Guanajuato Silver Announces Brokered Financing Upsized to C$10.9 Million

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VANCOUVER, BC / ACCESSWIRE / April 29, 2024 / Guanajuato Silver Company Ltd. (the "Company" or "GSilver") (TSXV:GSVR)(OTCQX:GSVRF) is pleased to announce an upsizing of its previously announced brokered, best-efforts offering ("Offering") for an additional C$2,250,000 under a private placement to accredited investors ("Private Placement"). The aggregate gross proceeds to the Company will now be up to C$10,875,000 under the combined Listed Issuer Financing Exemption ("LIFE") and Private Placement. The Offering consists of units of the Company (the "Units") at a price of C$0.20 per Unit (the "Offering Price"). The Offering is being 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 will consist 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 for a period of 24 months following the closing of the Offering.

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, up to 43,125,000 Units ("LIFE Units") will be offered for sale to purchasers pursuant to the Listed Issuer Financing Exemption under Part 5A of National Instrument 45-106 - Prospectus Exemptions in all provinces of Canada, except Quebec, and other qualifying jurisdictions, including the United States. In addition, in relation to the upsizing, up to 11,250,000 Units ("Accredited Investor Units") will also be offered to accredited investors under the accredited investor exemption in all provinces of Canada, and other qualifying jurisdictions, including the United States. The LIFE Units offered will be immediately "free-trading" under applicable Canadian securities laws. Unless permitted under securities legislation, the Accredited Investor Units cannot be traded before 4 months and a day from closing of the Offering.