AGMR.TO · 2022-07-07 12:00:00

Extensive zones of gold and silver mineralization identified in channel sampling at the Dorita Claim Block Encouraging results include: 5.01 m

Property Options & Staking Exploration Programs Sampling & Geoscience Results

FIRST PASS SAMPLING CONFIRMS GOLD

AND SILVER PROSPECTIVITY AT SILVER

MOUNTAIN RESOURCES' DORITA PROJECT

IN PERU

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN OR INTO

THE UNITED STATES

Extensive zones of gold and silver mineralization identified in channel sampling at the

Dorita Claim Block

Encouraging results include:

5.01 m

@ 2.2 g/t Au and 36.44 g/t Ag

5.46 m

@ 1.49 g/t Au and 17.61 g/t Ag

2.83 m

@ 1.95 g/t Au and 64.49 g/t Ag

Highly elevated gold and silver anomalies correlate with interpreted regional structures

Newly identified sub-parallel zone of mineralization at North Dorita

TORONTO

July 7, 2022

/CNW/ - Silver Mountain Resources Inc. ("

Silver Mountain

", "

AGMR

" or

the "

Company

") is pleased to announce initial results from surface sampling at the Company's

Dorita property in Huancavelica, central

Peru

(Fig. 1).

Assays have been received for 980 rock channel samples taken from key areas across the Dorita

and Dorita North vein systems (Fig. 1 and Fig. 2). The work was undertaken to assist the Company

in focusing a future drill program, with the new results providing positive support for further

exploration in this mineral rich district.

Samples were taken using an electric saw to produce a continuous channel perpendicular across the

veins and mineralized structures; with channel widths varying between

0.36 m

and

9.79 m

The channel sample results include significant concentrations of gold (Au) and silver (Ag), and

anomalous concentrations of multi-metal pathfinder elements such as arsenic (As), antimony (Sb),

and lead (Pb). The new results confirm the geometry of interpreted mineralized structures and

demonstrate the potential to identify further extensions and repeat structures along strike at the

Dorita Project.

The Dorita vein system has been recognized over a strike length of 1.8 km, extending north-east

from the historic Dorita mine, with mineralized veins up to

2.8 m

wide (Fig.1). The results from the

channel sampling indicate the system is open along strike, and potentially at depth. The

San

Francisco

breccia is located to the north-east of the Dorita mine and is characterized by a significant

increase in mineralized vein thickness, with widths up to

9.8 m

A new subparallel vein system has been identified at North Dorita, approximately 1 km north of the

Dorita mine, were an east-west oriented vein has been recognized over 1.4 km. This mineralized

vein is intersected by a north-east – south-west trending, 1 km-long mineralized structure. Both veins

in the North Dorita area have average widths of

2.48 m

and

1.62 m

, respectively and are open in

both directions.

The structures are associated with encouraging sulphide mineralization comprising galena, various

silver sulpho-salts, sphalerite, chalcopyrite and stibnite. Other accessory minerals include pyrite,

quartz, chalcedony, and barite.

The following table provides more detail regarding selected channel sampling results:

Channel

Width (m)

Au g/t

Ag g/t

Cu ppm

Pb ppm

Zn ppm

CN-19

1.87

1.58

19.47

38.22

13.56

36.74

CN-22

2.87

0.72

8.46

96.12

16.12

11.20

CN-27

5.46

1.49

17.61

35.36

13.06

26.36

CN-29

6.96

1.05

10.60

36.99

22.75

18.07

CN-35

1.01

2.91

44.18

33.33

3.79

17.88

CN-37

1.90

0.77

13.01

62.96

24.56

24.25

CN-44

5.01

2.20

36.22

96.06

3769.85

294.13

CN-50

5.76

1.60

17.13

32.09

1361.42

413.11

CN-69

2.83

1.95

64.49

38.99

166.29

179.64

Table 1:

Results of channel sampling from surface outcrops at Dorita - San Francisco vein system and Dorita North vein system, Dorita project. Assays shown are weighted

average over complete channel width. Table lists only selected channels as displayed in Fig. 1 and 2.

Background to the

Dorita Project

The Huancavelica region, and especially the Castrovirreyna mining district, is known to host

significant precious metal and polymetallic deposits, such as Julcani (101

Moz Ag

past production)

and San Genaro (>60

Moz Ag

past production).

_______________________________________________

Acosta Ale, J., Santisteban, A., & Huanacuni, D. (2015).

Lead and Zinc in Peru: Resources and Supply Trends

. Instituto Geológico Minero Y Metalúrgico -

https://repositorio.ingemmet.gob.pe/handle/20.500.12544/3350

The large Dorita concession block is located approximately 25 km northwest of the Reliquias mine.

At Dorita, small-scale underground exploitation was carried out in the 1980s by a previous operator,

based on silver-rich polymetallic veins that appear to transition from high to intermediate sulphidation

style mineralization. The historic production from several veins reached up to 150t/d and reportedly

averaged grades of 320-460 oz/t Ag, 2% Pb, 0.9% Zn, and 1% Cu.

According to historic mine

plans, the main Dorita vein was exploited on 4 levels down to

140 m

below surface, with

mineralization remaining open laterally along strike and to depth. Historic information from drifts

developed on the Dorita and

San Francisco

structures indicates that the Ag-Pb-Zn content of these

veins increases rapidly at depth.

In early 2022, Silver Mountain started a systematic exploration program to assess the large Dorita

land package, including 1:2000-scale geological mapping and detailed geochemical sampling.

Fig.1: Map of Dorita and North Dorita vein systems, displaying vein traces, gold values of surface

channel samples, and location of channels listed in table 1. Inset map shows Dorita property block

with enlarged area indicated in grey. (CNW Group/Silver Mountain Resources Inc.)

Fig.2: Map of Dorita and North Dorita vein systems, displaying vein traces, silver values of surface

channel samples and location of channels listed in table 1. Inset map shows Dorita property block

with enlarged area indicated in grey. (CNW Group/Silver Mountain Resources Inc.)

_______________________________________________

Consultora Minera Anglo Peruana SA (2006): El prospecto Dorita, Internal report prepared for Corporación Minera Castrovirreyna SA

On Behalf of the Board of Directors of Silver Mountain Resources Inc.

Alfredo Bazo

, Chief Executive Officer and Director

Qualified Person

The scientific and technical information contained in this news release has been reviewed and

approved by

Jose Vizquerra

, a Director of the Company and a Qualified Person within the meaning

of National Instrument 43-101 –

Standards of Disclosure for Mineral Projects

of the Canadian

Securities Administrators.

About Silver Mountain

Silver Mountain Resources Inc. is a silver explorer and mine developer planning to restart production

at the Reliquias underground mine and undertake exploration activities at its prospective silver

camps at the Castrovirreyna Project in Huancavelica,

Peru

For additional information in respect of the Castrovirreyna Project, please refer to the Company's

technical report, titled National Instrument 43-101 Technical Report—Castrovirreyna Project,

Peru

dated

October 6, 2021

, amended

November 18, 2021

, effective date

August 17, 2021

, available at

https://sedar.com

Silver Mountain's subsidiary Sociedad Minera Reliquias S.A.C. owns 100% of its concessions and

holds more than 27,000 hectares in the district of Castrovirreyna, Huancavelica,

Peru

Sampling and Analytical Procedures

Silver Mountain follows systematic and rigorous sampling and analytical protocols which meet

industry standards. These protocols are summarized below.

All surface rock samples were collected with an electric diamond saw, typically over a 1-meter

sample interval. 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 laboratory in

Lima

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 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 multi-acid 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 re-analyzed using precise ore-grade ICP

analytical techniques, while high gold values are re-analyzed by fire assay with a gravimetric finish.

Forward Looking Statements

This news release contains forward-looking statements and forward-looking information within the

meaning of Canadian securities legislation (collectively, "

forward-looking statements

") that relate

to Silver Mountain's current expectations and views of future events. Any statements that express, or

involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or

performance (often, but not always, through the use of words or phrases such as "will likely result",

"are expected to", "expects", "will continue", "is anticipated", "anticipates", "believes", "estimated",

"intends", "plans", "forecast", "projection", "strategy", "objective" and "outlook") are not historical

facts and may be forward-looking statements and may involve estimates, assumptions and

uncertainties which could cause actual results or outcomes to differ materially from those expressed

in such forward-looking statements. No assurance can be given that these expectations will prove to

be correct and such forward-looking statements included in this news release should not be unduly

relied upon. These statements speak only as of the date of this news release. Forward-looking

statements in this news release include, but are not limited to, statements in respect of the

Company's proposed exploration program and the timing and potential results thereof.

Forward-looking statements are based on a number of assumptions and are subject to a number of

risks and uncertainties, many of which are beyond Silver Mountain's control, which could cause

actual results and events to differ materially from those that are disclosed in or implied by such

forward-looking statements. Such risks and uncertainties include, but are not limited to, the factors

set forth under "

Forward-Looking Statements"

and "

Risk Factors

" in the Company's final prospectus

dated

January 26, 2022

and other disclosure documents available on

www.sedar.com

. Silver

Mountain undertakes no obligation to update or revise any forward-looking statements, whether as a

result of new information, future events or otherwise, except as may be required by law. New

factors emerge from time to time, and it is not possible for Silver Mountain to predict all of them or

assess the impact of each such factor or the extent to which any factor, or combination of factors,

may cause results to differ materially from those contained in any forward-looking statement. Any

forward-looking statements contained in this news release are expressly qualified in their entirety by

this cautionary statement.

SOURCE

Silver Mountain Resources Inc.

View original content to download multimedia:

http://www.newswire.ca/en/releases/archive/July2022/07/c6506.html

%SEDAR: 00052252E

For further information:

Alfredo Bazo, President, CEO & Director, [email protected]; Jean Pierre

Fort, Chief Financial Officer, [email protected]; Silver Mountain Resources Inc, 82 Richmond Street

East, Toronto, ON M5C 1P1, [email protected] , 647-262-4017, www.agmr.ca

CO: Silver Mountain Resources Inc.

CNW 07:00e 07-JUL-22

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