Business Wire | Apr 15, 2021 04:30PM EDT

Gatos Silver Extends Mineralization at Cerro Los Gatos

Apr. 15, 2021

DENVER--(BUSINESS WIRE)--Apr. 15, 2021--Gatos Silver, Inc. (NYSE/TSX: GATO) ("Gatos Silver" or the "Company") is pleased to report drilling results from its recent reactivation of definitional drilling at Cerro Los Gatos ("CLG").

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SE Zone Drill Hole Map (Graphic: Business Wire)

Although just commenced, the CLG campaign has already yielded promising results and has extended mineralization in both the Southeastern ("SE") and Northwestern ("NW") zones. Stephen Orr, Chief Executive Officer, stated "The early drill results from the reactivated definition drilling program are extremely encouraging and demonstrate continuity in both the SE and NW from the CLG reserve. The discovery of a new SE zone vein also indicates that metal grades are increasing at depth. Additionally, hole 370 was one of the highest copper-bearing intercepts in the history of CLG, assaying 1.3% copper."

The 2021 CLG definition drill campaign consists of 27,000 meters with 59 holes in the SE zone, and 31 holes in the NW zone. The 90-hole campaign is focused on converting inferred resources in the SE and NW zones along strike of the CLG deposit. Two drill rigs are active at the SE zone and one drill rig is dedicated to the NW zone. The CLG system is divided roughly into three principal zones: the Central, NW and SE, based on younger crossing faults with small offsets. The SE zone is now known to comprise at least four separate fault blocks with varying amounts of displacement and strike continuity of mineralization. The additional detail from definitional drilling is expected to add confidence in the resource and potentially add new reserves along strike from the main deposit. Similarly, the NW zone contains at least three separate fault blocks with minor offsets. Additional drilling in the NW zone is designed to extend zones of known mineralization and convert present inferred resources into higher level confidence categories. The first 13 drill holes and related assays have produced the following highlights:

SE Zone

* The strike length of known mineralization in block 4 has been extended to 425 meters, all to the southeast of the present mineral reserve, * An increase in grades of silver, zinc and lead has been demonstrated with depth, * The highest-grade hole, GA364 (2.64m @ 0.21g Au/T, 326.6g Ag/T, 9.2% Pb, 3.8% Zn), is the largest offset to the southeast thus far, * Continuity has been established on strike and dip of the principal banded vein complex structure, * A new vein has been identified deeper in the footwall with Hole GA370 displaying the expected silver, zinc and lead grades, but a marked increase in copper, and * The bounding fault between Blocks 3 and 4 has been identified.

NW Zone

* The identification of the offset block of deeper mineralization which has been displaced by the Antigatos fault, and * Continuity has been established on strike and dip of the principal banded vein complex structure.

Recent assays from the initial 13 drill holes and principal findings are summarized below:

Apparent True AgEq Au Hole Zone From To Thickness Thickness (g/t)^ (g/ Ag Pb Zn Cu (meters) (meters) (1) t) (g/t) (%) (%) (%)

GA362 SE 280.0 292.0 12.0 9.5 208.8 0.11 51.3 2.1 3.1 0.05

GA362 SE 300.0 304.0 4.0 3.37 561.5 0.12 122.4 5.0 9.8 0.20

GA363 SE 338.0 344.0 6.0 5.4 268.1 0.25 120.7 1.5 2.9 0.07

GA363 SE 348.0 356.0 8.0 7.2 309.7 0.14 105.7 3.5 3.4 0.10

GA364 SE 312.0 314.0 2.0 1.7 216.8 0.15 114.0 1.4 1.8 0.00

GA364 SE 330.0 333.0 3.0 2.6 690.3 0.21 326.6 9.2 3.8 0.14

GA365 SE 293.0 296.0 3.0 2.5 74.3 0.08 21.3 1.0 0.7 0.00

GA366 SE 394.5 396.0 1.5 1.2 234.3 0.20 27.3 1.3 5.1 0.08

GA367A SE 315.5 317.5 2.0 1.6 202.8 0.17 45.5 0.9 3.9 0.04

GA367A SE 321.5 337.5 16.0 12 207.5 0.15 43.7 1.1 4.0 0.15

GA368 SE 290.0 298.0 8.0 7.5 193.4 0.06 82.2 1.9 1.9 0.04

GA369 SE 285.0 290.0 5.0 4.5 154.8 0.11 57.8 2.3 1.0 0.07

GA370 SE 366.0 368.0 2.0 1.6 132.9 0.08 22.6 1.3 2.3 0.05

GA370 SE 378.7 382.2 3.5 3.1 202.0 0.10 34.6 0.9 4.4 0.30

GA370 SE 425.0 429.0 4.0 2.8 288.1 0.20 111.0 1.6 3.9 1.30

GA371 SE 323.3 325.5 2.2 1.9 529.7 0.12 132.2 3.2 9.9 0.40

GA372 NW 414.5 428.5 14.0 7.5 117.7 0.05 24.1 0.6 2.4 0.20

GA372 NW 444.5 455.5 11.0 7.2 375.8 0.06 25.3 1.0 10.3 0.20

GA373 SE 270.0 273.1 3.1 2.3 160.8 0.24 24.7 0.7 3.2 0.05

GA373 SE 278.0 288.0 10.0 9.2 258.9 0.26 86.4 1.6 3.6 0.08

GA374 SE 293.0 300.0 7.0 5.7 377.0 0.17 151.9 3.0 4.4 0.30

(1) Silver equivalent calculations are based on prices of $24.00/oz silver, $1.09/lb zinc, $0.87/lb lead and $1,900/oz gold. Copper and metallurgical recoveries are not included in silver equivalent calculations.

SE Zone

All holes display mineralized intersections and establish a continuity of strike geometry over 425m from the bounding fault between Blocks 3 and 4. Notably, the hole at the SE extent of the present drilling exhibits some of the highest grades (GA364 2.64m @ 0.21g Au/t, 326.6g Ag/t, 9.2% Pb, 3.8% Zn) and indicate that mineral grades are increasing with depth. From the drilling to-date in SE zone Block 4, the grades are showing an increase with holes GA365, 367A, and GA370. Additionally, drilling in the deepest zone on this section has identified a new vein structure hosted in the footwall volcanic package which contains base metals and elevated copper values (GA370 3.7m @ 0.2g Au/t, 111.0g Ag/t, 1.6% Pb, 3.9% Zn, 1.3% Cu). Drilling will now be focused on these deeper zones where the grade increases, and the new vein can be traced along strike.

NW Zone

The first hole in the NW zone demonstrates the continuity of mineralization both within the main banded vein complex and within a separate deeper extension. Continued offset of the deeper zone will be targeted by further drilling to determine the full strike extent. The deeper offset zone appears to represent the extension of the principal banded vein complex which has been displaced upward by the Antigatos fault.

About Gatos Silver

Gatos Silver is a silver dominant exploration, development and production company that discovered a new silver and zinc-rich mineral district in southern Chihuahua State, Mexico. To-date, 14 zones of mineralization have been defined within the district and all are characterized by silver-zinc-lead epithermal mineralization. More than 85% of the approximately 103,087-hectare mineral rights package has yet to be drilled, representing a highly prospective and underexplored district. The Company recently built and commissioned its first operating mine and mineral processing plant at the Cerro Los Gatos deposit.

Forward-Looking Statements

This press release contains statements that constitute "forward looking information" and "forward-looking statements" within the meaning of U.S. and Canadian securities laws. All statements other than statements of historical facts contained in this press release, including statements regarding the expected average annual production are forward-looking statements. Forward-looking statements are based on management's beliefs and assumptions and on information currently available to management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors described in our filings with the U.S. Securities and Exchange Commission and Canadian securities commissions. Certain forward-looking statements are based on assumptions, qualifications and procedures which are set out only in the technical report entitled "Los Gatos Project, Chihuahua, Mexico," dated July, 2020 with an effective date of July 1, 2020 (the "Los Gatos Technical Report") filed with the U.S. Securities and Exchange Commission and Canadian securities commissions. Scientific and technical disclosures in this press release were approved by Philip Pyle, Vice President of Exploration and Chief Geologist of Gatos Silver who is a "Qualified Person," as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators. For a complete description of assumptions, qualifications and procedures associated with such information, reference should be made to the full text of the Los Gatos Technical Report. Gatos Silver expressly disclaims any obligation or undertaking to update the forward-looking statements contained in this press release to reflect any change in its expectations or any change in events, conditions, or circumstances on which such statements are based unless required to do so by applicable law. No assurance can be given that such future results will be achieved. Forward-looking statements speak only as of the date of this press release.

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CONTACT: Investors and Media Contact Adam Dubas Chief Administrative Officer investors@gatossilver.com (303) 784-5350