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 high-grade mineralization in the South-East Deeps (?SE Deeps?) zone of its 70%-owned Cerro Los Gatos (CLG) mine. Resource definition drilling in the SE Deeps zone of CLG intercepted additional high-grade mineralization below the existing mineral reserve; 3.0m (2.8m estimated true width, or ETW) at 528 g/t Ag, 1.26% Pb and 1.41% Cu (SE-557), 2.0m (1.6m ETW) at 291 g/t Ag, 4.27% Zn, 12.20% Pb, 0.40 g/t Au and 0.55% Cu (SE-558), 5.1m (4.0m ETW) at 103 g/t Ag, 16.49% Zn, 7.01% Pb, 0.14 g/t Au and 0.21% Cu (SE-559), 4.0m (3.3m ETW) at 243 g/t Ag, 9.74% Zn, 6.01% Pb, 0.39 g/t Au and 0.28% Cu (SE-560), 3.0m (2.5m ETW) at 179 g/t Ag, 5.84% Zn, 4.49% Pb, 1.10 g/t Au and 0.65% Cu (SE-562), 10.7m (8.9m ETW) at 133 g/t Ag, 8.34% Zn, 3.21% Pb, 0.11 g/t Au and 0.16% Cu (SE-563), 1.6m (1.3m ETW) at 201 g/t Ag, 15.45% Zn, 4.32% Pb, 0.25 g/t Au and 0.73% Cu (SE-572), Greenfields exploration work in the LGD continues to advance in preparation for increased drilling expected to start in Second Quarter 2024.

CLG South-East Deeps Resource Definition Drilling, The SE Deeps mineralization extends approximately 1km laterally and 400m vertically, which adjoins the existing SE mineral reserve and remains open along strike. During 2022 and First Quarter 2023, the company completed drilling at approximately 100m to 200m spacing for the purpose of establishing the larger scale strike and dip of the SE Deeps zone. Since Second Quarter 2023 the company has focused on infilling the higher-grade areas of the zone to 50m spacing.

That drilling has progressed well and the company remain on track to complete the expected 50m spacing of key areas by the end of First Quarter 2024. As expected, this tighter drill spacing is showing that variability within the zone exists, with higher grade in some areas and lower grade in other areas. On average, base metals including copper, represent a higher proportion of the in-situ value than in the Central and North-West zones.

Drill results continue to demonstrate excellent potential for a multi-year mine life extension.