Mr. John Lee reports

SILVER ELEPHANT PROVIDES UPDATE ON MINING PRODUCTION CONTRACT WITH COMIBOL

Silver Elephant Mining Corp. has provided an update on its continuing efforts to reinstate the mining production contract dated Oct. 3, 2019, with the Corporacion Minera de Bolivia (Comibol), which reports to the Bolivian Ministry of Mines and Metallurgy.

The MPC is a commercial contract which grants the company the exclusive rights to develop 2,803 hectares of the Pulacayo-Paca project in Boliva as detailed in the news release dated Oct. 7, 2019.

In December, 2024, Comibol delivered a notice to the company that Comibol was unilaterally cancelling the MPC, alleging that the company conducted illegal mining activities. Since receiving the notice of cancellation, the company and its representatives have met numerous times with Comibol representatives to seek clarification and to advocate for the reinstatement of the MPC. Following an internal investigation and based on available Comibol reports and site visit inspections, the company has found no physical evidence that it conducted any illegal mining. Further, the company strongly maintains the position, which is affirmed by external Bolivian legal counsel, that all authorizations and permits issued to the company to conduct activities in the MPC area were valid in accordance with Bolivian law, as they were duly issued and approved through written resolutions of Comibol's board of directors.

The company notes that there are a number of mining companies conducting activities relying on similar permits and authorizations issued by Comibol's board of directors.

While the company was meeting with Comibol officials advocating to have the MPC reinstated, it became aware that Andean Precious Metals Corp., a former customer of the company, entered into a purchase and sales agreement with Comibol to purchase oxide materials from the Termidad and Real Del Monte concessions, which are within the MPC area. Please refer to Andean's news release dated Feb. 6, 2025, for further background information.

The company, Andean and their related parties were parties to a master service agreement and sales and purchase agreement dated Sept. 11, 2023, whereby Andean agreed to purchase oxide materials extracted from the MPC area. Please refer to the company's news release dated Sept. 12, 2023, for further background information. The company has delivered a dispute notice under the MSA to Andean demanding that it cease interfering with the MPC and reserves the right to pursue a claim against Andean for damages as a result of such interference.

By way of background:

• May 10, 2021: Silver Elephant and Andean execute a confidentiality agreement in anticipation of a potential transaction in Bolivia.
• Aug. 22, 2022: Andean makes an offer to purchase all of Silver Elephant's Bolivian assets, including the Pulacayo-Paca project, part of which is covered by the MPC area.
• Sept. 11, 2023: Andean, Silver Elephant and their related parties sign the MSA and SPA for Andean to purchase silver oxide from Silver Elephant produced from the MPC area. Please refer to the company's news release dated Sept. 11, 2023.
• On Dec. 18, 2024, Silver Elephant delivers a notice of default under the MSA and demands payment of $1-million from Andean owed in accordance with the MSA.
• On Dec. 30, 2024, Silver Elephant terminates the master service agreement and demands payment of the additional consideration. Refer to the company news release dated Dec. 31, 2024.
• On Dec. 30, 2024, Silver Elephant receives the notice of cancellation of the MPC. Refer to the company news release dated Dec. 31, 2024.
• On Dec. 31, 2024, Andean delivers a dispute notice to Silver Elephant, alleging breach of contract due to the notice of cancellation of the MPC.
• On Jan. 14, 2025, Silver Elephant files a notice of arbitration and statement of claim seeking to enforce payment of the additional consideration after Andean's continued refusal to pay.
• On Feb. 6, 2025, Andean and Comibol entered into a sale and purchase agreement of oxide material from the Termidad and Real Del Monte concessions, which are within the MPC area.
• On Feb. 22, 2025, Silver Elephant delivers to Andean an additional notice of dispute claiming contractual interference and demands Andean to cease interference with Comibol.

The company has also sought assistance from other appropriate government authorities.

The company continues to pursue all available administrative and judicial avenues to reinstate the MPC, and will continue to keep all stakeholders informed.

About Silver Elephant Mining Corp.

Silver Elephant is a mineral exploration company with the Paca silver project and Triunfo gold project in Bolivia.

We seek Safe Harbor.