Mr. John Lee reports

SILVER ELEPHANT ANNOUNCES THE SALE OF UP TO 800,000 TONNES OF PACA'S SILVER OXIDE MATERIALS TO ANDEAN PRECIOUS METALS CORP.

Silver Elephant Mining Corp.'s Bolivian subsidiaries have entered into an exclusive sales and purchase agreement for the sale of up to 800,000 tonnes of silver-bearing oxide materials from the company's Paca project located in Potosi department in Bolivia to Andean Precious Metals Corp.'s Bolivian subsidiary.

Pursuant to the SPA, the Andean subsidiary will purchase the Products to be delivered to Andean subsidiary's plant (the "Facility") in Potosi, which is approximately 191 km from the Paca Project. Andean subsidiary will reimburse Silver Elephant Subsidiaries certain operating expenses and other expenses under the SPA, which will expire on the earlier of January 31, 2029, or when a total of 800,000 tonnes of Products have been delivered to the Facility ("the Term").

Silver Elephant's CEO John Lee comments: "Andean is Silver Elephant's ideal partner given Paca oxide's high silver recovery at Andean's commercial oxide facility, and Andean's financial strength. The proposed transaction will create jobs in the Pulacayo area and in the local indigenous Ayllu and deliver substantial royalty revenues to the Bolivian government. Sulphide extraction at Paca is planned after the initial oxide layer is removed."

The Paca project hosts an indicated resource of 6.5 million oz of silver (1,095,000 tonnes grading 185 g/t Ag) in oxide form near surface estimated by Mercator in a NI43-101 technical report dated October 20, 2020.

Separately, the company has entered into a Master Services Agreement (the "MSA") with Andean to provide its expertise in mining operations, community relations, logistics and access to all its technical and geological information for Paca. In exchange, Andean will pay Silver Elephant an aggregate of US$5,000,000 (the "Cash Consideration") as follows:

1. Non-refundable US$1,200,000 in cash on signing of the MSA;
2. Non-refundable US$1,800,000 in cash by January 31, 2024;
3. Non-refundable US$1,500,000 in cash before January 31, 2025;
4. Non-refundable US$500,000 in cash by January 31, 2026.

In addition to the Cash Consideration, if the London Bullion Market Association silver spot price averages over (the "Additional Consideration"):

1. (i) US$28/oz in any given 260 trading day-interval during the Term, then Andean will pay Silver Elephant a one-time payment of US$1,000,000 in cash;
2. (ii) US$32/oz in any given 150 trading day-interval during the Term, then Andean shall pay Silver Elephant a one-time payment of US$1,000,000 in cash.

Once either of the above payment is made, the applicable trading day-interval resets to zero for the other remaining Additional Consideration.

The Paca project is part of the company's Pulacayo project with a total indicated resource of 106.7 million oz silver, 1.4 billion pounds of zinc and 690 million pounds of lead published in the October-2020 Mercator report. Silver Elephant and its subsidiaries have spent over $35 million on Pulacayo and Paca, which is considered to be an advanced mining project with over 96,000 meters of drilling, and a historic feasibility study.

A subsidiary of Silver Elephant entered into a Mining Production Contract ("MPC") with Corporacion Minera de Bolivia ("COMIBOL"), a branch of the Bolivian Ministry of Mining and Metallurgy on October 3, 2019. The MPC grants this subsidiary the 100% exclusive right to develop and mine at the Pulacayo and Paca concessions for up to 30 years.

The Pulacayo Project is at the center of a thriving Bolivia silver mining district and is within 250 km driving distance to the San Cristobal mine, the Cerro Rico mine, Pan American's San Vicente mine, Eloro's Iska Iska project, and New Pacific's Silver Sands project.

Qualified Person

The technical contents of this news release have been prepared under the supervision of Bill Pincus, who is an independent consultant of the company. Bill Pincus is a qualified person as defined by the guidelines of NI 43-101.

About Silver Elephant Mining Corp.

Silver Elephant Mining Corp. is a premier silver mining and exploration company, with its flagship Pulacayo silver project in Bolivia.

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