Mr. Alvaro Espinoza reports

SILVER MOUNTAIN COMMENCES PRODUCTION AT RELIQUIAS MINE

Silver Mountain Resources Inc. has achieved first concentrate production at its 100-per-cent-owned Reliquias underground silver polymetallic mine, located in the Castrovirreyna district of Huancavelica, central Peru.

Highlights:

• Transition to producer status: Silver Mountain produced its first bulk and zinc concentrates at Reliquias in mid-September, 2026, marking the company's transition from a developer to a producer.
• Processing plant ramp-up on track: Processing throughput and feed grades are expected to increase progressively as the operation advances through ramp-up, with the company targeting processing throughput of 800 tonnes per day during the second half of 2027.
• 45,000-tonne stockpile supports production ramp-up: Approximately 45,000 tonnes of stockpiled material have been accumulated during underground development and mine preparation activities, and are available to support processing operations during the production ramp-up.

This milestone marks a pivotal transition from developer to producer, and validates the company's strategy of restarting this historic silver mine using existing permitted infrastructure. The commencement of concentrate production from the Caudalosa plant confirms the operational readiness of the processing circuit and the ancillary infrastructure, consistent with the third quarter 2026 production timeline previously communicated by the company. The initial feed was sourced from approximately 45,000 tonnes of stockpiled material accumulated during underground preparation activities. Concentrate shipments are expected to commence October, 2026.

Alvaro Espinoza, chief executive officer of Silver Mountain, commented: "I would like to sincerely thank the entire Silver Mountain team, our contractors, business partners, investors and community stakeholders, whose dedication, collaboration and support made this milestone possible. We are very excited to have commenced production at the Reliquias mine. This important milestone transforms Silver Mountain from a developer to a producer, and we look forward to establishing a track record of generating growing operating cash flows as the mine and plant ramp up to their full production potential. As the operation transitions to steady state, we remain laser-focused on the health and safety practices at Reliquias to ensure both operational continuity and the well-being of our employees and local community stakeholders."

About Silver Mountain Resources Inc.

Silver Mountain is a Canadian mining company focused on the production, exploration and development of silver projects in Peru. The company's principal asset is the Reliquias mine, a silver polymetallic underground mine located in the Castrovirreyna district of Huancavelica. Silver Mountain is committed to creating long-term value for its shareholders through responsible mining, strong community engagement and sustainable development practices.

Scientific and technical disclosure

Technical report

The scientific and technical information in this news release relating to the Reliquias mine is supported by the technical report entitled "Amended and Restated NI 43-101 Technical Report: Preliminary Economic Assessment, Reliquias Mine," dated Oct. 28, 2024 (with an effective date of May 15, 2024), prepared for the company by Steven L. Park, Antonio Cruz Bermudez and Gerardo Acuna. Reference should be made to the full text of the Reliquias PEA, which is available on SEDAR+ under Silver Mountain's issuer profile, for the assumptions, qualifications and limitations relating thereto.

Qualified person

The scientific and technical content in this news release has been reviewed and approved by Gerardo Acuna, PEng, and registered member FAusIMM CP (mining), who is a qualified person (as defined in National Instrument 43-101 (Standards of Disclosure for Mineral Projects)) and independent of the company for purposes of Section 1.5 of NI 43-101.

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