Vancouver, British Columbia--(Newsfile Corp. - November 5, 2026) - Sierra Madre Gold and Silver Ltd. (TSXV: SM) (OTCQX: SMDRF) ("Sierra Madre" or the "Company") is pleased to announce the commencement of a 30,000 metre drill program in the East District of the Guitarra silver-gold mine complex in Estado de Mexico, Mexico. Historic mines in the East District were some of the most prolific silver producers during the Spanish colonial period. Only limited exploration has been conducted in this area by previous operators. The detailed mapping done by the Company has delineated multiple vein systems with a total strike length of over 39 km.
Greg Liller, Chief Operating Officer, states, "Since I first worked at Guitarra 20 years ago, I have felt this major historic silver district to be one of the best exploration opportunities in Mexico. With the first rig now on site, I am truly excited to be finally testing that idea. Through the mapping and modelling work completed by our team, Sierra Madre has developed a 3D geological model to guide this program. Using a specialized drilling approach, the initial holes will target multiple structures to efficiently evaluate vein systems and test targets below historic workings."
As announced on July 14, 2026, the mapping enabled the Company to develop a 3-D geologic model of the East District, which was used to optimize the design of the drill program. Initial drilling will focus on the metasediment-hosted veins using the fully permitted area for mining, Tlacotal, as a staging point. Sub-horizontal drilling was determined to be the most effective method for testing the multiple vein systems at the same elevation as the productive horizon of the historic El Rincon Mine and below the lowest drainage level of historic mines in these areas. This strategy required the contractor to build a specialized rig specifically for the program as part of the drilling contract. The rig arrived on site on October 29th.
The 2023 NI 43-101 La Guitarra report1 contains an exploration potential estimate for the East District of 0.77 to 1.54 million tonnes grading 2.4 to 3.6 g/t gold and 440 to 670 g/t silver. This estimate is only for five of the vein systems in the East District and covers a combined strike length of just 7.7 km. The Company's systematic work and modelling to date have defined numerous additional vein systems over a much broader area, many of which contain significant historic workings.
Figure 1 - East District Surface Mapping
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10436/322556_4e3b0d2e048d6bb3_002full.jpg
Figure 2 - East District 3D Vein Model Looking to the Southeast. Veins Shown in Various Colors
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10436/322556_4e3b0d2e048d6bb3_003full.jpg
Drill Plans
Initial drilling from Tlacotal will target the Magdalena and Los Locos vein systems and consist of 11 holes with projected target depths in excess of 1,000 meters each. As assay results are received, wedge holes will be planned off of the original 11 holes.
Figure 3 - 3-D Vein Model Los Locos and Magdalena Area
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10436/322556_4e3b0d2e048d6bb3_004full.jpg
Production Update
The Company is also pleased to announce that mill throughput for October 2026 averaged 751 tonnes per day ("tpd"). This represents a 50% increase from the previous 500 tpd nameplate capacity and is in line with the Phase 1 expansion goal announced on September 8, 2025. Additional production details will be released with the Company's Q3 2026 financial results, expected in mid-November.
Qualified Person
Mr. Gregory Smith, P. Geo, Director of Sierra Madre, is a Qualified Person as defined by NI 43-101, and has reviewed and approved the technical data and information contained in this news release. Mr. Smith has verified the technical and scientific data disclosed herein.
About Sierra Madre
Sierra Madre Gold and Silver Ltd. (TSXV: SM) (OTCQX: SMDRF) is a precious metals producer and exploration company focused on the operation, exploration, and development at its Guitarra mine complex in the Temascaltepec mining district, Mexico. The Guitarra mine is a permitted underground mine, which includes a 500 tpd processing facility that operated until mid-2018 and restarted commercial production in January 2025.
In June 2026, Sierra Madre closed the acquisition of the Del Toro silver mine, adding a past-producing, fully permitted asset to its Mexico-focused silver and gold portfolio.
The Company also holds the +2,600 ha Tepic Project, which hosts low-sulphidation epithermal gold and silver mineralization with an existing historic resource.
Sierra Madre's management team has played key roles in managing the exploration and development of silver and gold mineral reserves and mineral resources. Sierra Madre's team of professionals has collectively raised over $1 billion for mining companies.
On behalf of the board of directors of Sierra Madre Gold and Silver Ltd.,
"Alexander Langer"
Alexander Langer
President, Chief Executive Officer and Director
778-820-1189
Cautionary Note Regarding Production Decisions
The Company's decision to place the mine into commercial production, expand a mine, make other production related decisions, or otherwise carry out mining and processing operations, is largely based on internal non-public Company data and reports from previous operations and the results of test mining and processing. The Company is not basing any production decisions on NI 43-101 compliant reserve estimates, preliminary economic assessments or feasibility studies and, as a result, there is greater risk and uncertainty as to future economic results from the Guitarra Mine Complex, including increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit, and a higher technical risk of failure than would be the case if a feasibility study were completed and relied upon to make a production decision.
Cautionary Note Regarding Forward-Looking Information
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 news release.
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities legislation. The forward-looking statements herein are made as of the date of this press release only, and the Company does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budgets", "scheduled", "estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements include, without limitation, statements regarding discussions of future plans, including the expected timing of concentrate shipments; the Company increasing production; the Company receiving revenues on a weekly basis and such revenues allowing the Company to comfortably expand to without further capital needs; production and the expected timing and production levels thereof.
The 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, that predicted production levels will be achieved and that existing production levels will be maintained.
In making the forward-looking statements in this news release, the Company has applied certain material assumptions, including without limitation, that the Company will be able to execute its future plans as intended, that predicted production levels will be achieved and that existing production levels will be maintained.
Although management of the Company has attempted identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
SOURCE: Sierra Madre Gold and Silver Ltd.
1 A copy of the 2023 NI 43-101 report, prepared by TechSer Mining Consultants Ltd. ("TechSer") of Vancouver B.C., by David Thomas, P.Geo. and QP Geology and Cristian Garcia, P.Eng. and QP Mining, titled "La Guitarra Mineral Resource Estimate Guitarra Silver-Gold Project, Temascaltepec, Estado de México, México" with an effective date of October 24, 2023, is available on SEDAR+ and the company's website at https://sierramadregoldandsilver.com/presentations/NI-43-101-La-Guitarra-Mineral-Resource-Estimate.pdf
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/322556
Source: Sierra Madre Gold & Silver