Silver Elephant Mining Corp. announced it intends to begin phase one mining of sulphide materials this year at its Paca silver project in Potosi department in Bolivia. The company has completed design for a phase one underground mine plan at Paca aimed at extracting approximately 10,000 tonnes of mineralized materials.

The objective is to generate cashflow, and verify the Paca resource model. The Paca sulphide project is outside the of scope of the oxide sales and purchase agreement and master services agreement with Andean Precious Metals Corp. ("Andean") detailed in the news release dated September 12, 2023.

The two stopes are designed with approximate dimensions of 30 meters length x 20 meters height x 4 meters width at a targeted peak extraction rate of 150 tonnes per day from November 2024 to January of 2025. The expected average grade of extracted and sorted sulphide materials is 412 g/t Ag, 1.09% Pb, 0.38% Zn based on diamond drill holes at Paca and internally developed mine model. This material is contained within the Paca Resource estimate.

Several examples of high-grade intercepts within the engineered mineralized mining zone include: Hole ID, From m, To m, Length m, True width m, Ag g/t, PND004, 86, 97, 11, 7.78, 481, 0.47, 0.2, PND008, 47, 63, 16, 11.31, 507, 1.14, 0.57, PND008, 111.9, 127, 15.1, 10.68, 424, 1.96, 2.65, PND023, 125, 157, 32, 26.21, 437, 1.69, 1, PND092, 38, 52, 14, 9.90, 522, 0.09, PND110, 61, 72, 11, 715, 2.14, 2.14, 210. The full drill hole assay results have previously been released on SEDAR. Capital Expenditure, Processing, and Concentrate Sales.

The Pulacayo - Paca silver-zinc-lead project, located in southern Bolivia, is situated near major mining projects operated by Andean Pre precious Metals Corp. (San Bartolome), Pan American Silver Corp. (San Vicente), and San Cristobal Mining Inc. (San Cristobal).

The Paca project hosts a high grade silver resource according to a technical report by Mercator Geological Services, dated effective October 13, 2020 titled "Mineral Resource Estimate Technical Report for the Pulacayo Project, Potosi Department Antonnio Quijarro Province Bolivia" (the "Technical Report"). The report detailed 1.81 million tons of indicated resources with a grade of 256g/t Ag, 1.22% Pb, and 1.22% Zn (95% of its resources being within 100m from the surface). Notably, the deposit remains open for expansion to the east, west, and at depth beyond the current resource definition boundaries.

The mineral resource estimate from the Technical Report is as follows: Paca, Zone, Category, Tonnes, Ag Moz, Zn%, Pb %, Phase 1, Oxide In Pit, Indicated, 800,000, 231, 5.9, -, Inferred, 235,000, 159, 1.2, -, Inferred,235,000, 159, 1.,2, -,2, -, Paca, Zone, category, Tonnes, Ag Moz the Zn%, Pb %. Oxide resources are based on a Pit-constrained estimate using a 200 g/t Ag Eq cutoff. Sulphide zone metal recoveries of 89.2% for Ag, 91.9% for Pb, and 82.9% for Zn were used in the Silver Equivalent (Recovered) equation and reflect metallurgical testing results disclosed previously for the resource estimate.

Matthew Harrington P. Geo. is the independent Qualified Person for the resource estimate for the resource estimate. The Technical Report was effective October 13, 2020 and is the independent Qualified person for the resource estimate.