Mr. Alvaro Espinoza reports

SILVER MOUNTAIN LAUNCHES 14,000-METER FIRST-PHASE DRILL PROGRAM AT CAUDALOSA; UPDATE ON PLANNED RESTART AT RELIQUIAS

Silver Mountain Resources Inc. has commenced the first phase of a 14,000-metre diamond drilling campaign at its Caudalosa mine, alongside a significant operational advancement at the Reliquias mine, as the company accelerates toward its fully financed third quarter 2026 production restart.

Caudalosa drill program

The company has commenced the first phase of a 14,000-metre drill program at Caudalosa, targeting resource expansion, grade enhancement and the delineation of additional minable zones. Initial drill results are expected in April, 2026.

This program marks the beginning of a disciplined growth strategy designed to unlock Caudalosa's full geological potential, with a focus on converting mineralized targets into near-term production opportunities and long-term value for shareholders. With silver fundamentals strengthening and capital markets reopening to high-quality silver developers, Silver Mountain is advancing exploration at a critical moment in the cycle.

Reliquias mine restart

Development at the Reliquias mine remains on track and on budget for a planned restart of operations in Q3 2026. Multiple work streams are advancing in parallel in connection with the restart.

Key operational highlights include:

• Raiseboring operations have commenced, accelerating underground infrastructure readiness.
• Approximately 5,000 tonnes of mineral have been stockpiled to date, which will be supplemented by additional development ore to provide plant feed to the start of operations.
• Installation of key new equipment is already complete or advancing according to schedule. Installation of refurbished plant components will begin by the end of March, and other plant equipment is completing maintenance as per schedule.
• Project expenditure is tracking according to plan.

The restart of Reliquias is expected to materially reposition Silver Mountain as a producing silver company, with cash flow potential and operational leverage to silver prices.

Strategic transition: from restart to expansion

With its recent Toronto Stock Exchange graduation completed, a strong treasury position and operational execution advancing on schedule, Silver Mountain is entering a new phase defined by:

• Production restart at Reliquias;
• Targeted resource growth and production pipeline expansion at Caudalosa;
• A strategy to build a multiasset silver platform in Peru.

The company anticipates that 2026 could be a transformational year, with exploration catalysts in the near-term exploration catalysts at Caudalosa and medium-term production restart visibility at Reliaqias.

Alvaro Espinoza, chief executive officer of Silver Mountain, commented: "We are executing our strategy decisively. Reliquias is advancing on schedule with infrastructure development under way, plant installation about to begin and mineral already stockpiled for processing. At the same time, we have commenced a 14,000-metre drill campaign at Caudalosa targeting resource expansion. With initial results at Caudalosa expected in April, 2026, and a Q3 2026 restart at Reliquias firmly in sight, we are positioning Silver Mountain for a rerating as we transition into a growth-oriented silver producer."

Qualified person

Antonio Cruz Bermudez, PGeo, registered member, FAIG, has reviewed and approved the scientific and technical disclosure in this news release. Mr. Bermudez is a qualified person (as defined by National Instrument 43-101 (Standards for Disclosure for Mineral Projects)) and considered independent of the company for purposes of Section 1.5 of NI 43-101.

About Silver Mountain Resources Inc.

Silver Mountain 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.

The scientific and technical information on the Reliquias mine is supported by the technical report entitled "Amended and Restated NI 43-101 Technical Report: Preliminary Economic Assessment, Reliquias Mine" and dated Oct. 28, 2024 (with an effective date of May 15, 2024), which was prepared for the company by Steven L. Park, Mr. Bermudez and Gerardo Acuna. Reference should be made to the full text of the Reliquias PEA, which is available on SEDAR+ under Silver Mountain's issuer profile for the assumptions, qualifications and limitations relating thereto.

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