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Mr. Prestamo added, "The Mineral Reserve estimates use actual information from recent operating data including: operating costs, selling costs, metallurgical recoveries and smelter contracts. As such, these estimates should accurately reflect costs and conditions of exploitation that enabled the application of meaningful cut-off-grades to the deposit, such that confidence in the resultant mine plans are high. As well, the existing methodology for Mineral Reserve calculation was verified during the NI 43-101 review, which adds additional confidence to the veracity of our mine plans and development strategies. In addition, the initial Inferred Resource estimate for Soracaya suggests that we have another high-quality silver project in our portfolio."

Important Notes to Mineral Resource and Mineral Reserve tables below:

Mineral Resources and Reserves are stated for the first time under NI 43-101 standards of disclosure and verified by independent Qualified Persons. Garth Kirkham, P.Geo, FGC, of Kirkham Geosystems Ltd., Richard Goodwin, P.Eng., and Shane Tad Crowie, P. Eng., of JDS who are Independent Qualified Persons, as defined by NI 43-101 performed the verification.

Mineral Resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves, Definitions (2014) and Best Practices (2019) prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.

Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

An inferred mineral resource has a lower level of confidence than that applying to an indicated mineral resource and must not be converted to a mineral reserve. It is reasonably expected that most of the inferred mineral resources could be upgraded to indicated mineral resources with continued exploration.

Updated structure for operating and sustaining capital costs were applied to the Mineral Resource to confirm Santacruz generated Mineral Reserves at projected metal prices of $21.00 per ounce silver, $1.15 per pound zinc, $1.00 per pound lead and $3.65 per pound copper.

Mineral Reserve estimates are derived using actual mining and metallurgical performance data from 2022 at each operation to deliver robust estimates.

The effective date of the Mineral Resource and Reserve estimates at the Bolivian Producing Mines is January 1, 2023. The effective date of the Mineral Resource estimate at Soracaya is January 1, 2024. Production data for the calendar year 2023 has been included in Section 24 of the various NI 43-101 compliant technical reports for the Bolivian Producing Mines and shows the depletion and typical replenishment of resources and reserves over a calendar year.

Total Bolivian Producing Mines

Bolivar Mine, Bolivia 

Porco Mine, Bolivia

Caballo Blanco Group of Mines, Bolivia

Soracaya Exploration Project, Bolivia

Quality Assurance/Quality Control and Data Verification

Mineral Resources for the Bolivian Producing Mines were previously performed by local Bolivian staff supported by Glencore. Currently, the same local technical resources are employed by Santacruz ensuring continuity and consistency. The Glencore, and now Santacruz, procedures and methods remain and are adhered to. These procedures and methods have been well documented and follow industry best practice guidelines and the QP (Kirkham) performed extensive site investigations for due diligence and audit to validate and verify.

The Bolivian sites utilize internal laboratories that were reviewed by the technical report authors. Assay preparation and analytical procedures and methods were reviewed and were acceptable for resource estimation purposes. Following the facilities visit to the laboratories, systematic checks of the assay databases against the certified and internal assay databases showed good agreement and the transfer of data is automated to ensure against transpositional errors. The assay database was in good agreement with the laboratory database. The laboratory at the Don Deigo process plant in Bolivia is an ISO 17025:2018 certified laboratory.

Independent samples were taken and analysed by an outside independent umpire assay laboratory, SGS Peru which is ISO 9001 certified laboratory. The results showed good agreement with the original sample assays while validating and verifying the results of the internal assay laboratories.

The resource block models have been created and maintained in the Datamine^™ System, a well-known resource modelling and mine planning system. The vein domain models were created within LeapFrog^™. Block and vein domain models were imported into secondary modelling system MineSight^™ and were validated and verified. Furthermore, estimation vein domains and resource block models were independently created by QP (Kirkham) which showed good agreement with Santacruz models and results.

For all the operating mines, checks were performed to ensure that pillars, sterilized areas and mined out volumes were accounted for and excluded along with material below topography and overburden. Classification criteria and methodology was reviewed showing reasonable and even conservative judgment with respect to threshold distances and grades for drillhole and channel sample data. Geological and grade continuity was demonstrated, and cut-off grades were calculated using updated metal prices and actual mine operating costs. Design underground stope shapes were utilized for the reporting of resources demonstrating Reasonable Prospect of Eventual Economic Extraction ("RP3E").

In conclusion, the assay data, domain models and block estimation models have been validated and verified by QP (Kirkham). Economic and classification criteria have been adjusted to insure reasonable prospect of eventual economic extraction. Kirkham assumes responsibility for the resources and states that the data, models and results reported in the resource estimates may be relied upon to report.

The reserves for all assets were prepared by Sinchi Wayra in Deswik^™. JDS (QP Goodwin) verified that the correct dilution and recovery factors were applied to the stope shapes, that inferred resources were not used in any stope reserves, manually checked all calculations, and verified the tonnages and metal content of each reserve estimate. Other factors that were checked include equipment rates, historic production performance, predicted stoping productivities, and mining sequence assumptions. On the basis of this QA/QC review, the QP (Goodwin) verified that the Deswik-based reserves have been correctly estimated and assumes responsibility for them.

Cutoff grade (COG) criteria were also developed using the site metallurgical data and smelter contracts. The final reserve was estimated by the application of these factors (mining dilution, mining recovery, COG) to the LOM plan and the elimination of all inferred resources in the stope shapes.

The QP (Goodwin) is satisfied that this exercise resulted in a valid result and assumes responsibility for the reserve estimation.

Qualified Person

The Mineral Resource and Reserve estimates were prepared under the supervision of Garth Kirkham, P.Geo, FGC, of Kirkham Geosystems Ltd., Richard Goodwin, P.Eng., and Shane Tad Crowie, P. Eng., of JDS who are Independent Qualified Persons, as defined by NI 43-101. Mr. Kirkham, Mr. Goodwin, and Mr. Crowie have reviewed and approved the scientific and technical information contained in this news release.

Wayne Corso, P.Eng., a consultant to the Company, is a qualified person under NI 43-101 and has approved the scientific and technical information related to operational matters contained in this news release.

About Santacruz Silver Mining Ltd.

Santacruz Silver is engaged in the operation, acquisition, exploration, and development of mineral properties in Latin America. The Bolivian operations are comprised of the Bolivar, Porco and the Caballo Blanco Group, which consists of the Tres Amigos, Reserva and Colquechaquita mines. The Soracaya exploration project and San Lucas feed sourcing business are also in Bolivia. The Zimapan mine is located in Mexico.

'signed'

Arturo Préstamo Elizondo,
Executive Chairman and CEO

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 information

This news release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends", "expects" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or will "potentially" or "likely" occur. This information and these statements, referred to herein as "forward‐looking statements", are not historical facts, are made as of the date of this news release and include without limitation, statements regarding the Company continuing to build a mid-tier silver and base metals company, the filing of a technical report for Soracaya on SEDAR+, the accuracy of the Mineral Reserve and Resource estimates, and the potential to grow the current Mineral Resources and Reserves.

These forward‐looking statements involve numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things, risks that the Company will not continue to build a mid-tier silver and base metals company, that the Company will not file a technical report for Soracaya on SEDAR+ on the anticipated timeline, or at all, that the Mineral Reserve and Resource estimates will be less accurate than management currently anticipates, that it is not possible to grow the current Mineral Resources and Reserves, risks related to changes in general economic, business and political conditions, including changes in the financial markets, changes in applicable laws, and compliance with extensive government regulation, as well as those risk factors discussed or referred to in the Company's disclosure documents filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedarplus.ca.

In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, the assumption that the Company will continue to pursue its goal of building a mid-tier silver and base metals company, that the Company will file a technical report for Soracaya on SEDAR+ within 45 days of this news release, that there is the potential to grow the current Mineral Resources and Reserves, that because the Mineral Reserve estimates use actual information from recent operating data they should accurately reflect costs and conditions of exploitation that enabled the application of meaningful cut-off-grades to the deposit, and that the estimation of Mineral Resources may be impacted by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

There can be no assurance that any forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader should not place any undue reliance on forward-looking information or statements. The Company undertakes no obligation to update forward-looking information or statements, other than as required by applicable law.

SOURCE Santacruz Silver Mining Ltd.

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