Mr. Alvaro Espinoza reports

SILVER MOUNTAIN INCREASES PREVIOUSLY ANNOUNCED BOUGHT DEAL FINANCING TO C$21.7 MILLION

Silver Mountain Resources Inc., due to strong demand, has increased the size of the previously announced bought deal offering of units to 16,722,000 units at a price of $1.30 for gross proceeds of $21,738,600. Each unit will comprise one common share in the capital of the company and one-half of one common share purchase warrant. Each warrant will entitle the holder to purchase one common share at an exercise price of $1.70 for 24 months following the completion of the offering. The company previously entered into an agreement with Velocity Capital Partners as sole bookrunner on behalf of a syndicate of underwriters. The company has granted the underwriters an option, exercisable in whole or in part, to purchase up to an additional 2,508,300 units for a period of 30 days from and including the closing date of the offering to cover overallotments, if any, and for market stabilization purposes. The underwriters shall be under no obligation whatsoever to exercise the overallotment option in whole or in part. If the overallotment option is exercised in full, the aggregate gross proceeds of the offering will be approximately $25-million.

The units will be offered by way of: (i) a prospectus supplement to Silver Mountain's short form base shelf prospectus dated Oct. 28, 2024, in each of the provinces and territories of Canada, except Quebec; (ii) in the United States or to or for the account or benefit of U.S. persons as defined by Regulation S under the United States Securities Act of 1933, as amended, by way of private placement pursuant to the exemption from registration provided for under Regulation D and/or Section 4(a)(2) and Rule 144A of U.S. Securities Act and the applicable securities laws of any state of the United States; and (iii) in jurisdictions outside of Canada and the United States as are agreed to by the company and the underwriters on a private placement or equivalent basis.

The company intends to use the net proceeds from the offering to further develop the Reliquias mine, Caudalosa plant and related facilities, and for working capital and general corporate purposes.

The offering is expected to close on or about July 29, 2025, and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.

Access to the prospectus supplement, the base shelf prospectus and any amendment to such documents is provided in accordance with securities legislation relating to the procedures for providing access to a shelf prospectus supplement, a base shelf prospectus and any amendment. The base shelf prospectus is, and the prospectus supplement will be (within two business days from the date hereof), accessible on SEDAR+. An electronic or paper copy of the prospectus supplement, base shelf prospectus and any amendment to such documents may be obtained, without charge, from Velocity Trade Capital Ltd. by mail at 100 Yonge St., Suite 1800, Toronto, Ont., M5C 2W1, by telephone at 416-323-2154, or by e-mail at syndication@velocitytradecapital.com, by providing the contact with an e-mail address or address, as applicable.

About Silver Mountain Resources Inc.

Silver Mountain is a Canadian mining company focused on the development of silver and polymetallic projects in Peru. The company's flagship asset is the Reliquias project, located in a prolific mining district with established infrastructure and strong community relations.

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