Mr. Alvaro Espinoza reports

SILVER MOUNTAIN REPORTS HIGH GRADE SILVER IN UNDERGROUND CHANNEL SAMPLING PROGRAM AND PROVIDES UPDATE ON STOCKPILING AT ITS RELIQUIAS PROJECT, PERU

Silver Mountain Resources Inc. has provided an update on continuing underground channel sampling and early stage stockpiling of mineralized material at its Reliquias project, located in Huancavelica, Peru. These activities are part of the company's planned mine-readiness work aimed at starting commercial production at its Reliquias project during Q3 of 2026.

Key highlights -- channel sampling at Reliquias

• Ayayay vein: 1.07 metres at 336 grams per tonne Ag (silver), 10.7 per cent Pb (lead), 11.7 per cent Zn (zinc), 2.7 per cent Cu (copper) and 0.34 g/t Au (gold);
• Ayayay vein: 1.04 m at 414 g/t Ag, 17.3 per cent Pb, 8.5 per cent Zn, 3.1 per cent Cu and 0.28 g/t Au;
• Tensional Ayayay vein: 0.82 m at 510 g/t Ag, 7.4 per cent Pb, 13.3 per cent Zn, 1.0 per cent Cu and 0.31 g/t Au;
• Tensional Ayayay vein: 1.17 m at 168 g/t Ag, 5.3 per cent Pb, 10.1 per cent Zn, 0.4 per cent Cu and 0.15 g/t Au.

Alvaro Espinoza, president and chief executive officer of Silver Mountain, said: "We are encouraged by the consistent strong grades from the Ayayay vein and associated structures -- reinforcing the high-grade quality of the Reliquias deposit. The commencement of stockpiling adds to the substantial progress that we have been making at Reliquias, now visible on site. We are advancing the project with purpose as we work toward our targeted commercial production in Q3 2026. Our shareholders can expect continued delivery on the milestones that support that timeline. I am proud to highlight the outstanding performance of our team underground."

Recent channel samples collected by the company's technical team from the Ayayay and Matacaballo vein systems, which include conjugate -- or tensional -- veins, on Level 340 have returned high grades of silver, lead, zinc and copper. The silver equivalent grades obtained during this round of sampling often exceed those reported in the mineral resource estimate, confirming the existence of readily accessible high-grade polymetallic veins at various mine levels. All samples were collected perpendicular to the veins using portable rock saws. Table 1 shows a summary of the results from the eight recently sampled channels.

The company also announces that it has now stockpiled approximately 525 metric tonnes of strongly mineralized material from continuing rehabilitation and development activities at Reliquias, sourced entirely from the Ayayay vein system. This material was collected from 22 metres of new underground development, with initial extraction focused on levels 340 and 390, contributing roughly 150 and 375 tonnes, respectively, all of which have been transported to the stockpile at the nearby Caudalosa plant. Building this stockpile is a key step in ensuring a smooth and efficient ramp-up once commercial mining operations begin. With underground work advancing steadily, the company remains on track to meet its commitment to commence commercial production at the Reliquias mine in Q3 2026.

Qualified person

The scientific and technical content in this news release has been reviewed and approved by Antonio Cruz Bermudez, PGeo, and registered member FAIG, who is a qualified person (as defined in National Instrument 43-101 -- Standards of Disclosure for Mineral Projects) and independent of the company for purposes of Section 1.5 of National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

About Silver Mountain Resources Inc.

Silver Mountain Resources is a Canadian mining company focused on the exploration and development of silver projects in Peru. The company's principal asset is the Reliquias project, a past-producing silver mine located in the Castrovirreyna district of Huancavelica. Silver Mountain is committed to creating long-term value for its shareholders through responsible mining, strong community engagement and sustainable development practices.

Sampling, QA/QC (quality assurance/quality control) and analytical procedures

Silver Mountain follows systematic and rigorous sampling and analytical protocols which meet industry standards.

Rock channel samples were collected with an electric percussion hammer and do not exceed 1.0 m in length. Channels are broken at obvious geologic boundaries to correctly separate rock types and mineralization styles. The sample bags were sealed with a plastic zip tie and identified with a unique sample number, pending shipment to a certified laboratory sample preparation facility.

Samples are sent by batch to the ALS and Certimin laboratories in Lima, Peru, for assaying. Silver Mountain independently inserts certified control standards, fine and coarse blanks, and duplicates into the sample stream to monitor data quality. These standards are inserted blindly to the laboratory in the sample sequence prior to departure from the core storage facilities. At the laboratory, samples are dried, crushed and pulverized, and then analyzed using a fire assay-AA finish analysis for gold and a full multiacid digestion with ICP-AES analysis for other elements. Samples with results that exceed maximum detection values for the main elements of interest (Ag, Zn, Pb, Cu) are reanalyzed using precise ore-grade ICP analytical techniques, while high gold values are reanalyzed by fire assay with a gravimetric finish.

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