Defiance Silver Clarifies Technical Disclosure

Vancouver, British Columbia--(Newsfile Corp. - February 2, 2024) - Defiance Silver Corp. (TSXV: DEF) (FSE: D4E) (WKN: A1JQW5) ("Defiance" or the "Company") announces that, as a result of a continuous disclosure review by the British Columbia Securities Commission, the Company is issuing the following news release to clarify its disclosure as it pertains to its technical reports entitled "NI 43-101 Technical Report Preliminary Economic Assessment on the Tepal Project, Michoacán, Mexico" dated February 24, 2017 with an effective date of January 19, 2017 on the Tepal project (the "Tepal Report") and its technical report entitled "Technical Report and Resource Estimate, San Acacio Silver Deposit, Zacatecas State, Mexico" dated September 26, 2014 with an effective date of April 1, 2014 on the San Acacio project (the "San Acacio Report", and together with the Tepal Report the "Technical Reports").

In order to address these deficiencies under National Instrument 43- 101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), the Company understands it will need to amend the Technical Reports accordingly. On the Tepal project, as some of the authors of the Tepal Report are no longer Qualified Persons under NI 43-101 due to notably, retirement, the Company is presently working with its technical advisors who participated in the preparation of the Tepal Report on (i) a feasible timeline to complete an amended report and (ii) identifying new Qualified Persons to take on responsibility for the relevant chapters of the Tepal Report in connection with the amended report. The Company is working to file an amended technical report as soon as possible. The Company will provide regular updates in connection with the preparation and filing of the amended technical report for its Tepal project.

As for the San Acacio Report, the Company is incapable of preparing an amended report for reasons beyond its control. Indeed, the authors of the San Acacio Report were independent consultants and are no longer Qualified Persons under NI 43-101 due to notably, retirement. In light of this regrettable situation, Defiance will be working with new technical advisors to prepare a new technical report that will replace the current San Acacio Report.  The Company expects to file this new technical report by the end of March 2024. The Company will provide regular updates in connection with the preparation and filing of this new report for its San Acacio project.

At the present time, in light of the current situation, the Company advises that the information relating to its projects contained in the Technical Reports should not be relied upon as they are not supported by compliant technical reports under NI 43-101.

Further, and separate from the Tepal Report and the San Acacio Report addressed above, the Company is also currently updating and clarifying additional disclosure contained on its website and in its corporate presentation.

About Defiance Silver Corp.

Defiance Silver Corp. (TSXV: DEF) (OTCQX: DNCVF) (FSE: D4E) is an exploration company advancing the district-scale Zacatecas project, 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.

On behalf of Defiance Silver Corp.

"Chris Wright"

CEO & Chairman of the Board

For more information, please contact: Investor Relations at +1 (604) 343-4677 or via email at [email protected]

www.defiancesilver.com

Suite 2900-550 Burrard Street

Vancouver, BC V6C 0A3
Canada
Tel: +1 (604) 343-4677
Email: [email protected]

Disclaimer

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 release.

Cautionary Statements 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. Forward-looking statements are generally identifiable by use of the words "believe", "expect", "anticipate", "contemplate", "plan", "intend", "continue", "budget", "estimate", "may", "will", "schedule", "understand" or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements relate to, among other things: the Company's ability to address the deficiencies raised by the British Columbia Securities Commission and to complete and file an amended technical report for its Tepal project and a new technical report for its San Acacio project.

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, which are beyond the Company's ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. 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 and without limitation: the inability of the Company to regain possession of its concessions on the Tepal project; 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 forming part of the Tepal project to the Company; the inability of the Company and its subsidiaries to enforce their legal rights in certain circumstances; failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company's expectations; and other risks disclosed in the Company's public disclosure record on file with the relevant securities regulatory authorities. For additional risk factors, please see the Company's most recently filed Management Discussions & Analysis for its quarter ended September 30, 2023 available on SEDAR+ at www.sedarplus.ca.

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.