Gatos Silver, Inc. provided an update on the drilling and exploration programs in the Los Gatos district (?LGD?) in Mexico. The update includes new intercepts of mineralization in the South-East Deeps (?SE Deeps?) zone of its 70%-owned Cerro Los Gatos (?CLG?) mine. The Company also announced the appointment of Chad Yuhasz as Vice President, Exploration and Technical Services.

Resource definition drilling in the SE Deeps zone of CLG intercepted additional high-grade mineralization below the existing mineral reserve: 3.0m (2.6m estimated true width, or ?ETW?) at 85 g/t Ag, 8.77% Zn, 3.60% Pb, 0.13 g/t Au and 0.23% Cu (SE-568); 1.5m (1.2m ETW) at 157 g/t Ag, 3.30% Zn, 13.45% Pb, 0.13 g/t Au and 0.23% Cu (SE-581); 5.7m (4.7m ETW) at 81 g/t Ag, 8.62% Zn, 6.65% Pb, 1.83 g/t Au and 0.23% Cu (SE-582); 8.9m (6.0m ETW) at 338 g/t Ag, 8.15% Zn, 4.18% Pb, 0.29 g/t Au and 0.87% Cu (SE-590); 2.0m (1.7m ETW) at 594 g/t Ag, 5.47% Zn, 14.50% Pb, 0.16 g/t Au and 0.04% Cu (SE-592). Greenfields exploration work in the LGD continues to advance in preparation for increased drilling starting in Second Quarter 2024. Two holes were completed at Portigueño that both intercepted veining and alteration with anomalous grades of silver, gold, zinc and lead but low copper.

The metal composition intercepted is consistent with a location high in the profile indicating potential for further mineralization deeper in the zone. The drill rigs have currently stepped south along the Dragon fault to test the Tule and Roja fault zones within the Portigueño area. Detailed mapping and rock geochemistry was completed at the San Luis, Lince, Portigueño, San Agustin, and La Paula areas to support drill target generation.

The SE Deeps mineralization extends approximately 1km laterally and 400m vertically, which adjoins the existing SE mineral reserve and remains open along strike. Since Second Quarter 2023 drilling has focused on infilling the higher-grade areas of the SE Deeps zone to 50m spacing. The company completed 66,300m of diamond drilling since the cutoff date for the 2023 Reserve and Resource Update, which has demonstrated excellent potential for a multi-year mine life extension.

The additional drilling data will be used in the mineral reserve and mineral resource update planned for the third quarter of 2024. Preparation for this update has commenced with the database cutoff at the end of the first quarter. As expected, the tighter drill spacing has shown that variability within the zone exists, with higher grade in some areas and lower grade in other areas.

On average, silver grades are lower than the Central and North-West zones and base metals including copper, represent a higher proportion of the in-situ value. The Portigueño area is located approximately 2km southeast of CLG. Drillholes PO-02 and PO-03 were completed along strike to the south-east of CLG.

The drillholes intercepted good widths of brecciation, alteration and veining, with the veining predominantly calcite. Both drill holes intercepted anomalous silver, gold, lead and zinc grades, as shown in Table 2. The structure is interpreted to continue along strike to the south-east into the basin. The next drillholes in the Portigueño area are planned to be further south on the Dragon, Tule and Roja fault structures.

There are currently two drill rigs operating on these targets. Analysis and interpretation of the magneto-telluric geophysical survey information captured in late 2023 is ongoing. Drone air photography work is currently being completed along the Los Gatos fault between CLG and Esperanza.

Drone air photography is expected to occur in the Los Veranos area during May and June.