Silver Mountain's Dual-Track Play to Revive Peruvian Silver Mines

TORONTO, ON – March 02, 2026 – Silver Mountain Resources is embarking on a pivotal year, launching a two-pronged strategy in Peru that combines a near-term production restart with an aggressive exploration campaign. The company announced the commencement of a 14,000-meter diamond drilling program at its historic Caudalosa Mine, while simultaneously confirming its Reliquias Mine restart remains on track and on budget for the third quarter of 2026. This dual-track approach aims to transform the Canadian explorer into a growth-oriented silver producer, precisely as market fundamentals for the white metal appear increasingly robust.

The Path to Production at Reliquias

The most immediate catalyst for Silver Mountain is the fully funded restart of its past-producing Reliquias Mine, located in the prolific Castrovirreyna district of Huancavelica. Development is advancing on schedule for a Q3 2026 production launch, a milestone that would transition the company to a revenue-generating entity with direct leverage to silver prices.

Key operational advancements underscore the project's progress. The company reports that crucial raise boring operations have begun, a technique used to create vertical openings that will accelerate the readiness of underground infrastructure. On the surface, preparations are equally tangible. Approximately 5,000 tonnes of mineralized ore have already been stockpiled, providing an initial feed for the processing plant once it is commissioned. This stockpile will be supplemented by additional ore extracted during ongoing development work.

Significant headway has also been made on the processing infrastructure. Installation of key new equipment is either complete or proceeding as planned. The company anticipates that the installation of refurbished plant components will commence by the end of March. The successful rehabilitation of the mine's Tailings Storage Facility (TSF) has also been completed, marking a critical environmental and operational achievement necessary for sustained operations.

Unlocking New Potential at Caudalosa

While Reliquias represents the near-term production goal, the new 14,000-meter drill program at the adjacent Caudalosa Mine signals the company's long-term growth ambitions. This first-phase campaign is designed to expand the known resource, enhance silver grades, and delineate new mineable zones beneath the extensive historical workings. Initial drill results, which could provide significant catalysts for the company, are anticipated as early as April 2026.

The Caudalosa Mine is part of a district with a rich mining history stretching back centuries. Between 1951 and its closure in 1998, the Caudalosa plant processed over 4.3 million tonnes of ore, producing more than 39 million ounces of silver. Silver Mountain's modern exploration program aims to leverage this geological inheritance, applying new techniques to unlock the full potential of the vein system.

“We are executing our strategy decisively," stated Alvaro Espinoza, Chief Executive Officer of Silver Mountain, in the company's press release. "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.”

Riding a Bullish Silver Wave

Silver Mountain's aggressive push comes at an opportune moment. The global silver market is grappling with a prolonged structural deficit, where demand has consistently outpaced supply. According to the World Silver Survey, the market has been in deficit for five consecutive years, with the cumulative supply shortfall from 2021 through 2025 projected to approach 800 million ounces.

This imbalance is driven by soaring industrial demand, which hit a record high in 2024. The relentless growth of the green energy sector, particularly in photovoltaics (solar panels), alongside demand from 5G technology and the automotive industry's shift to electric vehicles, has made silver an indispensable industrial commodity. This has led many financial institutions to issue bullish forecasts, with some analysts projecting silver prices to climb significantly through 2026, creating a favorable environment for new producers like Silver Mountain to enter the market.

Navigating the Peruvian Landscape

Operating in Peru, one of the world's top silver-producing nations, presents both immense opportunity and notable challenges. The country's mining sector is a cornerstone of its economy, attracting billions in investment. However, companies must navigate a complex landscape marked by political uncertainty, regulatory hurdles, and potential for social conflict. Permitting delays and community opposition have historically posed risks to mining projects in the region.

Silver Mountain appears to be proactively managing these risks. The company recently highlighted the successful completion of a social consultation process that resulted in a long-term land-use agreement with the local Comunidad Campesina de Salcca Santa Ana for the Reliquias project. This agreement is a crucial step in securing the social license to operate, a factor that is increasingly vital for long-term mining success in Peru. By building strong community ties and advancing its projects with a strong treasury in excess of US$32 million, the company is positioning itself to capitalize on Peru's vast mineral wealth while mitigating the inherent risks of the jurisdiction.

With its recent graduation to the main TSX board, a fortified balance sheet, and two key projects advancing in parallel, Silver Mountain is poised for what its management calls a "transformational year." The combination of near-term production visibility at Reliquias and blue-sky exploration potential at Caudalosa offers a compelling strategy aimed at building a multi-asset silver platform in the heart of one of the world's most important silver belts.