Santacruz Silver production up by 67%

Consolidated silver production

registered 257,138 Oz at 1Q, YoY

The reports on the operating results from the Veta Grande Project in Zacatecas, Mexico and the Rosario Project in San Luis Potosi, Mexico for the first quarter of 2019 says the consolidated silver equivalent production increases by 67% as compared to Q1 2018 and 8% as compared to Q4 2018. Veta Grande silver equivalent production increases by 184% as compared to Q1 2018 and 16% as compared to Q4 2018.

Mr. Carlos Silva, Chief Operating Officer, stated, “The first quarter production results continue to reflect operational improvements that were undertaken in 2018 including increased mine development at both mines and a metallurgical review of the mill processing flow sheet at Veta Grande.

In particular, we are very pleased with the significant improvement in zinc recovery at Veta Grande." He continued, "The preliminary April production results from both mines show strong improvement over the Q1 numbers and are an indication of improved operating results for the rest of 2019.”

During Q1 2019 the Company's consolidated silver equivalent production was 257,138 ounces, a 67% increase over Q1 2018 production (154,175 ounces) and an 8% increase over Q4 2018 production (237,542 ounces). The Q1 2019 Veta Grande mill throughput tonnage was lower than in Q4 2018 because one of the four ball mills in the plant was taken offline during Q4 2018 and was refurbished during Q1 and placed back in service early in April. The last remaining ball mill to be refurbished was taken offline late in Q1 2019 and is expected to be put back in service in Q3.

Preliminary production estimates for April indicate that the consolidated production for the Company was 20,300 tonnes processed resulting in 125,600 silver equivalent ounces being produced, sourced as to 13,600 tonnes and 82,170 silver equivalent ounces from Veta Grande and 6,700 tonnes and 43,430 silver equivalent ounces from Rosario.