Mr. Eric Fier reports

SILVERCREST RECEIVES UNDERGROUND DRILLING AND BULK SAMPLE PERMIT; EXTENSIVE PHASE II EXPLORATION PROGRAM TO COMMENCE IN NOVEMBER 2016

Silvercrest Metals Inc. has received its underground drilling permit, including the permission to mine a 100,000-tonne bulk sample for testing and processing off site. With these permits in hand, the company is preparing to commence an extensive phase 2 exploration program at the Las Chispas project.

Eric Fier, CPG, PEng, chief executive officer and president, commented: "We are very encouraged with the early success from our initial drilling campaign at Las Chispas, which has confirmed continuity of high grades over potential minable thicknesses. With the underground drilling permit, we will start drill-defining resources and preparing for a broader phase 2 exploration program. Our current focus is to systematically drill the Las Chispas and William Tell veins in a grid pattern for resource estimation, test vein extensions and to further explore the Babicanora area. Silvercrest's schedule is to establish a maiden resource estimation in the first half of 2017. We see further upside in this historic silver-gold mining district with prospective discoveries of multiple unidentified veins and drill testing Babicanora, which is considered the largest target in the district."

Summary of phase 1 exploration program

Silvercrest's recently completed phase 1 exploration work consisted of approximately 6,400 metres of drilling in 22 core holes. Details of the phase 1 drilling results were previously announced in the company's news releases dated Aug. 2, Sept. 7 and Sept. 14, 2016. In summary, 19 core holes have been drilled in the Las Chispas and William Tell veins. All drill holes intercepted quartz stockwork veinlets, veining and/or breccia. The drilling has defined several discoveries and confirmed high-grade continuity with resultant multiple drill intercepts of greater than 2,000 grams per tonne (g/t) silver equivalent (based on a silver-to-gold ratio of 75 to one and 100-per-cent metallurgical recovery). The remaining three holes, of the 22 drilled, targeted the La Victoria area, which is approximately one kilometre southwest of the historical Babicanora mine. The Las Chispas discoveries may be influenced by a controlling, crosscutting, high-grade structural corridor that extends from the Las Chispas vein through the William Tell vein and southwest beyond Babicanora. This corridor is potentially 750 metres wide, and high-grade mineralization appears to extend to a depth of at least 300 metres from the surface.

Some of the more significant core drilling results for the Las Chispas vein include 4.6 metres in true width of 4.56 g/t gold and 621.5 g/t silver, or 963 g/t silver equivalent, including 0.8 metre grading 18.55 g/t gold and 2,460 g/t silver, or 3,851 g/t silver equivalent, in hole LC16-05. Drill hole LC16-08 showed 7.2 metres in true width grading 2.41 g/t gold and 311.5 g/t silver, or 492 g/t silver equivalent, and a more recently announced drill assay from hole LC16-18 drilled one metre grading 1.55 g/t gold and 706 g/t silver, or 822 g/t silver equivalent.

The William Tell vein runs parallel to the Las Chispas vein and is about 120 metres to the west. The company discovered what appears to be an unmined faulted southern extension of the William Tell vein. Four of seven drill holes at William Tell intersected high-grade mineralization. The most notable core drilling results are 2.3 metres in true width grading 1.63 g/t gold and 583.6 g/t silver, or 705 g/t silver equivalent, including 0.8 metre of 3.81 g/t gold and 1,102 g/t silver, or 1,388 g/t silver equivalent, in hole LC16-03. Hole LC16-03 has been reinterpreted, and true thickness has been changed from 1.5 metres, as previously announced on Sept. 7, 2016, to 2.3 metres. Drill hole LC16-15 showed 1.3 metres in true width grading 1.94 g/t gold and 352 g/t silver, or 494 g/t silver equivalent.

Two new vein discoveries were made with drill holes LC16-13 and LC16-16 near the William Tell vein. Reported grades of these new veins were 4.79 g/t gold and 364 g/t silver, or 723 g/t silver equivalent, and 6.57 g/t gold and 395 g/t silver, or 888 g/t silver equivalent, over estimated true widths of 0.8 metre and 0.9 metre, respectively.

Of the 14 historically identified veins near the Las Chispas and William Tell veins, 12 have been located by the company. In the Babicanora area, five historically identified veins plus two additional veins have been located by the company.

As of Sept. 15, 2016, approximately six kilometres of 11.5 kilometres of underground workings have been rehabilitated by the company, with rehabilitation work continuing over the remainder of 2016. To date, an estimated 2,055 underground rock chip/channel samples have been collected and assayed, with 301 sample results grading above a cut-off grade of 150 g/t silver equivalent, averaging 4.35 g/t gold and 331.6 g/t silver, or 658 g/t silver equivalent. In addition to chip/channel sampling, underground backfill sampling is being completed while removing material to gain access to the workings. Average backfill sample results show 2.45 g/t gold and 226.3 g/t silver, or 410 g/t silver equivalent, for the Las Chispas vein; 1.24 g/t gold and 212.1 g/t silver, or 305 g/t silver equivalent, for the William Tell vein; and 1.88 g/t gold and 126.1 g/t silver, or 267 g/t silver equivalent, for the Babicanora vein. Backfill material will be considered in the upcoming resource estimation.

Surface dump trenching and sampling are continuing in easily accessible areas. Results as of Sept. 15, 2016, from 493 samples show potential economic material immediately available for possible processing. Average dump grades are 1.04 g/t gold and 78.1 g/t silver, or 156 g/t silver equivalent, with select grades up to 4,548 g/t silver equivalent. Dumps will be considered in the upcoming resource estimation.

Approximately 1.2 square kilometres of surface area have been geologically mapped with select sampling. Surface rock sampling results range from trace to 15.05 g/t gold and 1,340 g/t silver, or 2,469 g/t silver equivalent. Further expanding surface mapping and sampling are continuing.

Phase 2 exploration program outlook

The company is preparing an underground core drilling program of 2,000 metres and a minimum surface core drill program of 6,000 metres. Phase 2 will commence in November, 2016, and will test potential near-surface resource areas, as well as extensional targets along trend and below the historical workings.

Underground drilling is planned to start at Babicanora with approximately five to 10 core holes to initially test the historical mine area and multiple parallel veins. Drill access to the historical mine is provided by a four-metre-by-four-metre portal and a 230-metre drift which intersects the Babicanora vein. Subsequent phase 2 surface drilling is planned for Babicanora to initially evaluate its estimated 2.5-kilometre strike length with multiple parallel veins, stockwork and breccias. As with the Las Chispas and William Tell veins, Babicanora has not been previously drilled.

Additional surface and underground drilling will be conducted at the Las Chispas and William Tell veins where the company recently completed the successful phase 1 program. The focus will be on infill drilling for resource estimation and step-out drilling to test the possible southern and northern vein extensions of the Las Chispas and William Tell veins.

Phase 2 drilling will also include initial drilling of other targets on the company's concessions, including the historical Varela mine, Espiritu Santo mine and Granaditas mine. The company anticipates that this phase 2 campaign will be completed by early second quarter of 2017, with the results to be incorporated into a maiden resource estimate for the Las Chispas project in late second quarter of 2017.

As previously reported, the underground drill program will also focus on the delineation of a large bulk sample. A bulk sample is a large sample, in many cases hundreds or thousands of tonnes, and is generally a composite of material from development drifts and raises. It is also used to define metallurgical characteristics. With continued success, the company expects to begin with its bulk sample in late 2017. Arrangements for processing the bulk sample off site are required.

Other developments

As previously reported, the first Las Chispas National Instrument 43-101 technical report (non-resource) is currently being completed and will be available before the end of October, 2016.

The qualified person under National Instrument 43-101 (standards of disclosure for mineral projects) for this news release is Mr. Fier, who has reviewed and approved its contents.

About the Las Chispas project

The Las Chispas project is located in Sonora state, Mexico, and is in a historical silver-gold mining district which presently hosts two nearby precious metal producers. Historical information indicates that of the 19 historically reported veins in the Las Chispas district, only three veins, the Las Chispas, William Tell and Babicanora, had documented high-grade production, which occurred between 1880 and 1930. Silvercrest's initial focus is on these three veins. To the company's knowledge, none of the historical known veins has been drilled prior to the company's recently completed phase 1 drill campaign.

We seek Safe Harbor.