GSilver Reports Year End 2022 Financial Results; Provides 2023 Production Guidance

VANCOUVER, BC / ACCESSWIRE / April 10, 2023 / Guanajuato Silver Company Ltd. (the "Company" or "GSilver") (TSXV:GSVR)(AQUIS:GSVR)(OTCQX:GSVRF) is pleased to announce selected financial information and consolidated production results for the year ended December 31, 2022. The Company's consolidated financial statements for the year ended December 31, 2022 and Management's Discussion and Analysis ("MD&A") thereon can be viewed under the Company's profile at www.sedar.com. Production results are from the Company's wholly owned El Cubo Mines Complex ("El Cubo"), Valenciana Mines Complex (VMC), and San Ignacio Mine ("San Ignacio") located in Guanajuato, Mexico, and the Topia Mine ("Topia") located in Durango, Mexico.

Selected 2022 Highlights:
(All figures in US Dollars)

Record production for 2022 of 2.15 million silver-equivalent ounces ("AgEq"); this included record production for the fourth quarter of 836,375 AgEq ounces derived from 401,244 ounces of silver, 3,907 ounces of gold, 811,492 pounds of lead and 1,261,554 pounds of zinc.(1) GSilver has delivered continuous quarter-over-quarter increases in AgEq production since the inception of precious metals processing in 2021.
Record silver production of over one-million ounces; GSilver is a primary silver producer.
Successful ramp-up across all four producing silver mines remains in-line with modeled expectations.
Record revenue for 2022 of $36.8M generated by a realized average price of $21.23 per silver ounce, $1,783 per gold ounce, $0.92 per pound of lead, and $1.42 per pound of Zinc.
Silver recoveries continue to exceed historical rates; the average silver recovery for 2022 was 86%; the average gold recovery over the same period was 84.5%.
Cash costs of $15.84 per AgEq ounce, and AISC of $21.55 per AgEq ounce remain in-line with the Company's projections; AISC was influenced in 2022 by significant capital expenditures during ramp-up across all four producing assets.
Positive mine operating cash flow(7) of over $2M.
Over 60% of the net loss for 2022 comprises either non-cash or one-time items(9); net loss for the year totaled $26.7M.
As of December 31, 2022, the Company had cash and cash equivalents of $8,832,936 and negative working capital of $5,972,704 compared with cash of $8,234,043 and positive working capital of $1,670,108 as of December 31, 2021.
"Having achieved producer status in late 2021, we have now successfully completed our first full year of precious metals production from our expanding portfolio of silver mines in central Mexico," said James Anderson, Chairman and CEO. "Throughout 2022 we have exceeded many of our ramp-up targets, such as very strong process plant recoveries, and consistently larger throughput volumes of mineralized material. Our Company's rapid growth is demonstrated by our strong quarter over quarter silver and gold production increases, which we plan to accelerate throughout 2023. Our operations team remains focused on delivering even greater success for 2023 as we aim to further enhance Guanajuato Silver's status as one of the fastest growing silver producers in Mexico."

2023 Production and Cost Guidance

In 2023, silver equivalent production is expected to range from 4.6 to 4.8 million ounces. Consolidated cash costs per ounce are expected to be slightly lower compared to 2022; whereas AISC is expected to be similar to 2022 as the Company completes several strategic capex initiatives in 2023; most notably the Topia mill expansion and modernization, the reintegration of the central Cata production shaft at Valenciana, and the installation of a dry stack tailings facility at El Cubo.

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