Mr. John Lee reports

SILVER ELEPHANT RECEIVES FAVORABLE ARBITRATION AWARD IN DISPUTE WITH ANDEAN PRECIOUS METALS

Silver Elephant Mining Corp. has received a favourable arbitration award in its dispute with Andean Precious Metals Corp. arising from a contractual dispute under the parties' master service agreement and related sales and purchase agreement executed on Sept. 11, 2023. As previously disclosed in its news release dated Feb. 27, 2025, Silver Elephant delivered a dispute notice to Andean under the MSA, which led to the commencement of the arbitration proceedings.

Pursuant to the binding decision, the arbitrator found that Andean breached the MSA by failing to pay additional consideration owing to Silver Elephant and ordered Andean to pay Silver Elephant $1.0-million (U.S.), together with prejudgment interest of approximately $36,077.37 (U.S.), compounded monthly from Dec. 18, 2024, to the date of the award.

In her 88-page award dated Jan. 26, 2026, the arbitrator rejected all of Andean's counterclaims, including allegations that Silver Elephant wrongfully terminated the MSA, as asserted in Andean's news release dated Dec. 31, 2024. The arbitrator further found that Silver Elephant did not engage in any illegal mining activities, as alleged by Andean and by Corporacion Minera de Bolivia (Comibol), as detailed in the company's news release dated Dec. 31, 2024.

The arbitrator further ordered that $274,553.55 (U.S.) in respect of a security deposit advanced by Andean in 2024 be set off against the additional consideration payable to Silver Elephant. This set-off amount is consistent with Silver Elephant's calculations and results in a substantial net recovery to the company. The outcome is well received by Silver Elephant.

Separately, the company is evaluating further claims against Andean in connection with Andean's continuing mining activities in the Paca area, which form a core part of the mining production contract that has been in dispute since Dec. 31, 2024, between Comibol and Silver Elephant. The MPC had granted Silver Elephant exclusive rights to mine and develop the Pulacayo and Paca projects since 2019. Silver Elephant continues to pursue a number of administrative and judicial avenues to reinstate the MPC with Comibol, and will provide further updates as appropriate.

About Silver Elephant Mining Corp.

Silver Elephant is a mineral exploration company focused on the development of its silver-lead-zinc project in Bolivia.

We seek Safe Harbor.