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GSVR.V ·

~ GSilver Company Expands Private Placement to $9.52M~

Financings

TSX-V: GSVR OTCQX: GSVRF

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR

DISSEMINATION IN THE UNITED STATES

~ GSilver Company Expands Private Placement to $9.52M~

December 6, 2021 – Vancouver, British Columbia – Guanajuato Silver Company Ltd. (the “Company”

or “GSilver”) (TSXV:GSVR)(OTCQX:GSVRF) announces a further increase to its non- brokered

private placement.

Private Placement:

GSilver announces that due to additional increased demand the Company has again expanded the size of its non -

brokered private placement financing announced on November 18, 2021 and expanded on November 29, 2021(the

"Private Placement"). Subject to acceptance of the TSX Venture Exchange, the Private Placement will now consist

of a total of 17,322,488 units ("Units") at a price of $0.55 per Unit for gross proceeds of $ 9,527,368.40 Each Unit

consists of one common share of the Company and one half (1/2) of a common share purchase warrant (each whole

warrant a "Warrant"); with each Warrant entitling the holder to purchase an additional common share of the

Company at a price of $0.75 within two years of closing, subject to acceleration in certain events. All other terms

of the Private Placement as announced on November 18, 2021 remain the same.

The Company closed an initial tranche of 14,901,672 Units for gross proceeds of $8,195,920 on November 30,

2021. It is anticipated that the balance of the Private Placement will be completed tomorrow, December 7 , 2021.

All securities issued in connection with the final tranche of the Private Placement will be subject to a four

month hold period.

About Guanajuato Silver Co. Ltd.:

GSilver is a precious metals producer engaged in reactivating past producing silver and gold mines near the city of

Guanajuato, Mexico. The Company is currently producing silver and gold at its 100% owned El Cubo Mine, while

simultaneously advancing the nearby El Pinguico Mine to restart. Both projects are located within 11km of the city

of Guanajuato, which has an established 480-year mining history.

ON BEHALF OF THE BOARD OF DIRECTORS

"James Anderson"

Chairman and CEO

For further information regarding Guanajuato Silver Co. Ltd, please contact:

JJ Jennex, Gerente de Comunicaciones

T: 604 7213 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.

2

This new release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the

United States. The securities have not been and will not be registered under the United States Securities Act of 1933,

as amended (the “U.S. Securities Act ”), or any state securities laws and may not be offered or sold within the

United States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities

Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such

registration is available.

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 total proceeds to be raised under the Private Placement and the timing thereof

and the Company’s ability to successfully restart production at its El Pinguico mine. 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. 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 to differ materially from those expected including, but not limited to, market conditions, availability of

financing, currency rate fluctuations, actual results of exploration, development and production activities, actual resource

grades and recoveries of silver and gold, 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 successfully restart production at the El Pinguico mine or ramp-

up and maintain production at the El Cubo mill to process mineralized materials to produce silver and gold concentrate in the

amounts, grades, recoveries, costs and timetable anticipated. In addition, GSilver’s decision to process mineralized material

from its estimated resources at El Cubo and above and underground stockpiles at El Pinguico through the El Cubo mill 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 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 results of the Company's recently announced preliminary economic assessment

and projected production of silver and gold will be realized. There is also uncertainty about the spread of COVID-19 and

variants of concern and the impact they will have on the Company's operations, supply chains, ability to access El Pinguico

and/or El Cubo or procure equipment, contractors and other personnel on a timely basis or at all and economic activity in

general. All the forward-looking statements 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. These forward-looking statements 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.

Guanajuato Silver Company Ltd.

PH: +1(778) 989-5346 E: [email protected] W: GSilver.com

CA: Suite 578 - 999 Canada Place, Vancouver B.C. V6C 3E1

MX: Carretera - Guanajuato - Silao km 5.5, Int 4, Col. Marfil CP36250, Guanajuato, Gto., Mexico