Key Highlights – Infill and resource expansion drilling at Reliquias

Drill Hole SMR136-23-SCS (SCS vein)

1.45 m @ 205 g/t Ag, 4.06% Pb, 8.20% Zn, 0.26% Cu and 0.81 g/t Au, including

0.85 m @ 331 g/t Ag, 6.30% Pb, 12.61% Zn, 0.41% Cu and 1.24 g/t Au

Drill Hole SMR139-23-PER (PER vein)

5.90 m @ 188 g/t Ag, 0.22% Pb, 0.45% Zn, 0.02% Cu and 0.48 g/t Au, including

2.05 m @ 360 g/t Ag, 0.38% Pb, 0.81% Zn, 0.04% Cu and 0.83 g/t Au

Drill Hole SMR132-23-PER (PER vein)

1.05 m @ 431 g/t Ag, 1.90% Pb, 2.16% Zn, 0.03% Cu and 0.34 g/t Au

Drill Hole SMR134-23-PER (PER vein)

1.30 m @ 301 g/t Ag, 0.13% Pb, 0.11% Zn, 0.04% Cu and 0.28 g/t Au, including

0.80 m @ 450 g/t Ag, 0.14% Pb, 0.12% Zn, 0.04% Cu and 0.41 g/t Au

Silver Mountain Resources Inc. (TSX-V: AGMR) (OTCQB: AGMRF) is pleased to announce results from fourteen additional drill holes from its ongoing infill and resource expansion program at its 100% owned Reliquias mine, central Peru. All of the holes are part of Phase 2 of its 2023 infill and resource expansion program and are not included in the current mineral resource estimate announced on April 12^th, 2023.

Phase 2 of the 2023 drill program consists of 12,500 metres of NQ and HQ drilling aimed at confirming certain high grade areas of the historical mineral resource which was not included in the Company´s current resource estimate (see news release dated April 12^th, 2023 ). So far, drilling crews have completed approximately 7,600 metres of this program with two underground rigs, and the Company has received results from 22 drill holes (see also news releases dated July 19^th and August 16^th, 2023).

Alvaro Espinoza, CEO of Silver Mountain, stated, “We are very happy to see such high grade base metal results from the Sacasipuedes (“SCS”) vein. The Reliquias mine has long been known for hosting very high grades on its multiple mineralized veins, and it is gratifying to confirm such grades with our recent drilling. Hitting 19% of combined zinc and lead grade confirms that some of the highest grade portions of the mineralizaed system remain outside of our current mineral resource base and our drill program is therefore good value for money.”

Mr. Espinoza continued, “Coupled with the recent discovery of the Natividad vein, we feel increasingly confident that our resource expansion drill program will continue to give us pleasant surpirses and allow us to grow the Reliquias resource significantly. Our drilling and mine rehabilitation program continues at full speed and we look forward to updating the market as we receive results.”

Discussion of 2023 Drilling Results

The Company has so far completed 24 drill holes on the Sacasipuedes and Perseguida vein systems from three underground drill platforms, two from Sacasipuedes and one from Perseguida. 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 along the Sacasipuedes vein has tested its southeast extension, several hundred metres from the limits of the current mineral resource. Figure 2 shows a longitudinal section of the SCS vein with the updated drill results. The best results were obtained in drill hole SMR-136-23-SCS with 1.45 m @ 205 g/t Ag, 4.06% Pb, 8.20% Zn  0.26% Cu and 0.81 g/t Au. Mineralization remain open along strike and at depth, and high grade trend can be identified towards the southeast and at depth near the northwestern extension of the vein.

Drilling along the Perseguida vein (“PER”)  has focused along the northwestern extension of the vein, aimed at testing the deeper levels of the vein, beyond the lowest mining levels from the historic mine. The PER vein was not included in the current mineral resource estimate for the Reliquias mine. The latest results show significant silver equivalent grades extending the known mineralization along strike and down dip. Figure 3 shows a longitudinal section of the PER vein showing results from the Company´s drilling and the location of the historic workings. The best results from the PER vein reported here were obtained in drill hole SMR-142-23-PER with 1.50m @ 263 g/t Ag, 0.73% Pb, 1.61% Zn, 0.18% Cu and 0.36 g/t Au. Mineralization remains open along strike and at depth.

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. Full results from the BQ diameter drilling have now been announced (see also March 29^th and July 19^th news release at  https://agmr.ca/news/ https://agmr.ca/delineation-drilling-at-agmrs-reliquias-mine-confirms-high-grade-intercepts/). The second phase of infill drilling started in June 2023 and continues with 3 rigs working in the upper levels of the MTC (Matacaballo), MTS (Meteysaca), PER (Perseguida), and SCS (Sacasipuedes) vein systems, where high grade historical resource blocks remain outside of the current resource estimate. The Company has also recently announced the discovery of the NAT (Natividad) vein. The Company plans to incorporate these high-grade blocks in future resource estimates. Results will be announced as they become available.

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 currently exploring its 100% owned Castrovirreyna Project, consisting of over 60,000 hectares of highly prospective mineral claims and concessions located in the Huancavelica Region, central Peru. For additional information regarding the Castrovirreyna Project, please refer to the Company’s technical report, titled NI 43-101 Technical Report Mineral Resource Estimate for the Reliquias Mine, Huancavelica- Peru, dated March 27, 2023, effective date March 18, 2023, available at https://sedar.com.

Figure 1: Drill Hole Location Map of the 2023 Drill program (CNW Group/Silver Mountain Resources Inc.)

Notes 1True thicknesses are shown only where they can be determined. 2 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: Location and summary of results from Phase 2 of the 2023 underground drill program (CNW Group/Silver Mountain Resources Inc.)

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. Figure 2: Longitudinal section of the Sacasipuedes vein (CNW Group/Silver Mountain Resources Inc.)