AGMR.TO · 2023-04-11 12:00:00

Silver Mountain Delivers Initial Ni 43- 101 Compliant Mineral Resource Estimate FOR Reliquias MINE

Resource Estimates

SILVER MOUNTAIN DELIVERS INITIAL NI 43-

101 COMPLIANT MINERAL RESOURCE

ESTIMATE FOR RELIQUIAS MINE

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

THE UNITED STATES

TORONTO

April 11, 2023

/CNW/ - Silver Mountain Resources Inc. (TSXV: AGMR) (OTCQB:

AGMRF) (BVL: AGMR) ("

Silver Mountain

", "

AGMR

" or the "

Company

") is pleased to provide a

first National Instrument 43-101 compliant mineral resource estimate ("MRE") for its 100% owned

Reliquias mine in Huancavelica, central

Peru

Highlights

Measured & Indicated Resources: 861,300 tons containing 2.78 million ounces of silver,

7,100 ounces of gold, 28,800 tons of zinc, 21,400 tons of lead, and 3,400 tons of copper

Inferred Resources: 969,000 tons containing 3.10 million ounces of silver, 6,600 ounces

of gold, 26,100 tons of zinc, 18,800 tons of lead, and 3,300 tons of copper

Mineralization in all three main vein structures is open along strike and at depth,

showing excellent potential to grow with future drilling and underground sampling

Alvaro Espinoza

, CEO, commented:

"We are very pleased to deliver on one of the milestones

outlined for early 2023. Within a short timeframe and in a cost-effective manner, our team has

added substantial value to the Reliquias mine. We are delighted to announce that NI 43-101

compliant mineral resources now include 2.78

Moz Ag

in the measured & indicated category and

3.10

Moz Ag

in the inferred category, plus significant amounts of base metals. Our ongoing 2023

drill program already indicates strong growth potential beyond this maiden mineral resource

estimate, to be incorporated in an updated estimate as part of the PEA planned for Q3 2023,

advancing the Company closer to production."

Torsten Danne

, Director of Exploration, added: "Our phase I drilling was highly successful in

confirming and expanding historic resources in three of the main veins. With drilling and

underground sampling of several other known vein structures currently underway, we see excellent

potential to further expand the mineral resources at Reliquias. Additional opportunities to grow

high-grade silver resources exist through the ongoing rehabilitation of upper mine levels, which will

enable us to evaluate zones of remaining historic resources (see Fig.2 to 4)."

A maiden NI 43-101 compliant Mineral Resource Estimate

This MRE is based on 60 diamond drill holes, with a total of 13,640.80 metres, completed by the

Company between April and

October 2022

. The MRE was prepared using assays sourced from a

total of 4,672 core samples (including QA/QC samples) with interval lengths varying between 0.5

and

1.5 m

. Additionally, the analyses of 1,416 rock samples (including QA/QC samples) taken during

systematic sampling of underground workings were included in the database to calculate the mineral

resources. The MRE was independently prepared by RREMIN S.A.C. (RREMIN) in accordance with

NI 43-101, with an effective date of

March 18, 2023

, and using a database current as of

December

15, 2022

. The full technical report, which is being prepared in accordance with NI 43-101 will be filed

on SEDAR (

www.sedar.com

) under the Company's issuer profile within 45 days of the date of this

news release.

Table 1: Mineral Resource Estimate for the Reliquias mine

Notes:

Mineral Resources described above have been prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM)) Standards on Mineral

Resources and Mineral Reserves, 2014.

The independent qualified persons responsible for the preparation of the technical report supporting the MRE are Antonio Cruz Bermudez, P.Geo., member of the Australian

Institute of Geoscientists (member #7065), and Gerardo Acuña, P.Eng., fellow of the Australasian Institute of Mining and Metallurgy (member #337049, CP Mining), both of

RREMIN S.A.C., Lima, Peru.

Mineral Resources have an effective date of March 18, 2023, using a database current as of December 15, 2022. Antonio Cruz Bermudez is the independent qualified

person responsible for the Mineral Resources estimate.

The Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

There is no certainty that all or part of the estimated Mineral Resources will be converted to Mineral Reserves.

Mineral Resources are reported at US$36.34 NSR cut-off for the polymetallic veins and the long-term prices of the metals considered were Silver US$ 23.29 /oz, Copper US$

9,419 /t, Zinc US$ 2,813 /t, and Lead US$ 2,188 /t.

Metallurgical recoveries for polymetallic veins are based on historical recovery by the previous operator CMC: Ag= 73.00%, Pb= 83.00%, Zn= 71.00%, Cu= 85.00%. Initial

metallurgical test work carried out by Silver Mountain in 2022 indicates potential to achieve significantly higher recoveries.

The average density was calculated from drill core samples for all the veins and the average value used for the calculation of tonnage is 2.76 t/m

The MRE is based on block model with a block size of 2.0 m x 2.0 m x 2.0 m.

10.

Tonnage has been expressed in the metric system, and the precious metal content (Ag, Au) has been expressed in troy ounces.

11.

Mineral Resource tonnes are rounded to the nearest 1,000 tonne and precious metal content has been rounded to the nearest 1,000 oz. Totals may not add due to rounding.

12.

The reported Mineral Resources are not diluted.

13.

The Mineral Resources reported do not include mined-out areas.

14.

Antonio Cruz Bermudez is not aware of factors or issues that could materially affect the mineral resource estimate other than normal risks faced by mining projects, in

terms of environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant factors, and additional risk factors regarding inferred resources.

The estimated tonnage considered for the MRE is contained in five main veins (Matacaballo,

Sacasipuedes, Meteysaca, Ayayay, and Sorpresa) and 14 vein splays. The average true thickness

of these structures varies between 0.1 and

2.0 m

. The NI 43-101 compliant resources reported in

this release are located predominantly below Level 480 of the Reliquias deposit, due to restricted

accessibility of underground workings during the 2022 drilling campaign.

Wireframes representing mineralization were produced from plans, core logging, systematic

sections, underground mapping, and interpretations. The domains have been defined as mineralized

structures based on the continuity of Ag-Pb-Zn-Cu-Au mineralization, represented by the five

mentioned veins and associated secondary structures. Assay capping thresholds were chosen

based on probability and variance plots and vary between different structures. The block model was

constructed using

2 m

blocks, based on the appropriate selective mining unit for

mineralized structures at Reliquias. Metal grades were interpolated with

1 m

composites using

Ordinary Kriging (OK) and Nearest Neighbour (NN) methods. The classification of the resources is

based on qualitative characteristics and the distance to drilling / sampling.

Discussion of the results of the Mineral Resource Estimate

In the 2021 NI 43-101 Technical Report of the Castrovirreyna project[1], historic resources were

calculated for the Reliquias and the Caudalosa mine (Fig.1, graph on left side)[2]. The 2022

exploration campaign focussed on the Reliquias mine, successfully converting a significative

percentage of the historic resources into NI 43-101 compliant mineral resources. Furthermore, the

drilling and sampling program delineated additional resources at depth and to a lesser extent along

strike of the three main veins. The results reported in today's new release include both converted

and new resources (Fig.1, graph on right side).

Areas of high-grade mineralization remain along the upper mine levels at Reliquias, categorized as

historic resources in the 2021 Technical report (Fig.1, graph on right side). Likewise, more than 22.3

Moz of Ag plus significant amounts of base metals remain as historical resources in the Caudalosa

mine, which has not been included in the rehabilitation work so far.

Table 1: Mineral Resource Estimate for the Reliquias mine (CNW Group/Silver Mountain Resources

Inc.)

__________________________________

For additional information regarding the historical resources 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 on the Company's profile on

www.sedar.com.

(i) Historical resource estimates have been classified in accordance with the CIM Definition Standards; (ii) Historical resource estimates are not Mineral Reserves or Mineral

Resources and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimates; (iii) Information is as of July, 2019 Source:

Sociedad Minera Reliquias SAC, the information is based on RM-Master Pro Quality, C. Rodriguez, Abril 2019; RM-Master Pro Quality, C. Rodriguez, Jul19; (iv) Antonio Cruz

Bermudez, a "qualified person" (as defined in NI 43-101) considers that the historical resource estimates are relevant for the proper understanding of the Castrovirreyna Project and

additional exploration, including drilling, could be needed to verify the historical estimate as current Mineral Resources; (v) A qualified person has not done sufficient work to classify

the historical estimate as current Mineral Resources or Mineral Reserves; and (vi) The Company is not treating the historical estimate as current Mineral Resources or Mineral

Reserves

Based on a thorough review of the results of the MRE presented in this release, Fig. 2 to 4 indicate

in detail the areas of converted resources and newly added resources for each of the main vein

structures. As expected, by drilling mostly from Levels 390 and 415 of the Reliquias mine, a

considerable amount of mineralized material previously classified as historic resources was

converted into NI 43-101 compliant mineral resources. New mineral resources were added at depth

and along strike at all three veins. As shown in Fig.2, the drilling campaign was especially successful

in that regard at the

Matacaballo

vein, converting 360,000 t into compliant resources and identifying

another 417,000 tons of new mineral resources. This structure now reports 491,000 tons in the

measured and indicated category, with 286,000 tons in the inferred category.

Fig.1: Diagram contrasting the 2021 estimate of historic resources with the MRE inventory. For

discussion, see text. Data is displayed using a logarithmic scale. 2 (i) Historical resource estimates

have been classified in accordance with the CIM Definition Standards; (ii) Historical resource

estimates are not Mineral Reserves or Mineral Resources and do not have demonstrated economic

viability. All figures are rounded to reflect the relative accuracy of the estimates; (iii) Information is as

of July, 2019 Source: Sociedad Minera Reliquias SAC, the information is based on RM-Master Pro

Quality, C. Rodriguez, Abril 2019; RM-Master Pro Quality, C. Rodriguez, Jul19; (iv) Antonio Cruz

Bermudez, a "qualified person" (as defined in NI 43-101) considers (CNW Group/Silver Mountain

Resources Inc.)

Fig.2: Cross section of the Matacaballo vein, at the Reliquias mine, showing areas of converted

resources in light blue and newly added resources in light green. Zones containing historic resources

(shown in yellow) remain on upper mine levels. The graphs below display the tonnages of

mineralized material present in this structure, comparing data for 2021 with the MRE. (CNW

Group/Silver Mountain Resources Inc.)

At the

Sacasipuedes

vein, the cross section (Fig.3) shows that larger zones on the southeastern

side of the structure, containing 291,000 tons of historic resources, remain to be evaluated and re-

categorized through future exploration. Converted and newly added resources extend for

approximately

300 m

vertically below Level 440, holding 253,000 tons of indicated and 184,000 tons

of inferred resources.

At the

Meteysaca

structure (Fig.4), the drilling and underground sampling campaign effectively

converted high-grade silver-polymetallic resources below Level 480, while also increasing the

resources along strike and towards depth. Measured and indicated resources within the Meteysaca

vein amount to 102,000 tons, whereas inferred resources reach 88,000 tons.

Fig.2: Cross section of the Matacaballo vein, at the Reliquias mine, showing areas of converted

resources in light blue and newly added resources in light green. Zones containing historic resources

(shown in yellow) remain on upper mine levels. The graphs below display the tonnages of

mineralized material present in this structure, comparing data for 2021 with the MRE. (CNW

Group/Silver Mountain Resources Inc.)

Fig.3: Cross section of the Sacasipuedes vein, at the Reliquias mine, showing areas of converted

resources in light blue and newly added resources in light green. Large zones containing historic

resources (shown in yellow) remain on upper mine levels and along strike. The graphs below display

the tonnages of mineralized material present in this structure, comparing data for 2021 with the MRE

(CNW Group/Silver Mountain Resources Inc.)

Fig.3: Cross section of the Sacasipuedes vein, at the Reliquias mine, showing areas of converted

resources in light blue and newly added resources in light green. Large zones containing historic

resources (shown in yellow) remain on upper mine levels and along strike. The graphs below display

the tonnages of mineralized material present in this structure, comparing data for 2021 with the

MRE. (CNW Group/Silver Mountain Resources Inc.)

Fig.4: Cross section of the Meteysaca vein, at the Reliquias mine, showing areas of converted

resources in light blue and newly added resources in light green. Zones containing historic resources

(shown in yellow) remain along strike and on upper mine levels. The graphs below right display the

tonnages of mineralized material present in this structure, comparing data for 2021 with the MRE.

(CNW Group/Silver Mountain Resources Inc.)

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

Alvaro Espinoza

, Chief Executive Officer

Qualified Person

Antonio Cruz Bermudez

, an independent consultant of the Company and the Qualified Person (within

the meaning of NI 43-101) responsible for the MRE, has reviewed and approved the scientific and

technical information contained in this news release.

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

For further information about our drill program, including cross sections of the main veins with drill

hole locations, please refer to our corporate presentation, available on our website at

www.agmr.ca

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

holds more than 39,000 hectares in the district of Castrovirreyna, Huancavelica,

Peru

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in

policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this

release.

Sampling, QA/QC, and Analytical Procedures

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

industry standards. These protocols are summarized below.

All drill holes are diamond core holes with HQ or NQ core diameters. Drill core is collected at the

underground drill site where recovery measurements are taken before the core is transported by

truck to the core logging facility at the Caudalosa Grande mine camp, where it is photographed and

geologically logged. The core is then cut in half with a diamond saw blade with half the sample

retained in the core box for future reference and the other half placed into a pre-labelled plastic bag,

sealed with a plastic zip tie, and identified with a unique sample number. The core is typically

sampled over a 1 - 2 metre sample interval unless the geologist determines the presence of an

important geological contact. The bagged samples are then stored in a secure area pending

shipment to a certified laboratory sample preparation facility.

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 laboratory in

Lima

for assay. 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 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 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 the Company's profile at

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.

Fig.4: Cross section of the Meteysaca vein, at the Reliquias mine, showing areas of converted

resources in light blue and newly added resources in light green. Zones containing historic resources

(shown in yellow) remain along strike and on upper mine levels. The graphs below right display the

tonnages of mineralized material present in this structure, comparing data for 2021 with the MRE.

(CNW Group/Silver Mountain Resources Inc.)

SOURCE

Silver Mountain Resources Inc.

View original content to download multimedia:

http://www.newswire.ca/en/releases/archive/April2023/12/c1273.html

%SEDAR: 00052252E

For further information:

Alvaro Espinoza, Chief Executive Officer, [email protected]; Jean

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

Street East, Toronto, ON M5C 1P1, +51 997 377 968, [email protected], www.agmr.ca

CO: Silver Mountain Resources Inc.

CNW 07:00e 12-APR-23

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