Silver Mountain's First Infill Drilling Phase Supports High-Grade Silver Continuity in Reliquias' First Three Years of Production

Silver Mountain Resources Inc. (AGMR) has released the first stage of drill results from its Reliquias infill campaign, comprising 30 holes (SMR-172 to SMR-201) drilled from three platforms (CAM-01, CAM-02, CAM-03). All assays have been received. The campaign aims to improve confidence in the mine plan for Zones 1-3, which are scheduled to be mined in the first three years of production.

The company reported the following highlights based on drilled core lengths, noting that true widths are not known at this time:

• SMR-194-26-SCS: 0.90 m @ 1,495 g/t Ag, 0.38 g/t Au, 3.40% Zn, 1.66% Pb, 0.33% Cu (Tomaycalla); and 0.90 m @ 996 g/t Ag, 2.51 g/t Au, 6.32% Zn, 4.13% Pb, 0.47% Cu (Sacasipuedes Splay).
• SMR-199-26-GAB: 1.00 m @ 903 g/t Ag, 0.20 g/t Au, 8.08% Zn, 6.54% Pb, 0.83% Cu (Matacaballo Oeste).
• SMR-195-26-PZR: 0.70 m @ 759 g/t Ag, 0.25 g/t Au, 5.25% Zn, 2.78% Pb, 0.47% Cu (Matacaballo Oeste).
• SMR-174-26-AYA: 2.20 m @ 285 g/t Ag, 0.17 g/t Au, 17.98% Zn, 8.21% Pb, 0.71% Cu (Sacasipuedes).
• SMR-184-26-AYA: 1.95 m @ 5.13 g/t Au, 70 g/t Ag, 11.13% Zn, 4.65% Pb, 0.15% Cu (Sacasipuedes).
• SMR-179-26-AYA: 1.60 m @ 379 g/t Ag (Ayayay) and 2.45 m @ 272 g/t Ag (Matacaballo Oeste).
• SMR-186-26-AYA: 1.75 m @ 316 g/t Ag (Ayayay).

The full Table 1 discloses every intercept for all 30 holes, including weaker intervals such as SMR-187-26-AYA (0.90 m @ 15.4 g/t Ag) and SMR-201-26-AYA (0.80 m @ 13.7 g/t Ag). No cutoff grade was stated; intervals were selected based on geological contacts with a maximum length of 4.25 m. No metallurgical data was provided.

Silver Mountain Resources Inc. (AGMR) has confirmed grade and continuity in the veins feeding the first three years of mining, supporting the block model and mine plan. This validation modestly de-risks the ramp-up process. The results do not introduce new tonnes, new zones, or reserves, as the company operates under a Preliminary Economic Assessment (PEA) that includes inferred resources rather than NI 43-101 reserves. There is no change to metallurgy, the ~6.7 moz Reliquias resource, or the ~2.5 moz AgEq/yr production target.

Silver Mountain Resources Inc. recently transitioned from a developer to a producer, with first concentrates expected in mid-September 2026. For a producer, drill results typically move the stock only if they alter reserves or mine life. In this case, the infill drilling confirms the existing plan without extending it. The expectation anchor for this infill work is the resource grade of ~379 g/t AgEq, rather than prior high-grade channel samples. On that basis, the results are at or above grade, serving as a confirmation. Earlier high-grade samples, such as 2,003 g/t Ag over 0.45 m at Seguridad SE in April 2026, belong to a different zone and do not set the benchmark for infill drilling.

The stock rose from ~$2.28 in November 2025 to $5.91 in February 2026 on financing, uplisting, and restart narratives before round-tripping to $3.33. With the price not embedded at a premium, an in-line or mildly better result is not viewed as a disappointment. The outcome represents a modest positive that falls fully within market expectations for infill drilling. The disclosure is noted for its transparency, but the results do not constitute a scale, grade, or reserve event.

Silver Mountain Resources Inc. (TSX: AGMR; OTCQB: AGMRF; BVL: AGMR) is the 100% owner of the Castrovirreyna project, a ~60,000-hectare property in Huancavelica, central Peru, which includes the >20,000-hectare Reliquias block. The company’s principal asset is the Reliquias underground silver-polymetallic mine, which commenced production in Q3 2026. First bulk and zinc concentrates were produced in mid-September 2026, with first shipments expected in October 2026. The site features a 2,600 tpd concentrator permitted to operate at 2,000 tpd, with a throughput target of 800 tpd by the second half of 2027. Infrastructure includes >30 km of known veins and 20 km of rehabilitated tunnels, supported by grid power at approximately $0.057/kWh.

The Reliquias resource stands at ~3.07 Mt @ ~379 g/t AgEq, representing ~6.71 moz AgEq in the table, while the deck also cites an inconsistent "28.9 moz total project AgEq." Additionally, the Caudalosa historical (non-43-101) resource is ~1.55 Mt @ ~1,052 g/t AgEq (~52 moz), though these are not current resources. The company targets ~2.5 moz AgEq/yr within 12 months of production start. The life-of-mine profile in the deck runs 8 years at ~1.0-1.3 moz Ag/yr.

As of August 31, 2026, the capital structure consisted of 64.7M shares, 20.5M warrants (several near/above money), options, and RSUs. Cash stood at ~C$29.8M / US$29.1M at June 30, 2026. Insiders hold ~11% of the company, with Sprott, Franklin Templeton, Jupiter, and Libra among other holders. Governance includes Chairman Jose Vizquerra, CEO Alvaro Espinoza, and COO Richard Contreras, who is ex-Pan American Silver Peru. The board features backgrounds from Buenaventura, SSR, and RBC. A key constraint is the absence of reserves; production rests on a PEA dated October 28, 2024 (effective May 15, 2024) that includes inferred resources.