Silver Mountain Begins Commissioning at Reliquias; Production Expected to Commence in Q3 2026

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TORONTO, July 9, 2026 /CNW/ - Silver Mountain Resources Inc. ("Silver Mountain" or the "Company") (TSX: AGMR) (OTCQB: AGMRF) (BVL: AGMR) is pleased to provide a development update on its 100%-owned, polymetallic underground Reliquias mine in the Huancavelica region of central Peru. Rehabilitation of the concentrator plant at the past-producing, silver-rich mine is 95% complete and the Company expects first production to commence in the third quarter of 2026, on track with previous estimates.

Highlights

• Plant commissioning commenced: Industrial testing of all equipment in the plant circuit began early July 2026, using low-grade ore as planned.
  
  
• Concentrator plant rehabilitation approaches completion: The Reliquias Concentrator Plant rehabilitation is approximately 95% complete and remains aligned with the target restart of operations in the third quarter of 2026. The concentrator rehabilitation project has advanced through confirmatory metallurgical testing, equipment installation, and operational readiness, among other activities.
  
  
• Primary processing circuits operational: The main processing circuits have been completed and tested. The crushing circuit is now operational, while the grinding and flotation circuits have completed key empty run tests and equipment checks. The remaining work focuses on completing the auxiliary systems and advancing hot commissioning and operational validations.
  
  
• Production to commence in coming weeks: Reliquias continues to advance towards production startup in the third quarter of 2026, in line with guidance, followed by the operational ramp-up and commercial production.
  
  
• Other Updates: An updated Mineral Resources estimate and an updated Preliminary Economic Analysis at Reliquias are expected in the fourth quarter of 2026.

Alvaro Espinoza, Chief Executive Officer of Silver Mountain, commented: "We continue to advance the Reliquias mine towards operational readiness, with plant rehabilitation almost complete and commissioning in progress. Our team is very excited by Silver Mountain's continued advancement from a developer to a producing company, and by the further value creation opportunities we see in our district beyond commercial production."

The following is a summary of the status of rehabilitation activities across the major processing circuits at the Reliquias concentrator plant:

Crushing Circuit: The primary and secondary crushing circuit has been fully installed, with key tests conducted on all primary and secondary crushing equipment.

Grinding Circuit: The 9' x 11' ball mill has been installed together with its automatic operation system, including lubrication and hydraulic systems. No-load tests were completed and alignment, lubrication, vibration levels, and electrical consumption were verified to be within acceptable operating parameters.

Flotation Circuit: The flotation cells and auxiliary equipment have been installed. Empty run tests for agitators, blowers, pumps, and control systems have also been completed, confirming the readiness of the circuit for the next stages of operational integration.

Thickening and Filtering Circuit: The thickening and filtering equipment is currently installed. The associated auxiliary water and air systems are approximately 80% complete, supporting continued progress toward integrated plant operation.

Auxiliary Circuits: The auxiliary circuits are progressing through the integration of the plant's water supply, high- and low-pressure air supply, electrical systems, instrumentation, automation and control systems, and piping network.

Remaining Priorities: Current work also includes the installation and calibration of instrumentation, verification of automation and control systems, and operational validation of pH, foam level, and granulometry to ensure the plant is ready for commissioning.

About Silver Mountain Resources Inc.

Silver Mountain Resources Inc. is a Canadian mining company focused on the exploration and development of silver projects in Peru. The Company's principal asset is the Reliquias Project, a past-producing silver 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.

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 October 28, 2024 (with an effective date of May 15, 2024), prepared for the Company by Steven L. Park, Antonio Cruz Bermudez and Gerardo Acuña (the "Reliquias PEA"). Reference should be made to the full text of the Reliquias PEA, which is available on SEDAR+ (www.sedarplus.ca) under Silver Mountain's issuer profile, for the assumptions, qualifications and limitations relating thereto. Readers are encouraged to read the Reliquias PEA in its entirety, including all assumptions, parameters, qualifications, limitations and methods therein. The Reliquias PEA is intended to be read as a whole, and sections should not be read or relied upon out of context.

Qualified Person

The scientific and technical content in this news release has been reviewed and approved by Antonio Cruz Bermudez, P. Geo. and Registered Member FAIG, 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 National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

Caution Regarding Forward-Looking Statements

This news release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable Canadian securities legislation (collectively, "forward-looking statements"). Forward-looking statements are not guarantees of future performance and, by their nature, require Silver Mountain to make certain assumptions and necessarily involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements. Words such as "may", "will", "would", "could", "expect", "believe", "plan", "anticipate", "intend", "estimate", "continue", "objective", "strategy", "target", "potential", "positioned", "on track", and similar expressions, including the negative or grammatical variations thereof, are intended to identify forward-looking statements.

Forward-looking statements in this news release include, but are not limited to, statements pertaining to: (i) the planned restart of operations at the Reliquias processing plant in Q3 2026, including the timing and completion of rehabilitation, equipment installation, mechanical integration, commissioning and operational readiness activities; (ii) the advancement and completion of rehabilitation activities across the crushing, grinding, flotation, filtration, tailings and infrastructure systems at the Reliquias plant; (iii) the progression of commissioning activities and the commencement of commissioning activities across major plant circuits; (iv) the successful completion of ongoing mechanical, electrical, instrumentation and system verification activities required for plant restart; (v) management's expectations regarding the transition of the Reliquias plant toward operational readiness and production restart; (vi) the Company's ability to advance rehabilitation activities according to its anticipated timeline and operational objectives; (vii) the expected timing and completion of an updated Mineral Resources estimate and Preliminary Economic Assessment at Reliquias; and (viii) the Company's broader strategy to restart and develop its silver-polymetallic operations in central Peru.

The forward-looking statements in this news release are based on certain assumptions, including, but not limited to: the Company's ability to complete the planned restart of operations at the Reliquias Mine on the anticipated timeline and within budget; the continued availability of sufficient capital to fund the restart and operational plans; the accuracy of current mineral resource estimates; the stability of silver and other metal prices at levels that support economic production; the availability of skilled labour, equipment, and supplies; favourable operating conditions; the absence of material delays or disruptions; the Company's continued compliance with all applicable regulatory requirements; and favourable political, regulatory, and economic conditions in Peru.

Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond Silver Mountain's control, that could cause actual results and events to differ materially from those expressed in or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: the risk that the planned restart of operations at the Reliquias Mine may be delayed or may not occur as anticipated; the risk that actual capital expenditures may exceed budgeted amounts; fluctuations in commodity prices, including silver prices; risks related to mineral resource estimates; risks related to the Company's ability to obtain and maintain necessary permits and licences; operational risks inherent in mining activities; risks related to operating in Peru, including political, regulatory, and economic uncertainties; general economic, market, and business conditions; and other factors identified in the Company's continuous disclosure record filed on SEDAR+ (www.sedarplus.ca) under Silver Mountain's issuer profile, including under the headings (i) "Caution Regarding Forward-Looking Statements" and "Risk Factors" in the Annual Information Form of the Company dated April 30, 2026 for the year ended December 31, 2025; (ii) "Risk Factors" in the final base shelf prospectus of the Company dated October 16, 2025; and (iii) "Risk Factors" in the prospectus supplement of the Company dated November 12, 2025.

Silver Mountain disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law. New factors emerge from time to time, and it is not possible for Silver Mountain to predict all such factors or to assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement.

SOURCE Silver Mountain Resources Inc.

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