Defiance Silver Corp. provided the final results from seven drill holes drilled during the 2022 drill program. These holes were designed to improve the main Veta Grande structural model and to test splays to the Veta Grande system, including the footwall San Herculano structure.

Highlight of Results DDSA-22-62 – Encountered a base metal rich portion of the Veta Grande structure, returning 2.58m of 423 g/t AgEq (from 213.40m to 215.98m) within a wider 11.22m intercept of 152 g/t AgEq (from 205.15m to 216.37m). DDSA-22-61 – Returned 1.49m of 399 AgEq (from 231.28m to 232.77m) within a wider interval of 4.97m of 142 g/t AgEq (from 230.04m to 235.01m). This hole tested up dip of historical holes SAD15-09 and SAD-15-10, and below hole DDSA-22-59 (2.42m of 123 g/t AgEq, reported in this release).

Historic workings were encountered higher in the hole, while drilled mineralization occurred between the main VG structure and a hanging wall splay. DDSA-22-60 – Returned 6.98m of 114 g/t AgEq (from 31.10m to 38.08m) on the Veta Grande and encountered historic workings from a downhole depth of 33.25m to 34.75m. DDSA-22-59 – From surface returned 9.57m of 175 AgEq (from 1.38m to 10.95m).

This hole drilled reportable grade in three locations: surface waste dumps, the main Veta Grande structure, and possible San Herculano structure. In-situ vein material from Veta Grande grades 2.42m of 123 g/t AgEq (from 27.30m to 29.72m). Discussion of Results Defiance undertook a drill program in late 2022 to gather additional data in the San Acacio resource area.

These holes were designed to improve the main Veta Grande structural model and to infill poorly-drilled areas, as well as to test both hanging wall and footwall splays to the Veta Grande system. The footwall San Herculano structure was one of the main exploration targets of this phase of drilling. Drill hole DDSA-22-59 was targeted to hit the Veta Grande vein system near surface and test the deeper San Herculano vein target.

The hole was collared into surface waste material from historic mining and returned 9.57m grading 175 g/t AgEq from 1.38m down hole. The overall grade and tonnage of waste material is unknown. The Veta Grande structure was intersected near surface (2.42m grading 117 g/t AgEq from 27.30m).

An additional mineralized structure was encountered in the footwall of the Veta Grade; it is not yet clear whether this represents San Herculano or another structure. Drill hole DDSA-22-60 was a 130 metre step out to the northwest from hole DDSA-22-59. The hole was also designed to hit the Veta Grande near surface and to test the San Herculano vein at depth.

The Veta Grande structure was again intersected near surface and contained 6.98m grading 114 g/t AgEq from 31.10m down hole. Most grade appears to be contained in remaining vein material that was not historically mined; 1.5 metre wide workings were encountered from 33.25 to 34.75m. Anomalous structures were encountered in the San Herculano zone.

Drill hole DDSA-22-61 was designed to test hanging wall vein splays and the main Veta Grande vein. This hole tested up dip of historical holes SAD-15-09 and SAD-15-10, and below hole DDSA-22-59. Historic workings were encountered at the modelled location of the main hanging wall splay; in-situ mineralization was hit between the main VG structure and the hanging wall splay.

Hanging wall splay mineralization returned 2.37m grading 250 g/t AgEq from 230.04m, while the main Veta Grande zone returned 2.23m of 114 g/t AgEq from 245.68m. Drill hole DDSA-22-62 was drilled in the far NW part of the property, under Tajo Carolina, a historic surface mining area. This hole successfully intercepted both the modelled Veta Grande hanging wall splays and the main mineralized Veta Grande structure.

Again, the intercepted mineralization is within and between Veta Grande and a hanging wall vein splay. The hole encountered a base metal rich portion of the Veta Grande structure, returning 2.58m of 423 g/t AgEq (from 213.40m to 215.98m) within a wider 11.22m intercept of 152 AgEq (from 205.15m to 216.37m). Drill hole DDSA-22-63 was designed to test the Veta Grande footwall splay, including the San Herculano structure and did not drill the Veta Grande structure itself.

Several zones of alteration and anomalous metal values were encountered in the foot wall to the Veta Grande structure in this area. Whilst none of the intercepts are reported here, the style and metal assemblage of the anomalous zones is encouraging. Drill holes DDSA-22-56 and 57 were designed to test a calcite rich outcrop 2 km to the south-east of the resource area but along the regional Veta Grande structure.

Hole DDSA-22-56 intercepted hydrothermal material and alteration at the projection of the Veta Grande structure. Trace elements present in the intercepted zone suggest that the structure was hit in the upper levels of the epithermal system. Hole DDSA-22-57 deviated significantly to the east and drilled outside the target zone.

San Herculano Vein Target The San Herculano structure is located in the footwall of the Veta Grande vein. San Herculano is a recentlyidentified target revealed during surface mapping and reviews of historical documents about the underground workings. It is currently unknown if the historical miners were successful in removing economic material from this area; however, the appreciable amount of development effort is encouraging from an exploration perspective.

Drill holes targeting the San Herculano structure intersected thin zones of anomalous silver and base metal mineralization. Whilst a formal San Herculano vein has yet to be identified, the company believes that exploration in semi-parallel structures to the Veta Grande warrants follow up exploration. Next Steps Planned 2023 drilling at the Zacatecas project includes programs for resource expansion, (including metallurgical testing), brownfields exploration, and greenfields exploration, incuding: Resource expansion drilling that will be focused in the current resource area, designed to delineate additional tonnage of mineralisation outside of the current resource estimate.

Brownfields exploration designed to test newly recognized hanging wall and footwall vein splays, offset structures at depth, and additional targets in close proximity to the historical workings. Greenfields exploration that will be a combination of follow up drilling on the recent first-pass success at Palenque and first-pass drilling on regional targets including the northern Zacatecas district at Pánuco.