Sierra Madre closes acquisition of La Guitarra

Sierra Madre Gold and Silver announced that, pursuant to the share purchase agreement dated May 25, 2022, as amended and restated on October 28, 2022, among the Company, First Majestic Silver Corp. and Corporacion First Majestic, S.A. de C.V., the Company has completed its previously announced acquisition of La Guitarra Compania Minera S.A. de C.V., an indirect wholly-owned subsidiary of First Majestic incorporated under the laws of Mexico, that holds a 100% interest in the La Guitarra silver-gold property, as described in the Company’s news releases dated May 25, 2022, November 1, 2022, December 28, 2022, and March 21, 2023 and the Company’s information circular dated November 8, 2022. The Company will continue to be classified as a Tier 2 Mining Issuer on the TSX Venture Exchange. The common shares of the Company are expected to resume trading on the TSXV under the symbol "SM" following the closing of the Common Share Offering. Under the terms of the Share Purchase Agreement, and as further described in the Circular, the Company acquired all of the issued and outstanding shares of Subco in exchange for the Company issuing to First Majestic 69,063,076 Common Shares at a deemed price of $0.65 per Consideration Share. As described in the Circular, First Majestic may distribute all Consideration Shares in excess of a 19.9% ownership position of Sierra Madre pro-rata to First Majestic’s shareholders. Following the closing of the Acquisition, First Majestic has retained a participation right to maintain its pro-rata interest in the Company in any future share issues of the Company, subject to customary exceptions. On September 8, 2022, the Company completed the first tranche of a "best efforts" brokered private placement financing pursuant to an agency agreement dated September 8, 2022 with Beacon Securities Limited and Canaccord Genuity Corp. on behalf of a syndicate of agents including Haywood Securities Inc.Pursuant to the Agency Agreement, the Private Placement is compromised of subscription receipts of the Company at a price of $0.65 per Subscription Receipt, and Common Shares at a price per $0.65 per Common Share, for aggregate gross proceeds of up to $10,000,250, as further described in the Company’s news release dated September 8, 2022.