Mr. Alvaro Espinoza reports

SILVER MOUNTAIN BEGINS COMMISSIONING AT RELIQUIAS; PRODUCTION EXPECTED TO COMMENCE IN Q3 2026

Silver Mountain Resources Inc. is providing a development update on its 100-per-cent-owned polymetallic underground Reliquias mine in the Huancavelica region of central Peru. Rehabilitation of the concentrator plant at the past-producing silver-rich mine is 95 per cent complete and the company expects first production to commence in the third quarter of 2026, on track with previous estimates.

Highlights

• Plant commissioning commenced: Industrial testing of all equipment in the plant circuit began early July, 2026, using low-grade ore as planned;

• Concentrator plant rehabilitation approaches completion: The Reliquias concentrator plant rehabilitation is approximately 95 per cent complete and remains aligned with the target restart of operations in the third quarter of 2026. The concentrator rehabilitation project has advanced through confirmatory metallurgical testing, equipment installation and operational readiness, among other activities.

• Primary processing circuits operational: The main processing circuits have been completed and tested. The crushing circuit is now operational, while the grinding and flotation circuits have completed key empty run tests and equipment checks. The remaining work focuses on completing the auxiliary systems and advancing hot commissioning and operational validations.

• Production to commence in coming weeks: Reliquias continues to advance toward production start-up in the third quarter of 2026, in line with guidance, followed by the operational ramp-up and commercial production.

• Other updates: An updated mineral resources estimate and an updated preliminary economic analysis at Reliquias are expected in the fourth quarter of 2026.

Alvaro Espinoza, chief executive officer of Silver Mountain, commented: "We continue to advance the Reliquias mine towards operational readiness, with plant rehabilitation almost complete and commissioning in progress. Our team is very excited by Silver Mountain's continued advancement from a developer to a producing company, and by the further value creation opportunities we see in our district beyond commercial production."

The following is a summary of the status of rehabilitation activities across the major processing circuits at the Reliquias concentrator plant:

• Crushing circuit: The primary and secondary crushing circuit has been fully installed, with key tests conducted on all primary and secondary crushing equipment.

• Grinding circuit: The nine-foot-by-11-foot ball mill has been installed together with its automatic operation system, including lubrication and hydraulic systems. No-load tests were completed and alignment, lubrication, vibration levels and electrical consumption were verified to be within acceptable operating parameters.

• Flotation circuit: The flotation cells and auxiliary equipment have been installed. Empty run tests for agitators, blowers, pumps and control systems have also been completed, confirming the readiness of the circuit for the next stages of operational integration.

• Thickening and filtering circuit: The thickening and filtering equipment is currently installed. The associated auxiliary water and air systems are approximately 80 per cent complete, supporting continued progress toward integrated plant operation.

• Auxiliary circuits: The auxiliary circuits are progressing through the integration of the plant's water supply, high- and low-pressure air supply, electrical systems, instrumentation, automation and control systems, and piping network.

• Remaining priorities: Current work also includes the installation and calibration of instrumentation, verification of automation and control systems, and operational validation of pH, foam level, and granulometry to ensure the plant is ready for commissioning.

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.

Qualified person

The scientific and technical content in this news release has been reviewed and approved by Antonio Cruz Bermudez, PGeo, and registered member of FAIG, who is a "qualified person" (as defined in National Instrument 43-101 -- Standards of Disclosure for Mineral Projects) and independent of the company.

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