Mr. Brandon Rook reports

SILVER VALLEY METALS ANNOUNCES CLOSING OF THE SALE OF THE RANGER-PAGE PROJECT IN THE SILVER VALLEY, NORTHERN IDAHO, USA

Silver Valley Metals Corp. has closed the sale of the Ranger-Page project in the Silver Valley in northern Idaho, United States. On July 15, 2024, the company press released (the initial news release) the signing of an asset purchase agreement with Silver Dollar Resources Inc., whereby Silver Dollar acquired the right to acquire from Silver Valley and its subsidiary, North Idaho Metals Corp., the right, title and interest in the assets related to the Ranger-Page project, located in Shoshone county, Idaho, United States, including the option rights under the Government Gulch option and joint venture agreement and the Page mine mineral rights lease and option agreement. The disposition transaction does not involve non-arm's-length parties.

The sale of the Ranger-Page project to Silver Dollar will relieve the company from having to undergo substantial capital dilution in order to meet the financial obligations of the project over the next year while enabling Silver Valley to participate in the upside success of Silver Dollar through both the Ranger-Page project and Silver Dollar's project portfolio through receiving equity in Silver Dollar, receiving residual net smelter returns from both projects as well as cash.

With the money and equity received from the transaction, the company will be in a solid position to refocus its efforts at the Mexi-Can lithium/sulphate of potash project in Mexico that has a large inferred resource outlined at surface with major expansion possibilities. It will also give the company financial resources to continue to build out its project portfolio.

Under the terms of the agreement, the company has agreed to assign to Silver Dollar the target assets for cash consideration of $300,000 and the issuance of six million common shares in the capital of Silver Dollar at a deemed price of 30 cents per share for aggregate consideration of $2.1-million. The cash payment has been paid to the company and all payment shares have been issued to the company upfront in conjunction with the closing of the transaction. The payment shares are subject to a statutory four-month hold period and contractual escrow as described in the July 15, 2024, press release.

If Silver Dollar exercises its option under the acquired Government Gulch agreement, it will grant Silver Valley Metals a royalty equal to 0.5 per cent of net smelter returns from the Government Gulch property. Further, if Silver Dollar exercises its option under the acquired Page mine agreement, it will grant Silver Valley Metals a royalty equal to 1 per cent of net smelter returns from the Page mine property; Silver Dollar may repurchase half of such royalty (0.5 per cent of net smelter returns) at any time for $500,000.

The Government Gulch agreement

For Silver Dollar to exercise its option to acquire a 75-per-cent interest in the Government Gulch property under the Government Gulch agreement, Silver Dollar must pay the optionor $250,000 (U.S.) and incur approximately $1.21-million (U.S.) in exploration expenditures on the property on or before Oct. 18, 2025. From the inception of the Government Gulch agreement, Silver Valley has paid the underlying optionor $400,000 (U.S.) and incurred approximately $1.79-million (U.S.) in exploration expenditures. Silver Dollar will assume the remaining payment and exploration obligations under the Government Gulch agreement.

Within 60 days of exercising the first option, Silver Dollar has the option to acquire the remaining 25-per-cent interest in the Government Gulch property through good-faith negotiations with the optionor. In the event the optionor and the company cannot agree on a purchase price for the second option, the company can elect the purchase price of the second option to be: (a) $2.25-million (U.S.); (b) $1-million (U.S.) and issue $1.25-million (U.S.) of Silver Dollar shares valued at the 20-day volume-weighted average price (VWAP); or (c) if the optionor so requests, $2.25-million (U.S.) of Silver Dollar shares valued at the 20-day VWAP.

If Silver Dollar does not exercise the second option within 60 days of exercising the first option, a joint venture will be formed among the parties and Silver Dollar will serve as operator on the project. If Silver Dollar spends more than 90 per cent of the exploration expenditures of such joint venture, under the Government Gulch agreement, it will automatically acquire the remaining 25-per-cent interest in the Government Gulch property and the optionor will receive a 2-per-cent net smelter return royalty on the Government Gulch property. Silver Dollar will have the ability to repurchase half of such royalty (1 per cent of net smelter returns) for $1-million (U.S.).

The Page mine agreement

The Page mine agreement is a lease and option expiring Nov. 17, 2031, requiring Silver Dollar to pay rental payments of $30,000 (U.S.) per year. During the term of the lease, Silver Dollar may elect to acquire the Page mine property for $1.5-million (U.S.) less amounts previously paid under the lease. To date, Silver Valley has paid $120,000 (U.S.) pursuant to the lease and option agreement and no exploration expenditures were incurred on the property. Silver Dollar will assume the remaining payment obligations under the Page mine agreement.

Finders' fees

The company has paid finders' fees in accordance with TSX Venture Exchange policy consisting of 1,512,500 shares valued at six cents per share to Kluane Capital FZCO and 779,166 shares valued at six cents per share to Canal Front Investments Inc. in respect of the transaction. The finder shares are subject to a statutory four-month hold period. The initial news release contained a typo in as much as it referred to the finders as being non-arm's-length to the company and Silver Dollar. The finders are in fact arm's length to the company and Silver Dollar.

About Mexi-Can lithium/potassium (sulphate of potash) project

Silver Valley owns a 100-per-cent interest in a lithium-bearing and potassium-bearing salar complex comprising 4,056 hectares on three mineral concessions (the Mexico-Canada project or Mexi-Can project), located on the Central Mexican plateau in the states of Zacatecas and San Luis Potosi, Mexico. The National Instrument 43-101 inferred mineral resource contains 12.3 million tonnes of sulphate of potash (SOP) and 243,000 tonnes of lithium carbonate equivalent (LCE), defined only from surface to an average of five-metre depth. The salars remain wide open in all directions for expansion.

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. The company is focused on the advancement of strategic mineral and precious mineral properties, including lithium/potash in Mexico and an ownership stake in the Ranger-Page silver-zinc-lead project in the Silver Valley of Idaho through equity ownership in Silver Dollar Resources and residual net smelter returns at the project.

We seek Safe Harbor.