Silver Mountain Resources Commences High-Impact 7,000-Metre Underground Drill Program at Reliquias to Upgrade Resources, Expand Inventory and Define High-Grade Zones Ahead of Restart

Silver Mountain Resources Inc. has commenced a strategically designed 7,000-metre underground infill drilling program at its Reliquias silver mine in Huancavelica, Peru, marking a significant step toward the planned third quarter 2026 production restart. The program represents a systematic approach to de-risking the asset by upgrading inferred resources to indicated status, expanding the mineral resource base through improved drill spacing, and delineating high-grade shoots that could optimize early production sequencing and enhance the overall mine plan.

The drilling campaign will be executed from underground platforms, enabling high-precision targeting of three key mineralized structures: the Sacasipuedes, Ayayay, and Perseguida veins. This approach leverages existing mine infrastructure while generating critical data to support improved geological modeling, enhanced mine planning precision, and stronger confidence in mineralized continuity. The Company's focus on converting resources and identifying high-grade zones directly addresses key technical risks while positioning the operation for sustainable long-term production.

This development occurs against the backdrop of ongoing underground development and refurbishment activities as Silver Mountain advances toward commercial restart. The timing of this drilling program is strategically sound, as it allows the Company to incorporate upgraded resource data into final mine planning while underground infrastructure is being prepared. CEO Alvaro Espinoza emphasized that the program is designed to materially strengthen Reliquias ahead of production, with a clear focus on improving the quality of early mine feed and reinforcing the longer-term production profile.

The successful execution of this drilling program could serve as a significant catalyst for Silver Mountain, particularly given the Company's positioning in the silver sector and the strategic importance of the Reliquias asset. With production targeted for Q3 2026, the results from this campaign will be crucial for validating the mine plan, optimizing production sequencing, and potentially extending mine life through expanded resource inventory. The program's emphasis on high-grade zone definition could prove particularly valuable for early cash flow generation and overall project economics.