Silver Elephant Provides Update on Mining Productio n Contract with Comibol
Silver Elephant Provides Update on Mining Productio n
Contract with Comibol
Vancouver, British Columbia, April 2, 2025 — Silver Elephant Mining Corp. (“Silver
Elephant” or the “Company”) (TSX: ELEF, OTCQB:SILEF, Frankfurt:1P2) provides an update
on its ongoing efforts to reinstate the Mining Production Contract (“MPC”) dated October 3, 2019
with the Corporacion Minera de Bolivia (“Comibol”) which reports to the Bolivian Ministry of Mines
and Metallurgy (the “Ministry of Mines”).
The MPC is a commercial contract which grants the C ompany the exclusive rights to develop
2,803 hectares of the Pulacayo-Paca Project in Boli va as detailed in the news release dated
October 7, 2019.
In December 2024 Comibol delivered a notice to the Company that Comibol was unilaterally
cancelling the MPC (the “Notice of Cancelation”) al leging that the Company conducted illegal
mining activities. Since receiving the Notice of Cancelation, the Company and its representatives
have met numerous times with Comibol representatives to seek clarification and to advocate for
the reinstatement of the MPC. Following an internal investigation and based on available Comibol
reports and site visit inspections, the Company has found is no physical evidence that it conducted
any illegal mining. Further, the Company strongly maintains the position, which is affirmed by
external Bolivian legal counsel, that all authoriza tions and permits issued to the Company to
conduct activities in the MPC area were valid in accordance with Bolivian law, as they were duly
issued and approved via written resolutions of Comibol’s board of directors.
The Company notes that there are a number of mining companies conducting activities relying on
similar permits and authorisations issued by Comibol’s board of directors.
While the Company was meeting with Comibol officials advocating to have the MPC reinstated, it
became aware that Andean Precious Metals Corp. (“Andean”) a former customer of the Company,
entered into a purchase and sales agreement with Comibol to purchase oxide materials from the
Termidad and Real Del Monte concessions which are w ithin the MPC area. Please refer to
Andean’s news release dated February 6, 2025 for further background information.
The Company, Andean and their related parties were parties to a Master Services Agreement
(the “MSA”) and Sales and Purchase Agreement (the “SPA”) dated September 11, 2023 whereby
Andean agreed purchase oxide materials extracted fr om the MPC area. Please refer to the
Company’s news release dated September 12, 2023 for further background information. The
Company has delivered a dispute notice under the MS A to Andean demanding that it cease
interfering with the MPC and reserves the right to pursue a claim against Andean for damages as
a result of such interference.
By way of background:
May 10, 2021 - Silver Elephant and Andean execute a Confidentiality Agreement in
anticipation of a potential transaction in Bolivia.
August 22, 2022 - Andean makes an offer to purchas e all of Silver Elephant’s Bolivian
assets, including the Pulacayo-Paca Project part of which is covered by the MPC area.
September 11, 2023 - Andean, Silver Elephant and t heir related parties sign the MSA and
SPA for Andean to purchase silver oxide from Silver Elephant produced from the MPC
Area. Please refer to Company’s news release dated September 11, 2023.
On December 18, 2024 Silver Elephant delivers a no tice of default under the MSA and
demands payment of the $1,000,000 from Andean owed in accordance with the MSA (the
“Additional Consideration”).
On December 30, 2024, Silver Elephant terminates t he Master Service Agreement and
demands payment of the Additional Consideration. Refer to the Company news release
dated December 31, 2024.
On December 30, 2024, Silver Elephant receives the Notice of Cancelation of the MPC.
Refer to Company news release dated December 31, 2024.
On December 31, 2024, Andean delivers a dispute no tice to Silver Elephant alleging
breach of contract due to the Notice of Cancelation of the MPC.
On January 14, 2025, Silver Elephant files a Notic e of Arbitration and Statement of Claim
seeking to enforce payment of the Additional Consid eration after Andean’s continued
refusal to pay.
On February 6, 2025, Andean and Comibol entered in to a sale and purchase agreement
of oxide material from the Termidad and Real Del Monte concessions which are within the
MPC area.
On February 22, 2025 Silver Elephant delivers to A ndean an additional Notice of Dispute
claiming contractual interference and demands Andea n to cease interference with
Comibol.
The Company has also sought assistance from other appropriate government authorities.
The Company continues to pursue all available admin istrative and judicial avenues to reinstate
the MPC and will continue to keep all stakeholders informed.
About Silver Elephant Mining Corp.
Silver Elephant is a mineral exploration company wi th the Paca silver project and Triunfo gold
project in Bolivia.
Further information on Silver Elephant can be found at www.silverelef.com.
SILVER ELEPHANT MINING CORP.
ON BEHALF OF THE BOARD
“John Lee”
CEO and Executive Chairman
For more information about Silver Elephant, please contact Investor Relations:
+1.604.569.3661 ext. 101
www.silverelef.com
FORWARD-LOOKING INFORMATION
This news release contains “forward-looking informa tion” and “forward-looking statements”
(collectively, “forward-looking information”) withi n the meaning of applicable securities laws.
Forward-looking information is generally identifiable by use of the words “believes,” “may,” “plans,”
“will,” “anticipates,” “intends,” “could”, “estimat es”, “expects”, “forecasts”, “projects” and similar
expressions, and the negative of such expressions. Such forward-looking information, which
reflects management’s expectations regarding Silver Elephant’s future growth, results of
operations, performance, permitting status, busines s prospects and opportunities, is based on
certain factors and assumptions and involves known and unknown risks and uncertainties which
may cause the actual results, performance, or achievements to be materially different from future
results, performance, or achievements expressed or implied by such forward-looking information.
Forward-looking information in this and other news releases includes, the potential for the
Company to be reinstated the MPC, any implied outco me based on its request for Andean to
cease interfering with the MPC or any claim for damages as a result of such interference.
Forward-looking information involves significant risks and uncertainties, should not be read as a
guarantee of future performance, events or results, and may not be indicative of whether such
events or results will actually be achieved. A number of risks and other factors could cause actual
results to differ materially from expected results discussed in the forward-looking information,
including but not limited to any decision with resp ect to procedural matters under the arbitration
with Andean, the efficiency of both the courts and arbitrators and the inherent unpredictability
associated with dispute resolution in arbitration or through courts. Additional risk factors are set
out in the Company’s latest annual and interim management’s discussion and analysis and annual
information form (AIF), available on SEDAR+ at www.sedarplus.ca.
Forward-looking information is based on reasonable assumptions by management as of the date
of this news release, and there can be no assurance that actual results will be consistent with any
forward-looking information included herein. Reader s are cautioned that all forward- looking
statements in this news release are made as of the date of this news release. The Company
undertakes no obligation to update or revise any forward-looking information in this news release
to reflect circumstances or events that occur after the date of this news release, except as required
by applicable securities laws.