/R E P E A T — Zacatecas Reports Multiple High Grade Silver Drill Intercepts at

• Angled diamond drilling at Panuco North targeted the down-dip strike extension of near surface mineralization reported by Zacatecas on the February 16, 2022.
• Panuco North results include:
• 1.25 m @ 1440 g/t Ag Eq (1423.2 g/t Ag and 0.23 g/t Au) from 27.48 m downhole (Hole PAN2022-042)
• 4.35 m @ 375 g/t Ag Eq (353 g/t Ag and 0.29 g/t Au) from 56.38 m downhole (Hole PAN2022-044)
• 1.55 m @ 379 g/t Ag Eq (358 g/t Ag and 0.28 g/t Au) from 70 m downhole (Hole PAN2022-043)
• 1.05 m @ 222 g/t Ag Eq (201 g/t Ag and 0.28 g/t Au) from 97.3 m downhole (Hole PAN2022-046)
• 5.96 m @ 179 g/t Ag Eq (114.9 g/t Ag and 0.85 g/t Au) from 107.28 m downhole (Hole PAN2022-045)
• Drilling continues and more assay results are pending.

Dr. Chris Wilson, Chief Operating Officer and a Director of Zacatecas comments, “The most recent round of drilling in the south-eastern part of the Panuco North Vein has continued to intercept robust silver grades over down-hole widths of up to 5.96 metres. Although most holes targeted the down-dip extension of the near surface high grade silver mineralization intercepted in the initial scout drilling program, drilling has only tested the uppermost parts of the vein to a maximum downhole depth of 107 m (approximately 90 m vertical). Mineralization is open in all directions and depth potential is excellent.”

Mineralization at Panuco North is of an intermediate sulphidation epithermal type, characterized by two main veins and several vein splays, with similar orientation to other silver-gold-base metal veins in the Zacatecas region.  Vein textures, gangue mineralogy and metal signature of the near surface mineralization intercepted in drill holes at Panuco Central are consistent with the uppermost part or “top” of an intermediate sulphidation system (Figure 1). Similar veins at Zacatecas, and intermediate sulphidation deposits within the broader Mexican silver belt, and worldwide, have demonstrated vertical extents of between to 400 to 600 vertical metres. Mineralization at Panuco North has excellent depth potential and only the uppermost part of the south-eastern extension of the vein has been tested.

Dr. Wilson, further comments, “Mineralization at Panuco North has intercepted silver equivalent grades that are generally higher than the silver equivalent grade of the current Panuco resource estimate. Moreover, mineralization is being intercepted generally over wider widths. This is significant and further outlines the exploration potential of Panuco North.”

Following the recent grant of 27 additional drill pads (see news release on March 23, 2022), Zacatecas will be able to test the depth extension of mineralization at south-eastern Panuco North over a strike length of 600 m, and to complete a maiden drill program along the central part of the Panuco North vein over a strike length of 1.4 km.

Assay results for six closely spaced holes (PAN 2022-026, 028, 029, 030, 032, and 033) drilled in the northwest of the Panuco North returned narrow zones of low-grade silver-gold mineralization. These holes tested shallow surface workings over a strike of 200 m strike to a maximum vertical depth of 60 m. Vein textures and metal signatures are consistent with the uppermost part of an intermediate sulphidation system. The vein has not been tested below these depths and remains open at depth.

At the Panuco Central Vein, seven angled diamond drill holes (totalling 1385 m) were drilled in the Panuco Central Vein system to test up-dip extension of mineralization included in the Panuco Resource Estimate. Results have been received for five holes and include 2.25 m @ 185 g/t Ag Eq (50 g/t Ag and 1.8 g/t Au) from 120.57 m downhole (Hole PAN2022-038) including: 0.49 m @ 545 g/t Ag Eq (156 g/t Ag and 5.18 g/t Au) from 120.57 m downhole; and 2.30 m @ 161 g/t Ag Eq (156 g/t Ag and 0.07 g/t Au) from 103.44 m downhole (Hole PAN2022-040).

The results of these holes are highly significant as the near surface (<150 m vertical) portion of the Panuco Central vein has never been tested above the current resource. Zacatecas is currently applying for additional drill pads to test the near surface extension of the entire Panuco Central Vein.

Table 1.  Assay Results from Drill Program