News Releases

Toronto – January 13, 2022: AbraSilver Resource Corp. (TSX.V:ABRA; OTCQX: ABBRF) ("AbraSilver" or the “Company”) is pleased to announce the filing of a National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) compliant Technical Report describing the Preliminary Economic Assessment (the “PEA”) completed on its wholly-owned Diablillos project in Salta province, Argentina.

The results of the PEA were previously reported in the Company’s news release dated November 29, 2021, and there are no differences in the Technical Report from those results.

Highlights of the PEA include:

• Robust Economics:
  • Pre-Tax NPV_5% of $678.5 Million (CAD$ 882.1 Million) with an IRR of 44.3%;
  • After-Tax NPV_5% of $364.0 Million (CAD$ 473.2 Million) with an IRR of 30.2%;
• 7,000 tonnes per day ("tpd") production rate with an initial mine life of up to 16 years.
• Average annual production:
  • In first 5 years of 8.0 Moz Ag and 44.3 koz Au, (11.4 Moz AgEq);
  • Over the Life-of-Mine of 4.2 Moz Ag and 52.0 koz Au, (8.5 Moz AgEq).
• Low cash operating costs:
  • All-in Sustaining Cash Costs ("AISC") during first 5 years of $10.41/oz AgEq;
  • AISC during the Life-of-Mine of $11.97/oz AgEq.
• Initial Capital Expenditure of $255.0 million, with payback period of 2.6 years.
• Several potential opportunities have been identified that may further enhance the economic returns. One such opportunity is to increase the production rate above the 7,000 tpd used as the base case in the PEA. It is believed that the Diablillos project could sustain a higher production rate, especially if Mineral Resources continue to grow as a result of additional drilling. A higher production rate may lead to improved operating efficiencies and future trade-off studies will evaluate the optimal throughput.

The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. There is no certainty that the project as outlined in the PEA will be realized.

The full Technical Report was filed on January 13, 2022, with an effective date of January 13, 2022, and is entitled “NI 43-101 Preliminary Economic Assessment Technical Report – Diablillos Project”. The Report can be found on the Company’s website (www.abrasilver.com) and on SEDAR (www.sedar.com).

The PEA was led by Mining Plus Peru S.A.C. with contributions from Hanlon Engineering & Associates Inc. (a subsidiary of GR Engineering Services Limited) and SAXUM Engineering LLC locally in Argentina.

Qualified Persons

The Qualified Persons responsible for sections of the Technical Report are as follows:

• Luis Rodrigo Peralta, B.Sc. (Geo) FAusIMM for Sections 1 to 12 and 23.

• María del Carmen Muñoz Lizarve, Geol MAIG (QP) for Section 14.

• Gabriel Alejandro Paganini, AusIMM CP (min) for Sections 16, 18, 19, 20, 21, 22, 25, 26 and 27.

• Simon Richard Jeremy Perkins, FAusIMM CP (met) for Sections 13 and 17.

The above authors of the Technical Report are each a “Qualified Person” as defined by NI 43-101 and are independent of AbraSilver.

David O’Connor P. Geo., Chief Geologist for AbraSilver is a “Qualified Person” and he has reviewed and approved the scientific and technical information in this news release.

About AbraSilver

AbraSilver is a well-funded silver-gold focused advanced-stage exploration company. The Company is rapidly advancing its 100%-owned Diablillos silver-gold project in the mining-friendly Salta province of Argentina, which has a current Measured and Indicated Mineral Resource of over 90 million ounces of silver and 1.0 million ounces of gold. The Company is led by an experienced management team and has long-term supportive shareholders including Mr. Eric Sprott and SSR Mining. In addition, AbraSilver owns a portfolio of earlier-stage projects including the La Coipita copper-gold project in the San Juan province of Argentina. AbraSilver is listed on the TSX-V under the symbol “ABRA” and in the U.S. under the symbol “ABBRF”.

For further information please visit the AbraSilver Resource website at www.abrasilver.com, our LinkedIn page at AbraSilver Resource Corp., and follow us on Twitter at www.twitter.com/abrasilver

Alternatively please contact:

John Miniotis, President and CEO
[email protected]
Tel: +1 416-306-8334

Cautionary Statements

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Neither the 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 news release