Defiance Discovers High-Grade Zones in Historically Unsampled Drill Core

Vancouver, British Columbia--(Newsfile Corp. - October 2, 2023) - Defiance Silver Corp. (TSXV: DEF) (OTCQX: DNCVF) (FSE: D4E) (WKN: A1JQW5) ("Defiance" or the "Company") is pleased to share that new sampling of historic drill core has revealed previously unrecognized zones with high grade and wide widths within the San Acacio project area. Defiance geologists successfully used advances in our deposit and district knowledge to identify and target favourable structural positions and mineralization styles that were overlooked in historic sampling campaigns. Significant results are reported in holes SAD-15-05, SAD-15-06, SAD-15-07, SAD-15-08, SAD-17-14, SAD-17-15, and SAD-17-16; these holes were drilled during the 2015 and 2017 drilling campaigns. Notable silver mineralization over wide widths was encountered.

The company is encouraged by the success of this campaign, as it supports a growing resource on the Veta Grande vein system as well as validates the geological modeling and understanding of the mineral system potential. The company will continue to evaluate additional drill holes from the extensive district-wide drill core library.

Chris Wright, Chairman & CEO, commented: "Multiple years of technical analysis have outlined and confirmed that resource building targets exist in the hanging-wall and footwall of the main Veta Grande structure. Our team has diligently built a comprehensive geologic model that has led to the intersection of wide intervals and high-grade mineralization."

Highlights:

• SAD-17-14 - discovered wide widths of appreciable grades including 6.83m of 157 g/t AgEq (from 283.21 - 290.04m) including 2.30 m of 376 g/t AgEq (from 284.65 - 286.95m) with a high-grade sub interval of 1180.00 g/t Ag and 2.23 g/t Au or 1369 g/t AgEq (from 284.65 - 285.00m).
  
  
• SAD-17-15 - returned a significant interval of silver mineralization of 36.70m of 154.80 g/t Ag or 162 g/t AgEq (from 191.30 - 228.00m) when composited with the previously released results (See October 25^th, 2017 News Release). Other notable results in this wide interval include 6.81m of 296 g/t AgEq (from 203.01 - 209.82m), including a high-grade sub-interval of 629 g/t AgEq over 2.82m (from 207.00 - 209.82m). A further wide sub-interval of 15.00m of 137.91 g/t Ag or 145 g/t AgEq was encountered from 213.00 - 228.00m.
  
  
• SAD-17-16 - encountered 2.31m of 202 g/t AgEq (from 219.40 - 221.71m) in the Veta Navidad zone.
  
  
• SAD-15-06 - returned 2.50m of 127 g/t AgEq (from 155.00 - 157.50m) in a hanging-wall (HW) veinlet-array splay zone.
  
  
• SAD-15-07 - intersected 1.12m of 267 g/t AgEq (from 156.35 - 157.47m), as well as a 3.77m interval of 123 g/t AgEq from 166.07 - 169.84m. The deeper intercept is located on the same structure as the reported intercept in SAD-15-06.
  
  
• SAD-15-08 - a 1.63m interval returned 165 g/t AgEq (from 97.65 - 99.28m) and a 1.54m interval of 212 g/t AgEq (from 131.15 - 132.69m) in the Veta Navidad zone.

Table 1: Select table of results

Table 1 - Silver equivalent is calculated using the following formula: Silver-Equivalent AgEq g/t= (Au_ppm x 61.71492) + (Ag_ppm x 0.761168) + (Pb_% x 22.44413) + (Zn_% x 24.40404)/(0.761168). Metal price assumptions are Au: $1919.55, Ag: $23.67, Pb: $1.02 Zn: $1.10. A 30-day price average is used to determine USD metal prices, and 100% recovery has been assumed for all metals. At this stage of the project, reliable metallurgy has yet to be completed, and the reader is cautioned that 100% recoveries are never achieved. True thickness is assumed to be 50% -- 80% of downhole width. *previously reported intercept (See October 25th, 2017 News Release)

Quality Assurance and Quality Control (QAQC):

a- 2023 sampling QAQC procedures discussed at the end of this news release.
b- 2015 and 2017 sampling QAQC procedures discussed at the end of this news release.

Figure 1: Overview Map of San Acacio Drill Holes Reported in this Release

Figure 1. Plan map of drilling at the San Acacio project. Drill holes reported in this release, which are historic holes with new assay results from unsampled intervals, are shown in yellow. Drill holes with pending (to be reported) results from recent drilling are shown in green. Coordinates are in UTM WGS84 Zone 13N.

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Figure 2: Cross Section of Hole SAD-17-15

Figure 2. Cross-section of hole SAD-17-15, looking northwest. Results from the new assays of historic Defiance Silver drill core are highlighted in the red boxes.

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Figure 3: Cross Section of Holes SAD-15-05 and SAD-15-06

Figure 3. Cross-section of holes SAD-15-05 and SAD-15-06, looking northwest. Results from the new assays of historic Defiance Silver drill core are highlighted in the red boxes. Recent Defiance drill holes are show on section, as well as a new hole, DDSA-23-69, with pending results.

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Discussion of Results:

Re-logging and sampling of historic drill holes was designed to identify and subsequently sample mineralization that was not analyzed during previous drill campaigns. The updated geologic models and new assays confirm and expand upon the mineralized vein splays and veinlet zones that were identified during recent drilling campaigns. These zones of high-grade silver veinlets and stockwork zones are significant ongoing exploration targets and are actively being incorporated into the deposit model. Reported intervals were dominantly found in the hanging-wall (HW) of the main Veta Grande structure. The technical team believes that understanding the splays and veinlet zones as well as the structural controls on grade distribution are key to expanding the San Acacio resource.

The following drill holes are discussed in spatial order, beginning in the northwest (NW) and moving towards the southeast (SE). SAD-17-16, SAD-15-07, SAD-15-08, SAD-15-05, SAD-15-06 are part of the NW zone where significant HW grade is found in unassuming veinlet array zones. Holes SAD-17-14 and SAD-17-15, in the central to SE portion of the San Acacio resource area, begin to delineate vein splays, including the historically identified Veta Intermedio; grade is dominantly located in more formal HW structures and associated veinlet swarms. These learnings are being incorporated into the current grade and geologic model to guide future drilling at the project.

SAD-17-16 encountered 2.31m of 191.98 g/t Ag or 202 g/t AgEq (from 219.40 - 221.71m) in the Veta Navidad zone. The Veta Navidad zone is in the NW extent of the San Acacio resource area, and this style of mineralization has been encountered in nearby holes. Structural review and modelling are currently underway to define this zone, and future oriented core drilling is planned for this area.

SAD-15-07 and SAD-15-08 were drilled from the same pad. SAD-15-08 intersected the Veta Navidad zone high in the hole. During re-logging, additional mineralized veinlet zones in the HW and FW were noted and sampled. These intercepts returned 1.63m of 165 g/t AgEq from 97.65m, and 1.54m of 212 g/t AgEq from 131.15m. The central portion of the Veta Navidad zone in SAD-15-08 was previously reported (See October 25^th, 2017 News Release). The new reported intervals in SAD-15-07 are from the recently identified mineralized HW veinlet splay zones. The shallower splay zone returned 1.12m of 267 g/t AgEq from 156.35m, while the lower zone returned 3.77m of 123 g/t AgEq from 166.07m. The new sampling expands the footprint of the mineralized zone in this location, and structural modelling is underway to incorporate this data into the resource model and design future drill targets.

SAD-15-05 and SAD-15-06, shown in the Figure 3 cross-section within this news release, were drilled from the same pad. Both holes intersected multiple HW veinlet-array splay zones, which continue to build the continuity of mineralized zones in the Veta Grande hanging wall. In this portion of the Veta Grande, three mineralized HW splays are known. SAD-15-06 previously reported intercepts on the main Veta Grande and the first splay above the Veta Grande (See October 25^th, 2017 News Release). Recent sampling of additional splay zones has yielded further intercepts of interest, and oriented structural data collection and detailed geologic cross-sections continue to guide interpretation and modelling of these mineralized zones.

SAD-15-06 encountered 2.50m at 127 g/t AgEq from 155.00m, and SAD-15-05 returned 2.72m at 161 g/t AgEq from 127.76m; these two intercepts demonstrate down-dip continuity along the same HW splay (Fig 3). SAD-15-05 intersected two reportable intercepts on the third interpreted splay above the Veta Grande, including 4.65m of 114g AgEq from 105.15m.

SAD-17-14 encountered a high-grade zone in a hanging-wall vein splay above the historically identified Veta Intermedio, 6.83m of 157 g/t AgEq from 283.21m, which includes 0.35m of 1369 g/t AgEq from 284.65m. This intercept further demonstrates the high-grade potential of the HW vein splays in the central zone of the San Acacio resource area.

SAD-17-15 encountered wide widths of significant mineralization from the Veta Grande HW through to the Veta Intermedio HW zone (Figure 2). This hole intersected a well-mineralized shoot with historic workings, and the majority of the mineralized shoot remains in the ground. Re-logging and sampling suggest that high-grade silver is hosted in veinlet swarms and vein splays that were previously unrecognized. These observations and results will be incorporated into the geologic model and used for future drill targeting.

Wide widths of significant silver mineralization are outlined in SAD-17-15. This hole encountered 36.70m of 162 g/t AgEq from 191.30m, including 6.81m at 296 g/t AgEq from 203.01m. The mineralogy is dominantly primary silver, lead, and zinc sulfides (argentite-acanthite-galena-sphalerite) and quartz as gangue material. This mineralization style is representative of both the historically and currently mined material in the Ag-dominant epithermal vein systems of the Zacatecas district.

Table 2: Collar Information for Reported Drill Holes

Table 2. Drill collar details. All coordinates in WGS84 UTM Zone 13N

Discussion of Quality Assurance/Quality Control (QAQC) and Analytical Procedures:

a- QAQC for 2023 drill core sampling: Samples were selected based on the lithology, alteration, and mineralization characteristics; sample size generally ranges from 0.25 - 2.00m in width. All altered and mineralized intervals were sent for assay. One blank, one standard, and one duplicate were included within every 20 samples. Standard materials are certified reference materials (CRMs) from OREAS and CDN Resource Laboratories Ltd (CDN); the suite of standards contains a range of Ag, Au, Cu, Pb, and Zn values. Blanks, standards, and duplicates have been used to confirm the validity of the analytical results.

Samples were analyzed by ALS Limited. Sample preparation was performed at their Zacatecas, Mexico, prep facility, and analyses were performed at the Vancouver, Canada, analytical facility. All elements except Au and Hg were analyzed by a multi-element geochemistry method utilizing a four-acid digestion followed by ICP-MS detection [ME-MS61m]; mercury was analyzed after a separate aqua regia digest by ICP-MS. Overlimit assays for Ag, Pb, and Zn were conducted using the OG62 method (multi-acid digest with ICP-AES/AAS finish). Gold was measured by fire-assay with an ICP-AES finish [50g sample, Au-ICP22].

b- QAQC for 2015 and 2017 drill core sampling: Samples were selected based on geologic breaks; sample size generally ranges from 0.50 - 1.50m in width. A minimum of one blank and one standard was submitted with each sample batch. Various reference materials from CDN were used as standards and blanks. The standards contain a range of Ag, Au, Cu, Pb, and Zn values, while the blanks contain very low levels of these elements.

All analytical work, including sample preparation and analyses, was performed at the Activation Laboratories Ltd (Actlabs) facility in Guadalupe, Zacatecas, Mexico. Trace element geochemistry was completed using a 4-acid 'near total' digestion with an ICP-OES finish [method 1F2]. Base metal overlimit assays were conducted using a 4-acid digest with an ICP-AAS finish, while overlimit silver assays were analyzed using the 8-Ag method (30g sample, fire assay with gravimetric finish). Gold was measured by fire assay with an AAS finish [30g sample, 1A2].

Shares for Debt Transaction Update:

Defiance also announces an update to the Shares for Debt transaction (See News Release dated May 3rd, 2023), regarding consulting services rendered for the company by an arm's length party, Rhea Advisors, LLC ("Rhea") and General Research GmbH ("General Research"). The scope of these services was related to in-house marketing, communications, and project-based consulting with management. Defiance reports that it intends to settle CDN$35,600 of debt through the issuance of 192,432 common shares of the Company to Rhea at a deemed price of $0.185 per share and CDN$30,000 of debt through the issuance of 162,162 common shares of the Company to General Research, at a deemed price of $0.185 per share. The shares for debt transaction are subject to approval of the TSX Venture Exchange (the "Exchange").

Investor Relations Activities - Tarik Dede:

Defiance also announces an update to its relationship with Tarik Dede ("Dede") an arm's length party engaged to provide investor relations services, as defined in accordance with the policies of the Exchange (See News Release Dated March 16th, 2023). Pursuant to his agreement, Dede was retained to provide blogging services on a per transaction basis, for a cash fee of €750 per month and would not be issued any stock options for the services. The Company confirms that the engagement has now terminated, and no funds were paid to Dede.

Shares for Services - Corporate Secretary:

The Company announces that on May 1, 2023, it entered into an Administrative Services Agreement (the "Agreement") with Meraki Corporate Services Inc. ("Meraki"), for which Lisa Thompson, our Corporate Secretary is a founder. Pursuant to the Agreement, the Company will pay Meraki $2,500 per month and issue shares in the amount of $1,330 per month (the "Compensation Shares"). The Compensation Shares will be accrued at the market value of the common shares on the last day of each month and will be issued semi-annually and will be subject to a statutory hold period. The shares services transaction is subject to approval of the Exchange.

Lisa Thompson is a "Non-Arm's Length Party" (as such term is defined under the policies of the Exchange) of the Company and the issuance of the Compensation Shares to Ms. Thompson constitutes a related party transaction as defined under MI 61-101. Such transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the monthly fee, nor the fair market value of the Compensation Shares issued to the interested party exceed 25% of the Company's market capitalization.

About Meraki Corporate Services

Meraki Corporate Services ("Meraki") has been involved in the public company sector for over 25 years providing a strong background of corporate compliance, corporate secretarial, and bookkeeping services. Meraki offers extensive experience in the management and administration of both public and private companies.

About Defiance Silver Corp.

Defiance Silver Corp. (TSXV: DEF) (OTCQX: DNCVF) (WKN: A1JQW5) (FSE: D4E) is an exploration company advancing the district-scale San Acacio Deposit, located in the historic Zacatecas Silver District and the Tepal Gold/Copper Project in Michoacán state, Mexico. Defiance is managed by a team of proven mine developers with a track record of exploring, advancing, and developing several operating mines and advanced resource projects Defiance's corporate mandate is to expand the San Acacio and Tepal projects to become premier Mexican silver and gold deposits.

Mr. George Cavey, P. Geo, is a Qualified Person within the meaning of National Instrument 43-101 and has approved the technical information concerning the Company's material mineral properties contained in this press release.

On behalf of Defiance Silver Corp.

"Chris Wright"

Chairman of the Board

For more information, please contact: Investor Relations at +1 (604) 343-4677 or via email at info@defiancesilver.com.

www.defiancesilver.com

Suite 2900-550 Burrard Street
Vancouver, BC V6C 0A3
Canada
Tel: +1 (604) 343-4677
Email: info@defiancesilver.com

Disclaimer

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward-Looking Information

Information contained in this news release which are not statements of historical facts may be "forward-looking information" for the purposes of Canadian securities laws. Such forward-looking information involves risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward looking information. The words "believe", "expect", "anticipate", "contemplate", "plan", "intends", "continue", "budget", "estimate", "may", "will", "schedule", "understand" and similar expressions identify forward-looking information. These forward-looking statements relate to, among other things: the Company's expectations regarding the ability of the Mining Bureau of Mexico City to reinstate ownership of the concessions to the Company, cooperation with the Mining Bureau relating to such reinstatement and the potential for any successful solution resulting therefrom.

Forward-Looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable by Defiance, are inherently subject to significant technical, political, business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking information. Factors and assumptions that could cause actual results or events to differ materially from current expectations include, among other things: the inability of the Company to regain possession of its concessions; political risks associated with the Company's operations in Mexico; the failure of the Mining Bureau in Mexico City to take any coercive action to reinstate ownership of the concessions to the Company; and the inability of the Company and its subsidiaries to enforce their legal rights in certain circumstances. For additional risk factors, please see the Company's most recently filed Management Discussions & Analysis for its quarter ended March 31, 2021 available on SEDAR at www.sedar.com.

There can be no assurances that forward-looking information and statements will prove to be accurate, as many factors and future events, both known and unknown could cause actual results, performance or achievements to vary or differ materially from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements contained herein or incorporated by reference. Accordingly, all such factors should be considered carefully when making decisions with respect to Defiance, and prospective investors should not place undue reliance on forward looking information. Forward-Looking information in this news release is made as at the date hereof. The Company assumes no obligation to update or revise forward-looking information to reflect changes in assumptions, changes in circumstances or any other events affecting such forward-looking information, except as required by applicable law.

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