Mr. John Lee reports

SILVER ELEPHANT ACHIEVES COAL SALES AND DELIVERY TO CHINA, PREPARES ULAAN OVOO MINE RESTART

Silver Elephant Mining Corp. has received $73,000 (U.S.) as part of the total proceeds from the sale of 3,166 tonnes of Ulaan Ovoo coal to China. As of today, a further batch of 3,000 tonnes of Ulaan Ovoo coal is being loaded on rail to travel south to China.

On Dec. 9, 2022, 3,166 tonnes of Ulaan Ovoo coal were loaded onto 50 wagons (driven by a dedicated Ulan Bator railway locomotive) at Mongolia's Sukhbaatar station (sales delivery point). The train travelled southbound, arriving at China's Erlian port the following week. The coal was unloaded at Erlian and the wagons have been returned to Mongolia to start the second run.

The company holds 100-per-cent rights to Ulaan Ovoo mineral claims and mining licences. The company and its Mongolian operating partner have agreed to share the coal sales proceeds from stockpiled coal sales on a 50/50 basis until June 30, 2023. There are approximately 85,000 tonnes of coal previously mined by the Mongolian operating partner stockpiled at the Ulaan Ovoo mine site and the nearby Sukhbaatar rail siding.

John Lee, chief executive officer of Silver Elephant, states: "The company is at a historical moment as we have achieved our highest sales price and have delivered a full trainload of Ulaan Ovoo coal to Erlian, China. For 2023, our goal is to secure international contracts of between 200,000 to 500,000 tonnes, matching Ulaan Ovoo mine production volume target.

"For Silver Elephant, the Mongolian subsidiary is already cash flow positive in 2022. I would like to thank our team and partners for their unrelentless effort to make Ulaan Ovoo a success and thank our stakeholders for their patience. We believe the best is yet to come."

The company is in active discussion with multiple international buyers and is optimistic about landing additional coal sales contracts.

In anticipation of improved 2023 coal sales, the company and its operating partner have commenced (at the partner's cost) prestripping activities at Ulaan Ovoo to prepare for mine restart in the first quarter of 2023. The company's partner operates a mining fleet capable of producing 30,000 tonnes of coal per month at Ulaan Ovoo.

About Silver Elephant Mining Corp.

Silver Elephant Mining is a premier silver mining and exploration company. It also owns 100 per cent of Mega Thermal Coal Corp. and 39 per cent of Oracle Commodity Holding Corp. Oracle has equity investments in nickel and vanadium mining companies.

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