Guanajuato Silver Announces C$8,010,000 "Bought Deal" Private Placement of Units

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, BC / ACCESSWIRE / July 20, 2023 / Guanajuato Silver Company Ltd. (TSXV:GSVR)(AQUIS:GSVR) ("Guanajuato Silver" or the "Corporation") is pleased to announce that it has entered into an agreement with Cantor Fitzgerald Canada Corporation to act as sole underwriter (the "Underwriter"), pursuant to which the Underwriter has agreed to purchase, on a bought-deal private placement basis, 22,250,000 units of the Corporation (the "Units") at a price of C$0.36 per Unit (the "Offering Price") for gross proceeds of C$8,010,000 (the " Offering").

James Anderson, Chairman & CEO, said, "Over the last two and a half years, Guanajuato Silver has purchased four Mexican silver mines as part of a strategy to grow our business through acquisitions; we are confident in our ability to identify and acquire additional mining assets that would immediately prove accretive to our shareholders. We are therefore strengthening our balance sheet at a time when the challenging market environment has created what we believe are favorable conditions for the procurement of additional opportunities within Mexico's mining community."

Each Unit will consist of one common share of the Corporation (a "Unit Share") and one common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to acquire one common share of the Corporation for 18 months from the closing of the Offering at a price of C$0.55.

The Corporation shall grant the Underwriter an option to purchase up to an additional 3,337,500 Units at the Offering Price for additional gross proceeds of up to C$1,201,500 (the "Underwriter Option") exercisable at any time up to 48 hours prior to the closing of the Offering.

The Corporation shall pay to the Underwriter a cash commission equal to 6.0% of the gross proceeds of the Offering and 6.0% broker warrants based on the number of Units sold in the Offering.

The net proceeds from the Offering will be used for working capital and general corporate purposes.

It is anticipated that closing of the Offering will occur on or about August 10, 2023, or such other date or dates as the Corporation and the Underwriter may agree. The Offering is subject to the satisfaction of certain conditions, including receipt of all applicable regulatory approvals including the approval of the TSX Venture Exchange. The securities to be issued under the Offering will have a hold period of four months and one day from the applicable closing date in accordance with applicable securities laws.