Mr. John Lee reports

SILVER ELEPHANT RENEWED DEIA LICENSE TO RESTART ULAAN OVOO OPERATION

Silver Elephant Mining Corp. has successfully renewed the detailed environmental impact assessment licence (DEIA) required to restart Ulaan Ovoo coal operations. The DEIA is subject to renewal by the Ministry of Environment every five years. The company has held 100-per-cent rights to Ulaan Ovoo mineral claims and mining licences in Mongolia since 2007.

Ulaan Ovoo features a single massive coal seam exposed to surface and highly sought-after quality of NCV 5,000 kilocalories/kilogram, ash 5 per cent and sulphur 0.3 per cent. The Australia Newcastle thermal coal benchmark pricing currently quoted $160 (U.S.) per tonne (NCV 6,000 kilocalories/kilogram, ash 15 per cent and sulphur 0.75 per cent).

A total of 18,757 tonnes of Ulaan Ovoo coal were exported to China via Erlian port from December, 2022, to May, 2023. The coal is then mostly transported to Chinese eastern seaports from Erlian by rail. The Ulaan Ovoo operation stopped in May due to falling global thermal coal prices and scheduled equipment repair. The thermal coal prices in September have recovered since May; however, they are still trailing the prices at the start of the year.

John Lee, chief executive officer of Silver Elephant, states: "Two thousand twenty-three was a remarkable year for the company's Mongolia operation, which generated cash flow from Ulaan Ovoo coal export to China. Our Mongolia subsidiaries are carefully managing expenses, while preparing to resume coal export as coal market conditions continue to improve alongside rising oil prices."

The mine and coal export will remain on standby while Silver Elephant finalizes export pricing with potential coal buyers.

About Silver Elephant Mining Corp.

Silver Elephant Mining is a premier silver mining company with its flagship Pulacayo-Paca silver project in Bolivia. It also owns 100 per cent of Mega Thermal Coal Corp. and 39 per cent of Oracle Commodity Holding Corp. Oracle holds royalties and equities in various mining projects.

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