Guanajuato Silver Company Ltd. announce the commencement of development work and the processing of mineralized material from an existing stockpile at its 100% owned El Horcon mine ("Horcon") located approximately 60km NW of Guanajuato, Mexico. Starting in Mid-November, thus far the Company has shipped and processed 350 tonnes of material on a trial basis from the historical stockpile. Head grades from different batches of this material were approximately 30-50 gpt Ag and 1.6 to 3.0 gpt Au.

Initial processing runs gave recoveries of approximately 70% for Ag and 82% for Au. Note: this first batch of material was taken from a higher grade area of the stockpile; future shipments are likely to be of somewhat lower grades. The Horcon stockpile is expected to add approximately 4,000 tonnes of mineralized material per month over a six-to-ten-month period.

Metallurgical testing of the mineralized material at Horcon has been demonstrated compatible with the Cata mill processing circuit and is currently being blended with mineralized production from the Valenciana Mines Complex ("VMC").