Sierra Madre Receives Mexican Antitrust Approval for the Acquisition of the Del Toro Mine

Vancouver, May 22, 2026 - Sierra Madre Gold and Silver Ltd. (TSXV: SM) (OTCQX: SMDRF) ("Sierra Madre" or the "Company") is pleased to announce that it has received approval for the acquisition ("Acquisition") of the Del Toro Silver Mine in the Chalchihuites District in Mexico ("Del Toro") from Mexico's antitrust agency, the Comisión Federal de Competencia Económica ("COFECE").

Alex Langer, Chief Executive Officer, commented, "Receiving COFECE approval is a key regulatory milestone and a strong validation of our strategy of building a multi-asset producing silver and gold portfolio in Mexico. With this clearance, we are well-positioned to finalize the acquisition and move forward with our plans to advance exploration ahead of a possible planned restart of Del Toro."

Upon closing of the Acquisition, Sierra Madre would hold the producing La Guitarra mine - where a two-stage expansion is underway to more than double throughputs by mid-2027 - as well as Del Toro. Current plans are to commence the mine restart process at Del Toro in mid-2027, with first production expected in mid-2028.

Del Toro is a fully permitted, past-producing underground silver-gold-lead mine with an on-site process plant that operated between 2013 and 2019. It features three underground centres, with a total of over 62.5 km of development in place. The site includes a functional process circuit: three mills with a total capacity of 3,000 tpd, sulphide and oxide flotation circuits as well as a new dry stack tailings storage facility.

Please see the Company's December 17, 2025 press release for details of the Del Toro acquisition.

Qualified Person

Mr. Gregory Smith, P. Geo, Director of Sierra Madre, is a Qualified Person as defined by NI 43-101, and has reviewed and approved the technical data and information contained in this news release. Mr. Smith has verified the technical and scientific data disclosed herein.

About Sierra Madre

Sierra Madre Gold and Silver Ltd. (TSXV: SM) (OTCQX: SMDRF) is a precious metals development, extraction, and exploration company focused on the Guitarra mine in the Temascaltepec mining district, Mexico, and the exploration and development of its Tepic property in Nayarit, Mexico. The Guitarra mine is a permitted underground mine, which includes a 500 tpd processing facility that operated until mid-2018 and restarted commercial production in January 2025.

The +2,600 ha Tepic Project 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 companies.

On behalf of the board of directors of Sierra Madre Gold and Silver Ltd.,

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 information in this press release includes, but is not limited to, statements with respect to: the completion of the Transaction on the terms set out in the definitive agreement (or at all); the ability of the Company to obtain requisite regulatory approvals for the Transaction, including but not limited to the approval of the TSX Venture Exchange; the anticipated timeline for and ability of the Company to restart the Del Toro mine, including the expectation that the restart process will commence mid-2027 and that first production will occur in mid-2028; the planned two-stage expansion at the La Guitarra mine and the anticipated timeline to more than double throughputs by mid-2027; and the Company's plans to advance exploration at Del Toro.

In making the forward-looking statements included in this news release, the Company has applied several material assumptions, including that the Company will be able to receive all remaining required regulatory approvals by the timelines currently anticipated (or at all); that the Company will be able to complete the two-stage expansion at La Guitarra within the timelines currently anticipated; and that the Company's exploration activities will yield results sufficient to support a planned restart of Del Toro. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of the Company to control or predict, that may cause the Company's actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including, but not limited to: the risk that the Company is not able to complete the Transaction on the terms set out in the definitive agreement (or at all); the risk that the Company is unable to obtain requisite regulatory approvals, including but not limited to the approval of the TSX Venture Exchange; the risk that the Company may not be able to restart the Del Toro mine or achieve first production within the timelines currently anticipated or at all; the risk that the two-stage expansion at La Guitarra may not be completed within the timelines currently anticipated or may not achieve the anticipated increase in throughput; the risk that exploration activities may not yield results sufficient to support a planned restart; and the risks and uncertainties associated with the Company's production decisions not being based on NI 43-101 compliant reserve estimates, preliminary economic assessments, or feasibility studies, as described in the Cautionary Note Regarding Production Decisions above.

Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

SOURCE: Sierra Madre Gold and Silver Ltd.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/298661