Mr. Jose Garcia reports

SILVER X REPORTS SECOND QUARTER 2023 PRODUCTION RESULTS, PLACES OPERATIONS TEMPORARILY ON HOLD TO LAUNCH AN OPERATIONS IMPROVEMENT PLAN, AND PROVIDES UPDATE ON THE EXTENSION OF THE AGREEMENT WITH LOCAL COMMUNITY

Silver X Mining Corp. has released production results for the three months ended June 30, 2023, for the company's wholly owned Nueva Recuperada project in central Peru. The company has also implemented an operational-performance-enhancing plan at the project and provided an update on the negotiations of the community agreement.

Second quarter 2023 production highlights:

• Steady production continued during the quarter with total throughput of 35,392 tonnes (20,877 in the second quarter of 2022);
• Total processed 296,493 silver equivalent ounces in Q2 2023, 35 per cent more than 219,488 AgEq ounces in Q2 2022;
• Metal production of 248,42 AgEq ounces with an average head grade of 269 grams per tonne AgEq (156,501 AgEq ounces with an average head grade of 310 g/t AgEq in Q2 2022).

"Silver X keeps on making progress with our Nueva Recuperada project. We experienced unexpected drop in grades in some mineralized areas, which drove the metal production down, staying at the previous quarter's level (see Silver X's press release dated May 11, 2023). At the same time, project development remained on track with 2,133 metres of underground development during the quarter," stated Jose M. Garcia, chief executive officer of Silver X.

Operational-performance-enhancing plan and update on negotiations of the community agreement

"We have been working with our technical team, consultants and contractors on several alternatives to enhance metal throughput at the project while reducing operating costs. Within this context, the company has decided to place the operations on hold for an estimated period between 30 and 45 days to implement a strategic operational reset. Additionally, we have commenced an accelerated infill drilling program, the goal of which is to increase the category of our resource and to provide a more solid mine schedule for the next few years," stated Jose M. Garcia, chief executive officer of Silver X.

Mr. Garcia continued: "In recent weeks, our operations have been disrupted by certain local suppliers pursuing individual benefits. These disruptions have included road blockades and other unlawful actions, causing distress for our work force and key partners. We are currently in negotiations to extend our social agreement for a minimum of 10 years, which would represent a significant endorsement to the project. In the meantime, we are safely slowing down our operations to ensure the safety of all involved. Silver X remains fully committed to the Huachocolpa community and our vision of making a positive impact in its history. This pause in operations presents an opportunity for us to finalize a mutually beneficial agreement in a spirit of collaboration and harmony."

As part of the operational reset, the company aims to reduce operational costs by 20 per cent and bring production back to 165,000 ounces AgEq per month (50-per-cent throughput increase). The company has been working to define a more solid mine plan, including a detailed mine development schedule and improvements in the mining method. As a result of this operational reset, the company expects to accelerate underground development ahead of production to allow the preparation of multiple headings and the levelling of production tonnage and grades. Furthermore, the company will reduce its head count, rationalize operations in close collaboration with its main mine contractor and implement a specific mill maintenance program.

A summary of the operational reset's objectives:

• 50-per-cent metal throughput increase and 20-per-cent cost reduction;
• Accelerated infill drilling program;
• Reduction of head count, rationalization of mine operations, reinforcing its strategic alliance with the main mine contractor;
• Wide implementation of sublevel stoping mining method and mill maintenance program;
• Negotiation with local communities for the extension of social agreement for a minimum of 10 additional years.

Corporate update

Fiona Grant Leydier has resigned as vice-president, investor relations and corporate marketing, effective immediately. Ms. Grant Leydier is leaving the company to pursue other opportunities. The company wishes Ms. Grant Leydier every success in her future endeavours.

Qualified person

A. David Heyl, BSc, CPG, who is a qualified person under National Instrument 43-101, has reviewed and approved the technical content of this news release for Silver X. Mr. Heyl is a consultant for Silver X.

Cautionary note regarding production without mineral reserves

The decision to commence production at the Nueva Recuperada project and the company's continuing mining operations as referenced herein are based on economic models prepared by the company in conjunction with management's knowledge of the property and the existing estimate of inferred mineral resources on the property. The production decision and operations are not based on a preliminary economic assessment, a prefeasibility study or a feasibility study of mineral reserves demonstrating economic and technical viability. Accordingly, there is increased uncertainty and economic and technical risks of failure associated with the production decision and operations, in particular: the risk that mineral grades will be lower than expected; the risk that additional construction or continuing mining operations are more difficult or more expensive than expected; and production and economic variables may vary considerably, due to the absence of a detailed economic and technical analysis in accordance with NI 43-101.

About Silver X Mining Corp.

Silver X is a rapidly expanding silver developer and producer. The company owns the more-than-20,000-hectare Nueva Recuperada silver district in central Peru and produces silver, gold, lead and zinc from the district's Tangana mining unit. The company's mission is to be a premier silver company delivering outstanding value to all stakeholders, and it aims to achieve this by consolidating and developing undervalued assets, creating value by adding resources, and increasing production while aspiring to social and environmental excellence.

We seek Safe Harbor.