Sierra Madre Announces Extension to First Majestic Loan

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Vancouver, British Columbia--(Newsfile Corp. - June 5, 2025) - Sierra Madre Gold and Silver Ltd. (TSXV: SM) (OTCQX: SMDRF) ("Sierra Madre" or the "Company") is pleased to announce an amendment to the non-revolving, secured term loan ("Loan") in the amount of US$5 million between the Company and First Majestic Silver Corp. ("First Majestic"); please see Sierra Madre press release dated May 8, 2024 for details of the original loan announcement.

The Loan now has a maturity date of May 7, 2027, which represents a 12-month extension of the original term, with no other changes. The Loan bears interest at a rate of 15% per annum with payments of interest only due monthly. In accordance with the original agreement, the Company has deferred payment of the first six months' interest in the amount of US$365,000, which is payable upon maturity of the Loan. The Company may repay the Loan and accrued interest at any time, without penalty.

Alex Langer, Sierra Madre's President and CEO, states: "We are very pleased about the extension of this Loan and are grateful for First Majestic's ongoing support. This amendment is expected to provide the flexibility for Sierra Madre to potentially increase plant and mill capacity at our Guitarra silver-gold mine in Mexico's silver belt and also allow us expedite a district-wide exploration program."

Sierra Madre also announces that, pursuant to its Stock Option Plan, it has granted stock options to new employees of La Guitarra Compania Minera, S.A. de C.V. and consultants of the Company, to purchase an aggregate of 950,000 common shares of the Company at the price of $0.69 per share for a period of five years from the grant date. The options will vest 1/3 immediately as of the date of grant; 1/3 6 months after the date of the grant; and 1/3 12 months after the date of the grant. This stock option grant is subject to acceptance by the TSX Venture Exchange.

About Sierra Madre

Sierra Madre Gold and Silver Ltd. (TSXV: SM) (OTCQX: SMDRF) is a precious metals development and exploration company focused on the Guitarra mine in the Temascaltepec mining district, Mexico, and the exploration and development of its Tepic property in Nayarit, Mexico. The Guitarra mine is a permitted underground mine, which includes a 500 t/d processing facility that operated until mid-2018 and restarted commercial production in January 2025.

The +2,600 ha Tepic Project hosts low-sulphidation epithermal gold and silver mineralization with an existing historic resource.