Mr. John Lee reports

SILVER ELEPHANT RECEIVES NOTICE OF CANCELLATION OF PULACAYO MINING PRODUCTION CONTRACT FROM COMIBOL

Silver Elephant Mining Corp. has received a notice of cancellation of its Pulacayo mining production contract (MPC) from Corporacion Minera de Bolivia, a state-owned mining company (Comibol).

Comibol's one-page notice to the company cites alleged illegal mining as the grounds for the MPC cancellation. The company maintains that it has operated in full compliance and received proper authorizations for its activities in the area covered under the MPC. The company is not aware of any illegal mining by third parties.

The MPC was executed on Oct. 3, 2019, between a Silver Elephant Bolivian subsidiary and Comibol. The MPC, which remained subject to ratification from the Bolivian congress, granted the company's subsidiary an exclusive right to develop and mine at certain Comibol concessions located in the Pulacayo and Paca areas for up to 30 years. Comibol reports to the Bolivian Ministry of Mining and Metallurgy, and controls approximately 163 Bolivian mining concessions.

The notice of MPC cancellation does not affect Silver Elephant's Apuradita mining concession next to Comibol's Paca concessions. The company is currently developing a tunnel to access silver sulphide materials at Apuradita, a mining concession that is registered directly under the name of a Silver Elephant Bolivian subsidiary.

The company is preparing to appeal the cancellation pursuant to the terms of the MPC, which is a commercial contract, and under Bolivian law. No mining activities may take place in the MPC area until the dispute is resolved, according to Bolivian law.

The company intends to continue to maintain its positive social relations with local communities, which the company's Bolivian subsidiaries have spent more than a decade in building.

About Silver Elephant Mining Corp.

Silver Elephant is a mineral exploration company with the Paca silver project and the Triunfo gold project in Bolivia.

We seek Safe Harbor.