Mr. Brandon Rook reports

SILVER VALLEY METALS ANNOUNCES POSITIVE RESOLUTION OF ISSUES RELATING TO ITS MEXI-CAN SULPHATE OF POTASH AND LITHIUM PROJECT; EXPLORATION TO RECOMMENCE

Silver Valley Metals Corp. is pleased with a favourable resolution of issues relating to its Mexi-Can sulphate of potash and lithium project. Concurrently, the company is preparing to resume exploration activities in Mexico.

Background -- legislative impact on Mexi-Can project

In response to the significant legislative development on April 20, 2022, through the "decree amending and adding various provisions of the mining law," Silver Valley Metals's Mexican subsidiary took legal measures to safeguard its interests. The decree marked a crucial structural reform in Mexico's lithium sector, leading to the creation of the company Lithium for Mexico (LitioMx) and the declaration of lithium as a public utility and national heritage, restricting the granting of new concessions, licences, contracts, permits or authorizations in this area.

As a result of the decree, Silver Valley Mexico filed two separate indirect amparos (an amparo is defined as an extraordinary constitutional appeal, which may be filed in federal court by Mexicans and by foreigners -- it is often referred to as a "constitutional protection lawsuit") challenging specific articles of the mining law, as amended by the lithium decree, claiming violations of constitutional rights.

Silver Valley Mexico holds existing concessions in Mexico. With the recent results from the Supreme Court of Mexico's decisions from the amparos filed by Silver Valley Mexico, it is apparent that the lithium decree has not impacted the company's concessions. The court ruled that the mining law, as amended by the lithium decree, has not impacted the company.

Several articles of the mining law, as outlined in the lithium decree, specify the responsibilities and protections regarding lithium exploration, exploitation, beneficiation and use. Notably, the legislation did not indicate any intention to cancel, suspend, withdraw or extinguish rights acquired by mining companies in relation to lithium prior to the lithium decree.

Although it is true that the lithium decree, at first, did not establish anything in relation to the mining concessions granted before the entry into force of the lithium decree and in relation to the procedures that were in process, this situation was remedied by the subsequent reforms that the mining law underwent; specifically another such mining reform following the reform on lithium which was dated May 8, 2023, by the enactment of the "decree amending, adding and revoking several provisions of the mining law, national waters law, environmental protection and balance law, and wastes management and prevention law." The mining law decree clarified that existing concessions, including those held by Silver Valley Mexico, remain unaffected until their full expiration. The company's concessions, with validity until 2059 and 2060, are legally protected, ensuring continuity.

The amendments to the mining law arising from the mining law decree will have no legal impact until the full expiration of Silver Valley Mexico's mining concessions, since, as for the lithium decree, the loss of rights or the cancellation, suspension or termination of the concession titles, or of exploration activities, was not established, including the exploitation, or use, of lithium, with respect to rights previously granted and acquired by the concessionaires.

The current regulatory landscape indicates a dual legal regime for lithium operations in Mexico. Existing concessions are monitored by the Ministry of Economy, while postreform exploration and exploitation will be overseen by the Mexican state through the state-owned entity Lithium for Mexico.

Partnership discussions with LitioMX

Despite a positive outcome from the recent amparo decisions, coupled with the later enacted May 8, 2023, mining reform further supporting the company's ownership, Silver Valley continued to actively consider a joint venture partnership with LitioMx. Silver Valley considered a partnership beneficial to all stakeholders, with the right deal in mind. However, after careful consideration, LitioMx recently decided to prioritize other Mexican projects. This decision aligns with Silver Valley's appreciation for LitioMx's focus on lithium-specific ventures, considering the Mexi-Can project's significant sulphate of potash component.

Silver Valley appreciates LitioMx's support and remains open to future collaboration opportunities as the lithium landscape evolves. LitioMx shared the same sentiments with Silver Valley.

With the news of LitioMx voluntarily deciding to not participate in the development of the Mexi-Can project and the positive news received from the Supreme Court of Mexico, Silver Valley is once again ready to move this exciting project forward.

Exploration set to recommence

With legal uncertainties resolved, Silver Valley is poised to recommence exploration activities at the Mexi-Can project. Silver Valley remains committed to delivering updates on these activities in due course.

About Silver Valley Metals Corp.

Silver Valley Metals is a Canadian exploration company comprising a group of experienced exploration, mining and financing specialists focused on the pursuit of mineral discovery and development. Silver Valley Metals is focused on the advancement of strategic and precious mineral properties, including lithium/potash in Mexico and silver-zinc-lead in northern Idaho, United States.

We seek Safe Harbor.