Mr. Jose Garcia reports

SILVER X REPORTS SECOND QUARTER 2023 FINANCIAL RESULTS AND PROVIDES MANAGEMENT UPDATE

Silver X Mining Corp. has released its interim financial results for the three months ended June 30, 2023, for the Nueva Recuperada project in central Peru and has provided a management update. (All dollar amounts are expressed in U.S. dollars unless otherwise noted.)

Second quarter 2023 highlights:

• Generated revenues of $4.7-million, representing a 2-per-cent increase when compared with the quarter ended March 31, 2023, and a 46-per-cent increase when compared with the quarter ended June 30, 2022;
• Operating loss of $400,000, partially affected by the changes implemented in the mine planning, lower zinc prices and unexpected drop in grades in some mineralized areas, compared with an operating gain of $300,000 in Q2 2022;
• Net loss before tax of $1.4-million compared with a net loss of $1.3-million in Q2 2022;
• Cash costs of $20.80 per silver equivalent ounce produced and all-in sustaining cost of $29.76 per AgEq ounce produced, reflective of the sustaining capital expenditure invested in the development of the Tangana mining unit ($1.3-million adding $5.40 per AgEq ounce produced to the AISC); the development expenditure translated into 2,133 metres.

Commenting on the second quarter results, Silver X's chief executive officer, Jose M. Garcia, stated: "During the quarter, we encountered an unforeseen decline in grades within certain mineralized zones, leading to reduced metal output and adversely affecting our bottom line. The company continues actively working with its technical team, consultants and contractors to implement the previously announced operational reset with the goal of restarting the operations under an improved operating framework. I am very confident that these changes will help transform Nueva Recuperada project into one of the most attractive silver districts in the region."

Events subsequent to the end of the quarter:

• On July 7, 2023, the company announced the closing of the third and final tranche of its non-brokered private placement offering with the placement of 1,384,000 units at a price of 30 cents per unit for gross proceeds of $313,240 ($415,200 (Canadian)).
• On July 26, 2023, the company announced the pause of its operations for an estimated period between 30 and 45 days to implement a strategic operational reset.

Summary of selected financial results

The information provided herein is excerpts from the company's unaudited interim financial statements and management's discussion and analysis, which can be found on the company's website or on SEDAR+.

For the three months ended June 30, 2023, the company recorded:

• Net loss before tax of $1.4-million, compared with a net loss before tax of $1.3-million in Q2 2022;
• EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $600,000, compared with an EBITDA loss of $800,000 in Q2 2022;
• Adjusted EBITDA loss of $900,000, compared with an adjusted EBITDA loss of $700,000 in Q2 2022.

The increase in loss in the current period was primarily due to increased operating revenues from the sale of mineral production of $4.7-million compared with $3.2-million in the prior year (increase of $1.5-million), offset by cost of sales of $5.0-million compared with $2.8-million in the prior year (increase of $2.2-million reflecting the increased mill throughput during the quarter), resulting in an operating loss of $400,000 compared with an operating gain of $300,000 in the prior period. The company also had a foreign exchange gain of $400,000 compared with a foreign exchange loss of $39,000 in the comparative period. Loss or gain in translation of foreign operations fluctuates depending on the strength of the Peruvian sol and the Canadian dollar against the U.S. dollar.

Financial position

The available cash during the period increased by $300,000, reflecting the net inflow from its non-brokered private placement that further contributed with the continuing development of the Tangana mine unit, which saw higher development rates during the period. The company continues to actively manage the existing payables either through the cash flow generated from the operations and/or through other available sources of financing to further improve its working capital.

Management update

The company announces that its chief financial officer, Ronald Marino, will be stepping down from his role, effective Sept. 23, 2023, to pursue new personal endeavours. Mr. Marino will continue to support the company as CFO over the next month to ensure a smooth transition. The company is in the process of finding a suitable replacement.

Mr. Garcia stated: "I sincerely thank Ronald for his significant contributions as CFO during a foundational period for the company. His many achievements include constructing the early version of the company financial systems and processes and enabling the financings post company's merger in 2021. We wish him well in his future endeavours."

Mr. Garcia continued, "The company has initiated a search for a new chief financial officer and will provide updates on the progress of the search as appropriate."

Qualified person

Enrique Garay, MSc, PGeo (AIG member), 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. Garay is the company's chief operating officer.

About Silver X Mining Corp.

Silver X is a rapidly expanding silver developer and producer. The company owns the 20,000-hectare Nueva Recuperada silver district in central Peru, and produces silver, gold, lead and zinc from the Tangana mining unit. Its mission is to be a premier silver company delivering outstanding value to all stakeholders, and the company 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.