Mr. Alberto Morales reports

ANDEAN PRECIOUS METALS SIGNS FIVE-YEAR EXCLUSIVE AGREEMENT TO PURCHASE UP TO 800,000 TONNES OF OXIDE MATERIAL FROM THE PACA SILVER PROJECT IN BOLIVIA

Andean Precious Metals Corp. and its wholly owned subsidiary, Empresa Minera Manquiri S.A. (Manquiri) (together with Andean, the Andean entities), have entered into a sale and purchase agreement (SPA) and master services agreement (MSA) with Silver Elephant Mining Corp. and several of its subsidiaries, including Apogee Minerals Bolivia S.A. (together with Silver Elephant, the Silver Elephant entities).

(All amounts are in U.S. dollars unless otherwise stated.)

Transaction highlights:

• Pursuant to the MSA, Silver Elephant will provide its expertise in mining operations, community relations, logistics, and access to all its technical and geological information for the Paca silver project, located less than 200 kilometres from Manquiri's San Bartolome mine.
• Under the SPA, Manquiri has an exclusive agreement to purchase up to 800,000 tonnes of oxide material from Paca. The SPA will expire on the earlier of: (i) Jan. 31, 2029; or (ii) when a total of 800,000 tonnes of oxide material have been delivered to Manquiri's facility.
• Total cash consideration consists of $5-million plus up to $2-million relating to a silver-price-linked contingency. Additionally, the Andean entitles will reimburse the Silver Elephant entities for certain operating expenses.
• Paca historical oxide mineral resources estimate as defined by Mercator Geological Services is 1.1 million tonnes of indicated mineral resources grading 185 grams per tonne (g/t) silver (Ag) and 350,000 tonnes of inferred grading 131 g/t Ag (1).
• SRK Consulting (USA) Inc. has been engaged to perform an independent evaluation and mineral resource estimate of Paca.
• Easily accessible by paved road, Paca is an undeveloped, epithermal silver and base metal deposit in Bolivia, located less than 18 kilometres northeast of the city of Uyuni and less than 200 kilometres southwest of Andean's San Bartolome mine and processing facilities near Potosi.

"We are pleased to announce this important milestone in the execution of our organic growth strategy in Bolivia. The Paca oxide material is expected to be an important source of oxide feed material for our San Bartolome mill over the next five years. We expect to commence production of the Paca material by the end of this year," stated Alberto Morales, Andean's executive chairman and chief executive officer. "Including this agreement, we have secured approximately one million tonnes of third party material since the beginning of 2023, and we continue to seek additional feed to extend the life and optionality of San Bartolome."

Consideration

The Andean entities shall pay total consideration of $5.0-million to Silver Elephant as follows: (i) an upfront payment of $1.2-million; (ii) $1.8-million by Jan. 31, 2024; (iii) $1.5-million by Jan. 31, 2025; and (iv) $500,000 by Jan. 31, 2026. In addition, the Andean entities shall pay to the Silver Elephant entities certain operating expenses, along with other select expenses.

In addition to the cash consideration, if the London Bullion Market Association silver spot price averages over:

• $28 per ounce (oz) in any given 260-day trading interval during the term, then Andean shall immediately pay to Silver Elephant an additional one-time non-refundable cash payment of $1-million;
• $32 per oz in any given 150-day trading interval during the term, then Andean shall immediately pay to Silver Elephant an additional one-time non-refundable cash payment of $1-million in cash in addition to the payment set forth above.

Once either of the above silver price-linked payments is made, the applicable trading day interval resets to zero for the other additional consideration.

Qualified person for Andean Precious Metals

The scientific and technical content disclosed in this news release was reviewed and approved by Donald J. Birak, independent consulting geologist to the company, a qualified person as defined by National Instrument 43-101, Standards for Disclosure for Mineral Projects, a registered member, Society for Mining, Metallurgy and Exploration (SME), and a fellow, Australasian Institute of Mining and Metallurgy (AusIMM).

About Andean Precious Metals Corp.

Andean is a growth-focused precious metals producer that owns and operates the San Bartolome project, located in the department of Potosi, Bolivia. San Bartolome has been operating continuously since 2008, producing an average of five million oz of silver equivalent per year. The company is seeking accretive growth opportunities in Bolivia and the Americas. Andean is committed to fostering safe, sustainable and responsible operations.

(1) Please see the Nov. 12, 2020, amended National Instrument 43-101 technical report on the Pulacayo project on Silver Elephant's company profile on SEDAR+ or Silver Elephant's website for technical and economic assumptions. Paca is the northern part of, and separate from, the Pulacayo deposit. The company is not considering the Mercator Geological Services estimates as current and has engaged SRK Consulting (USA) to perform an independent evaluation and mineral resource estimate of Paca.

We seek Safe Harbor.