Mr. Alvaro Espinoza reports

SILVER MOUNTAIN RESOURCES PROVIDES OPERATIONAL UPDATE ON RELIQUIAS RESTART AND DISTRICT DRILLING PROGRAMS

Silver Mountain Resources Inc. has provided an operational update on the advancement of restart activities at its flagship Reliquias mine located Huancavelica, Peru, confirming that all key workstreams are progressing in accordance with the company's planned timeline to restart commercial production at the Reliquias mine in Q3 2026.

Underground development activities at the Reliquias mine continue to advance steadily. To date, the company has completed approximately 1,500 metres of linear underground development, with development rates showing progressive month-over-month improvement as crews, equipment and operating procedures continue to be optimized. This progress represents an important milestone in mine access and infrastructure readiness in support of the planned restart.

In parallel, the company has accumulated approximately 2,500 tonnes of mineralized material in surface stockpiles. Grade information for this material will be reported in a subsequent press release, following completion of continuing verification, sampling and reconciliation procedures.

The company also reports that refurbishment activities at the processing plant are progressing according to schedule, with mechanical and electrical works advancing as planned. In addition, the rehabilitation of the tailings storage facility has been completed, constituting a key environmental and operational milestone supporting near-term production readiness.

As part of its continuing strategy to enhance resource confidence and support future mine planning, Silver Mountain is preparing to commence two separate drilling programs:

• At the Reliquias mine, the company plans to undertake an approximately 7,000-metre infill drilling program, focused on improving geological confidence within existing mine areas and supporting short- to medium-term production planning.
• At the nearby Caudalosa mine, located in Huancavelica, Peru, the company is planning a separate approximate 10,000-metre drilling program, targeting additional resource delineation and improved geological continuity.

The company continues to advance its restart activities with a focus on operational readiness, disciplined execution and risk management, while progressing toward its objective of starting commercial production in Q3 2026.

The company further notes that it is advancing the Reliquias restart supported by a strong treasury position of in excess of $32-million (U.S.), providing a solid financial foundation to execute planned restart and drilling activities alongside disciplined operational execution.

About Silver Mountain Resources Inc.

Silver Mountain Resources 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.

For additional information on the Reliquias project, please refer to the technical report titled "Amended and Restated NI 43-101 Technical Report: Preliminary Economic Assessment, Reliquias Mine, Department of Huancavelica, Peru" dated Oct. 28, 2024 (with an effective date of May 15, 2024), which was prepared for the company by Steven L. Park, Antonio Cruz Bermudez and Gerardo Acuna (the Reliquias PEA). Readers are encouraged to read the Reliquias PEA in its entirety, including all assumptions, parameters, qualifications, limitations and methods therein. The Reliquias PEA is intended to be read as a whole, and sections should not be read or relied upon out of context. The Reliquias PEA was prepared in accordance with National Instrument 43-101 and is available electronically on SEDAR+ under Silver Mountain's issuer profile.

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