Mr. Alvaro Espinoza reports

SILVER MOUNTAIN INTERSECTS 3.30 METRES OF 569 G/T SILVER AND 3.11% COPPER AT CAUDALOSA; COMPANY TO EVALUATE POTENTIAL FOR AN EARLIER RESTART

Silver Mountain Resources Inc. has released drilling results from its 100-per-cent-owned, past-producing Caudalosa underground silver-polymetallic mine, located in the Castrovirreyna district of Huancavelica, central Peru. The company has received assay results from the first 11,500 metres of its planned 17,500-metre drilling program, which intersected mineralized intervals across multiple veins, including in areas outside the area covered by the historical mineral resource estimate for Caudalosa (see "Historical estimate" below).

The company believes these results indicate potential for mineralization at Caudalosa to extend beyond the area covered by the historical mineral resource estimate. The high-grade mineralization intersected at shallow depths, particularly in the Paulinita vein, has led the company to evaluate the potential for an earlier restart of the historic mine and an earlier increase in mill throughput than previously contemplated. No decision to restart Caudalosa has been made, and any such decision would be subject to further technical evaluation, permitting and other factors.

Drilling highlights:

• Paulinita vein:
  • SMR-DC26-0019: 3.30 metres at 569 grams per tonne silver, 0.83 g/t gold, 3.11 per cent copper, 0.99 per cent zinc and 0.48 per cent lead:
    • Including 0.55 m at 2,793 g/t Ag, 3.15 g/t Au and 9.83 per cent Cu;
  • SMR-DC26-0028: 1.35 m at 919 g/t Ag, 1.44 g/t Au, 2.66 per cent Cu, 1.13 per cent Zn and 0.54 per cent Pb;
  • SMR-DC26-0027: 2.40 m at 262 g/t Ag, 1.01 g/t Au and 2.49 per cent Cu;
• Caudalosa vein:
  • SMR-DC26-0008: 3.30 m at 172 g/t Ag, 0.91 g/t Au, 2.39 per cent Zn and 1.12 per cent Pb;
  • SMR-DC26-0009: 2.20 m at 178 g/t Ag, 1.10 g/t Au, 1.70 per cent Pb and 0.93 per cent Zn;
  • SMR-DC26-0001: 2.15 m at 113 g/t Ag, 2.19 g/t Au, 1.10 per cent Pb and 0.96 per cent Zn;
• Cerro de Pasco vein:
  • SMR-DC26-0005: 1.15 m at 240 g/t Ag, 0.98 g/t Au and 3.34 per cent Pb.

All intervals represent drilled core lengths. True widths have not yet been determined.

Alvaro Espinoza, chief executive officer of Silver Mountain, commented: "The results from the first 11,500 metres of our planned 17,500-metre drilling program have exceeded our initial expectations, with high grades and mineralized intervals intersected across multiple veins. We believe these results demonstrate the potential for mineralization at Caudalosa to extend beyond the area covered by the historical estimate, which we intend to test with further drilling.

"The identification of high-grade mineralization at shallow depths is particularly encouraging because, with our processing plant already operating, we intend to evaluate whether Caudalosa could be advanced on an accelerated basis to provide an additional source of mill feed in support of Silver Mountain's growth, subject to the results of further technical work."

Exploration potential

Drilling has intersected high-grade silver-polymetallic mineralization across several veins, including Paulinita, Caudalosa, San Pedro and Cerro de Pasco. The grades and mineralized intervals intersected, together with mineralization intersected outside the area covered by the historical estimate, support the company's view of Caudalosa's exploration potential. Management is particularly encouraged by the shallow results, given the existing mining infrastructure at Caudalosa and the company's operating processing plant. Further technical evaluation will be required to determine whether a restart of Caudalosa is feasible and, if so, its timing and requirements.

About Silver Mountain Resources Inc.

Silver Mountain Resources is a Canadian mining company operating and advancing silver-polymetallic projects in Peru. The company's principal asset is the Reliquias mine, an underground silver-polymetallic mine in the Castrovirreyna district of Huancavelica that commenced production in Q3 2026. Silver Mountain is committed to creating long-term value for its shareholders through responsible mining, strong community engagement and sustainable development practices.

Qualified person

The scientific and technical content in this news release has been reviewed and approved by Antonio Cruz Bermudez, PGeo, a registered member of 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 NI 43-101, Standards of Disclosure for Mineral Projects. Mr. Cruz has verified the data disclosed in this news release, including the sampling, analytical and test data underlying the drilling results, by reviewing assay certificates, quality assurance/quality control results and drill logs. There were no limitations on the verification process.

Scientific and technical disclosure

Technical reports

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, Department of Huancavelica-Peru," dated Oct. 28, 2024 (with an effective date of May 15, 2024), prepared for the company by Steven L. Park, Mr. Cruz 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.

Historical estimate

References in this news release to the historical mineral resource estimate for Caudalosa are to an inferred historical estimate of 1,549,000 tonnes grading 14.43 ounces per ton silver, 2.80 per cent zinc, 2.79 per cent lead and 2.12 per cent copper, prepared by Sociedad Minera Reliquias SA, based on RM-Master Pro Quality reports by C. Rodriguez (April, 2019, and July, 2019), as described in the technical report entitled "Amended and Restated National Instrument 43-101 Technical Report, Castrovirreyna Project, Peru" dated Nov. 18, 2021 (with an effective date of Aug. 17, 2021), which is available on SEDAR+ under Silver Mountain's issuer profile. The company considers the historical estimate relevant to its exploration at Caudalosa and believes it is of reasonable quality for the purposes of exploration programs, but it was not independently calculated. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, the company is not treating the historical estimate as current mineral resources or mineral reserves, and the historical estimate should not be relied upon. Additional work, including drilling, verification of historical data and preparation of a new mineral resource estimate, would be required to upgrade or verify the historical estimate as current mineral resources.

Sampling, QA/QC and analytical procedures

Drill core of HQ diameter was logged and sampled by Silver Mountain geologists at the Reliquias core storage facility. Sample intervals were selected based on geological contacts and do not exceed 1.45 metres in length. Core was cut in half using a diamond saw, with one-half retained for reference and the other half bagged, sealed with a plastic zip tie and identified with a unique sample number pending shipment. Samples were sent by batch to the Bureau Veritas laboratory in Lima, Peru, which is independent of the company, for preparation and assaying. Silver Mountain independently inserts certified control standards, fine and coarse blanks, and duplicates into the sample stream to monitor data quality, and these are inserted blindly to the laboratory in the sample sequence prior to departure from the core storage facilities. At the laboratory, samples are dried, crushed and pulverized and then analyzed using a fire assay/AA finish for gold and a full multiacid digestion with ICP-AES analysis for other elements. Samples with results that exceed maximum detection values for the main elements of interest (Ag, Zn, Pb and Cu) are reanalyzed using ore-grade ICP analytical techniques while high gold values are reanalyzed by fire assay with a gravimetric finish. No material QA/QC issues were identified in respect of the results reported in this news release.

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