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Silver Mountain Resources Inc. ("Silver Mountain" or the "Company") (TSX: AGMR) (OTCQB: AGMRF) (BVL: AGMR) is pleased to announce the commencement of the first phase of a 14,000-meter diamond drilling campaign at its Caudalosa Mine, alongside a significant operational advancement at the Reliquias Mine as the Company accelerates toward its fully funded Q3 2026 production restart.
Caudalosa Drill Program
The Company has commenced the first phase of a 14,000-metre drill program at Caudalosa, targeting resource expansion, grade enhancement, and the delineation of additional mineable zones. Initial drill results are expected in April 2026.
This program marks the beginning of a disciplined growth strategy designed to unlock Caudalosa's full geological potential, with a focus on converting mineralized targets into near-term production opportunities and long-term value for shareholders. With silver fundamentals strengthening and capital markets reopening to high-quality silver developers, Silver Mountain is advancing exploration at a critical moment in the cycle.
Reliquias Mine Restart
Development at the Reliquias Mine remains on track and on budget for a planned restart of operations in Q3 2026. Multiple workstreams are advancing in parallel in connection with the restart.
Key operational highlights include:
- Raise boring operations have commenced, accelerating underground infrastructure readiness.
- Approximately 5,000 tonnes of mineral have been stockpiled to date which will be supplemented by additional development ore to provide plant feed to the start of operations.
- Installation of key new equipment is already complete or advancing according to schedule. Installation of refurbished plant components will begin by the end of March and other plant equipment is completing maintenance as per schedule.
- Project expenditure tracking according to plan.
The restart of Reliquias is expected to materially reposition Silver Mountain as a producing silver company, with cash flow potential and operational leverage to silver prices.
Strategic Transition: From Restart to Expansion
With its recent TSX graduation completed, a strong treasury position, and operational execution advancing on schedule, Silver Mountain is entering a new phase defined by:
- Production restart at Reliquias
- Targeted resource growth and production pipeline expansion at Caudalosa
- A strategy to build a multi-asset silver platform in Peru
The Company anticipates that 2026 could be a transformational year, with exploration catalysts in the near-term exploration catalysts at Caudalosa and medium-term production restart visibility at Reliaqias.
Alvaro Espinoza, Chief Executive Officer of Silver Mountain, commented: "We are executing our strategy decisively. Reliquias is advancing on schedule with infrastructure development underway, plant installation about to begin, and mineral already stockpiled for processing. At the same time, we have commenced a 14,000-meter drill campaign at Caudalosa targeting resource expansion. With initial results At Caudalosa expected in April 2026 and a Q3 2026 restart at Reliquias firmly in sight, we are positioning Silver Mountain for a re-rating as we transition into a growth-oriented silver producer."
Qualified Person
Antonio Cruz Bermudez, P. Geo., Registered Member FAIG, has reviewed and approved the scientific and technical disclosure in this news release. Antonio Cruz Bermudez is a "qualified person" (as defined by National Instrument 43-101 – Standards for Disclosure for Mineral Projects ("NI 43-101")) and considered "independent" of the Company for purposes of Section 1.5 of NI 43-101.
About Silver Mountain Resources Inc.
Silver Mountain Resources Inc. is a Canadian mining company focused on the exploration and development of silver projects in Peru. The Company's principal asset is the Reliquias Project, a past-producing silver mine located in the Castrovirreyna district of Huancavelica. Silver Mountain is committed to creating long-term value for its shareholders through responsible mining, strong community engagement, and sustainable development practices.
The scientific and technical information on the Reliquias Mine is supported by the technical report entitled "Amended and Restated NI 43-101 Technical Report: Preliminary Economic Assessment, Reliquias Mine" and dated October 28, 2024 (with an effective date of May 15, 2024), which was prepared for the Company by Steven L. Park, Antonio Cruz Bermudez and Gerardo Acuña (the "Reliquias PEA"). Reference should be made to the full text of the Reliquias PEA, which is available on SEDAR+ (www.sederplus.ca) under Silver Mountain's issuer profile, for the assumptions, qualifications and limitations relating thereto.
Caution Regarding Forward-Looking Statements
This news release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable Canadian securities legislation (together, "forward-looking statements"). Forward-looking statements are not guarantees of performance and, by their nature, require Silver Mountain to make certain assumptions and necessarily involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements. Words such as "may", "will", "would", "could", "expect", "believe", "plan", "anticipate", "intend", "estimate", "continue", "objective", "strategy", "designed to", "target", "potential", "positioned", variants of these words or the negative or comparable terminology, as well as terms usually used in the future and the conditional, are intended to identify forward-looking statements.
In this news release, forward-looking statements include, but are not limited to, statements pertaining to: (i) the planned restart of operations at the Reliquias Mine in Q3 2026, including the timing and completion of mine development, equipment installation, and plant refurbishment; (ii) the expected commencement of installation of refurbished plant components by the end of March 2026; (iii) the 14,000-meter drill program at the Caudalosa Mine, including objectives related to resource expansion, grade enhancement, and delineation of additional mineable zones; (iv) the anticipated timing of initial drill results in April 2026; (v) management's target of restarting operations at the Caudalosa Mine in Q3 2026, subject to drill results and other factors; (vi) the Company's expectations regarding cash flow potential and operational leverage to silver prices following the restart; (vii) the expectation that the Caudalosa drill program will represent the beginning of a structured growth pipeline to convert geological potential into near-term production visibility and long-term value creation; and (viii) the Company's expectation that 2026 will be a transformational year with near-term exploration catalysts and medium-term production restart visibility.
The forward-looking statements in this news release are based on certain assumptions, including, but not limited to: the Company's ability to complete the planned restart of operations at the Reliquias Mine and the Caudalosa Mine on the anticipated timeline and within budget; the continued availability of sufficient capital to fund the restart and drill program; favourable results from the Caudalosa drill program; the accuracy of current mineral resource and mineral reserve estimates; the stability of silver and other metal prices at levels that support economic production; the availability of skilled labour, equipment, and supplies; favourable operating conditions; the absence of material delays or disruptions to operations; the Company's continued compliance with all applicable regulatory requirements; and favourable political, regulatory, and economic conditions in Peru.
Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond Silver Mountain's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: the risk that the planned restart of operations at the Reliquias Mine or the Caudalosa Mine may be delayed or may not occur as anticipated; the risk that the drill program at Caudalosa may not achieve the anticipated results; the risk that actual capital expenditures may exceed budgeted amounts; fluctuations in commodity prices, including silver prices; risks related to mineral resource and mineral reserve estimates; risks related to the Company's ability to obtain and maintain necessary permits and licences; operational risks inherent in mining activities; risks related to operating in Peru, including political, regulatory, and economic uncertainties; general economic, market, and business conditions; and the other factors identified in the Company's continuous disclosure record on SEDAR+ (www.sedarplus.ca) under Silver Mountain's issuer profile, including under the headings (i) "Caution Regarding Forward-Looking Statements" and "Risk Factors" in the Annual Information Form of the Company dated July 17, 2025 for the year ended December 31, 2024; (ii) "Risk Factors" in the final base shelf prospectus of the Company dated October 16, 2025; and (iii) "Risk Factors" in the prospectus supplement of the Company dated November 12, 2025.
Silver Mountain disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for Silver Mountain to predict all of them or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement.
SOURCE Silver Mountain Resources Inc.
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