SILVER MOUNTAIN LAUNCHES 14,000-METER FIRST-PHASE DRILL PROGRAM AT CAUDALOSA; UPDATE ON PLANNED RESTART AT RELIQUIAS

Silver Mountain Resources Inc. has initiated a comprehensive 14,000-meter diamond drilling program at its Caudalosa Mine in Peru, marking the first phase of an ambitious exploration campaign designed to expand resources, enhance grades, and delineate additional mineable zones. The program represents a strategic pivot toward unlocking Caudalosa's full geological potential while converting mineralized targets into near-term production opportunities. Initial drill results are anticipated in April 2026, positioning the company to capitalize on what management views as strengthening silver market fundamentals.

Concurrently, Silver Mountain is making substantial progress on the planned Q3 2026 restart of its Reliquias Mine, with multiple operational workstreams advancing on schedule and within budget. Key milestones include the commencement of raise boring operations to accelerate underground infrastructure readiness, the accumulation of approximately 5,000 tonnes of stockpiled mineral for processing, and the completion or scheduled advancement of critical equipment installations. Plant component refurbishment is slated to begin by the end of March 2026, with the project maintaining adherence to both timeline and budget parameters.

The dual-track strategy reflects Silver Mountain's transition from a development-stage company to a growth-oriented silver producer with multiple asset exposure in Peru. Following its recent TSX graduation and with a strengthened treasury position, the company is positioning itself to build a multi-asset silver platform capable of generating cash flow and providing operational leverage to silver price movements. Management anticipates 2026 could prove transformational, with near-term exploration catalysts from Caudalosa drilling coinciding with medium-term production restart visibility at Reliquias.

The strategic timing appears deliberate, as Silver Mountain advances exploration during what it characterizes as a critical moment in the silver cycle, with capital markets reopening to high-quality silver developers. The company's ability to execute on both restart and expansion objectives simultaneously demonstrates operational capacity and positions it for potential re-rating as it transitions from development to production status. The success of both initiatives will be crucial in establishing Silver Mountain's credibility as a multi-mine silver producer in an increasingly competitive market environment.