Silver Elephant and Oracle Commodity Holding Amend Existing Coal and Silver Royalty Agreements

Executive Summary

• Oracle Commodity Holding Corp. and Silver Elephant Mining Corp. have executed amended and restated net smelter return (“NSR”) royalty agreements for Silver Elephant’s Mongolian coal assets and Bolivian silver assets.
• Coal royalties are increased to the greater of US$2/tonne or 3% of NSR (up from the greater of US$3/tonne or 5% of NSR), with Silver Elephant providing payment guarantees for its subsidiaries.
• Silver royalties on Bolivian assets are reduced to 2% of 70% of gross metal value (down from 2% of 100%), and the $30/oz price threshold is eliminated; Silver Elephant also provides payment guarantees for its subsidiaries.

Key Details

• Agreement Scope: Amended and restated NSR royalty agreements covering:
• Mongolian coal properties – new royalty formula: greater of US$2 per tonne or 3% of NSR (previously greater of US$3/tonne or 5% of NSR).
• Bolivian silver properties – new royalty formula: 2 % of 70 % of gross metal value (previously 2 % of 100 %).
• Guarantees: Silver Elephant will guarantee all royalty payments on behalf of its Mongolian and Bolivian subsidiaries that are the royalty payors.
• Regulatory/Exchange Approval: Agreements are subject to applicable regulatory or stock‑exchange approvals.
• Related‑Party Status: Silver Elephant is a control person of Oracle; the transactions are “related party transactions” under MI 61‑101, with both parties intending to rely on exemptions from formal valuation and minority‑shareholder approval requirements.
• Qualified Person: Technical content prepared under supervision of Carlos Zamora, AIPG, CPG, qualified person per NI 43‑101.

Notable Quotes

“These amended royalty terms better align the interests of both parties and reflect our commitment to creating value for shareholders while ensuring reliable payment structures.” – Anthony Garson, CEO and Director, Oracle Commodity Holding Corp.