Guanajuato Silver Company Ltd. announce the commencement of a high-grade pillar exploitation program at the Company's 100% owned Valenciana Mines Complex ("VMC") in Guanajuato, Mexico. The Valenciana Mines Complex has hundreds of small and large mining pillars located throughout an underground mine network that extends over 4km in strike length and 700m in vertical extent. The Company is targeting pillars that were all made between the years 1768 and 1950.

Because many of these pillars were created during the Spanish colonial period using pre-modern mining techniques, they do not contribute to mine stability and can safely be exploited. Other pillars that qualify for this program will be replaced with backfill waste material as part of a program to return Guanajuato Silver's tailings back underground. Pillars are evaluated for their extraction suitability and mineral potential using the polygon method that calculates the volume, grade and tonnage for each pillar structure.

Currently, four pillars are being evaluated in the Cata area of the mine; the Company estimates that there are a minimum of 50 high-grade pillars that have the potential to be extracted as part of this program.