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AZS.V ·

Open Letter to the Shareholders from the CEO of Arizona Silver Exploration Inc.

Shareholder Letters & Outlook Company Commentary

#970 – 777 Hornby Street, Vancouver, B.C. V6Z 1S4

T: 604.559.3511 x150 / F : 604.559.3501 / W : www.arizonasilverexploration.com

OPEN LETTER TO THE SHAREHOLDERS

FROM THE CEO OF ARIZONA SILVER EXPLORATION INC.

Vancouver, British Columbia , January 19, 2022 – Arizona Silver Exploration Inc . (TSXV:

AZS) (OTCQB:AZASF) today released a year -end letter from Mike Stark, CEO, to the Company’s

shareholders. The letter follows below and can also be accessed f rom the Company’s website at

www.arizonasilverexploration.com

Greetings Shareholders,

We at Arizona Silver can celebrate the progress we made in 2021. This newsletter highlights our

accomplishments and signals to shareholders our planned activities going forward.

Our Company has four properties in Arizona but investors are focusing on the exciting results emerging from

our Philadelphia project. We have discovered gold in multiple zones and look forward to drilling the depth

extent and linkages between those zones. Importantly we have demonstrated potentially economic grades, not

only in the primary vein target but in the surrounding rocks.

The following information t racks the property from north to south. We now control the entire 3 km. strike

length but that is a recent development. Prior to the latest agreement we could only drill on the claims we

owned or leased at the time.

Early in 2021 we drilled multiple high-grade holes at the north end of the property on the Mamie claim. Despite

the high grades, the vein did not persist below 100 metres. The next two claims to the south of these intercepts

and along the strike of the vein are the Resaca and Rising Fawn patented claims. These claims accounted for

approximately 40,000 ounces of gold production at a grade of 0.4 oz/ton. We negotiated on these claims for

over two years and in August 2021 announced a lease agreement. Exploration can now proceed.

At the southern end of the Rising Fawn claim is a prominent outcrop of brecciated quartz vein we refer to as

the “Shark Fin”. This prominent, yet undrilled feature is part of the target zone. Our first fence of holes in the

upcoming core drilling campaign will test this feature.

#970 – 777 Hornby Street, Vancouver, B.C. V6Z 1S4

T: 604.559.3511 x150 / F : 604.559.3501 / W : www.arizonasilverexploration.com

Photo of the Shark Fin – a brecciated quartz vein at the south end of Rising Fawn

We negotiated an agreement on the third patented claim in line to the south, the Perry claim earlier in the year.

Mid year we secured a reverse circu lation drill rig to test the Perry vein, a continuation of the vein system

exposed and tested to the north. Sampling of the vein had indicated gold was present but textures suggested

we were above the boiling zone where gold and quartz would most likely have precipitated. The target shows

quartz vein breccia across an excellent width of 10-15 metres, a width that made it a compelling target.

We drilled a fence of three holes about 50 metres south of the Shark Fin. One of the holes returned a vein

intercept of 3 meters at 16.9 grams per tonne gold within a broad zone of stockwork low -grade gold

mineralization. The rig then moved about 300 metres further south on the Perry claim to drill several fences

of holes across the target zone. The terrain between th e two areas was inaccessible at the time due to terrain

challenges. All holes intersected gold at the location of the vein. Above and below the vein was an envelope

of iron staining, clay alteration and stockwork quartz. Assays from both the vein and the altered rock showed

increasing thickness and gold grades with depth.

Drill holes PRC21 -80 and PRC21 -85, our deepest holes of this program intersected both the vein and low -

grade mineralization over total drill intercepts of +100 metres. The low -grade envelope is +1 gram per tonne

gold, a grade that is amenable to mining by open pit in numerous bulk tonnage operations. Importantly, the

mineralization is open in all directions. We refer to the 300 metre long gap between the two drill sections as

the “Gap Zone’.

View of the iron-stained rhyolite dome cap from drill site PRC21 -85.

The Arizona Silver website includes a geological model to explain our interpretation of how the gold is

emplaced and its relationship to a feature known as the rhyolite flow dome. The photo above shows the red

(hydrothermally altered) rocks characteristic of that feature. Our interpretation of the dome is that it potentially

acted as a cap (over 50 metres thick) above the gold (“boiling zone’) by 100 metres. Based on our modeling,

deeper drilling is expected to generate intercepts that are both higher grade and thicker.

The Company is anxious to resume drilling, not just on the Gap Zone, but on the entire strike length up to and

including the Shark Fin and Rising Fawn areas. During a December site visit the message was “Mike, this

#970 – 777 Hornby Street, Vancouver, B.C. V6Z 1S4

T: 604.559.3511 x150 / F : 604.559.3501 / W : www.arizonasilverexploration.com

project is a no-brainer - the Company simply has to drill and the results will come. Get on to it.” Indeed, we

have established multiple gold bearing zones that simply need to be linked with drilling. Given the 3000 metre

length of the vein system as we know it, and the low -grade envelope demonstrated on the Perry claim, the

project offers significant tonnage potential. Drilling is targeted to resume on February 1, 2022.

Our three other properties remain under care and maintenance. A drilling permit with the BLM at the Silverton

Property allows for 12 holes. It has been approved and bonded. This property has large scale potential, being

compared to the Long Canyon gold deposit currently in operation by Newmont.

The Ramsey Property is permitted for 8 more holes. Drilling pads are complete on the patented ground.

Ramsey has shown good silver values in the holes completed to date and clearly warrants much more drilling.

We believe we have just scratched the surface of this opportunity.

The Sycamore Canyon Property has tried our patience for sure due to permitting delays. I hope to share news

in Q1-2022 on permitting developments.

In summary, we remain committed to Philadelphia simply because it has shown th e highest value to

shareholders, with our results speaking for themselves. Please stay informed by referring to our website as we

update it regularly. I always enjoy the phone calls from you. Check out:

https://arizonasilverexploration.com/stockinformation/

From our team to you, have a safe, healthy and prosperous 2022!

Mike Stark

President and CEO

1-604-833-4278

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies

of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This news release includes certain forward -looking statements or information. All statements other than

statements of historical fact included in this release are forward -looking statements that involve various risks

and uncertainties. Forward-looking statements in this news release include statements in relation to the timing,

cost and other aspects of the 2020-2021 exploration program; the potential for development of the mineral

resources; the potential mineralization and geological merits of the exploration properties; and other future

plans, objectives or expectations of the Company. There can be no assurance that such statements will prove

to be accurate and actual results and future events could differ materially from those anticipated in such

statements. Important factors that could cause actual results to differ materially from the Company's plans or

expectations include the risk that actual results of current and planned exploration activities, including the

results of the Company's 2021 drilling program(s) on its properties, will not be consistent with the Company's

expectations; the geology, grade and continuity of any mineral deposits and the risk of unexpected variations

in mineral resources, grade and/or recovery rates; fluctuating metals prices; possibility of accidents, equipment

breakdowns and delays during exploration; exploration cost overruns or unanticipated costs and expenses;

uncertainties involved in the interpretation of drilling results and geological tests; availability of capital and

financing required to co ntinue the Company's future exploration programs and preparation of geological

reports and studies; delays in the preparation of geological reports and studies; the metallurgical characteristics

of mineralization contained within the exploration properties are yet to be fully determined; general economic,

market or business conditions; competition and loss of key employees; regulatory changes and restrictions

including in relation to required permits for exploration activities (including drilling permits) a nd

environmental liability; timeliness of government or regulatory approvals; and other risks detailed herein and

#970 – 777 Hornby Street, Vancouver, B.C. V6Z 1S4

T: 604.559.3511 x150 / F : 604.559.3501 / W : www.arizonasilverexploration.com

from time to time in the filings made by the Company with securities regulators. In connection with the

forward-looking information contained in this news release, the Company has made numerous assumptions,

including that the Company's 2022 programs would proceed as planned and within budget. The Company

expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as

a result of new information, future events or otherwise, except as otherwise required by applicable securities

legislation.