Mr. Peter Ball reports

SILVER HAMMER PROVIDES CORPORATE UPDATE

Silver Hammer Mining Corp. has provided a corporate update on the permitting status of its exploration assets in Idaho and Nevada, and also the status of the definitive share purchase agreement dated Sept. 27, 2023, to acquire a 100-per-cent interest in the Shafter silver deposit, a previously producing high-grade silver mine located in Presidio county in southwestern Texas, from Aurcana Silver Corp.

Silver Strand silver project, Idaho

Silver Hammer has recently received the acknowledgment from the United States Forest Service (USFS) that the plan of operations application applied for on April 5, 2023, was approved, subject to the payment of a reclamation bond. Please refer to the press release dated April 11, 2023. The plan of operations was composed of the following:

• Proposal for surface disturbance of 0.15 acre to include up to 3,940 feet of drilling;
• Outlines a comprehensive property-wide exploration program at Silver Strand, including geophysics, geologic mapping and structural analysis.
• Exploration follow-up on 2021 and 2022 exploration results from previous drilling, induced polarization (IP)/ resistivity and magnetic surveys, and rock sampling, which identified 15 priority drill targets that are scattered throughout the property.

Eliza high-grade silver and copper project, Nevada

Silver Hammer continues to advance its permitting efforts with the USFS and anticipates receiving approval of its plan of operations application in the second quarter of 2024. The application was originally submitted on April 26, 2023. Please refer to the company's press release dated May 2, 2023. The plan of operations was composed of the following:

• 17 drill sites, 4,265 feet of road construction and rehabilitation, and up to 6,740 feet of drilling. Drilling will follow up on results from 2021 and 2022 geologic mapping, and soil and rock sampling, and also the 2023 geophysical property-wide program which identified multiple drill targets located in the northern part of the property. The company has prioritized drill targets that are focused on key locations which reported high-grade silver, copper, lead and zinc hosted in carbonate replacement deposits (CRD) containing sulphide mineralization.
• Previous rock samples yielded results up to 1,540 grams per tonne (g/t) silver, 7.7 per cent copper, 15 per cent zinc and 11 per cent copper (refer to the company's news releases dated Dec. 6, 2021, and May 11, 2022, for previous technical review and disclosure).

Silverton silver project, Nevada:

The Silverton mine silver project remains permitted since March, 2022, which will allow the company up to 13 drill sites, 8,530 feet of drilling, 3,248 feet of constructed road and 200 feet of overland travel covering 2.35 acres of surface disturbance. The company's plan is to test areas around the existing mine.

These projects provide the company with three exciting, advanced, permitted exploration opportunities in 2024 for a discovery below and adjacent to multiple previous silver producers. The company is also reviewing accretive opportunities to joint venture each drill-ready project in 2024.

Shafter silver mine acquisition, Texas (as announced on Sept. 28, 2023)

The company continues to evaluate strategic financing opportunities to complete the acquisition of the Shafter silver mine previously announced on Sept. 28, 2023. Silver Hammer is working with various banking groups in Toronto to assist in potential financing alternatives, including either equity, royalty sale or convertible debt scenarios that will assist in closing the transaction as per the disclosed closing requirements, and, based on current interest, the company has invited various groups into its data room.

"The acquisition of the Shafter mine is lengthy due to normal regulatory requirements and finalizing various financing alternatives. We are focused on closing the proposed transaction as soon as possible. As indicated previously, based on the potential of the Shafter mine complex and district, the company has attracted key senior-level technical geological and mining advisers, including previous SVP/VP [senior vice-president/vice-president], exploration and VP/COO [vice-president/chief operating officer] mining experts that held executive roles with Hudbay Minerals, Coeur Mining, Silver Standard, Centerra, Mag Silver, Probe Mines, Hecla and Royal Oak Mines," commented Peter A. Ball, president and chief executive officer of Silver Hammer Mining. "The company continues to also advance its 100-per-cent controlled assets in Idaho and Nevada, and may review opportunities to joint venture these projects as interest arises."

Please refer to the company's press release dated Sept. 28, 2023, for details related to the Shafter mine acquisition.

Trading halt

Trading of the company's common shares will remain halted as a result of the announcement of the proposed transaction, and the company expects that trading will remain halted pending closing of the transaction, subject to earlier resumption upon Canadian Securities Exchange acceptance of the proposed transaction and the filing of required materials in accordance with the policies of the CSE, if and as applicable.

Additional information concerning the proposed Shafter acquisition, the reorganization, the debt settlement, the Shafter project and Newco will be provided in the management proxy circular of the company to be prepared and delivered to shareholders of Silver Hammer, which will be available in due course under the company's SEDAR+ profile.

About Silver Hammer Mining Corp.

Silver Hammer Mining is a junior resource company focused on advancing past-producing high-grade silver projects in the United States. Silver Hammer controls 100 per cent of the Silver Strand mine in the Coeur d'Alene mining district in Idaho, United States, as well both the Eliza silver project and the Silverton silver mine in Nevada, and the Lacy gold project in British Columbia, Canada. Silver Hammer's primary focus is defining and developing silver deposits near past-producing mines that have not been adequately tested. The company's portfolio also provides exposure to copper and gold discoveries.

We seek Safe Harbor.