Mr. John Lee reports

SILVER ELEPHANT TO START SULPHIDE MINING IN 2024 AT THE PACA PROJECT IN BOLIVIA

Silver Elephant Mining Corp. intends to begin phase 1 mining of sulphide materials this year at its Paca silver project in Potosi department in Bolivia.

The company has completed the design for a phase 1 underground mine plan at Paca, aimed at extracting approximately 10,000 tonnes of mineralized materials. The objective is to generate cash flow and verify the Paca resource model. The Paca sulphide project is outside the of scope of the oxide sales and purchase agreement and master services agreement with Andean Precious Metals Corp., detailed in the news release dated Sept. 12, 2023.

Phase 1 of the project plan is expected to last approximately five months, beginning in September, 2024, starting with the development of a 367-metre tunnel at level 0, with dimensions of 2.4 metres in height by 2.5 metres in width, at a 1-per-cent inclination, into the Paca dome mineralization. The total length of the tunnel will cross an estimated waste section of 160 metres and mineral section of 207 metres.

The tunnel will provide access to the mineralized materials, which will be mined using the shrinkage stoping method. The two stopes are designed with approximate dimensions of 30 metres in length by 20 metres in height by four metres in width at a targeted peak extraction rate of 150 tonnes per day from November, 2024, to January, 2025. The expected average grade of extracted and sorted sulphide materials is 412 grams per tonne (g/t) silver (Ag), 1.09 per cent lead (Pb) and 0.38 per cent zinc (Zn), based on diamond drill holes at Paca and internally developed mine model. This material is contained within the Paca resource estimate.

Several examples of high-grade intercepts within the engineered mineralized mining zone are provided in an attached table.

The full drill hole assay results have previously been released on SEDAR+.

Capital expenditure, processing and concentrate sales

The company owns the necessary underground mining equipment that is warehoused near Paca at the historic Pulacayo mine site. This will be used during phase 1 mining and will enable minimal start-up procurement cost. The equipment inventory was stored there after the trial mining at Pulacayo by the previous operator in 2012.

During phase 1, the company will truck the mined materials from Paca to the Potosi town for toll milling. Potosi is located about 180 kilometres to the east by paved road. The company is finalizing agreements with custom mill facilities in Potosi to toll process mineralized materials to produce silver-bearing zinc and lead concentrates. The concentrates will then be sold to one of several major commodity traders active in Potosi.

Tunnel development is expected to start in September, with modest capital expenditure of under $200,000 on equipment refurbishment, labour and consumables. The toll milling and revenue generation are forecast to start in November.

The successful execution of the phase 1 plan could lead to full-scale Paca open-pit sulphide mining in 2025, in conjunction with Paca oxide operation, working in collaboration with Andean.

Potosi region

The Potosi town district hosts the Cerro Rico silver deposit and is home to about 100 privately owned, small-sized processing facilities (with capacity ranging from 50 to 500 tonnes per day) that produce zinc and lead concentrates sold to many active commodity traders. The Potosi department is one of most active silver-producing region in the world. The majority of Bolivia's annual 40 million ounces of silver production came from the Potosi department.

About Pulacayo-Paca

The Pulacayo-Paca silver-zinc-lead project, located in southern Bolivia, is situated near major mining projects operated by Andean (San Bartolome), Pan American Silver Corp. (San Vicente) and San Cristobal Mining Inc. (San Cristobal).

The Paca project hosts a high-grade silver resource according to a technical report by Mercator Geological Services, dated effective Oct. 13, 2020, titled, "Mineral Resource Estimate Technical Report for the Pulacayo Project, Potosi Department Antonnio Quijarro Province Bolivia." The report detailed 1.81 million tonnes of indicated resources with a grade of 256 grams per tonne (g/t) Ag, 1.22 per cent Pb and 1.22 per cent Zn (95 per cent of its resources being within 100 metres from the surface). Additionally, it reported 190,000 tonnes of inferred resources grading 338 g/t Ag, 0.98 per cent Pb and 0.61 per cent Zn. Notably, the deposit remains open for expansion to the east, west and at depth beyond the current resource definition boundaries.

The mineral resource estimate from the technical report is provided in an attached table.

Oxide resources are based on a pit-constrained estimate using a cut-off of 90 g/t Ag. Sulphide resources are based on a pit-constrained estimate using a cut-off of 200 g/t AgEq (silver equivalent). AgEq equals silver equivalent (recovered) equals (Ag g/t times 89.2 per cent) plus ((Pb per cent times (95 U.S. cents per pound (lb) lead (Pb) divided by 14.583 troy ounces per lb divided by $17 (U.S.) per troy ounce Ag) times (10,000 times 91.9 per cent)) plus ((Zn per cent times ($1.16 (U.S.) per lb Zn divided by 14.583 troy ounces per pound dividend by $17 (U.S.) per troy ounce Ag) times (10,000 times 82.9 per cent)). Sulphide zone metal recoveries of 89.2 per cent for Ag, 91.9 per cent for Pb and 82.9 per cent for Zn were used in the silver equivalent (recovered) equation and reflect metallurgical testing results disclosed previously for the Pulacayo deposit. Matthew Harrington, PGeo, is the independent qualified person for the resource estimate.

The technical report was effective Oct. 13, 2020, and is available under the company's profile on SEDAR+. This news release includes an estimate of mineral resources as disclosed in the technical report. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

QA/QC (quality assurance/quality control)

An industry standard QA/QC program was used during the various drill campaigns. All core and other samples were split, with half being bagged, labelled and shipped directly to the laboratory. The other 50-per-cent split is retained in a secure facility. Both standards and blanks were inserted at regular intervals within each sample batch prior to shipment to the laboratory. These comprised 3 to 5 per cent (depending on the phase of the drill campaign) of analyzed material. For further details, the reader is referred to the National Instrument 43-101 cited above.

Qualified person

The technical contents of this news release have been prepared under the supervision of Bill Pincus, who is an independent consultant of the company. Mr. Pincus is a qualified person as defined by the guidelines of NI 43-101.

About Silver Elephant Mining Corp.

Silver Elephant is a silver mining company, with its flagship Pulacayo-Paca silver project in production since October, 2023, in Bolivia.

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