Key Highlights – Channel sampling at Reliquias

Drill Hole SMR152-23-PER (PER vein)

• 1.15 m @ 454 g/t Ag, 0.70% Pb, 1.41% Zn, 0.03% Cu and 2.32 g/t Au, including
• 0.30 m @ 1,600 g/t Ag, 2.55% Pb, 5.08% Zn, 0.10% Cu and 8.00 g/t Au

Drill Hole SMR154-23-PER (PER vein)

• 1.15 m @ 354 g/t Ag, 1.56% Pb, 2.82% Zn, 0.13% Cu and 1.10 g/t Au, including
• 0.25 m @ 1,151 g/t Ag, 4.11% Pb, 3.76% Zn, 0.27% Cu and 3.24 g/t Au

Drill Hole SMR151-23-VUL (PAS vein)

• 1.25 m @ 105 g/t Ag, 2.16% Pb, 1.35% Zn, 0.49% Cu and 0.24 g/t Au, including
• 0.35 m @ 324 g/t Ag, 6.55% Pb, 3.79% Zn, 1.53% Cu and 0.60 g/t Au

Silver Mountain Resources Inc. (TSX-V: AGMR) (OTCQB: AGMRF) announced the receipt of results from six additional drill holes completed at its 100% owned Reliquias mine, central Peru. This is part of the Phase 2 of the 2023 drilling campaign, in which the Company has completed 12,043 metres of diamond drilling from 43 holes. So far, results have been received for 28 drill holes. Three underground drill rigs are currently in operation at Reliquias.

Alvaro Espinoza, President and CEO of Silver Mountain, expressed his enthusiasm: “The results from the Perseguida vein continue to exceed our expectations. We are seeing high grade precious metals and polymetallic values, proving once again that the Reliquias mine has more surprises under its sleeve. Our crews are working hard drilling, rehabilitating, and sampling the workings at the Reliquias Mine – having readily accessible tunnels and crosscuts will allow us to quickly restart mine production and collect additional representative data points to upgrade our resource in the future. As we move forward with our drilling, mine rehabilitation and channel sampling programs, we continue to see excellent silver grades in the known veins, as well as promising high grade polymetallic values in newly identified mineralized structures such as the Natividad vein. Reliquias continues to deliver, and our strategy of simultaneously growing the resource and working towards future production is bearing fruit.”

Discussion of 2023 Drilling Results

The Company has so far received results from drill holes on the Sacasipuedes, Perseguida and Matacaballo-Pasteur vein systems from four underground drill platforms: two from Sacasipuedes, one from Perseguida and one from Matacaballo-Pasteur-Vulcano. 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/)

Drill holes SMR152-23-PER and SMR154-23-PER targeted the central portion of the Perseguida (“PER”) vein, below the existing workings. Results confirm that the PER vein hosts some of the highest silver grades in the Reliquias mine, and confirms the lateral and verticial continuity of this mineralization. Drill hole SMR154-23-PER in particular, hit an area with little drilling coverage – approximately 80 metres from the nearest intercept – and confirms the continuity of high grades hit by earlier drilling under the old workings. Drill holes SMR151-23-VUL and SMR156-23-VUL were aimed at testing both the Pasteur (“PAS”) vein, on the easternmost sector of the ENE-WSW Matacaballo vein system, and the Vulcano vein, a parallel structure located less than 100 metres to the north of Pasteur. Results from Pasteur confirm the grades seen in earlier drilling and will be incorporated in future resource estimates. Results from Vulcano (“VUL”) suggest that, although the quartz vein mapped on surface extends at depth, the segment tested in these drill holes host lower silver grades. Additional drilling will test the lateral and vertical extensions to confirm if this quartz vein hosts significant ore shoots. Figures 2 and 3 show grade-thickness long sections of the PER and PAS veins respectively

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), 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 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.)

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: Long section of the PER vein showing grade thickness intercepts received to date (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 3: Long section of the PAS vein showing AgEq intercepts (CNW Group/Silver Mountain Resources Inc.)