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GSVR.V ·

Guanajuato Silver Reports Fatal Accident at San Ignacio Mine

Mine Development & Operations

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Guanajuato Silver Reports Fatal Accident at San Ignacio Mine

August 14, 2023 – Vancouver, British Columbia – Guanajuato Silver Company Ltd. (the “Company” or “GSilver”)

(TSXV:GSVR)(AQUIS:GSVR)(OTCQX:GSVRF) regrets to report an employee fatality that occurred on Saturday,

August 12, due to an accident at the San Ignacio mine in Guanajuato, Mexico.

The area of the incident was shut down temporarily as the Company works with Mexican authorities to conduct

a thorough investigation; the Company will review the conclusions and implement any additional safety measures

recommended to prevent such an accident from reoccurring. The safety and well-being of Guanajuato Silver’s

employees, contractors, and neighbours remains the Company’s highest priority.

Ramon Davila, President stated, “We offer our prayers and condolences to the family at this tragic time. We are

currently providing support to all those impacted, while at the same time we are working with local authorities to

fully understand the specific details of this incident.”

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

E: [email protected]

Gsilver.com

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 the implementation of additional safety measures and results of any

investigation.

Such forward-looking statements and information reflect management's current beliefs and expectations 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 mineralized material at El Cubo, VMC, San

Ignacio and Topia and the assumptions upon which they are based, including geotechnical and metallurgical

characteristics of rock conforming to sampled results a nd 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; the ability of the Company to ramp up processing of mineralized material at its El Cubo

Cata and Topia mills at the projected rates and source sufficient high grade mineralized material to fill such processing

capacity; prices for silver, gold and other metals remaining as estimated; currency exchange rates remaining as estimated;

improved efficiencies and benefi ts to be derived from the Company’s development and operational activities being

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achieved as anticipated; the continued availability of funds for the Company's projects and to satisfy current liabilities and

obligations including debt repayments; capital cost estimates; 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 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, market conditions,

availability of financing, future prices of gold, silver and other metals, currency rate fluctuations, elevated inflation and

interest rates, actual results of production, exploration and development activities, actual resource grades and recoveries

of silver, gold and other metals, availability of third party mineralized material for processing, unanticipated geological or

structural formations and char acteristics, geopolitical conflicts including wars, environmental risks, 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

successfully discover and mine sufficient quantities of high grade mineralized material at El Cubo, VMC, San Ignacio and

Topia for processing at its existing mills to increase production, tonnage milled and recovery rates of gold, silver, and other

metals in the amounts, grades, recoveries, costs and timetable anticipated. In addition, GSilver’ s decision to process

mineralized material from El Cubo, VMC, San Ignacio 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 no t 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 production of silver, gold and other metals

will be realized. In addition, there are no assurances that the Company will meet its production forecasts or generate the

anticipated operational efficiencies and cash flow 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 the continued spread and severity of COVID- 19, the

ongoing war in Ukraine, 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, supplies, 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.sedar.com

including the Company’s annual information form for the year ended December 31, 2021. 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.