Sierra Madre Fully Repays First Majestic Loan

Sierra Madre Gold and Silver Ltd. (TSXV: SM,OTC:SMDRF) (OTCQX: SMDRF) ("Sierra Madre" or the "Company") is pleased to announce that it has fully repaid the US$5 million non-revolving, secured term loan ("Loan") between First Majestic Silver Corp. ("First Majestic") and the Company.

Please see the Company's press release dated May 8, 2024, for details of the original Loan announcement, the Company's press release dated June 5, 2025, for details of a term extension setting a new maturity date of May 8, 2027, and the Company's press release dated March 24, 2026 announcing a partial prepayment of the Loan.

Alex Langer, Sierra Madre's President and CEO, states: "We are happy to announce the full repayment of our loan facility with First Majestic, which reflects the strong cash generation from our La Guitarra operation. The Company is currently debt free and producing positive operating cash flows. By reducing our financial obligations, we are on a strong path to advance exploration and development activities at both La Guitarra and Del Toro."

Grant of Stock Options

Pursuant to its Stock Option Plan (the "Plan"), the Company has granted stock options to employees of La Guitarra Compania Minera, S.A. de C.V., certain directors, members of management, and consultants of the Company to purchase an aggregate of 8,800,000 common shares of the Company at a price of $1.38 per share for a period of five years from the grant date. The options shall be granted under and subject to the terms and conditions of the Plan and subject to the rules and policies of the TSX Venture Exchange. The grant includes 150,000 options granted to the Company's investor relations consultant, Adelaide Capital Markets Inc., which will vest as to ¼ three months after the date of the grant; ¼ six months after the date of the grant; ¼ nine months after the date of the grant; and ¼ twelve months after the date of the grant. The remaining options will vest as to 1/3 immediately on the date of the grant; 1/3 six months after the date of the grant; and 1/3 twelve 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,OTC:SMDRF) (OTCQX: SMDRF) is a precious metals producer and exploration company focused on 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 tonne-per-day 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-hectare 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 and exploration companies.

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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/304472