Mr. Alvaro Espinoza reports

SILVER MOUNTAIN ANNOUNCES FIRST CONCENTRATE SALE

Silver Mountain Resources Inc. has agreed to the sale and completed its first shipment of bulk and zinc concentrates from its 100-per-cent-owned Reliquias silver-polymetallic mine in central Peru, representing an estimated provisional sales value of approximately $2.7-million (U.S.) (1).

This milestone marks the beginning of revenue generation from Reliquias and represents another step in the company's ramp-up of operations toward commercial production.

Advancing toward commercial production

Following the restart of production in September, 2026, Silver Mountain continues to advance its operational ramp-up and is targeting processing throughput of 800 tonnes per day (tpd) during the second half of 2027.

As throughput increases and processing progressively transitions from previously stockpiled material to newly mined ore, Silver Mountain expects to advance toward commercial production.

Alvaro Espinoza, chief executive officer of Silver Mountain, commented: "Our first concentrate shipment, representing approximately $2.7-million (U.S.) in estimated provisional sales value, marks an important milestone for Silver Mountain as we begin generating revenue from Reliquias.

"This achievement demonstrates the progress we have made in restarting the operation and brings us another step closer to commercial production.

"With production ramping up at Reliquias and exploration opportunities across our district, including at Caudalosa, we believe Silver Mountain is well positioned to continue advancing its operations and pursue long-term value for our shareholders."

Looking ahead

Silver Mountain remains focused on increasing production, advancing underground mine development and achieving commercial production at Reliquias.

In parallel, the company continues to evaluate opportunities to expand its mineral resource base across its land package in the Castrovirreyna mining district.

The company expects to provide its next operational update in January, 2027.

About Silver Mountain Resources Inc.

Silver Mountain Resources is a Canadian mining company focused on operating and advancing silver-polymetallic assets in Peru.

The company's principal asset is the Reliquias mine, located in the Castrovirreyna district of Huancavelica, Peru, where production commenced in September, 2026.

Silver Mountain is committed to creating long-term shareholder value through responsible mining, operational excellence and the development of its exploration portfolio.

Certain scientific and technical information 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 Oct. 28, 2024, with an effective date of May 15, 2024, prepared for the company by Steven L. Park, Antonio Cruz Bermudez and Gerardo Acuna. The Reliquias PEA is available under the company's issuer profile on SEDAR+.

Qualified person

The scientific and technical information in this news release has been reviewed and approved by Gerardo Acuna, PEng, registered member of FAusIMM CP (mining), who is a qqualified 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. Mr. Acuna has verified the data disclosed in this news release, including the operational and metallurgical information, by reviewing plant production records, preliminary concentrate assay results and shipping documentation. There were no limitations on the verification process.

Production decision not based on a prefeasibility study or feasibility study

The company's production decision at Reliquias was not based on a prefeasibility study or feasibility study of mineral reserves demonstrating economic and technical viability.

Accordingly, Reliquias does not have defined mineral reserves, and there is a higher degree of uncertainty and risk of economic or technical failure associated with the production decision than would be the case if it were supported by such a study.

The Reliquias PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the results of the Reliquias PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

(1) The estimated sales value is based on preliminary shipment information and remains subject to final weights, assays, applicable metal prices, contractual deductions and customary settlement adjustments. Actual revenue recognized may differ from this estimate.

We seek Safe Harbor.