Silver Mountain Intersects 3.30 Metres of 569 g/t Silver and 3.11% Copper at Caudalosa; Company to Evaluate Potential for an Earlier Restart

Silver Mountain Resources Inc. (AGMR) has released assay results from the first 11,500 meters of a planned 17,500-meter drill program at its 100%-owned, past-producing Caudalosa underground silver-polymetallic mine in Castrovirreyna, Huancavelica, Peru.

Key reported intervals, all as drilled core lengths with true widths not determined, include:

• Paulinita vein, SMR-DC26-0019: 3.30 m @ 569 g/t Ag, 0.83 g/t Au, 3.11% Cu, 0.99% Zn, 0.48% Pb, including 0.55 m @ 2,793 g/t Ag, 3.15 g/t Au, 9.83% Cu.
• Paulinita vein, SMR-DC26-0028: 1.35 m @ 919 g/t Ag, 1.44 g/t Au, 2.66% Cu, 1.13% Zn, 0.54% Pb.
• Paulinita vein, SMR-DC26-0027: 2.40 m @ 262 g/t Ag, 1.01 g/t Au, 2.49% Cu.
• Caudalosa vein, SMR-DC26-0008: 3.30 m @ 172 g/t Ag, 0.91 g/t Au, 2.39% Zn, 1.12% Pb.
• Caudalosa vein, SMR-DC26-0009: 2.20 m @ 178 g/t Ag, 1.10 g/t Au, 1.70% Pb, 0.93% Zn.
• Caudalosa vein, SMR-DC26-0001: 2.15 m @ 113 g/t Ag, 2.19 g/t Au, 1.10% Pb, 0.96% Zn.
• Cerro de Pasco vein, SMR-DC26-0005: 1.15 m @ 240 g/t Ag, 0.98 g/t Au, 3.34% Pb.

Management stated that the high-grade, shallow mineralization, particularly at the Paulinita vein, supports a potential earlier restart of Caudalosa and an earlier increase in mill throughput, subject to technical evaluation, permitting, and other factors. No restart decision has been made.

The company also cited a non-43-101 historical inferred estimate for Caudalosa of 1,549 kt @ 14.43 oz/t Ag, 2.80% Zn, 2.79% Pb, 2.12% Cu, noting that this figure must not be relied upon as current resources or reserves.

Silver Mountain Resources Inc. (AGMR) released drill results from its Caudalosa project, a pre-resource asset central to its multi-asset silver platform thesis. While the company is now a producer at Reliquias, where drill results typically carry less weight, Caudalosa remains critical for potential resource growth and a possible accelerated restart. This release marks the first batch of Caudalosa assays since the program launched in March 2026, providing new data points against the historical grade anchor of approximately 449 g/t Ag and 2.1% Cu.

The stock closed at $3.10 on October 21, 2026, down approximately 48% from its February 2026 peak of $5.91 and roughly flat year-over-year, with a 52-week low of $2.28. This pricing reflects market skepticism rather than a repeat of prior good news, making in-line or better results from a previously unassayed area potentially significant. The results add credibility to a second feed source adjacent to the operating plant but do not yet alter resource tonnes, mine life, net asset value, or reserves, as there is no updated resource estimate, preliminary economic assessment, restart decision, capital expenditure plan, or metallurgical data.

Financial context from the six months ended June 30, 2026, shows net income of $10.6 million, driven by a $13.6 million non-cash unrealized gain on warrant revaluation rather than operations. Operating cash flow was -$8.2 million, with cash on hand at $29.1 million and a small working-capital deficit due to a large warrant liability.

Silver Mountain Resources Inc. (TSX: AGMR; OTCQB: AGMRF; BVL: AGMR) holds the 60,000-hectare Castrovirreyna Project in Huancavelica, central Peru, with the more than 20,000-hectare Reliquias block at its core. The company’s 100%-owned Reliquias Mine is an underground silver-polymetallic operation that commenced production in the third quarter of 2026, delivering its first bulk and zinc concentrates in mid-September 2026 from approximately 45,000 tonnes of stockpiled material. Production decisions are based on the 2024 NI 43-101 Preliminary Economic Assessment (PEA) rather than a feasibility study, and the company confirmed in a May 1, 2026 correction that there are no mineral reserves at Reliquias. The company targets a ramp rate of 800 tonnes per day in the second half of 2027, aiming for approximately 2.5 million ounces of silver equivalent annually within 12 months.

The Caudalosa Mine, also 100%-owned, is a past-producing site located approximately 1.3 kilometers from the concentrator. It hosts a non-43-101 historical inferred estimate of approximately 1,549 kilotonnes at approximately 449 grams per tonne silver, plus zinc, lead, and copper. A 17,500-meter drill program is currently underway, with 11,500 meters reported. Other exploration targets in the region include Colquicuntur, characterized by an Ag-Au-Cu tourmaline breccia, as well as Dorita, El Milagro, Poetas, and Carmelas.

Processing operations utilize a 2,600-tonnes-per-day concentrator, although permits allow for up to 2,000 tonnes per day. Flotation produces bulk and zinc concentrates, while the tailings storage facility (TSF) has a capacity of approximately 770,000 cubic meters, representing roughly four years of capacity.

The company’s capital structure consists of approximately 64.8 million shares, 0.9 million options, 20.3 million warrants, and 0.4 million restricted share units (RSUs), with insiders holding approximately 11%. Cash holdings are reported at approximately C$25.5 million in presentations and US$29.1 million in Q2 2026 filings, which provide prior-period context. The market capitalization stood at approximately C$201 million at a share price of $3.10. Management includes CEO Alvaro Espinoza and COO Richard Contreras, while Chairman Jose Vizquerra leads a board of independent directors with backgrounds from Buenaventura, Pan American Silver, SSR Mining, and RBC.