Mr. Peter Ball reports

SILVER HAMMER CLOSES FIRST TRANCHE OF NON-BROKERED PRIVATE PLACEMENT

Further to Silver Hammer Mining Corp.'s news release dated June 17, 2025, it has closed the first tranche of its previously announced non-brokered private placement, issuing 6,026,418 units at a price of 5.5 cents per unit for gross proceeds of $331,452.99. Each unit consists of one common share in the capital of the company and one transferable common share purchase warrant. Each warrant entitles the holder to acquire one additional share at an exercise price of seven cents for a period of five years from the date of issuance. The company expects to complete a second tranche of the offering in the coming weeks.

"I am pleased to see the management team of Silver Hammer subscribe for a significant portion of the first tranche of the private placement alongside our existing and new shareholders. A second tranche is under way with solid interest, and we look forward to a busy year ahead," stated Peter A. Ball, president and chief executive officer. "The silver market is significantly stronger than a year ago, driven by surging industrial demand, tightening supply and renewed investor interest, making it one of the most compelling opportunities in the metals space today. With two permitted high-grade silver projects and a third project being finalized for permitting, controlling seven historical silver mines in Idaho and Nevada, it is an exciting period ahead for Silver Hammer."

Directors and officers of the company purchased an aggregate of 2,431,818 units in the offering. Their participation constituted a related party transaction within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The company relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101, as the fair market value of the securities subscribed for by such insiders, and the consideration paid, did not exceed 25 per cent of the company's market capitalization.

The company confirms that it will no longer pursue any portion of the offering under the listed issuer financing exemption in Part 5A of NI 45-106.

The first tranche was completed in reliance on prospectus exemptions under National Instrument 45-106 -- Prospectus Exemptions (NI 45-106), and, for greater certainty, did not include any portion completed under the listed issuer financing exemption set out in Part 5A of NI 45-106. All securities issued in connection with the first tranche are subject to a statutory hold period of four months, expiring on Dec. 2, 2025, in accordance with applicable securities laws.

In connection with the first tranche, the company paid finders' fees consisting of $7,315.00 in cash and issued 133,000 finders' warrants to eligible finders. Each finder's warrant is exercisable to acquire one share at an exercise price of seven cents for a period of 60 months from the date of issuance.

The company intends to use the proceeds from the offering for exploration of its Silver Strand project in Idaho and its Eliza and Silverton projects in Nevada, as well as for general working capital and corporate purposes.

The company also announces that it has granted stock options to certain directors, officers and consultants pursuant to the terms of the company's stock option plan. An aggregate of 4.3 million stock options were granted, each exercisable to acquire one common share of the company at a price of 5.5 cents per share. All options are subject to the terms of the company's stock option plan and the policies of the Canadian Securities Exchange.

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.

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