Guanajuato Silver Announces Closing of C$11.35 Million Brokered Financing

VANCOUVER, BC / ACCESSWIRE / May 9, 2024 / Guanajuato Silver Company Ltd. (the "Company" or "GSilver") (TSXV:GSVR) is pleased to announce the closing of its previously announced brokered, best-efforts offering ("Offering") for aggregate gross proceeds to the Company of C$11,350,460 under a combined Listed Issuer Financing Exemption private placement under Part 5A of National Instrument 45-106 - Prospectus Exemptions (the "LIFE Exemption") and concurrent private placement to accredited investors (the "Private Placement"). The Offering consisted of units of the Company (the "Units") at a price of C$0.20 per Unit (the "Offering Price"). The Offering was led by Research Capital Corporation and Red Cloud Securities Inc. as the co-lead agents and joint bookrunners, on behalf of a syndicate of agents, including Canaccord Genuity Corp. (collectively, the "Agents").

Each Unit consists of one common share of the Company ("Common Share") and one Common Share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to purchase an additional Common Share at an exercise price of C$0.30, subject to customary anti-dilution adjustments, until May 9, 2026.

Net proceeds from the Offering will be used to, inter alia:

• add to the Company's underground fleet and ramp up production at GSilver's producing mines in Guanajuato and Durango.
• fund certain improvements to expand and modernize the processing facilities at the Topia mine and mill complex including capital expenditures and related costs.
• fund corporate head office general and administrative expenses including legal, audit, overhead and salaries for the ensuing 12 months.
• carry out detailed exploration at GSilver's mineral properties, particularly San Ignacio and Valenciana.

As part of the Offering, 43,125,000 Units ("LIFE Units") were sold to purchasers pursuant to the LIFE Exemption in all provinces of Canada, except Quebec, and other qualifying jurisdictions, including the United States. In addition, 13,627,300 Units (the "Accredited Investor Units") were sold to accredited investors under the accredited investor exemption contained in National Instrument 45-106 - Prospectus Exemptions in all provinces of Canada, and other qualifying jurisdictions, including the United Statespursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended, (the "1933 Act"), and applicable U.S. state securities laws. The securities underlying the LIFE Units are not subject to a statutory hold period under applicable Canadian securities laws. Unless permitted under securities legislation, the securities underlying the Accredited Investor Units cannot be traded before September 10, 2024.