Gatos Silver Provides Update on Mineral Resources and Reserves at Cerro Los Gatos and 2022 Performance Guidance - Seite 2

CLG’s 2022 Production and Cost Outlook

CLG continues to perform at record levels, exceeding design expectations, and the reconciliation work is not expected to have an impact on CLG’s 2022 operating performance.

The CLG mine achieved strong performance in 2021, producing 7.6 million ounces of silver, 50 million pounds of zinc, 40 million pounds of lead and five thousand ounces of gold. Sustaining capital projects completed during 2021 are anticipated to improve productivity through upgraded water management in the underground mine, lower mine ambient temperatures through additional ventilation refrigeration and improved power reliability through expanded backup generation. Construction of a new paste backfill plant is also on schedule for completion and commissioning in the third quarter of 2022.

CLG continues to build on the success of 2021 and forecasts record performance in 2022, including achieving a 15% expected increase in silver production compared to 2021.

Gatos Silver’s 2022 guidance for the expected performance of the CLG operation (100% basis) is:

• Tonnes Per Day (“tpd”) Milled	2,600 tpd in H1 rising to 2,700 tpd in H2
• Contained Metal in Concentrate
• Silver	8.5 – 9.0 million ounces
• Zinc (in zinc conc.)	49 – 54 million pounds
• Lead (in lead conc.)	36 – 40 million pounds
• Gold (in lead conc.)	4.0 – 4.5 thousand ounces
• All-in Sustaining Cost (AISC)
o Co-product basis	$16.50/oz – $18.50/oz
o By-product basis	$13.00/oz – $15.00/oz

The expected LOM reduction resulting from the reconciliation may be offset by future resource and reserve additions from ongoing exploration programs, continued optimization and cost reduction efforts. Exploration in the Los Gatos District will also be a major focus in 2022 with multiple new targets planned to be drilled.

“While we are disappointed by the preliminary results of the reconciliation work, we are encouraged by ongoing excellent performance at the Cerro Los Gatos operation, particularly in the challenging environment of the global pandemic,” said Dale Andres, President of Gatos Silver. “We continue to achieve record production while maintaining strong performance in the areas of safety, environmental stewardship, social engagement and continuing to shift our exploration focus to the Los Gatos District. Going forward, our primary objective is to stay the course in all aspects of operating excellence while strengthening our technical capability and updating the Life of Mine plan for Cerro Los Gatos.”