Silver Mountain Commences Production at Reliquias Mine

TORONTO, Sept. 21, 2026 /CNW/ -- Silver Mountain Resources Inc. ("Silver Mountain" or the "Company") (TSX: AGMR) (OTCQB: AGMRF)  (BVL: AGMR) is pleased to announce that it has achieved first concentrate production at its 100%-owned Reliquias underground silver-polymetallic mine, located in the Castrovirreyna district of Huancavelica, central Peru.

Highlights

Planta

• Transition to producer status: Silver Mountain produced its first bulk and zinc concentrates at Reliquias in mid-September 2026, marking the Company's transition from a developer to a producer.
  
  
• Processing plant ramp-up on track: Processing throughput and feed grades are expected to increase progressively as the operation advances through ramp-up, with the Company targeting processing throughput of 800 tonnes per day during the second half of 2027.
  
  
• 45,000-tonne stockpile supports production ramp-up: Approximately 45,000 tonnes of stockpiled material have been accumulated during underground development and mine preparation activities and are available to support processing operations during the production ramp-up.

This milestone marks a pivotal transition from developer to producer and validates the Company's strategy of restarting this historic silver mine using existing permitted infrastructure. The commencement of concentrate production from the Caudalosa plant confirms the operational readiness of the processing circuit and the ancillary infrastructure, consistent with the third quarter 2026 production timeline previously communicated by the Company. The initial feed was sourced from approximately 45,000 tonnes of stockpiled material accumulated during underground preparation activities. Concentrate shipments are expected to commence October 2026.

Alvaro Espinoza, Chief Executive Officer of Silver Mountain, commented: "I would like to sincerely thank the entire Silver Mountain team, our contractors, business partners, investors, and community stakeholders, whose dedication, collaboration, and support made this milestone possible. We are very excited to have commenced production at the Reliquias Mine. This important milestone transforms Silver Mountain from a developer to a producer and we look forward to establishing a track record of generating growing operating cash flows as the mine and plant ramp up to their full production potential. As the operation transitions to steady state, we remain laser-focused on the health and safety practices at Reliquias to ensure both operational continuity and the well-being of our employees and local community stakeholders."

About Silver Mountain Resources Inc.

Silver Mountain Resources Inc. is a Canadian mining company focused on the production, exploration and development of silver projects in Peru. The Company's principal asset is the Reliquias Mine, a silver-polymetallic underground 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.

Scientific and Technical Disclosure

Technical Report

The scientific and technical information in this news release relating to the Reliquias Mine is supported by the technical report entitled "Amended and Restated NI 43-101 Technical Report: Preliminary Economic Assessment, Reliquias Mine" dated October 28, 2024 (with an effective date of May 15, 2024), 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.sedarplus.ca) under Silver Mountain's issuer profile, for the assumptions, qualifications and limitations relating thereto.

Qualified Person

The scientific and technical content in this news release has been reviewed and approved by Gerardo Acuña, P. Eng. and Registered Member FAusIMM CP(Mining), who is a "qualified person" (as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101")) and independent of the Company for purposes of Section 1.5 of NI 43-101.

Cautionary Note Regarding Production Decision

Readers are advised that the decision to commence production at the Reliquias Mine is not based on a feasibility study of mineral reserves demonstrating economic and technical viability. The production decision is instead supported by a Preliminary Economic Assessment, which includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Production decisions made without the benefit of a feasibility study demonstrating economic and technical viability based on established mineral reserves involve a higher degree of uncertainty and a higher risk of economic or technical failure than production decisions based on a feasibility study of mineral reserves. There is no guarantee that production will be achieved as anticipated or that the estimated economics of the Reliquias Mine outlined in the Reliquias PEA will be realized. Specific risks and uncertainties associated with the Company's production decision include, but are not limited to: the risk that actual production levels may differ materially from estimated amounts; the risk that the throughput ramp-up may be delayed or may not achieve anticipated rates; the risk that mineral grades encountered during production may be lower than those estimated in the Reliquias PEA; fluctuations in commodity prices, including silver, gold, lead, zinc and copper prices; and the risks and uncertainties identified in the Company's continuous disclosure record filed on SEDAR+ (www.sedarplus.ca) under Silver Mountain's issuer profile.

Cautionary Note Regarding Mineral Resources and Preliminary Economic Assessment

The Reliquias PEA is preliminary in nature and includes measured, indicated and inferred mineral resources. Inferred mineral resources account for approximately 57% of total estimated mineral resources used in the Reliquias PEA. Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the Reliquias PEA will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resources estimated will be converted into mineral reserves.

Cautionary Note Regarding Forward-Looking Statements

This news release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable Canadian securities legislation (collectively, "forward-looking statements"). Forward-looking statements are not guarantees of future 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", "on track", and similar expressions, including the negative or grammatical variations thereof, are intended to identify forward-looking statements.

Forward-looking statements in this news release include, but are not limited to, statements pertaining to: (i) the expected timing of initial concentrate shipments commencing in October 2026; (ii) the expected progressive increase in processing throughput and feed grades during the production ramp-up, including the Company's target of achieving processing throughput of 800 tonnes per day during the second half of 2027; (iii) the availability of approximately 45,000 tonnes of stockpiled material to support processing operations during the production ramp-up; (iv) the Company's expectations regarding the transition to steady-state operations and generation of growing operating cash flows as the mine and plant ramp up to their full production potential; (v) the Company's strategy of restarting the Reliquias Mine using existing permitted infrastructure and its focus on the production, exploration and development of silver projects in Peru; (vi) the Company's expectations regarding health and safety practices at Reliquias and the well-being of employees and local community stakeholders; and (vii) the assumptions, qualifications and limitations in the Reliquias PEA.

The forward-looking statements in this news release are based on certain assumptions, including, but not limited to: the Company's ability to maintain consistent production rates and achieve the planned throughput ramp-up at the Reliquias Mine; the accuracy of the Company's mineral resource estimates, production estimates and outlook; the continued mechanical and operational performance of the processing plant; 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; the Company's continued compliance with all applicable regulatory requirements; the continued availability of sufficient capital to fund operations and development activities; continued favourable relationships with local communities; 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, that could cause actual results and events to differ materially from those expressed in or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: the risk that the production decision at Reliquias is not based on a feasibility study of mineral reserves, demonstrating economic and technical viability, and therefore there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, which historically involves a higher risk of economic or technical failure; the risk that actual production levels may differ from estimated amounts; the risk that the throughput ramp-up may be delayed or may not achieve anticipated rates; fluctuations in commodity prices, including silver, gold, lead, zinc and copper prices; risks related to mineral resource and reserve estimates; risks related to the Company's ability to obtain and maintain necessary permits and licences; operational risks inherent in mining activities, including risks related to ground conditions, equipment performance and processing plant operations; risks related to the Company's ability to obtain additional financing on favourable terms, or at all; risks related to operating in Peru, including political, regulatory, and economic uncertainties; risks related to maintaining favourable relationships with local communities; environmental risks and hazards; general economic, market, and business conditions; and other factors identified in the Company's continuous disclosure record filed 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 April 30, 2026 for the year ended December 31, 2025; (ii) "Risk Factors" in the amended and restated short form base shelf prospectus of the Company dated May 8, 2026; 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 required by applicable law. New factors emerge from time to time, and it is not possible for Silver Mountain to predict all such factors or to 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.

CONTACT INFORMATION, For more information, please visit our website at agmr.ca or contact: Alvaro Espinoza, Chief Executive Officer, Silver Mountain Resources Inc., [email protected], [phone]