Silver Elephant Closes First Tranche of Non-Brokered Private Placement for Gross Proceeds of $290,000

Silver Elephant Mining Corp. announced on December 12, 2025, the closing of the first tranche of its previously announced non-brokered private placement, raising gross proceeds of $290,000. This financing involved the issuance of 1,160,000 units at a price of $0.25 per unit. Each unit consists of one common share and one share purchase warrant, exercisable at $0.30 for 36 months from the issue date. The proceeds are intended for general corporate purposes. This follows the initial announcement of a $375,000 private placement on December 2, 2025, with similar terms (units at $0.25, warrants at $0.30 for 36 months).

This first tranche closing of $290,000 is a routine capital raise and does not represent a material positive or negative impact on Silver Elephant's overall financial position. The company has a history of conducting frequent private placements to fund its operations. While it adds some cash to the balance sheet, the amount is relatively small when considering the company's significant outstanding liabilities and burn rate. As of September 30, 2025, the company had cash of only $237,096 and current liabilities exceeding $4.6 million (excluding the massive Mongolia tax dispute provision of over $27 million). Its net loss for the six months ended September 30, 2025, was nearly $4 million, indicating a substantial cash burn.

The financing price of $0.25 per unit is below the current market price of $0.35, which is somewhat dilutive but common for companies in need of capital. The warrants exercisable at $0.30 for three years indicate that investors are anticipating a price above this level in the medium term. The completion of this tranche signals the company's ability to continue raising funds, but it highlights an ongoing reliance on equity financings for working capital. The company's recent commencement of commercial production at Apuradita and the pending arbitration decision are more material events that could impact its financial trajectory more significantly than this incremental financing.

Silver Elephant Mining Corp. is a mineral exploration and development company primarily focused on silver, lead, and zinc projects in Bolivia and coal projects in Mongolia. The company's flagship project is the Apuradita Paca Silver Project in Bolivia. This project is currently transitioning from development to early production through a toll milling arrangement. Operations include underground tunnel development (157 meters completed as of June 2025) and shrinkage stoping, targeting 1,000 to 1,500 tonnes per month of silver-bearing mineralized material. The company recently announced its first high-grade silver concentrate sale from Apuradita in November 2025, marking a significant operational milestone.

In Mongolia, the company holds the Ulaan Ovoo coal project and Chandgana coal project, which are subject to various royalties and a substantial tax dispute.