GR Silver Mining Ltd. announced the first two step-out drilling results outside of the recently published NI 43-101 Mineral Resource Estimate boundary in the San Marcial Area at the Plomosas Project in Sinaloa, Mexico. The initial drilling program is targeting the extension of the SE Area discovery silver mineralization style, 250 m along strike to the southeast, targeting identification of the commonly mineralized contact zone at shallow depth. The first two holes -- SMS23-01 and SMS23-02 - represent a step out of 50 m to the southeast.

The positive results, combined with the geological knowledge gathered by the Company in the 2022 drilling and resource estimation studies favor GR Silver's continuation of the drilling program in this area. In 2022 and First Quarter/2023, the Company carried out surface exploration along the southeastern extension of the target contact zone, which included surface mapping, geochemical sampling, and the integration of all geophysical data. This detailed study has generated surface evidence of the presence of wide silver mineralized zones at shallow depth, with associated high-grade silver structures, with results such as those reported from drill hole SMS23-02.

The geological setting continues to resemble the target contact zone between local upper volcanics (andesitic "block and ash" unit) and local lower volcanics (rhyolitic to dacitic volcano-sedimentary unit), which characterized the SE Area discovery zone. The presence of narrow high-grade silver mineralized hydrothermal breccias, hosted inside a wider mineralized envelope, encourages the Company on the potential for resource expansion at the San Marcial Area along the target contact zone. Step Out Drilling Program Southeast Area: GR Silver Mining plans to complete five drill holes by June 2023 and have all assays received by August 2023.

This drilling program was the first drilling to be undertaken outside of the SE boundary of the 2023 San Marcial NI 43-101 Resource Area, which included the initial extension of the SE Area discovery. The target contact will be the focus of the Company's surface exploration program over the coming months, particularly in areas coincident with Ag anomalies from surface geochemical sampling and the Company's 2021 ground geophysical survey. SMS23-01 was designed to evaluate the presence of the high-grade silver mineralization at the 600 m elevation, below drill hole SMS22-14, which did not report significant silver mineralization.

The results from SMS23-01 support the current geological model indicating the presence of significant silver mineralization at certain elevations below areas of low-grade silver mineralization in the target contact zone, when associated with the volcano-sedimentary unit. SMS23-02 evaluated the SE Area mineralized corridor 50 m further southeast from drill hole SMS23-01, and outside the recently published 2023 San Marcial resource block model. This hole successfully extends the SE Area mineralized zone further along strike than was previously recognized.

The presence of bonanza-grade silver mineralization, including 0.2 m at 14,365 g/t Ag associated with the hydrothermal breccia supports a geological model demonstrating the presence of the two systems in the area: (i) a wide mineralization associated with hydrothermal breccias with a strong presence of only silver; and (ii) narrow structures carrying elevated base metal (lead and zinc) content, but with extremely high silver grades.