Update On Temporary Power Restriction At Cerro Los Gatos

DENVER, CO - Gatos Silver, Inc. reported that power from Mexico’s national power grid has been restricted due to the recent severe winter storms in Texas. Northern Mexico is highly dependent upon natural gas from Texas to generate power. Freezing temperatures in Texas compounded by increased energy demands for heating have resulted in U.S. natural gas producers curtailing delivery to Mexico. Accordingly, Cerro Los Gatos’ (CLG) power allocation from Mexico’s electric power grid has been temporarily restricted.

The CLG project was designed to allow the mine and processing plant to operate independently. The project has diesel-powered generators with sufficient capacity to maintain power to the residential camp, surface administrative facilities and the underground mine but not the processing plant. Underground mining will continue at a reduced rate with mined ore placed on the surface ore storage stockpile. A planned shutdown for processing plant maintenance will be accelerated and completed during this temporary power restriction.