Mr. John Lee reports

SILVER ELEPHANT TO SUBMIT ENVIRONMENTAL IMPACT ASSESSMENT FOR 12,000 TONNE-PER-DAY PULACAYO-PACA PROCESSING PLANT; ENVIRONMENTAL LICENSE DECISION EXPECTED BY JUNE 2027

Silver Elephant Mining Corp. is preparing to submit the environmental impact assessment study for a proposed 12,000-tonne-per-day mineral processing plant at its Pulacayo-Paca silver mining project, in the Potosi Department of Bolivia, by the end of December, 2026. The company expects a government decision to issue the plant's environmental licence by mid-2027.

The plant is being designed as a dual-circuit facility with a processing capacity of up to 10,000 tpd of sulphide materials and up to 2,000 tpd of oxide materials. The plant feed will be sourced from the Pulacayo, Paca and Apuradita deposits. Mineralized materials from each of the three deposits have previously been mined and processed to produce high-grade silver concentrates through toll milling. The mining and processing records and experience were fundamental to the proposed plant design and mine plans. The plant at the mine site is expected to improve profit margins while demonstrating the company's commitment to invest in and expand Pulacayo-Paca into an integrated district-scale operation.

Environmental permitting of the plant at Pulacayo-Paca

The company has been methodically advancing environmental permitting of the 12,000-tonne-per-day plant at Pulacayo-Paca since November, 2023, and reports the following significant milestone achievements.

In July, 2026, Bolivia's national environmental authority approved the environmental categorization form (Formulario de Nivel de Categorizacion Ambiental, or FNCA) filed by the company's Bolivian subsidiary for the plant, its tailings storage facility, waste rock storage areas and associated facilities, and classified the project as Category 1. Category 1 projects require the most comprehensive level of environmental assessment under Bolivian regulations: a detailed and integrated environmental impact assessment study (Estudio de Evaluacion de Impacto Ambiental Analitico Integral, or EEIA-AI), including a public consultation process.

The EEIA-AI, which incorporates engineering and technical studies for the proposed operation on site, including logistics and infrastructure considerations, is substantially complete.

Environmental and socio-economic baseline studies supporting the EEIA-AI are advancing toward a targeted December, 2026, completion. The dry season field campaign concluded in September, 2026. The wet season campaign is scheduled from November to mid-December, 2026. Socio-economic baseline studies and public consultations are planned throughout November and December, 2026. Concurrently, overall engineering and technical studies are substantially complete, which include the plant design, waste rock storage area and tailings storage facility.

The company is scheduled to submit the EEIA-AI to the Ministry of Mining and Metallurgy by the end of December, 2026, and anticipates a decision on the environmental impact declaration (Declaratoria de Impacto Ambiental, or DIA), which constitutes the environmental licence for the construction and operation of the plant, by June, 2027. Construction of the plant is expected to commence following receipt of the approved DIA.

Processing plant and feed sources

The plant design includes a tailings storage facility, waste rock storage areas and supporting infrastructure. Metallurgical flow sheets and processing design are based on prior production and toll milling records.

Pulacayo-Paca hosts the mineral resource estimate summarized under "Mineral resource estimate" below. Apuradita, located next to the Paca deposit, has supplied mineralized materials for the company's silver-lead concentrate production since January, 2026.

Pulacayo-Paca, administered by Corporacion Minera de Bolivia (Comibol), is the subject of the mining production contract entered into between Silver Elephant's subsidiary and Comibol on Oct. 3, 2019. The MPC granted Silver Elephant's subsidiary the exclusive right to develop and mine Pulacayo-Paca, covering 2,803 hectares for a term of up to 30 years.

The Apuradita mining concession, where the plant is to be located, is held by the company's subsidiary under a mining administrative contract (Contrato Administrativo Minero) with the Autoridad Jurisdiccional Administrativa Minera (AJAM) and is not part of the MPC.

Production and processing history

Mineralized materials from Pulacayo-Paca and Apuradita have the following production and metallurgical records.

Paca -- oxide material

Between October, 2023, and November, 2024, the company mined and delivered 261,530 wet tonnes of oxide material from the Paca open pit grading 183 grams per tonne silver to a third party toll processing plant, which had reported silver recovery of between 85 and 95 per cent. The peak mining rates at Paca averaged 1,022 tonnes per day in October, 2024 (see the company's news releases dated Nov. 19, 2024, and Dec. 9, 2024). Additional limited oxide materials were subsequently mined from the Paca area by Comibol from mid-2025 to early 2026, according to public records, which the company has not independently verified.

Apuradita -- sulphide material

The Paca mineralization extends into Apuradita, where the company is currently conducting its underground mining operation. As reported in the company's news release dated Aug. 21, 2026, the company has produced and sold three concentrate batches from Apuradita, totalling 84.7 dry tonnes of concentrate containing 24,538 ounces of silver and 20 tonnes of lead (based on provisional assays for the third batch), from 4,547 tonnes of mineralized material grading 297 g/t silver and 0.9 per cent lead. Concentrate grades increased with each successive batch, from 5,916 g/t silver and 14.4 per cent lead in the first batch to 12,283 g/t silver and 31.34 per cent lead in the third batch, based on final and binding assays reported in September, 2026.

Pulacayo -- sulphide material

Between 2011 and 2013, Apogee Silver Ltd., the previous operator of the Pulacayo-Paca, carried out a trial underground mining program at Pulacayo. Apogee reported that more than 11,000 tonnes of mineralized materials with average head grades of 249 g/t silver, 2.31 per cent lead and 2.49 per cent zinc were toll-milled in the Potosi department to produce lead and zinc concentrates, at an average overall silver recovery of 82.7 per cent (Apogee news release dated July 10, 2013). These historical results were reported by Apogee and have not been independently verified by the company.

Together, these records provide the company with production and processing data for each of the plant's proposed feed sources.

Mine planning and equipment procurement

The company has initiated discussions with equipment manufacturers regarding indicative quotations and delivery lead times for the plant's major process equipment. The goal is to align procurement with the anticipated permitting approval. The company is also in discussion with potential joint venture partners that can bring turnkey EPCM (engineering, procurement and construction management) in exchange for an equity stake in the project.

Historical feasibility study

The Pulacayo deposit was previously the subject of a feasibility study prepared for Apogee by TWP Sudamerica SA during 2012, the results of which were announced by Apogee on Jan. 17, 2013. The related technical report, titled "NI 43-101 Technical Report -- Pulacayo Project Feasibility Study," was filed by Apogee on SEDAR+ on March 1, 2013.

The feasibility study evaluated the development of an underground mine at the Pulacayo deposit, together with a conventional flotation concentrator with a processing capacity of 1,000 tonnes per day, configured as two 500-tonne-per-day modules, each comprising a single ball mill, differential lead and zinc flotation circuits, and concentrate pressure filtration. Mining was planned predominantly by mechanized underhand cut and fill with long-hole drilling and cemented paste backfill, with limited shrinkage stoping on the uppermost level and with access by spiral ramps from surface and through the existing underground workings.

The process design was supported by four metallurgical test programs, in which bench-scale, open-circuit and locked-cycle flotation tests indicated that conventional differential lead-zinc flotation provided the best metallurgical performance for Pulacayo sulphide material. Locked-cycle test results from Maelgwyn Mineral Services Africa were used to develop a grade-recovery model, which, applied to the life-of-mine feed grades, projected average recoveries of 86.3 per cent for silver, 85.6 per cent for lead and 85.8 per cent for zinc, producing a lead concentrate grading approximately 48 per cent lead and 8,382 g/t silver and a zinc concentrate grading approximately 51 per cent zinc and 454 g/t silver. Sulphide metal recoveries of 89.2 per cent for silver, 91.9 per cent for lead and 82.9 per cent for zinc, reflecting metallurgical testing results previously disclosed for Pulacayo, were subsequently applied in the company's current mineral resource estimate for Pulacayo (see "Mineral resource estimate" below).

The economic analysis was described in the feasibility study; however, it is historical in nature: it is based on the historical estimate and on metal prices ($28 per ounce of silver, 89 cents per pound of lead and $1 per pound of zinc were used as the base case in the feasibility study), capital and operating costs, and other assumptions as at 2012 that are no longer current; it has not been updated or verified by the company or a qualified person; and it should not be relied upon. The company has not completed a current economic analysis of the Pulacayo deposit.

The feasibility study was prepared for a previous owner of the project, is historical in nature and is not current. A qualified person has not done sufficient work to verify the feasibility study or to classify any estimate contained in it as a current mineral resource or mineral reserve, and the company is not treating the feasibility study, or any mineral reserve estimate or economic analysis contained in it, as current. The historical feasibility study should not be relied upon. The plant is not based on the historical feasibility study, and the company has not completed a current independent feasibility study or prefeasibility study on Pulacayo or Paca.

Mineral resource estimate

The mineral resource estimate for Pulacayo and Paca deposits is set out in table 1 and are derived from the technical report titled "Mineral Resource Estimate Technical Report for the Pulacayo Project, Potosi Department, Antonio Quijarro Province, Bolivia," prepared by Mercator Geological Services Ltd., with an effective date of Oct. 13, 2020, and an amended report date of Nov. 12, 2020, which is available under the company's profile on SEDAR+.

The technical report outlined a high-grade area at Pulacayo of 5.39 million tonnes of indicated mineral resources grading 249 g/t Ag, 2.7 per cent Zn and 1.5 per cent Pb within the broader resource set out in Table 1 below.

Similarly, the technical report outlined a high-grade starter pit at Paca of 800,000 tonnes of indicated oxide mineral resources grading 231 g/t Ag and 1.81 million tonnes of indicated sulphide mineral resources grading 256 g/t Ag within the broader resource set out in Table 1 below.

The Paca mineral resource estimate has an effective date of Oct. 13, 2020, and predates subsequent oxide mining activities undertaken between 2023 and 2026. These activities have resulted in material extraction of oxide mineralization and modifications to the open-pit geometry. Accordingly, the historical Paca oxide mineral resource estimate should not be interpreted as representing the current remaining oxide mineral inventory. Changes to pit geometry, waste rock placement and geotechnical conditions may also affect future mine planning and the potential economic extraction of sulphide mineralization.

No mineral resource estimate has been prepared specifically for the Apuradita underground workings, and the company's mining operations at Apuradita are not based on a mineral resource or mineral reserve estimate.

Cautionary note regarding production decisions

The company has not completed a feasibility study or prefeasibility study on the Pulacayo or Paca deposits, including the portion of the Paca mineralized zone within the Apuradita mining area, and no mineral reserves have been established. The company's decision to place Apuradita into production is not, and any decision to construct the plant and to process feed from the Pulacayo, Paca and Apuradita deposits would not be, based on a feasibility study of mineral reserves demonstrating economic and technical viability. As a result, there is increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially minable deposit. Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production from the plant will begin as anticipated or at all, or that anticipated production costs will be achieved. Failure to commence production would have a material adverse impact on the company's ability to generate revenue and cash flow to finance operations, and failure to achieve the anticipated production costs would have a material adverse impact on the company's cash flow and future profitability.

Qualified person

The technical content of this news release has been prepared under the supervision of Carlos Zamora, a member of the American Institute of Professional Geologists and a certified professional geologist since 2024, who is an employee of the company and is not considered independent. Mr. Zamora is a qualified person as defined by National Instrument 43-101.

The qualified person has reviewed the technical information disclosed in this news release, including the historical production and processing information and the mineral resource estimates referenced herein. The mineral resource estimates are based on the previously filed technical report prepared by Mercator Geological Services, with an effective date of Oct. 13, 2020. The qualified person has not independently verified all historical production information or the environmental permitting schedule and regulatory determinations described in this news release.

About Silver Elephant Mining Corp.

Silver Elephant is a mining company focused on developing its flagship Pulacayo-Paca silver mining project in Bolivia. Silver Elephant also operates a zinc-germanium-gallium mining project in Kentucky, which is near the $7.4-billion critical mineral smelter under construction.

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