Gatos Silver Continues to Extend Cerro Los Gatos Mineralization and Confirm Continuity of the Esther Deposit

Gatos Silver, Inc. (NYSE/TSX: GATO) (“Gatos Silver” or the “Company”) is pleased to report drilling results from its definitional drilling at Cerro Los Gatos (“CLG”).

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Figure 1: Cross Section of SE Block #4 Showing Three Veins and the Relationship to Antigatos Fault #2 (Graphic: Business Wire)

The 27,000-meter CLG definition drilling campaign continues to define further mineralization both on the southeast (“SE”) and northwest (“NW”) extensions of the deposit beyond the present reserve blocks. Since the definition drilling program began in late 2020, 36 and 14 holes have been completed in the SE and NW zones, respectively.

Highlights from the latest 21 drill holes, assays and principal findings are summarized below:

SE Zone

• Hole GA404 intercepted 12.5m @ 211.4g Ag/T, 8.3% Zn, 5.5% Pb, and 0.28g Au/T, indicating a new high-grade zone in the northwest section of SE Block #4.
• Three separate veins have been demonstrated along strike, including offsets to the recently reported new footwall vein.
• Interpretation of the SE Block #4 drilling results to-date indicate additional strike potential to the northwest.

NW Zone

• Hole GA392 intercepted 30.0m @27.2g Ag/t, 0.9% Pb and 4.5% Zn indicating the thickest interval to date of the NW offset block.
• Holes GA405 and GA408 have intercepted a new deeper vein, previously unrecognized in historical drilling.
• Based upon the NW offset block drilling results to-date, strike continuity has increased to 300 meters.

The recent assay results from the CLG campaign are summarized in Table 1.

Table 1 - CLG Drilling Highlights

SE Zone

With the addition of the results from Hole GA403 (7.3m @122.1g Ag/T, 3.7%Pb, 7.5% Zn, and 0.32g Au/T), the total strike length of continuous mineralization has been extended 800 meters from the existing reserve blocks and remains open to the southeast. Drilling has identified three separate veins in SE Block #4 – an upper vein, a middle vein with more characteristic thickness and grade of the main CLG system, and a deeper footwall vein which was first identified in this campaign of drilling. The upper vein now has a demonstrated strike length of 400 meters which is open to the southeast and at depth. The middle vein has a demonstrated strike length of 520 meters which remains open to the northwest and at depth. The third vein has a demonstrated strike length of 800 meters and remains open to the southeast and at depth.

A new bounding fault that appeared to terminate mineralization in the SE Block #4 has been detected, with drilling intercepting offset mineralization higher on the northeast side, in a similar fashion as is seen in the NW zone with the Antigatos Fault. This new fault, called Antigatos Fault #2, displaced mineralization further to the northwest along the trend before crossing into SE Block #3 (See Figures 1 and 2). A new higher-grade zone of mineralization, primarily in the middle vein is recognized in holes GA402 and GA404 which remains open to the northwest and at depth (See Figure 3). Given the encouraging results from the drilling in SE Block #4, additional drilling is being considered to further delineate the mineralization beyond the scope of the original SE program.

NW Zone

Drilling has been focused on the NW offset block which is a zone of mineralization displaced upward from the main reserve blocks by upward movement of the Antigatos Fault #1. This zone is offset from the main reserve blocks by 100 meters to the northeast. Mineralization has now been recognized over a strike length of 300 meters in this zone.

Holes GA405 and GA408 have demonstrated the presence of a new vein, located 100 meters below the main zone of mineralization in the offset block. This new vein is base metals dominant and continues to demonstrate lead and zinc values above the cutoff grade. Additional drilling will be required to determine the potential size and distribution of this lower vein.

Esther Zone

The current 19,000-meter Esther program commenced in early May 2021 and is focused on detailed definition of silver, zinc, lead and gold occurrence throughout this epithermal system. Nine holes have been completed in the current program with all displaying mineralization and demonstrating continuity of grade and geometry from the initial Esther holes.

The initial drilling from the Esther zone shows continuity of thickness and grade of the Esther vein. The Esther vein is located approximately four kilometers south of the CLG vein complex and dips to the south. Mineralization is similar to CLG with epithermal banded quartz, sphalerite, and galena with silver. Initial drilling from 2009-2011 had identified an Inferred resource from limited drilling. The present drilling program is designed to confirm the continuity and grade of the vein system and to upgrade the resource to the Measured and Indicated categories. Recent assay results are shown in Table 2.

Table 2 - Esther Zone Drilling Results To-date

District Drilling Progress

Drilling in the CLG SE zone continues with two rigs and 13,184 meters completed of the newly expanded 36,354-meter program. Drilling in the CLG NW zone continues with one rig and 5,120 meters completed of an 8,495-meter program. Drilling at the Esther deposit continues with one rig and 3,100 meters completed of a 19,000-meter program. The Company has completed the first phase of its 5,400-meter exploration campaign at the 100% owned Santa Valeria project and is now conducting data interpretation for design of the next drilling phase.

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. As a 70% owner of the Los Gatos Joint Venture (“LGJV”),the Company recently built and commissioned its first operating mine and mineral processing plant at the LGJV’s CLG 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 NI 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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