Zacatecas Silver Corp. received positive preliminary metallurgical test results from SGS Minerals at Lakefield The work completed by SGS was a first-pass bench-scale scoping study based on a small bulk sample of historical drill core, being 100 kg. It is the first metallurgical test-work completed at Panuco and demonstrates robust gold, silver, lead and zinc recoveries above 90% are achievable. The metallurgical test work supports both bulk flotation flow-path and sequential flotation flow-path, with the bulk floatation flow-path producing a single gold, silver, lead and zinc rougher concentrate (15 minutes of floatation and 23% mass pull) with 697 g/t silver, 0.97 g/t gold, 1.67% zinc and 0.58% lead and recovering 96.2 % of the silver, 93.6% of the gold, 96.5% of the zinc and 92.1 %of the lead. This is an attractive processing option for silver-rich but base metal-poor material. Historical Panuca drill core is stored in a secure restricted facility. The bulk sample was collected from by Zacatecas geologists. Drill core intervals were placed into individually labelled polythene sample bags and sealed with a single use clip-lock seal. Chain of custody was maintained by Zacatecas until the bulk samples was delivered to DHL for courier to SGS. SGS submitted the sample to QEMSCAN and XRD analysis. The sample consisted of mainly quartz (46.8%) and moderate amounts of dolomite (13.5%) and micas (12.9%). Other gangue minerals in minor and trace levels included: K-feldspar (5.3%), plagioclase (0.77%), amphibole/pyroxene (3.4%), chlorite/clays (2.34%), calcite (3.3%), and ankerite (1.2%). Sulphides accounted for about 9.3% of the sample and consisted of pyrite (7.1%), sphalerite (0.66%), arsenopyrite (1.34%), and galena (0.15%). Chalcopyrite and other sulphides were trace. Liberation of the pyrite, sphalerite, and galena was good at ~80%, 87%, and 96% respectively. Arsenopyrite liberation was low at 54%. For the rougher bulk concentrate, a single test was conducted using soda ash as pH modifier, copper sulphate (sulphide activator), potassium amyl xanthate (sulphide collector), Aero 241 (dithiophosphate promoter) and methyl isobutyl carbinol (frother). Timed concentrate samples were collected and assayed to monitor the recoveries. For the sequential flotation flowsheet, tests were conducted using soda ash or sulphuric acid as pH modifiers, copper sulphate (sulphide activator), potassium amyl xanthate (sulphide collector), Aero 241 (dithiophosphate promoter), in the lead circuit, Aero 5100 (allyl alkyl thionocarbamate promoter) in the zinc circuit, and methyl isobutyl carbinol (frother). The SGS analysis included a quality assurance /quality control (QA/QC) program. Zacatecas detected no significant QA/QC issues during review of the data. Zacatecas is not aware of any drilling, sampling, recovery or other factors that could materially affect the accuracy or reliability of the data referred to herein.SGS Minerals Lakefield is ISO/IEC 17025 accredited. SGS is independent of Zacatecas.