Silver Mountain Resources Inc. announced results from 32 drill holes completed between December 2022 and May 2023 as part of the first phase of infill and resource expansion drilling program at its 100% owned Reliquias mine, central Peru. These drill holes are not included in the current mineral resource estimate announced on April 12, 2023. The company also provides an update on its ongoing mine rehabilitation program, aimed at a future re-start of production from this historic silver-zinc-lead deposit, located in one of the most prolific metallogenic belts in the world.

The company has successfully completed a first phase, 55 hole and 3,500 metre underground drill program at Reliquias, focusing on both infilling the high-grade portions of the current resource, and stepping out along strike of the highest-grade veins identified to date. Ongoing mine rehabilitation remains on track, with 11.37 kilometres completed so far. The company plans to complete, before the end of 2023, the rehabilitation work of all main ramps and tunnels necessary to re-start production.

Drilling continues with 3 rigs working on underground drill pads, and results will be announced as they come in. Key Highlights - Infill drilling and mine rehabilitation at Reliquias: Hole SMR97BQ-23-SCS: 9.45 m at 75.63 g/t Ag, 1.99% Pb, 3.09% Zn, 0.22% Cu and 0.22 g/t Au Including 1.95 metres at 118.43 g/t Ag, 2.67% Pb, 5.05% Zn, 0.87% Cu and 0.18 g/t Au. Hole SMR103BQ-23-MTS: 1.00 m at 17.80 g/t Ag, 0.08% Pb, 3.09% Zn, 0.01% Cu and 28.30 g/t Au And 0.80 m at 482.00 g/t Ag, 1.10% Pb, 3.10% Zn, 0.34% Cu and 4.02 g/t Au.

Hole SMR118BQ-23-PAS: 0.60 m at 629.00 g/t Ag, 1.20% Pb, 2.60% Zn, 0.08% Cu and 1.14 g/t Au. Hole SMR126BQ-23-PER: 1.75 m at 773.17 g/t Ag, 1.31% Pb, 1.28% Zn, 0.14% Cu and 5.23 g/t Au. 11.37 km of tunnels have been rehabilitated to date, representing 77.7% of the overall program.

Drill hole SMR103BQ-23-MTS, an infill hole in the central portion of the Meteysaca (MTS) vein, reports some of the highest gold grades identified to date at Reliquias, confirming the presence of high-grade gold grades in some of the veins. Drill hole SMR118BQ-23-PAS was drilled along the easternmost segment of the Matacaballo (MTC) vein system drill tested to date and extends the high-grade silver mineralization further east than the current block model. This mineralization remains open to the east and at depth.

Drill hole SMR126BQ-23-PER was drilled on the northwestern extension of the Perseguida (PER) vein and has hit some of the highest grade silver and base metal mineralization found to date. The mineralization remains open to the northwest and at depth.