Electrum Silver US LLC Files Early Warning Report Relating to Its Ownership of Gatos Silver, Inc. Shares

This press release is issued pursuant to Multilateral Instrument 62-104 – Take-Over Bids and Issuer Bids and National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues.

NEW YORK, Feb. 17, 2023 (GLOBE NEWSWIRE) -- Pursuant to the early warning requirements of National Instrument 62-104 and National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Report Issues ("NI 62-103"), Electrum Silver US LLC ("Electrum") announces that it has pledged (the "Pledge") all 17,894,672 of the shares of common stock ("Shares") of Gatos Silver, Inc. ("Gatos") that it owns as security for a loan made to Electrum from a third-party commercial lender, which Shares represent approximately 25.87% of the issued and outstanding Shares.

Electrum continues to be the registered owner of the 17,894,672 Shares subject to the Pledge and Electrum Silver US II LLC, a "joint actor" (as such term is defined in NI 62-103) of Electrum, owns 4,109,704 Shares, which in aggregate with the Shares owned by Electrum total 22,004,376 Shares, representing approximately 31.82% of the issued and outstanding Shares.

The 17,894,672 Shares subject to the Pledge have been pledged as security for a loan made to Electrum by a fund managed by Sprott Resource Lending Corp., a third-party commercial lender (the "Lender"). The Shares have been pledged pursuant to a Share Pledge Agreement with the Lender dated February 17, 2023. The Lender has no rights to dispose of, sell, transfer or vote, any of the Shares subject to the Pledge until such time as the Pledge has been realized, if ever, following an event of default under the loan.

The securities referred to above were acquired for investment purposes and Electrum and/or one or more of its affiliates may, depending on market and other conditions, increase or decrease its beneficial ownership of Shares or other securities of Gatos whether in the open market, by privately negotiated agreement or otherwise.  

Gatos is located at 910 - 925 West Georgia Street, Vancouver, B.C. V6C 3I2.   Electrum is located at 600 Fifth Avenue, 24th Floor, New York, NY, USA 10020. A copy of the early warning report to which this news release relates can be obtained from Lillian Saldanha (646-365-1600) or on the SEDAR profile of Gatos at www.sedar.com.