GSVR.V · 2025-05-28 12:00:00

Guanajuato Silver Posts Positive Mine Operating Income of US$4.8M in Q1, 2025

Production Results

May 28, 2025 – Vancouver, British Columbia – Guanajuato Silver Company Ltd. (the “ Company” or

“GSilver”) ( TSXV:GSVR)(OTCQX:GSVRF) is pleased to announce ﬁnancial information and production

results for the three months ended March 31, 2025. The Company’s condensed consolidated interim

ﬁnancial statements for the ﬁrst quarter of 2025 and Management’s Discussion and Analysis (“MD&A”)

thereon can be viewed under the Company’s proﬁle at www.sedarplus.ca. All dollar amounts are in US

dollars (US$) and prepared in accordance with IFRS Accounting Standards (IFRS) as issued by the

International Accounting Standards Board. Production results are from the Company’s wholly owned El

Cubo Mines Complex (“ El Cubo”), Valenciana Mines Complex ( “VMC”), and the San Ignacio Mine (“ San

Ignacio”) located in Guanajuato, Mexico, and the Topia Mine (“Topia”) located in Durango, Mexico.

Selected Q1 2025 Highlights:

 Record mine operating income of $4,845,773 was up 82% over the previous quarter; the

Company’s mining operations have now successfully generated four consecutive quarters of

positive mine operating income.

 Record revenue f o r t h e q u a r t e r o f $21,330,483 was up 12% over the previous quarter. The

average realized silver price for the quarter was $31.88 per ounce. The average realized gold price

for the quarter was $2,842.80 per ounce. Guanajuato Silver is a primary precious metals producer

with over 90% of the Company’s revenue derived from the production and sale of silver and gold.

 Operating costs continued to improve over the quarter; cash cost of $19.19 per AgEq ounce was

3% lower than the previous quarter; All-In Sustaining Cost (“AISC”)* was $23.41 per AgEq ounce

- a 6% improvement over Q4, 2024.

 Production for the quarter was 738,006 silver equivalent ounces (“AgEq”), which was a 1%

increase over the previous quarter. P roduction consisted of 38 0,406 ounces of silver, 3, 347

ounces of gold, 699,294 pounds of lead, and 909,029 pounds of zinc. **

 Adjusted EBITDA* was up 135% over the previous quarter to $4,104,669.

James Anderson, CEO & Chairman, said, “Guanajuato Silver’s out-sized leverage to the price of precious

metals returned record income from operations in the quarter as working efficiencies continue to show

marked improvements at all four of our producing assets in Mexico. Additionally, production – especially

in gold ounces from our three mines in Guanajuato - helped push quarterly revenue to the highest in

Company history. With significant capacity remaining at our processing facilities, Guanajuato Silver is well

positioned to take advantage of rising prices for both silver and gold.”

Corporate Update

In addition to its Q1 financial results, GSilver is pleased to announce the appointment of Mr. Dan Oliver,

current director, as Lead Independent Director of the Board of Directors. In this role, Mr. Oliver will

provide independent leadership to the Board, help coordinate the activities of non-executive directors,

and serve as a key liaison between the Board and executive management to enhance governance and

accountability.

James Anderson, Chairman & CEO, stated, "Dan’s appointment as Lead Independent Director

underscores our commitment to strong corporate governance and effective oversight as we continue

to grow our business and expand production across our Mexican operations."

Mr. Oliver added, "It’s an honor to assume the role of Lead Independent Director at such a pivotal time

for GSilver. I look forward to working closely with management and my fellow directors to ensure we

maintain our strategic focus as we continue to build Mexico's fastest growing silver producer."

*EBITDA, (Earnings Before Interest, Taxes, Depreciation and Amortization) Adjusted EBITDA , AISC and

working capital are non-IFRS ﬁnancial measures with no standardized meaning under IFRS, and therefore

they may not be comparable to similar measures presented by other issuers. For further information and

detailed reconciliations of Non-IFRS ﬁnancial measures to the most directly comparable IFRS measures see

“Non-IFRS Financial Measures” in this News Release.

Q1 2025 OPERATING AND FINANCIAL HIGHLIGHTS

The following table summarizes the Company’s consolidated operating and financial results for the three

months ended March 31, 2025 as compared to the three months ended December 31, 2024.

Note: The net loss for the quarter was down 6% from Q4, 2024, and consists entirely of non -cash items

including depreciation, amortization, and derivative adjustments.

1. **Silver equivalents are calculated using an 89.68:1 (Ag/Au), 0.03:1 (Ag/Pb) and 0.04:1 (Ag/Zn) ratio

for Q1 2025; and an 84.86:1 (Ag/Au), 0.03:1 (Ag/Pb) and 0.04:1 (Ag/Zn) ratio for Q4 2024, respectively.

Cash cost per silver equivalent ounce includes mining, processing, and direct overhead. See

Reconciliation to IFRS in the Non-IFRS Financial Measures section of this news release.

2. AlSC per AgEq oz includes mining, processing, direct overhead, corporate general and administration

expenses, on-site exploration, reclamation, and sustaining capital. See Reconciliation to IFRS in the

Non-IFRS Financial Measures section of this news release.

3. See Reconciliation of earnings before interest, taxes, depreciation, and amortization in the Non -IFRS

Financial Measures section of this news release.

4. Mine Operating Cashﬂow Before Taxes, Cash cost per silver equivalent, cost per tonne, AISC per AgEq

ounce, EBITDA, Adjusted EBITDA and working capital are non -IFRS ﬁnancial measure s with no

standardized meaning under IFRS, and therefore they may not be comparable to similar measures

presented by other issuers. For further information and detailed reconciliations of non-IFRS ﬁnancial

measures to the most directly comparable IFRS measures see “Non -IFRS Financial Measures” in the

Non-IFRS Financial Measures section of this news release.

5. Based on provisional sales before ﬁnal price adjustments, before payable metal deductions,

treatment, and reﬁning charges.

6. Mine operating cash ﬂow before taxes is calculated by adding back depreciation, depletion, and

inventory write-downs to mine operating loss. See Reconciliation to IFRS in the Non -IFRS Financial

Measures section of this news release.

NON-IFRS FINANCIAL MEASURES

The Company has disclosed certain non-IFRS financial measures and ratios in this news release, as

discussed below. These non-IFRS financial measures and non-IFRS ratios are widely reported in the mining

industry as benchmarks for performance and are used by Management to monitor and evaluate the

Company's operating performance and ability to generate cash. The Company believes that, in addition

to financial measures and ratios prepared in accordance with IFRS, certain investors use these non-IFRS

financial measures and ratios to evaluate the Company’s performance. However, the measures do not

have a standardized meaning under IFRS and may not be comparable to similar financial measures

disclosed by other companies. Accordingly, non-IFRS financial measures and non-IFRS ratios should not

be considered in isolation or as a substitute for measures and r atios of the Company’s performance

prepared in accordance with IFRS.

Non-IFRS financial measures are defined in National Instrument 52-112 – Non-GAAP and Other Financial

Measures Disclosure (“NI 52-112”) as a financial measure disclosed that (a) depicts the historical or

expected f uture financial performance, financial position or cash flow of an entity, (b) with respect to its

composition, excludes an amount that is included in, or includes an amount that is excluded from, the

composition of the most directly comparable financial measure disclosed in the primary financial

statements of the entity, (c) is not disclosed in the financial statements of the entity, and (d) is not a ratio,

fraction, percentage or similar representation.

A non-IFRS ratio is defined by NI 52-112 as a financial measure disclosed that (a) is in the form of a ratio,

fraction, percentage, or similar representation, (b) has a non-IFRS financial measure as one or more of its

components, and (c) is not disclosed in the financial statements.

WORKING CAPITAL

Working capital is a non-IFRS measure that is a common measure of liquidity but does not have any

standardized meaning. The most directly comparable measure prepared in accordance with IFRS is current

assets net of current liabilities. Working capital is calculated by deducting current liabilities from current

assets. Working capital should not be considered in isolation or as a substitute for measures prepared in

accordance with IFRS. The measure is intended to assist readers in evaluating the Company’s liquidity.

MINE OPERATING CASH FLOW BEFORE TAXES

Mine operating cash flow before taxes is a non-IFRS measure that does not have a standardized meaning

prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers.

Mine operating cash flow is calculated as revenue minus production costs, transportation and selling costs

and inventory changes. Mine operating cash flow is used by management to assess the performance of

the mine operations, excluding corporate and exploration activities, and is provided to investors as a

measure of the Company’s operating performance.

EBITDA is a non-IFRS financial measure, which excludes the following from net earnings:

• Income tax expense;

• Finance costs;

• Amortization and depletion.

Adjusted EBITDA excludes the following additional items from EBITDA:

• Share based compensation;

• Non-recurring impairments (reversals);

• Loss (gain) on derivative;

• Significant other non-routine finance items.

Adjusted EBITDA per share is calculated by dividing Adjusted EBITDA by the basic weighted average

number of shares outstanding for the period.

Management believes EBITDA is a valuable indicator of the Company’s ability to generate liquidity by

producing operating cash flow to fund working capital needs, service debt obligations, and fund capital

expenditures. Management uses EBITDA for this purpose. EBITDA is also frequently used by investors and

analysts for valuation purposes whereby EBITDA is multiplied by a factor or “EBITDA multiple” based on

an observed or inferred relationship between EBITDA and market values to determine the approximate

total enterprise value of a Company. Management believes that Adjusted EBITDA provides useful

information to investors and others in understanding and evaluating our operating results because it is

consistent with the indicators management uses internally to measure the Company's performance and

is an indicator of the performance of the Company's mining operations.

EBITDA is intended to provide additional information to investors and analysts. It does not have any

standardized definition under IFRS and should not be considered in isolation or as a substitute for

measures of operating performance prepared in accordance with IFRS. EBITDA excludes the impact of

cash costs of financing activities and taxes, and the effects of changes in operating working capital

balances, and therefore is not necessarily indicative of operating profit or cash flow from operations as

determined by IFRS. Other companies may calculate EBITDA and Adjusted EBITDA differently.

Cash Cost per AgEq Ounce, All-In Sustaining Cost per AgEq Ounce and Production Cost per Tonne are

measures developed by precious metals companies in an effort to provide a comparable standard;

however, there can be no assurance that the Company’s reporting of these non-IFRS measures and ratios

are similar to those reported by other mining companies. Cash costs per silver equivalent ounce and total

production cost per tonne are non-IFRS performance measures used by the Company to manage and

evaluate operating performance at its operating mining unit, in conjunction with the related IFRS

amounts. They are widely reported in the silver mining industry as a benchmark for performance, but do

not have a standardized meaning and are disclosed in addition to IFRS measures. Production costs include

mining, milling, and direct overhead at the operation sites. Cash costs include all direct costs plus royalties

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