Guanajuato Silver Company Ltd. reported drill results from its ongoing exploration programs at the Company's wholly owned El Cubo Mine Complex and El Pinguico project in Guanajuato, Mexico. GSilver continues infill and expansion drilling at the El Cubo Mine targeting the Villalpando, Asuncion, Tuberos and `680' veins at the Villalpando and Santa Cecilia areas; in parallel, GSilver is continuing exploration at the El Pinguico project targeting the Arroyo and Pinguico veins. From late January to end of March 2022, a total of 3,130 meters in 14 holes were drilled from underground at the Guanajuato properties.

The drill results announced include the last two holes drilled at El Pinguico in 2021, and six of the 14 diamond drillholes drilled so far this year. The Company is reporting results for a total of eight drill holes from the three areas. Drilling at the Capulin area of El Cubo, targeting the Villalpando and Asuncion vein structures, has been very successful.

Overlooked by previous operators, this area boasts ample development work with easy access to newly defined mineralised material. The Asuncion vein occasionally exhibits bonanza grades as highlighted by VPO22-002, which returned over 95 troy ounces of silver-equivalent over an estimated true width of 0.35 metres. At Capulin, drill holes VPO22-04 and VPO22-05 have been drilled and are out for assay.

Drilling remains ongoing in this area. Drilling in the Santa Cecilia area of El Cubo targets numerous vein structures; these include `680', Tuberos, Poniente, and the northern extension of Villalpando. In this area, productive veins are often perpendicular (transverse) to the regional NW structure and frequently carry proportionally higher gold content.

As mine production in the Santa Cecilia area continues to take on a more important role within GSilver's El Cubo mining strategy, and in view of the area's important grade potential, the decision has been made to join the southern Villalpando area with the northern Santa Cecilia area at depth. With only approximately 150m of development tunnelling to complete before this connection is made, management estimates that the work necessary for this task will take only approximately 6 to 8 weeks. Upon completion, haulage trucks, which currently need to travel on gravel roads for 6.7km from Santa Cecilia to processing plant, will now need only to travel 2.5km within the mine; thereby reducing fuel costs, tire wear, and road maintenance costs significantly and immediately.

At Santa Cecilia, drill holes SC22-03 to SC22-08 have been drilled and are out for assay. Drilling at Santa Cecilia, an area that was largely discounted by previous operators, remains ongoing. Drill results from the El Pinguico project included two drill holes drilled from the San Jose #2 crosscut in 2021.

P21-22 encountered the Pinguico system and returned 0.60m estimated true width (ETW) at 285 gpt AgEq. Importantly, both holes cut good widths of very good grade in the Arroyo vein; this vein was encountered previously but until now had only returned moderate results. These results will be thoroughly studied and interpreted by GSilver geological staff prior to additional targeting of this area.