SILVER MOUNTAIN ANNOUNCES FIRST CONCENTRATE SALE

Silver Mountain Resources Inc. (AGMR) announced the first sale and shipment of bulk and zinc concentrates from its 100%-owned Reliquias silver-polymetallic mine in Huancavelica, Peru. The company reported an estimated provisional sales value of approximately US$2.7 million, noting that this figure is subject to final weights, assays, metal prices, contractual deductions, and settlement adjustments, meaning recognized revenue may differ.

Production at the Reliquias mine restarted in September 2026, utilizing approximately 45,000 tonnes of stockpiled material. Initial shipments were expected in October 2026, with the company targeting an 800 tonnes per day (tpd) processing throughput in the second half of 2027. As part of the ramp-up, Silver Mountain expects to transition from processing stockpiled material to newly mined ore. The release does not specify a commercial-production date, though prior materials referenced 2026 in the MD&A and H1 2027 in the investor presentation. The next operational update is expected in January 2027.

Technical information regarding the operation was reviewed by Gerardo Acuña, P.Eng., with the release stating there were no limitations on verification. The company reiterated that the Reliquias production decision was not based on a pre-feasibility or feasibility study, that Reliquias has no defined mineral reserves, and that the Reliquias Preliminary Economic Assessment (PEA) is preliminary and includes inferred resources.

Silver Mountain Resources has undertaken significant development and exploration activities leading up to the restart. In February 2026, the company launched a 7,000-metre infill drilling program at Reliquias to upgrade resources and define high-grade zones ahead of the restart. By April 2026, the company reported over 3,000 metres of underground development, approximately 12,000 tonnes of ore stockpiled, and a completed tailings facility, with the treasury above US$30 million. In May 2026, plant rehabilitation was reported to be about 75% complete, followed by successful empty-load testing. By July 2026, commissioning had begun, with plant rehabilitation at about 95% complete.

In October 2026, infill drilling at Reliquias supported high-grade continuity in Zones 1-3 for the first three years of production. The company also reported high-grade silver-polymetallic intercepts from its Caudalosa drill program, stating it would evaluate an earlier Caudalosa restart and accelerated mill throughput, subject to further work and permitting.

Prior to the production restart, Silver Mountain closed an upsized bought deal in November 2025 for about $29.9 million gross at $2.60 per unit, including six-month Series A warrants at $3.25 and 24-month Series B warrants at $3.90, with proceeds designated for exploration, plant infrastructure, and working capital. The company also announced an effective TSX uplisting on February 26, 2026. In March 2026, Silver Mountain launched a 14,000-metre drill program at Caudalosa.

Silver Mountain Resources Inc. (AGMR) announced the first cash-generating shipment from its Reliquias project, marking a positive operational milestone that demonstrates the execution of concentrate logistics and offtake agreements following the planned production restart in September 2026. The November 12 announcement serves as the follow-through to the company’s earlier guidance, which anticipated initial concentrate shipments in October 2026.

The financial scale of the shipment is described as small and provisional. The release cites an estimated sales value of US$2.7 million, noting that this is not a final revenue figure. The company did not provide details regarding cash costs, margins, payable terms, treatment charges, or run-rate shipment guidance, meaning profitability cannot be assessed from this release alone.

The key operational proof point remains the transition from stockpiled material to newly mined ore and the achievement of sustained throughput toward 800 tpd in the second half of 2027. The release does not provide a new commercial-production date.

Silver Mountain Resources Inc. (AGMR) is a Canadian mining company focused on silver-polymetallic assets in Peru. It owns 100% of a roughly 70,000-hectare concession package in the Castrovirreyna district, Huancavelica. The company’s flagship asset is the Reliquias underground silver-polymetallic mine. It also operates the Caudalosa mine and plant hub, along with earlier-stage targets including Colquicuntur and Dorita.

The operating model utilizes a hub-and-spoke system, with the Caudalosa processing plant serving as the hub. Reliquias and other satellite orebodies are intended to supply feed to the facility. The presentation cites a 2,600 tpd concentrator capacity, permits for up to 2,000 tpd, and tailings capacity of about 770,000 m3, expected to support up to four years of production.

The Reliquias NI 43-101 resource in the presentation includes measured 228,000 t, indicated 1,083,000 t, and inferred 1,758,000 t. The contained resources total silver 12.6 moz, gold 41.0 koz, copper 3,284 kt, zinc 4,337 kt, and lead 4,322 kt. M&I resources are not reserves.

The Reliquias PEA outlines an 8-year mine plan. The LOM average guidance is about 1.13 moz silver/year, 2.0 koz gold/year, 750 t copper/year, 6,500 t zinc/year and 4,700 t lead/year. NPV, IRR and specific AISC dollar values are not disclosed in the provided presentation.

Caudalosa has a historical resource of about 22.3 moz silver, 911 kt copper, 9,157 kt zinc and 5,815 kt lead. The company states historical estimates should not be relied upon as current NI 43-101 resources or reserves.

No analyst coverage or price targets were provided in the materials, so no target range or average can be stated. No royalty schedule is disclosed in the provided materials. Royalty-free status cannot be confirmed.