Mr. John Lee of Silver Elephant reports

SILVER ELEPHANT FILES ARBITRATION AGAINST ANDEAN PRECIOUS METALS CORP. TO COLLECT US$1,000,000 PLUS FEES

Further to its news release dated Dec. 31, 2024, Silver Elephant Mining Corp. has initiated arbitration proceedings against Andean Precious Metals Corp. for its failure to pay $1-million (U.S.).

On Sept. 11, 2023, Silver Elephant, Andean and their related parties executed a master services agreement (MSA) and related sales and purchase agreement (SPA), whereby Silver Elephant agreed 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.) in cash, depending on the silver price, and the reimbursement of operating and other expenses. Refer to the company's press release dated Sept. 12, 2023, for more details.

Pursuant to the terms of the MSA, Andean was required to pay Silver Elephant the additional consideration on Dec. 18, 2024, after the price of silver averaged over $28 (U.S.) for 260 trading days.

Andean chose not to pay the additional consideration when due on Dec. 18, 2024, and allowed the expiry of a contractual cure period to lapse on Dec. 28, 2024. Citing Andean's default, on Dec. 31, 2024, Silver Elephant announced the termination of the MSA and SPA. Refer to the company's press release dated Dec. 31, 2024, for more details.

Following unsuccessful attempts at dispute resolution through dialogue with Andean to collect of the additional consideration, on Jan. 14, 2025, Silver Elephant delivered to Andean a notice to arbitrate and related statement of claim to enforce the payment of the additional consideration plus interest and legal expenses which continue to accrue.

The relevant silver price calculation which triggered the additional consideration payable and copies of the MSA and SPA are available on the company's website. Copies of MSA and SPA are also available on SEDAR+.

Since the delivery of the arbitration notice, Andean has not agreed to any of the four arbitrators that Silver Elephant has proposed. On Feb. 20, 2025, Silver Elephant filed a petition to have the Supreme Court of British Columbia appoint an arbitrator in order to minimize further procedural delays.

In addition to its efforts to collect the additional consideration, Silver Elephant is preparing a response to address Andean's press release dated Feb. 6, 2025, in which Andean announced plans of commercial activities at the Real Del Monte and Termeridad mining concessions, which are located in areas covered under company's mining production contract (MPC) with Corporacion Minera de Bolivia (Comibol). The company is appealing the MPC cancellation by Comibol, as stated in the company's news release dated Dec. 31, 2024.

About Silver Elephant Mining Corp.

Silver Elephant is a mineral exploration company with the Paca silver project and the Triunfo gold project in Bolivia.

We seek Safe Harbor.