Mr. John Lee reports

SILVER ELEPHANT FILES LAWSUIT AGAINST ANDEAN PRECIOUS METALS OVER ALLEGED INTERFERENCE WITH PULACAYO-PACA MINING PRODUCTION CONTRACT

Silver Elephant Mining Corp. has, together with its subsidiaries Apogee Minerals Bolivia SA and ASC Bolivia LDC Sucursal Bolivia, filed a notice of civil claim in the Supreme Court of British Columbia against Andean Precious Metals Corp. and three individuals: Federico Gil, vice-president of legal and administration of Andean; Juan Carlos Sandoval, chief financial officer of Andean; and Humberto Rada, president of Empresa Minera Manquiri SA, Andean's wholly owned Bolivian subsidiary.

The claim arises out of the mining production contract entered into in 2019 between Apogee and Corporacion Minera de Bolivia (COMIBOL), Bolivia's state-owned mining company, pursuant to which COMIBOL granted Apogee the right to conduct mining activities for 15 years, with a right to extend for a further 15 years, over certain of COMIBOL's mining concessions, including the Temeridad and Real del Monte concessions located in the municipality of Uyuni, department of Potosi, Bolivia. The Pulacayo-Paca project is estimated to contain an indicated mineral resource of 106.7 million ounces of silver, 1,384.7 million pounds of zinc and 693.9 million pounds of lead as disclosed in a technical report by Mercator Geological Services (refer to the company's news release dated Oct. 13, 2020). The company has advanced the Pulacayo-Paca project for over two decades at a cost of over $30-million (U.S.) to discover and develop this large mineral resource.

The claim alleges that the defendants, with knowledge of the mining production contract and of the company's master service agreement and sales and purchase agreement with Andean to acquire oxide materials from the Pulacayo-Paca project, acted in concert with one another to induce COMIBOL to terminate the mining production contract for the defendants' commercial benefit and at the company's expense. As a direct result of this conduct, the claim alleges that COMIBOL terminated the mining production contract on Dec. 16, 2024, without proper basis, and the company suffered resulting damages.

The claim seeks general and special damages, punitive damages, interest pursuant to the Court Order Interest Act (British Columbia) and costs, which together are not possible to estimate with precision at this time but are believed to be substantial. For example, the claim states that, having displaced the company, Andean entered into an exclusive agreement with COMIBOL in February, 2025, covering the sale and extraction of oxide materials from the Temeridad and Real del Monte concessions, and a further exclusive, long-term agreement in June, 2025, for the purchase of up to seven million tonnes of oxide material over a 10-year term. According to the claim, since February, 2025, Andean has extracted approximately 250,000 tonnes of oxide material from the Pulacayo-Paca project, with an estimated value of approximately $100-million (U.S.). This extraction demonstrates the economic viability of the Pulacayo-Paca project, and the extracted tonnage represents only a fraction of the Pulacayo-Paca project's documented resource. The value of the mining production contract covering the Pulacayo-Paca project, which Silver Elephant lost as a result of Andean's interference, could be multiple times the $100-million (U.S.) worth of materials that Andean extracted since February, 2025.

The quantum of damages will be determined through the litigation process.

This claim follows a favourable arbitration award received by the company in January, 2026, in a related dispute with Andean under a separate master service agreement and sales and purchase agreement, pursuant to which the arbitrator ordered Andean to pay the company the approximately $1.0-million (U.S.) owed in full under the master service agreement, plus prejudgment interest, and rejected Andean's counterclaims in their entirety as described in the company's news release dated Jan. 28, 2026. The claim concerns separate allegations and issues from those addressed in the arbitration proceeding.

The company will continue to pursue all available remedies to protect its rights and interests in the Pulacayo-Paca project, including potential further claims against Andean, and administrative and judicial steps in Bolivia to reinstate the mining production contract. The company will provide further updates as appropriate.

Qualified person

The technical content of this news release has been reviewed and approved by Carlos Zamora, CPG, an employee of the company who is a qualified person as defined by National Instrument 43-101.

About Silver Elephant Mining Corp.

Silver Elephant is a mineral exploration company advancing its Robinson-Lasher zinc-germanium-gallium project in Kentucky, located near a proposed $7.4-billion (U.S.) zinc smelter, and its Pulacayo-Paca silver-lead-zinc project in Bolivia.

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