Key Highlights – Channel sampling at Reliquias

Ayayay vein: 1.07m @ 336 g/t Ag, 10.7 % Pb, 11.7 % Zn, 2.7 % Cu and 0.34 g/t Au

Ayayay vein: 1.04m @ 414 g/t Ag, 17.3 % Pb, 8.5 % Zn, 3.1 % Cu and 0.28 g/t Au

Tensional Ayayay vein: 0.82m @ 510 g/t Ag, 7.4% Pb, 13.3% Zn, 1.0% Cu and 0.31 g/t Au

Tensional Ayayay vein: 1.17m @ 168 g/t Ag, 5.3% Pb, 10.1% Zn, 0.4% Cu and 0.15 g/t Au

Silver Mountain Resources Inc. (TSX-V: AGMR) (OTCQB: AGMRF) is pleased to provide an update on ongoing underground channel sampling and early-stage stockpiling of mineralized material at its Reliquias Project, located in Huancavelica, Peru. These activities are part of the Company’s planned mine-readiness work aimed at starting commercial production at its Reliquias Project during Q3 of 2026.

Alvaro Espinoza, President and CEO of Silver Mountain, said: “We are encouraged by the consistent strong grades from the Ayayay vein and associated structures – reinforcing the high-grade quality of the Reliquias deposit. The commencement of stockpiling adds to the substantial progress that we have been making at Reliquias, now visible on site. We are advancing the project with purpose as we work toward our targeted commercial production in Q3 2026. Our shareholders can expect continued delivery on the milestones that support that timeline. I am proud to highlight the outstanding performance of our team underground.”

Recent channel samples collected by the Company’s technical team from the Ayayay and Matacaballo vein systems, which include conjugate – or “Tensional” – veins, on Level 340 have returned high grades of silver, lead, zinc, and copper. The silver equivalent grades obtained during this round of sampling often exceed those reported in the mineral resource estimate (see https://agmr.ca/wp-content/uploads/2025/01/Final_-_7_-_AR_Tech_Report.pdf), confirming the existence of readily accessible high grade polymetallic veins at various mine levels. All samples were collected perpendicular to the veins using portable rock saws. Table 1 shows a summary of the results from the eight recently sampled channels.

Table 1: Underground channel samples reported in this news release

Note:

1. Silver equivalent (Ag_Eq) grades are calculated using metal prices of: Ag US$32.40/oz., Au US$3,188/oz, Cu US$9,502/tm, Pb US$1,984/tm and Zn US$2,756/tm. Silver equivalent grade is calculated as Ag_Eq (oz/t) = (Ag (oz/t) + (Au (g/t) * 2.15) + (Cu (%) * 1.03) + (Pb (%) * 0.58) + (Zn (%) * 0.58), using metallurgical recoveries of 94.5% Ag, 81.2% Au, 89.6% Pb, 85% Zn, and 93.6% Cu.

Figure 1 below presents a level plan of Level 340 at the Reliquias mine, where Company crews are continuing to upgrade underground workings in preparation for upcoming commercial production.

The Company also announces that it has now stockpiled approximately 525 metric tonnes of strongly mineralized material from ongoing rehabilitation and development activities at Reliquias, sourced entirely from the Ayayay vein system. This material was collected from 22 metres of new underground development, with initial extraction focused on levels 340 and 390, contributing roughly 150 and 375 tonnes respectively, all of which have been transported to the stockpile at the nearby Caudalosa plant. Building this stockpile is a key step in ensuring a smooth and efficient ramp-up once commercial mining operations begin. With underground work advancing steadily, the Company remains on track to meet its commitment to commence commercial production at the Reliquias mine in Q3 2026.

Qualified Person

The scientific and technical content in this news release has been reviewed and approved by Antonio Cruz Bermudez, P. Geo.  and Registered Member FAIG, who is a “qualified person” (as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects) and independent of the Company for purposes of Section 1.5 of National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

About Silver Mountain 

Silver Mountain Resources Inc. is a Canadian mining company focused on the exploration and development of silver projects in Peru. The Company’s principal asset is the Reliquias Project, a past-producing silver mine located in the Castrovirreyna district of Huancavelica. Silver Mountain is committed to creating long-term value for its shareholders through responsible mining, strong community engagement, and sustainable development practices.

Figure 1: Detail plan at 340 level showing sections of the Ayayay and Matacaballo vein systems (CNW Group/Silver Mountain Resources Inc.)