17 January 2023

Guanajuato Silver Company Ltd

("Guanajuato Silver" or the "Company")

Cata Mill restarts processing at the Valenciana Mines Complex

Guanajuato Silver Company Ltd. (TSXV:GSVR) (OTCQX:GSVRF) (AQSE:GSVR), a precious metals producer in Mexico, is pleased to announce that the Cata mill has commenced precious metals processing at the Company's wholly-owned Valenciana Mines Complex ("VMC") in Guanajuato, Mexico.

James Anderson, Chairman & CEO said, "With the Cata mill now operational, Guanajuato Silver adds a third processing facility to our growing inventory of operating assets. The Cata mill is the last major asset acquired as part of the 2022 transaction with Great Panther to be placed back in service. With four operating silver mines and three production plants, we remain one of the fastest growing silver producers in Mexico."

Commissioning of the Cata mill began during the last week of December 2022, with mineralized material coming from VMC and the San Ignacio mine.  The Company intends to start processing at a run-rate of approximately 8,000 tonnes per month with the goal of ramping up to 20,000 tonnes per month by year end; full capacity at the Cata mill is 36,000 tonnes per month. The Cata plant, which comprises three balls mills and a two-stage crushing system, is in excellent working order; no significant capex was required prior to restart.

The Company plans to operate the Cata mill with production from both VMC and the San Ignacio mine and anticipates achieving initial metallurgical recoveries in the 83%-85% range for silver and gold.

The Cata mill is located at approximately the mid-point of the 4.2-kilometre strike length that spans mineralization at VMC, and sits immediately adjacent to the Company's administrative offices, assay lab, and one of two primary access shafts. In November 2021, the Cata mill was put on care and maintenance by the previous operator due to a lack of tailings capacity. In response, the Company intends to backfill tailings underground using a hydraulic fill system that will make use of select voids and open stopes that have been created at VMC over the past 450 years of underground mining.  The hydraulic fill system will not only provide VMC with additional tailings capacity, but the process also represents a more environmentally benign approach to tailings management.

Technical Information

Reynaldo Rivera, VP of Exploration of GSilver, has approved the scientific and technical information contained in this news release. Mr. Rivera is a member of the Australasian Institute of Mining and Metallurgy (AusIMM - Registration Number 220979) and a "qualified person" as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.

For further information regarding Guanajuato Silver Company Ltd., please contact:

JJ Jennex, Gerente de Comunicaciones, T: +1 (604) 723 1433

E: jjj@GSilver.com

GSilver.com

VSA Capital - AQSE Corporate Adviser

T: +44 (0) 20 3005 5000

Simon Barton - Corporate Finance

Tolgahan Kuce - Corporate Finance

Andrew Monk - Corporate Broking

David Scriven - Corporate Broking

About Guanajuato Silver

GSilver is a precious metals producer engaged in reactivating past producing silver and gold mines in central Mexico. The Company produces silver and gold concentrates from the El Cubo Mine, Valenciana Mines Complex, and the San Ignacio mine; all three mines are located within the state of Guanajuato, which has an established 480-year mining history. Additionally, the Company produces silver, gold, lead, and zinc concentrates from the Topia mine in northwestern Durango. With four operating mines and three processing facilities, Guanajuato Silver is one of the fastest growing silver producers in Mexico.