirectly, nor any right or intent to acquire any such interest.

Management update

The company announces that chief financial officer Ken Scott will be appointed as corporate secretary on Nov. 1, 2025. Current corporate secretary Kerry Spong will maintain his positions of controller and senior manager of finance.

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 is a precious metal 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.