AGMR.TO · 2023-09-27 12:00:00

SILVER MOUNTAIN DISCOVERS NEW HIGH GRADE COPPER VEIN AND HITS IMPRESSIVE PRECIOUS METAL GRADES AT ITS RELIQUIAS MINE, PERU Key Highlights – Initial drilling on the Natividad Vein and mineral resource expansion drilling at Sacasipuedes vein system

Drill Results

SILVER MOUNTAIN DISCOVERS NEW HIGH

GRADE COPPER VEIN AND HITS IMPRESSIVE

PRECIOUS METAL GRADES AT ITS

RELIQUIAS MINE, PERU

Key Highlights – Initial drilling on the Natividad Vein and mineral resource expansion drilling

at Sacasipuedes vein system

Drill Hole SMR135-23-SCS (newly identified Natividad, or "NAT" vein)

1.55 m @ 81 g/t Ag, 2.51% Pb, 4.57% Zn, 1.80% Cu and 0.25 g/t Au, including

1.00 m @ 106 g/t Ag, 3.37% Pb, 5.84% Zn,

2.56% Cu

and 0.09 g/t Au

Drill Hole SMR140-23-SCS (NAT vein)

2.20 m @ 42 g/t Ag, 2.79% Pb, 3.84% Zn, 0.75% Cu and 0.06 g/t Au, including

1.00 m @ 62 g/t Ag, 5.40% Pb, 4.70% Zn, 0.98% Cu and 0.06 g/t Au

Drill Hole SMR140-23-SCS (mineralized breccia)

0.60 m @ 1,319.55 g/t Ag, 0.86% Pb, 2.82% Zn, 0.03% Cu and 6.19 g/t Au, including

0.30 m @ 2,623.00 g/t Ag, 1.68% Pb, 5.60% Zn, 0.06% Cu and 12.20 g/t Au

TORONTO

Sept. 27, 2023

/CNW/ - Silver Mountain Resources Inc. ("Silver Mountain" or "the

Company") (TSXV: AGMR) (OTCQB: AGMRF) is pleased to announce the discovery of the

Natividad vein, a new copper rich vein at its 100% owned Reliquias mine, central

Peru

. Results from

three of the initial four drill holes completed at Natividad have been received, all part of Phase 2 of

the Company´s 2023 infill and resource expansion program. Drilling has also hit very high gold and

silver grades near the Sacasipuedes vein, within a mineralized breccia body with strong argillic

alteration.

Alvaro Espinoza

, CEO of Silver Mountain, stated, "

It is very exciting to have discovered a new

mineralized vein, which has been named by our technical team as Natividad (or "NAT"). It is early

days still, and the high grade copper values and true thickness observed augur well for its possible

incorporation into a future mine plan. Our geologists are adapting the program to further test this

structure along strike and at depth, and we will provide results as we receive them. Discovering a

new vein in a historic district such as Reliquias proves once again that this project not only has a

solid resource base on which to prepare a mine plan to re-start operations, but also has significant

exploration upside to grow it further."

Mr Espinoza continued,

"The extremely high silver and gold grades found above the main

Sacasipuedes vein is also exciting as it proves, once again, that bonanza type grades exist outside

of the current mineral resource boundaries. We look forward to test the continuity of this new high

grade hit in our ongoing underground drill program."

Phase 2 of the 2023 drill program consists of 12,500 metres of NQ and HQ drilling aimed at infilling

and growing the Company´s current mineral resource estimate (see news release dated

April 12

2023 ). So far, drilling crews have completed approximately 7,600 metres of this program with two

underground rigs, and the Company has received results from 18 drill holes (see also news releases

dated

July 19

and

August 16

, 2023).

Discussion of 2023 Drilling Results

The Company has so far completed 22 drill holes on the Sacasipuedes and Perseguida vein systems

from three underground drill platforms, two from Sacasipuedes and one from Perseguida. The

Natividad discovery was made through drilling originally aimed at the Sacasipuedes vein, the results

of which are also included in this release. Details on the location of the underground drill platforms

and drill traces are found in Figure 1. Table 1 also shows a summary of the results announced in this

news release.

Figure 1: Drill Hole Location Map of the 2023 Drill program (CNW Group/Silver Mountain Resources

Inc.)

Number

Drill

Platform

Hole ID

From

Interval

True

Width

Gold

Silver

Lead

Zinc

Copper

Ag_Eq

Vein

Number

Drill

Platform

Drill hole

g/t

Oz/t

C-39

SMR-135-23-SCS

427.25

428.00

0.75

0.67

1.11

5.63

0.30

0.59

0.06

3.70

SCS

including

427.60

428.00

0.40

2.05

3.90

0.24

0.42

0.05

5.72

493.95

495.50

1.55

1.36

0.25

80.98

2.51

4.57

1.80

13.58

NAT

including

493.95

494.95

1.00

0.09

106.00

3.37

5.84

2.56

17.67

C-39

SMR-140-23-SCS

105.25

105.85

0.60

6.19

1319.55

0.86

2.82

0.03

60.31

including

105.25

105.55

0.30

12.20

2623.00

1.68

5.60

0.06

119.63

443.95

444.45

0.50

0.41

0.06

79.10

7.39

13.19

0.43

20.07

SCS

540.25

542.45

2.20

1.76

0.06

42.03

2.79

3.84

0.75

8.69

NAT

including

540.25

541.25

1.00

0.80

0.06

61.80

5.40

4.70

0.98

12.61

C-33

SMR-146-23-SCS

303.00

303.65

0.65

0.49

0.04

28.50

0.25

0.34

0.17

1.94

SCS

462.55

463.20

0.65

0.62

0.04

49.60

4.36

2.20

0.40

7.83

NAT

Notes

True thicknesses are shown only where they can be determined.

Silver equivalent (Ag_Eq) grades are calculated using metal prices of: silver US$23.30/oz., gold US$1764/oz, copper US$9419/tm, lead US$2188/tm and zinc US$2813/tm. Silver

equivalent grade is calculated as Ag_Eq (oz/t) = (Ag (oz/t) + (Au (g/t) * 2.40) + (Cu (%) * 2.70) + (Pb (%) * 0.80) + (Zn (%) * 0.80). Metal recoveries have not been applied in the

silver equivalent value calculation.

Table 1: Location and summary of results from the Natividad vein

The Natividad vein is a newly identified mineralized structure found up to 100 metres below the

Sacasipuedes vein ("SCS"). Company geologists believe that Natividad´s strike is oblique to the SCS

vein, likely subparallel to the Matacaballo vein, and with a northerly dip. The mineralization is similar

to the other veins in Reliquias, but with significantly higher quantities of chalcopyrite resulting in much

higher grade copper grades than observed elsewhere. Company geologists interpret this style of

mineralization as a separate event to the other veins drilled so far at Reliquias, suggesting that this

deposit hosts a long-lived and multi-phase mineralization system. The Natividad vein has now been

identified in four drill holes, spaced up to approximately 85 metres apart, and further drilling along

strike and at depth is planned. Drilling has so far tested approximately 150 metres of strike length of

Natividad, and it remains open laterally and vertically. Results from three drill holes have been

received and are shown in Figure 2, a longitudinal section of the Natividad vein with the four

completed drill holes.

Before hitting the Natividad vein, drill hole SMS-140-23-SCS intersected very high grade silver-gold

at a shallow depth and high grade zinc-lead mineralization on the Sacasipuedes ("SCS"). The

shallower precious metal mineralization is hosted in an argillically altered breccia with disseminated

sulfides (see Figure 3), yielding some of the highest grade silver-gold grades seen so far at

Reliquias, with a silver equivalent grade of approximately 120 oz/t AgEq. Company geologists are

currently working on the interpretation of this style of mineralization. Further drilling will be needed to

determine if this breccia is linked to the the Sacasipuedes vein system, or if it represents a new style

of mineralization. The main Sacasipuedes intercept sits approximately 500 metres to the southeast

of the outer limit of the current mineral resource, and below the lowest levels of the Reliquias mine

historical workings. The SCS vein intercept of 0.50 metres with a combined Pb+Zn grade of

20.58%, is one the highest grade polymetallic results found to date. Further drilling is planned to test

the lateral and down dip extensions of this intercept. Figure 4 shows a longitudinal section of the

SCS vein with the location of this drill hole.

Figure 2: Longitudinal section of the newly identified Natividad vein (CNW Group/Silver Mountain

Resources Inc.)

Silver equivalent (Ag_Eq) grades are calculated using metal prices of: silver US$23.30/oz., gold US$1764/oz, copper US$9419/tm, lead US$2188/tm and zinc US$2813/tm. Silver

equivalent grade is calculated as Ag_Eq (oz/t) = (Ag (oz/t) + (Au (g/t) * 2.40) + (Cu (%) * 2.70) + (Pb (%) * 0.80) + (Zn (%) * 0.80). Metal recoveries have not been applied in the

silver equivalent value calculation.

Figure 3: High grade Ag-Au intercept in drill hole SMR140-23-SCS (CNW Group/Silver Mountain

Resources Inc.)

Figure 4: Longitudinal section of the Sacasipuedes vein showing grade-thickness values (CNW

Group/Silver Mountain Resources Inc.)

Silver equivalent (Ag_Eq) grades are calculated using metal prices of: silver US$23.30/oz., gold US$1764/oz, copper US$9419/tm, lead US$2188/tm and zinc US$2813/tm. Silver

equivalent grade is calculated as Ag_Eq (oz/t) = (Ag (oz/t) + (Au (g/t) * 2.40) + (Cu (%) * 2.70) + (Pb (%) * 0.80) + (Zn (%) * 0.80). Metal recoveries have not been applied in the

silver equivalent value calculation.

The 2023 drill program consists of two phases: an initial 3,500 metre phase using BQ diameter core

(now completed); and a second 12,500 meter phase using NQ and HQ diameter core. Full results

from the BQ diameter drilling have now been announced (see also

March 29

and

July 19

news

release at

https://agmr.ca/news

). The second phase of infill drilling started in

June 2023

and

continues with 3 rigs working in the upper levels of the MTC (Matacaballo), MTS (Meteysaca), PER

(Perseguida), and SCS (Sacasipuedes) vein systems, where high grade historical resource blocks

remain outside of the current resource estimate. The Company plans to incorporate these high-

grade blocks in future resource estimates. Results will be announced as they become available.

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

Alvaro Espinoza

, Chief Executive Officer

Qualified Person

Antonio Cruz Bermudez

, , P. Geo. Registered Member MAIG is 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 currently exploring its 100% owned Castrovirreyna Project,

consisting of over 60,000 hectares of highly prospective mineral claims and concessions located in

the Huancavelica Region, central

Peru

. For additional information regarding the Castrovirreyna

Project, please refer to the Company's technical report, titled NI 43-101 Technical Report Mineral

Resource Estimate for the Reliquias Mine, Huancavelica-

Peru

, dated

March 27, 2023

, effective

date

March 18, 2023

, 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

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 BQ, 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 "

Caution Regarding Forward-Looking Statements"

and "

Risk Factors

" in the

Company's Annual Information Form dated

August 14, 2023

, and other disclosure documents

available on the Company's profile on SEDAR+ at

www.sedarplus.ca

. 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/September2023/27/c1398.html

%SEDAR: 00052252E

For further information:

Alvaro Espinoza, Chief Executive Officer, [email protected], Silver

Mountain Resources Inc, 82 Richmond Street East, Toronto, ON M5C 1P1, +51 954 475 319,

[email protected], www.agmr.ca

CO: Silver Mountain Resources Inc.

CNW 07:00e 27-SEP-23

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