Key Highlights – Underground diamond drilling at Reliquias

Drill Hole SMR169-23-PAS (PAS vein)

• 2.55 m @ 492 g/t Ag, 1.05% Pb, 2.38% Zn, 0.09% Cu and 2.06 g/t Au, including
• 0.20 m @ 2,558 g/t Ag, 6.37% Pb, 16.49% Zn, 0.41% Cu and 18.61 g/t Au

Drill Hole SMR153-23-SCS (NAT vein)

• 1.60 m @ 33 g/t Ag, 2.74% Pb, 7.02% Zn, 0.51% Cu and 0.04 g/t Au, including
• o 0.35 m @ 77 g/t Ag, 8.37% Pb, 21.53% Zn, 1.03% Cu and 0.09 g/t Au

Drill Hole SMR166-23-VUL (VUL vein)

• 0.85 m @ 14 g/t Ag, 1.18% Pb, 2.21% Zn, 0.06% Cu and 3.50 g/t Au, including
• 0.55 m @ 16 g/t Ag, 1.42% Pb, 2.82% Zn, 0.08% Cu and 5.09 g/t Au

Silver Mountain Resources Inc. (TSX-V: AGMR) (OTCQB: AGMRF) is pleased to announce the final batch of results from the second phase of its 2023 underground drilling campaign at its 100% owned Reliquias mine, central Peru. Drill rigs have now been demobilized, and the Company’s geologists are finalizing the database to be used in the upcoming resource update incorporating all results from the work carried to date.

Alvaro Espinoza, President and CEO of Silver Mountain, commented: “The past few months have been transformational for Silver Mountain. Not only have we advanced with our mine rehabilitation program, preparing the Project for the next stage in its development, but we have completed the 2023 drill program on time and in line with our budget. We have confirmed and expanded the high grade zones on our known vein systems, and we have discovered new veins such as Natividad. This last batch of results include some of the best silver and base metal ones seen in this program, and we very much look forward to delivering the updated database to our consultants for preparation of an updated mineral resource estimate which, in turn, will be used to prepare a Preliminary Economic Assessment for Reliquias.”

Mr Espinoza concluded: “Silver Mountain is committed to restarting operations at Reliquias during the first half of 2025, and completing this drill program fits neatly with this strategy. We look forward to updating our shareholders on our progress towards production.”

Discussion of 2023 Drilling Results

The second phase of the 2023 drill program consisted of 45 underground diamond drill holes totaling 12,140 metres of HQ and NQ diameter drilling from 6 platforms targeting the Sacasipuedes, Perseguida, Pasteur, Vulcano, Natividad, Matacaballo and Beatita veins. The Company has now received results from all completed drill holes  and details on the location of the underground drill platforms and drill traces are found in Figure 1. Table 1 also shows a summary of the results announced in this news release. Details from all drill holes announced to date will be posted on the Company’s website (https://agmr.ca/)

Drilling during the last part of Phase 2 of the 2023 drill program focused on the eastern extension of the Matacaballo vein system, near the intersection with the Pasteur, Beatita and Vulcano veins, all three of which are northwest-southeast trending structures which were not incorporated into the current mineral resource estimate. Drilling was aimed at stepping out on known veins, tightening the drillhole spacing so as to incorporate them into the mineral resource estimate, and testing the continuity of previously undrilled or unknown veins such as Vulcano and Natividad respectively.

At the newly discovered Natividad vein, drill Hole SMR-153-23-SCS hit the vein at approximately 50 metres above the intercept in drill hole SMR-140-23-SCS (2.20 m @ 42 g/t Ag, 2.79% Pb, 3.84% Zn, 0.75% Cu and 0.06 g/t Au – see news release date September 27, 2023). The very high lead and zinc grades, within a wide vein interval, confirm Natividad´s potential to host a significant base metal resource. The zone remains open along strike and at depth. Figure 2 shows a long section of the Natividad vein with the intercepts hit to date.

Drilling on the Pasteur vein has found high grade silver and gold mineralization below existing workings, and has extended the mineralized structure approximately 80 metres to the northwest. The highest grade zone remains open along strike to the northwest and at depth. Figure 3 shows an updated long section of the Pasteur vein. Twelve of the drill holes reported here intersected the Vulcano vein, one of several parallel structures to Pasteur, including the Beatita vein (“BEA”). Drilling tested approximately 700 metres of strike length and 300 metres of down dip extension along the VUL vein, with the best gold and silver results found near the deepest intercepts on hole SMR166-23-VUL. Figure 4 shows a long section of the VUL vein.

The 2023 drill program consisted of two phases: an initial 3,500 metre phase using BQ diameter core (now completed); and a second 12,140 meter phase using NQ and HQ diameter core. Full results from the BQ diameter drilling have been announced (see also March 29th and July 19th news release at https://agmr.ca/news/). The second phase of infill drilling started in June 2023 and was completed in October 2023. The Company plans to incorporate all of this drilling in an upcoming mineral resource estimate. Full results have now been received and announced.

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.

Figure 1 Drill Hole Location Map of Phase 2 of the 2023 Drill program (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 1: Results from Phase 2 of the 2023 drilling program reported in this news release (CNW Group/Silver Mountain Resources Inc.)

Figure 2 Long section of the Natividad vein – notes on calculation of AgEq values are detailed below Table 1 (CNW Group/Silver Mountain Resources Inc.)

Figure 3 Pasteur Vein longitudinal Section showing grade thickness values – AgEq values are calculated using parameters described for Table 1 (CNW Group/Silver Mountain Resources Inc.)

Figure 4 Longitudinal section showing grade thickness values on the Vulcano vein – AgEq values are calculated using parameters described for Table 1 (CNW Group/Silver Mountain Resources Inc.)