Mr. John Lee reports

SILVER ELEPHANT'S PACA OPEN-PIT SILVER PRODUCTION SURPASSED 1.1 MILLION OZ

In September, 2024, Silver Elephant Mining Corp. mined a total of 28,879 tonnes of oxide materials (963 tonnes per day) with an average grade of 189 grams per tonne silver from its Paca project (products) and trucked the products to Andean Precious Metals Corp. in Potosi department, Bolivia.

The company has mined and shipped 205,682 tonnes of silver-bearing oxide materials grading 181 g/t silver, which is 1,105,401 ounces of silver based on reported government tax records, since Paca's operation began in October, 2023. The operation has seen remarkable grade consistency, and experienced no lost-time incidents or interruption.

Silver Elephant plans to sell and deliver up to 800,000 tonnes of Paca oxide materials to Andean for a total of between $5-million (U.S.) and $7-million (U.S.). At the current silver price and production run rate, the company expects to receive $2.5-million (U.S.) before Jan. 31, 2025. In addition, Andean has also agreed to reimburse Silver Elephant for operating expenses under the sales and purchase agreement detailed in the news release dated Sept. 12, 2023.

In addition to the Paca oxide operation, Silver Elephant commenced tunnel development of Paca sulphide operation in August as detailed in the company's news release dated July 8, 2024. The company expects revenue generation from the sulphide operation, which is outside of the scope of its agreements with Andean, by year-end of 2024.

"Today's production milestone is a step towards recrowning Pulacayo-Paca as a major silver producer with its illustrious silver production history. Silver Elephant is ramping up Paca silver production with the support from our partners and local communities. The company is incurring minimum share dilution and remains debt-free. We expect to rise through the ranks of the silver juniors league with our growth plans in 2025," commented John Lee, chief executive officer and chairman of Silver Elephant.

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 mineral resource estimate from the technical report is as shown in the attached table.

The technical report was filed on Oct. 26, 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.

About Pulacayo-Paca

The Paca project is part of the company's Pulacayo project with a total indicated resource of 106.7 million oz silver, 1.4 billion pounds of zinc and 690 million pounds of lead published in the technical report and attached table. Silver Elephant and its subsidiaries have spent over $35-million on Pulacayo and Paca, which is considered to be an advanced project with over 96,000 metres of drilling and a historic feasibility study.

A subsidiary of Silver Elephant entered into a mining production contract (MPC) with Corporacion Minera de Bolivia (COMIBOL), a branch of the Bolivian Ministry of Mining and Metallurgy on Oct. 3, 2019. The MPC grants the company's subsidiary an exclusive right to develop and mine at the Pulacayo and Paca concessions for up to 30 years.

The Pulacayo project is at the centre of a major silver mining district in Bolivia and is within 250 kilometres in driving distance to the San Cristobal mine, the Cerro Rico mine, Pan American's San Vicente mine, Eloro's Iska Iska project and New Pacific's Silver Sands project.

Qualified person

The technical contents of this news release have been prepared under the supervision of Carlos Zamora, who is an employee of the company and is not considered independent. Mr. Zamora is a qualified person as defined by National Instrument 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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