Guanajuato Silver Provides Corporate Update
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Guanajuato Silver Provides Corporate Update
December 4, 2025 – Vancouver, British Columbia – Guanajuato Silver Company Ltd. (the “Company” or
“GSilver”) ( TSXV:GSVR)(OTCQX:GSVRF) is providing an update on current activities in its mining
operations in the Guanajuato area in advance of the closing of the acquisition of Bolanitos S.A. de C.V.
James Anderson, Chairman & CEO, said, “As we continue moving towards closing of the recently
announced Bolanitos acquisition, management has started executing an optimization program to ensure
maximum performance of our Guanajuato district assets. With the addition of a third processing plant
within a 20km radius, we are realigning our mineral-transport routes within our hub -and-spoke
processing model. A key step in this process is the temporary closure of the Cata processing plant, which
will no longer receive mineralized material from San Ignacio once that mine and Bolanitos become an
integrated operation. Mineralized material mined at our Valenciana Mines Complex will now be re-routed
to El Cubo for processing. For comparison, in 2024, the last full year in which information is available,
Bolanitos plant utilization averaged 73%; while Cata and Cubo plant utilization was 60% and 66%
respectively. This re-routing measure will ensure maximum utilization of the Bolanitos and Cubo mills
while reducing costs incurred by having Cata on standby.”
On November 24, 2025, the Company announced the signing of a definitive agreement to acquire the
Bolanitos gold -silver mine (“ Bolanitos”) located in Guanajuato, Mexico, from Endeavour Silver Corp.
(“Endeavour”)(TSX:EDR), (See GSilver news release dated November 24, 2025 – Guanajuato Silver to
Acquire Bolanitos Gold -Silver Mine in Mexico ) (the “ Transaction”). Mineralized material from the
Valenciana Mines Complex (VMC) will now be sent to the El Cubo mill, which is located approximately 10
km away. Placing the Cata mill on care & maintenance is a process that is expected to take approximately
15 days to complete. The Company will continue to evaluate the future of the Cata facility, while it studies
other potential synergistic measures within the Guanajuato region , including reactivating Cebada, the
past producing mine located contiguous and to the north of VMC.
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Figure 1 - Cata mill, Guanajuato, Mexico.
Closing the Transaction is subject to customary conditions for a transaction of this nature, including the
approval of the TSX Venture Exchange, and is expected to occur in January 2026.
The Company also announces an update on the previously announced lawsuit that NucTech Mexico, S.A.
de C.V. ("NucTech") (See GSilver news release dated July 22, 2025) has commenced in Mexico City, Mexico,
against the Company’s subsidiary, Minera Mexicana Rosario S.A. de C.V. (“MMR”). NucTech alleges that
MMR has not compensated it for the installation and use of NucTech's mineral sorting equipment at the
San Ignacio mine in Guanajuato, Mexico and is claiming compensation for future equipment rentals over
a 10-year period.
The court in Mexico City has issued an initial ruling that MMR is liable to pay NucTech US$6.96 million in
damages and reimburse the Mexican peso equivalent of approximately US$3.34 million in costs. The
Company has assessed that the court was not presented with the technical evidence demonstrating the
failures of the NucTech equipment and intends to file a direct appeal (Amparo Directo), citing procedural
issues, including incomplete expert evidence. A filed appeal will have the effect of staying the payment
of any damages or costs until the appeal is resolved. An appeal would be heard by a collegiate tribunal of
three magistrates, with an average resolution time of approximately eight months. The Company will
provide further updates on this matter as developments warrant.
About Guanajuato Silver
GSilver is a precious metals producer engaged in reactivating past producing silver and gold mines in
central Mexico. The Company produces silver and gold concentrates from the El Cubo Mine s Complex,
the Valenciana Mines Complex, and the San Ignacio mine; all three mines are located within the state of
Guanajuato, which has an established 480 -year mining history. Additionally, the Company produces
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silver, gold, lead, and zinc concentrates from the Topia mine in northwestern Durango. With four
operating mines and three processing facilities, Guanajuato Silver is one of the fastest growing silver
producers in Mexico.
ON BEHALF OF THE BOARD OF DIRECTORS
"James Anderson"
Chairman and CEO
For further information regarding Guanajuato Silver Company Ltd., please contact:
JJ Jennex, Gerente de Comunicaciones, T: 604 723 1433
GSilver.com
Guanajuato Silver Bullion Store
Please visit our Bullion Store, where Guanajuato Silver coins and bars can be purchased.
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.
Forward-Looking Statements
This news release contains certain forward -looking statements and information, which relate to future
events or future performance including, but not limited to, GSilver’s growth, the merits of Bolantios; the
Company’s plans and objectives with respect to Bolanitos, the advantages of integrating our San Ignacio
Mine into the Bolanitos Mines Complex; intention to reactivate the Cebada mine, expectations regarding
the NucTech lawsuit, and GSilver’s status as one of the fastest growing silver mining company in Mexico.
Such forward-looking statements and information reflect management's current beliefs and are based on
information currently available to and assumptions made by the Company; which assumptions, while
considered reasonable by the Company, are inherently subject to significant operational, business,
economic and regulatory uncertainties and contingencies. These assumptions include: our estimates of
the potential quantity, grade and metal content of the mineralized material at Bolanitos, El Cubo and San
Ignacio, that the parties are able to satisfy the conditions of the Transaction and close the Transaction;
the Company to accomplish its plans and objectives with respect to Bolanitos within the expected timing
or at all, that the appeal of the NucTech ruling will be successful, that the new mining fleet will be
delivered on schedule, that the new mining fleet will operate in accordance with design specifications,
the geotechnical and metallurgical characteristics of such material conforming to sampled results and
metallurgical performance; available tonnage of mineralized material to be mined and processed;
resource grades and recoveries; assumptions and discount rates being appropriately applied to
production estimates; prices for silver, gold and other metals remaining as estimated; currency exchange
rates remaining as estimated; availability of funds for the Company's projects and to satisfy current
liabilities and obligations including debt repayments; capital, decommissioning and reclamation
estimates; prices for energy inputs, labour, materials, supplies and services (including transportation) and
inflation rates remaining as estimated; no labour-related disruptions; no unplanned delays or
interruptions in scheduled construction and production; all necessary permits, licenses and regulatory
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approvals are received in a timely manner; and the ability to comply with environmental, health and
safety laws. The foregoing list of assumptions is not exhaustive.
Readers are cautioned that such forward-looking statements and information are neither promises nor
guarantees, and are subject to risks and uncertainties that may cause future results, level of activity,
production levels, performance or achievements of GSilver to differ materially from those expected
including, but not limited to, risks related to the parties ability to satisfy the conditions of the Transaction
and close the Transaction; the ability of the Company to accomplish its plans and objectives with respect
to Bolanitos within the expected timing or at all; market conditions, availability of financing, currency
rate fluctuations, high inflation and interest rates, tariffs, that the appeal of the NucTech ruling is
unsuccessful, geopolitical conflicts including wars, actual results of exploration, development and
production activities, actual grades and recoveries of silver, gold and other metals from the Company’s
existing mines including El Cubo, San Ignacio, VMC and Topia, that the new mining fleet will not be
delivered on schedule, that the new mining fleet will not operate in accordance with design
specifications, availability of third party mineralized material for processing, unanticipated geological or
structural formations and characteristics, environmental risks, future prices of gold, silver and other
metals, operating risks, accidents, labor issues, equipment or personnel delays, delays in obtaining
governmental or regulatory approvals and permits, inadequate insurance, and other risks in the mining
industry. There are no assurances that GSilver will be able to continue to increase production, tonnage
milled and recoveries rates, improve grades and reduce costs at El Cubo, San Ignacio, VMC and/or Topia
to process mineralized materials to produce silver, gold and other concentrates in the amounts, grades,
recoveries, costs and timetable anticipated. In addition, GSilver’s decision to process mineralized
material from El Cubo, San Ignacio, VMC and Topia is not based on a feasibility study of mineral reserves
demonstrating economic and technical viability and therefore is subject to increased uncertainty and risk
of failure, both economically and technically. Mineral resources and mineralized material that are not
Mineral Reserves do not have demonstrated economic viability, are considered too speculative
geologically to have the economic considerations applied to them, and may be materially affected by
environmental, permitting, legal, title, socio-political, marketing, and other relevant issues. There are no
assurances that the Company's projected grades of gold and silver at El Cubo and San Ignacio and the
anticipated level of production therefrom will be realized. In addition, there are no assurances that the
Company will meet its production forecasts or generate the anticipated cash flows from operations to
satisfy its scheduled debt payments or other liabilities when due or meet financial covenants to which
the Company is subject or to fund its exploration programs and corporate initiatives as planned. There is
also uncertainty about impact of any future global pandemic, ongoing global military conflicts, elevated
inflation and interest rates and the impact they will have on the Company's operations, supply chains,
ability to access mining projects or procure equipment, contractors and other personnel on a timely basis
or at all and economic activity in general. Accordingly, readers should not place undue reliance on
forward-looking statements or information. All forward-looking statements and information made in this
news release are qualified by these cautionary statements and those in our continuous disclosure filings
available on SEDAR+ at www.sedarplus.ca including the Company’s most recently filed annual
information form. These forward-looking statements and information are made as of the date hereof
and the Company does not assume any obligation to update or revise them to reflect new events or
circumstances save as required by law.