Key Highlights – Channel sampling at Reliquias – weighted averages

MTC vein (Level 520): 130m with average vein width of 0.73m @ 553 g/t Ag, 1.27% Pb, 1.37 % Zn, 0.23 % Cu and 0.83 g/t Au

PAS vein (Level 710): 84m with average vein width of 0.86m @ 214 g/t Ag, 0.78% Pb, 1.56% Zn, 0.06% Cu and 1.51 g/t Au

BEA vein (Level 470): 23m with average vein width of 0.37m @ 727 g/t Ag, 1.35% Pb, 1.21% Zn, 0.24% Cu and 0.33 g/t Au

Silver Mountain Resources Inc. (TSX-V: AGMR) (OTCQB: AGMRF) is pleased to announce that it has received results from underground channel sampling carried out between June and August 2023, part of its ongoing mine rehabilitation program at its 100% owned Reliquias mine, central Peru.

The Company´s crews have continued to systematically sample the underground workings as part of the preparation work needed to restart operations at Reliquias in the future. A total of 3,499 samples were collected from the Sorpresa, Matacaballo, Perseguida, Meteysaca, Pozo Rico, Beatita, Pasteur and Vulcano veins. All samples were collected perpendicular to the veins using portable rock saws.

Alvaro Espinoza, President and CEO of Silver Mountain, said, “Our crews have continued to work at full speed rehabilitating and sampling the workings at the Reliquias Mine. Having readily accessible tunnels and crosscuts will allow us not only to potentially restart mine production quickly, but also provide us with sufficient representative data points to increase the confidence in our resource.”

Mr. Espinoza continued, “As Silver Mountain’s current exploration phase nears conclusion, we consistenly see excellent silver grades in known and new veins. Results from the Beatita vein, in particular, are very encouraging, as they confirm that there are multiple parallel NW-SE vein systems with grades similar to those found at Perseguida. Reliquias continues to deliver, and we optimistically look forward to the culmination of the current highly successful exploration phase and the preparation of an updated mineral resource estimate and publishing a new technical report”.

Channel Sampling Results

Silver Mountain geologists collected 3,499 channel samples from 1,046 channels between June and August 2023, as part of the Company´s plan to systematically sample the veins exposed in the Reliquias mine workings. Table 1 and Table 2 show the distribution of samples between the veins and vein systems, and the compiled weighted results respectively and Figure 1 shows the channel sampling coverage to date.

Channel sampling along an 84.40 metre long segment of the easternmost part of the Pasteur vein, on level 710 and near the intersection with the Beatita vein, yielded a weighted average of 13.80 oz/t AgEq, with an average vein thickness of 0.86 metres. Furthermore, channel sampling 700 metres to the northwest along the BEA vein, on level 470, highlighted a 23 metre long segment with an average thickness of 0.37 metres grading 26.81 oz/t AgEq, indicating that high grade silver extends both laterally and at depth. The Beatita vein is a 2.3 km long northwest-southwest trending vein, parallel to the Perseguida vein system, where some of the highest grades seen at Reliquias are hosted and it intersects the Pasteur vein system near the latter´s easternmost sxtension. The BEA vein is not included in the current mineral resource estimate. Figure 2 shows the results from the channel sampling in level 470 of the BEA vein. Figure 3 shows the results from level 710 of the PAS and BEA veins.

The Meteysaca vein system continues to show high grade silver and base metal grades. Results from a 130 metre long segment along level 520 from the central part of this NW-SE trending vein shows an average vein width of 0.73 metres with grades of 553 g/t Ag, 1.27% Pb, 1.37% Zn, 0.23% Cu and 0.85 g/t Au (22.51 oz/t AgEq). Figure 4 shows the sampling from level 520 of the MYS vein reported here.

Sampling elsewhere along a 30 metre segment of the Pasteur vein system on level 642 shows an average vein width of 0.78m with average grade of 10.69 oz/t AgEq. Figure 5 shows the location of this sampling interval.

Channel sampling of the Reliquias mine workings is part of the Company´s strategy of expanding the current mineral resource estimate by incorporating continuous vein samples from multiple veins in parallel with the mine rehabilitation and underground diamond drilling programs. Earlier channel sampling results from samples collected in 2023 were announced on August 16^th and May 9^th (please visit Silver Mountain´s website www.agmr.com for more details).The 2023 drill program consists of two phases: an initial 3,500 metre phase using BQ diameter core (now completed); and a second 12,500 meter phase using NQ and HQ diameter core, currently under way and approaching its conclusion.

Qualified Person

Antonio Cruz Bermudez, , P. Geo.  Registered Member MAIG is an independent consultant of the Company and the Qualified Person (within the meaning of NI 43-101) responsible for the MRE, has reviewed and approved the scientific and technical information contained in this news release.

About Silver Mountain 

Silver Mountain Resources Inc. is a silver explorer and mine developer planning to restart production at the Reliquias underground mine and undertake exploration activities at its prospective silver camps at the Castrovirreyna Project in Huancavelica, Peru.

Table 1: Distribution of underground channel samples reported in this news release (CNW Group/Silver Mountain Resources Inc.)

Notes: 1 Silver equivalent (Ag_Eq) grades are calculated using metal prices of: silver US$23.30/oz., gold US$1764/oz, copper US$9419/tm, lead US$2188/tm and zinc US$2813/tm. Silver equivalent grade is calculated as Ag_Eq (oz/t) = (Ag (oz/t) + (Au (g/t) * 2.40) + (Cu (%) * 2.70) + (Pb (%) * 0.80) + (Zn (%) * 0.80). Metal recoveries have not been applied in the silver equivalent value calculation. Table 2: Weighted assay results from systematic channel sampling along several veins, calculated for (CNW Group/Silver Mountain Resources Inc.)

Figure 1: Isometric view showing distribution of channel sampling at the Reliquias mine (sampling announced to date) (CNW Group/Silver Mountain Resources Inc.)

See notes from Table 2 for a description of how silver equivalent (Ag_Eq) grades are calculated. Figure 2: Isometric view of Level 470 of the Beatita vein showing the location of systematic channel sampling. Individual channel samples are colour-coded according to AgEq values. (CNW Group/Silver Mountain Resources Inc.)

See notes from Table 2 for a description of how silver equivalent (Ag_Eq) grades are calculated. Figure 3: Isometric view of Level 710 of the Beatita and Pasteur veins showing the location of systematic channel sampling. Individual channel samples are colour-coded according to AgEq values. (CNW Group/Silver Mountain Resources Inc.)

See notes from Table 2 for a description of how silver equivalent (Ag_Eq) grades are calculated. Figure 4: Isometric view of Level 520 of the Meteysaca vein showing the location of systematic channel sampling. Individual channel samples are colour-coded according to AgEq values. (CNW Group/Silver Mountain Resources Inc.)

See notes from Table 2 for a description of how silver equivalent (Ag_Eq) grades are calculated. Figure 5: Isometric view of Level 642 of the Pasteur vein showing the location of systematic channel sampling. Individual channel samples are colour-coded according to AgEq values. (CNW Group/Silver Mountain Resources Inc.)