Silver Mountain Reports Further High Grade Silver Results From Its Underground Drilling And Channel Sampling Campaign At Its Reliquias Mine

Key Highlights - Infill drilling and channel sampling at Reliquias

Drill Hole SMR128-23-PER (PER vein)

• 0.30 m @ 2,961 g/t Ag, 0.84% Pb, 2.51% Zn, 0.08% Cu and 1.99 g/t Au

Drill Hole SMR88-BQ-23-PER (PER vein)

• 0.50 m @ 704 g/t Ag, 1.80% Pb, 2.60% Zn, 0.06% Cu and 11.15 g/t Au

Drill Hole SMR87-BQ-23-PZR (PZR vein)

• 1.25 m @ 231 g/t Ag, 3.34% Pb, 5.58% Zn, 0.11% Cu and 4.57 g/t Au

Channel Sample (MTS vein): 1.00m @ 1,343.35 g/t Ag, 1.87% Pb, 2.47% Zn, 0.59% Cu and 1.73 g/t Au

Channel Sample (MTC vein): 1.03m @ 420.32 g/t Ag, 0.66% Pb, 1.72 % Zn, 0.26 % Cu and 1.44 g/t Au

Channel Sample (PER vein): 0.59m @ 1,499.90 g/t Ag, 3.24% Pb, 5.96% Zn, 0.43% Cu and 16.98 g/t Au

TORONTO, Aug. 16, 2023 - Silver Mountain Resources Inc. ("Silver Mountain" or "the Company") (TSXV: AGMR) (OTCQB: AGMRF) is pleased to announce results from channel sampling completed between December 2022 and May 2023, and from the first four drill holes from Phase 2 of its 2023 infill and resource expansion program at its 100% owned Reliquias mine, central Peru. None of these results were included in the current mineral resource estimate announced on April 12^th, 2023.

The Company´s crews have continued to systematically sample the underground workings as part of the preparation work to restart operations in the future. A total of 800 samples were collected from the Sorpresa ("SOR"), Pozo Rico ("PZR"), Matacaballo ("MTC"), Perseguida ("PER") and Meteysaca ("MTS") veins. All samples were collected perpendicular to the veins using portable rock saws.

The Company also announces that it has received final approval of an Informe Técnico Sustentatorio ("ITS") permit, allowing it to add twenty surface drill platforms on the Pasteur zone.

Alvaro Espinoza, CEO of Silver Mountain, stated, "These channel sampling results confirm the high grades and the continuous nature of our veins, particularly the Meteysaca ("MTS") and Perseguida ("PER") veins which confirm that the Reliquias deposit could be amenable to modern mining methods without too much dilution. Furthermore,we have now received the first results from Phase 2 of the 2023 infill and resource expansion drilling. Hole SMR128-23-PER, an infill drill hole along the Perseguida ("PER") vein, has hit 0.30 metres with 102.87 oz/t AgEq (or 3,199.61 g/t AgEq), one of the highest grade intercepts to date."

Mr. Espinoza continued, "The fully-funded second phase of our 2023 infill and resource expansion drill program continues at full speed and Silver Mountain is rapidly moving the Reliquias Project forward under its two-pronged strategy of advancing towards a production decision and exploring for additional resources. The approval of twenty surface platforms on the highly prospective Pasteur zone is a very positive step forward to fulfil the second part of this strategy. Field crews continue to prospect some of the most promising targets within the Project´s large 60,000 hectare land package, located in one of the most polific polymetallic belts in the world".

Between December 2022 and May 2023, Silver Mountain geologists collected 800 channel samples from several veins. Table 1 and Table 2 show the distribution of samples between the veins and the compiled weighted results respectively. Full results from the underground channel samples are provided in the Appendix to this news release.

Table 1: Distribution of underground channel samples reported in this news release

Table 2: Weighted assay results from systematic channel sampling along several veins, calculated for contiguous zones on each level.

Channel sampling across a 130 metre long segment of the Meteysaca Vein ("MTS") on level 520 yielded a weighted average of 22.51 oz/t AgEq with an average vein thickness of 0.73 metres. A channel within this segment of the MTC vein yielded 1.00m @ 1,343.35 g/t Ag, 1.87% Pb, 2.47% Zn, 0.59% Cu and 1.73 g/t Au, some of the highest grade samples collected to date using this method. Figure 1 shows the sampling location and grades found along the MTS vein.

Sampling along the Perseguida vein system ("PER") continues to find significant gold and silver grades both along the main vein and its splays. An 18 metre long segment along the main vein yielded grades, over an average vein width of 0.50 metres, of 0.50m @ 340.68 g/t Ag, 0.59% Pb, 0.82% Zn, 0.05% Cu and 7.71 g/t Au. Figure 2 shows the sampling location and grades found along the PER vein.

2023 Drilling Results

The Company recently completed the first phase of underground infill and resource expansion drilling at Reliquias, using BQ diameter core. The second phase of this program, using larger diameter NQ and HQ core, began in June 2023. So far, the Company has received results from the first four completed holes from Phase 2, drilled along the Sacasipuedes (or "SCS") and Perseguida (or "PER") veins. All four holes hit silver and polymetallic mineralization. Figure 3 and Table 3 show the drill hole location and a summary of results respectively.

Holes SMR-131-23-PER and SMR-128-23-PER were collared from the same platform along the Perseguida ("PER") vein, aimed at validating the high grade historical resource blocks and extending the mineralization at depth. Results confirm that high grade silver extends below the previously mined areas, and further drilling will test the grade continuity of this vein both along strike and down dip.

Finally, the Company reports that results from four Phase 1 drill holes, testing the Pozo Rico vein system, have been received. None of these holes were included in the current resource estimate. Location information and a summary of the results from these four holes are shown in Figure 5 and Table 4 respectively. Drill hole SMR88BQ-23-PZR, a stepout hole, hit significant gold and silver grades, extending mineralization approximately 100 metres along strike and 50 metres at depth (see Figure 6). This mineralization remains open in all directions.

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^th and July 19^th 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), 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 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://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 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 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.

APPENDIX: Full Channel sampling results

SOURCE Silver Mountain Resources Inc.