AGMR.TO · 2024-02-07 12:00:00

Silver Mountain Doubled Contained Silver Content with Higher Grade and Increased Tonnage IN the Measured and Indicated Categories IN Updated Mineral Resource Estimate at Its Reliquias Project, PERU Key Highlights – Updated Mineral Resource Estimate

Resource Estimates

SILVER MOUNTAIN DOUBLED CONTAINED

SILVER CONTENT WITH HIGHER GRADE AND

INCREASED TONNAGE IN THE MEASURED

AND INDICATED CATEGORIES IN UPDATED

MINERAL RESOURCE ESTIMATE AT ITS

RELIQUIAS PROJECT, PERU

Key Highlights – Updated mineral resource estimate

Silver-equivalent ounces in Measured and Indicated categories increased by 100%

Silver-equivalent grade and tonnage in Measured and Indicated categories increased by 34% and

48%, respectively

Updated mineral resource estimate positions Reliquas project for PEA completion in Q1 2024

Measured and Indicated resource estimate of 1.275 Mt @ 4.34 oz/t Ag, 0.42 g/t Au, 3.14% Zn,

2.06% Pb, and 0.33% Cu

Additional Inferred resource estimate of 1.

706 Mt

@ 4.07 oz/t Ag, 0.43 g/t Au, 2.96% Zn, 1.84%

Pb, and 0.28% Cu

TORONTO

Feb. 7, 2024

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

Company") (TSXV: AGMR) (OTCQB: AGMRF) is very pleased to announce an updated mineral

resource estimate (the "MRE") for its 100% owned Reliquias project, central

Peru

. The new

estimate incorporates 18,586.95 metres of additional diamond drilling completed in 2023, and 5,247

channel samples collected from rehabilitated underground tunnels.

Alvaro Espinoza

, President and CEO of Silver Mountain, remarked: "

We have been looking forward

to receiving the results of the new mineral resource estimate from the Reliquias project since

completing our Phase 2 drill program last October. These results exceed our expectations, with a

notable increase in the overall confidence in the resource itself, converting a significant portion of

the Inferred portion of the mineral resource estimate into the Indicated category and, crucially,

incorporating maiden mineral resource estimates for the Vulcano, Perseguida, Beatita, and

Natividad veins, which were not included in previous estimates. The significant increase in

contained silver ounces, our success in converting Inferred resources into the Indicated category,

and the increase in the Inferred resource category, give us confidence that we can continue to

grow the size of the deposit, and incorporate new areas into future mine plans once we complete

our Preliminary Economic Assessment, due in

March 2024

Mr Espinoza continued, "

Our technical team and our contractor partners have worked tirelessly

throughout 2023 to deliver this great result for our Company, and we look forward to what we

expect will be a transformational 2024 for Silver Mountain as we move towards production."

Discussion of Updated Mineral Resource Estimate

The MRE has been prepared by

Antonio Cruz

, P.Geol. (MAIG #7065) and incorporates the second

phase of the 2023 drill program, and the underground channel samples completed in 2023. The

dataset used includes 177 diamond drill holes and 1,776 channel samples, with 21 different

mineralized veins modelled. Table 1 shows the summary of the mineral resource estimate.

Table 1: Mineral Resource Estimate for the Reliquias Project, effective date

January 1, 2024

Category

Tonnes

(kt)

(oz/t)

Contained

Ag (Moz)

Difference in Contained

Metal (Ag) 2024 vs

2023

Measured

221

5.22

1.16

Measured

107

3.37

0.36

+222 %

Indicated

1,054

4.15

4.40

Indicated

754

3.21

2.42

+82 %

M+I

1,275

4.34

5.57

M+I

861

3.23

2.78

+100 %

Inferred

1,706

4.07

7.16

Inferred

969

3.20

3.10

+131 %

Mineralized veins have been subdivided into three vein systems, or regions. Regions 1 and 3 are

mainly NW-SE striking structures, while Region 2 are E-W veins parallel to the Matacaballo vein.

Figure 1 shows the distribution of the veins into the three Regions. Region 1 includes the Ayayay,

Sacasipuedes,

Natividad and Pozo Rico

veins, all located on the western and southwestern sections

of the Reliquias Mine and all subparallel, except for the NAT vein. Region 2 includes the

Matacaballo, Sorpresa and Vulcano veins, roughly aligned in an E-W corridor centered around the

MTC vein. Region 3 includes the Meteysaca, Pasteur and Perseguida veins, located on the eastern

sector of the vien system.

Figure 1 Vein systems in the Reliquias mine (CNW Group/Silver Mountain Resources Inc.)

Reliquias Project Updated Mineral Resource Estimate Notes

Wireframes were built for 21 mineralized structures in the Reliquias mine.

A composite length of

0.5m

was used.

Two interpolation methods were used. ID2 was used for 16 veins, and Ordinary Kriging was

used for 5 veins.

The block model used

blocks, with a minimum sub-block size of

0.5m

0.25m

0.5m

The mineral resource was classified as follows:

Measured Category: 3 samples within 30 metres and presence of data from underground

working

Indicated Category: First or second pass with at least 2 samples within 60 metres

Inferred Category: Maximum distance of 80 metres with a geological control defined by drilling.

The Company is planning to complete a preliminary economic assesmtent ("PEA") by the end of Q1

2024, and move forward towards production in H1 2025.

A technical report is being prepared in respect of the MRE in accordance with National Instrument

43-101 – Standards of Disclosure for Mineral Projects ("NI-43-101") and will be available on the

Company's website and filed on SEDAR+ within 45 days of the date of this release. The effective

date of the MRE is

January 1, 2024

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 and

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 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://sedarplus.ca

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 60,000 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 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 or Certimin laboratories 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 "

Risk Factors

" in the Company's annual information form dated

August 14, 2023

and

other disclosure documents available on the Company's profile 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/February2024/07/c5817.html

%SEDAR: 00052252E

For further information:

Alvaro Espinoza, Chief Executive Officer, Silver Mountain Resources Inc,

82 Richmond Street East, Toronto, ON M5C 1P1, [email protected], www.agmr.ca

CO: Silver Mountain Resources Inc.

CNW 07:00e 07-FEB-24

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