Key Highlights – Initial drilling on the Natividad Vein and mineral resource expansion drilling at Sacasipuedes vein system

Drill Hole SMR135-23-SCS (newly identified Natividad, or “NAT” vein)
1.55 m @ 81 g/t Ag, 2.51% Pb, 4.57% Zn, 1.80% Cu and 0.25 g/t Au, including
1.00 m @ 106 g/t Ag, 3.37% Pb, 5.84% Zn, 2.56% Cu and 0.09 g/t Au

Drill Hole SMR140-23-SCS (NAT vein)
2.20 m @ 42 g/t Ag, 2.79% Pb, 3.84% Zn, 0.75% Cu and 0.06 g/t Au, including
1.00 m @ 62 g/t Ag, 5.40% Pb, 4.70% Zn, 0.98% Cu and 0.06 g/t Au

Drill Hole SMR140-23-SCS (mineralized breccia)
0.60 m @ 1,319.55 g/t Ag, 0.86% Pb, 2.82% Zn, 0.03% Cu and 6.19 g/t Au, including
0.30 m @ 2,623.00 g/t Ag, 1.68% Pb, 5.60% Zn, 0.06% Cu and 12.20 g/t Au

Silver Mountain Resources Inc. (TSX-V: AGMR) (OTCQB: AGMRF) is pleased to announce the discovery of the Natividad vein, a new copper rich vein at its 100% owned Reliquias mine, central Peru. Results from three of the initial four drill holes completed at Natividad have been received, all part of Phase 2 of the Company´s 2023 infill and resource expansion program. Drilling has also hit very high gold and silver grades near the Sacasipuedes vein, within a mineralized breccia body with strong argillic alteration.

Alvaro Espinoza, CEO of Silver Mountain, stated, “It is very exciting to have discovered a new mineralized vein, which has been named by our technical team as Natividad (or “NAT”). It is early days still, and the high grade copper values and true thickness observed augur well for its possible incorporation into a future mine plan. Our geologists are adapting the program to further test this structure along strike and at depth, and we will provide results as we receive them. Discovering a new vein in a historic district such as Reliquias proves once again that this project not only has a solid resource base on which to prepare a mine plan to re-start operations, but also has significant exploration upside to grow it further.”

Mr Espinoza continued, “The extremely high silver and gold grades found above the main Sacasipuedes vein is also exciting as it proves, once again, that bonanza type grades exist outside of the current mineral resource boundaries. We look forward to test the continuity of this new high grade hit in our ongoing underground drill program.”

Phase 2 of the 2023 drill program consists of 12,500 metres of NQ and HQ drilling aimed at infilling and growing the Company´s current mineral 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 18 drill holes (see also news releases dated July 19^th and August 16^th, 2023).

Discussion of 2023 Drilling Results

The Company has so far completed 22 drill holes on the Sacasipuedes and Perseguida vein systems from three underground drill platforms, two from Sacasipuedes and one from Perseguida. The Natividad discovery was made through drilling originally aimed at the Sacasipuedes vein, the results of which are also included in this release. 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.

Figure 1: Drill Hole Location Map of the 2023 Drill program

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 the Natividad vein

The Natividad vein is a newly identified mineralized structure found up to 100 metres below the Sacasipuedes vein. Company geologists believe that Natividad´s strike is oblique to the SCS vein, likely subparallel to the Matacaballo vein, and with a northerly dip. The mineralization is similar to the other veins in Reliquias, but with significantly higher quantities of chalcopyrite resulting in much higher grade copper grades than observed elsewhere. Company geologists interpret this style of mineralization as a separate event to the other veins drilled so far at Reliquias, suggesting that this deposit hosts a long-lived and multi-phase mineralization system. The Natividad vein has now been identified in four drill holes, spaced up to approximately 85 metres apart, and further drilling along strike and at depth is planned. Drilling has so far tested approximately 150 metres of strike length of Natividad, and it remains open laterally and vertically. Results from three drill holes have been received and are shown in Figure 2, a longitudinal section of the Natividad vein with the four completed drill holes.

Before hitting the Natividad vein, drill hole SMS-140-23-SCS intersected very high grade silver-gold at a shallow depth and high grade zinc-lead mineralization on the Sacasipuedes. The shallower precious metal mineralization is hosted in an argillically altered breccia with disseminated sulfides (see Figure 3), yielding some of the highest grade silver-gold grades seen so far at Reliquias, with a silver equivalent grade of approximately 120 oz/t AgEq. Company geologists are currently working on the interpretation of this style of mineralization. Further drilling will be needed to determine if this breccia is linked to the the Sacasipuedes vein system, or if it represents a new style of mineralization. The main Sacasipuedes intercept sits approximately 500 metres to the southeast of the outer limit of the current mineral resource, and below the lowest levels of the Reliquias mine historical workings. The SCS vein intercept of 0.50 metres with a combined Pb+Zn grade of 20.58%, is one the highest grade polymetallic results found to date. Further drilling is planned to test the lateral and down dip extensions of this intercept. Figure 4 shows a longitudinal section of the SCS vein with the location of this drill hole.

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 newly identified Natividad vein

Figure 3: High grade Ag-Au intercept in drill hole SMR140-23-SCS

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 4: Longitudinal section of the Sacasipuedes vein showing grade-thickness values

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/). 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 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.