Silver Mountain Resources Inc. announced new results from underground channel sampling at the Reliquias silver mine in Huancavelica, central Peru. To complement the drill campaign and to facilitate the conversion of additional historic resources into a National Instrument 43-101 -- Standards of Disclosure for Mineral Projects ("NI 43-101") compliant mineral resource, an extensive underground mapping and sampling program is being carried out at
Reliquias. Several existing drifts, sublevels, and raises were mapped and systematically sampled in channels cut across the exposed veins. Assays have been received for 299 rock channel samples taken along 175 m of the Sublevel 735-2, part of the 390 m level of the Matacaballo structure. A zone of well-developed mineralization in the Matacaballo Vein is exposed over 87 m along the western part of sublevel 735-2. Further east, the vein displays an irregular thickness, with lower metal contents. The length of the mineralized shoot on this sublevel and the reported metal grades show a close correlation to the results of the sublevel 735-1 located approximately 20 m below. The unmined stopes of both drifts are located above the main 390 m haulage level and have already been developed for mining. Samples were taken using an electric percussion hammer to produce a channel perpendicular across the veins and mineralized structures. By cutting a continuous channel approximately 3-5 cm deep by 10 cm wide, the channel samples are essentially equal to a drill core in their significance for future resource estimation. Where the structure is exposed along the back of the drift, channels were cut across the vein systematically every 4 m. Channel lengths range between 0.30 m and 3.58 m, not including samples collected from the adjacent wall rocks. The underground sampling results from this part of the Matacaballo Vein confirm the continuity of well-developed polymetallic mineralization within the structure, with significant concentrations of silver (Ag), lead (Pb), zinc (Zn), gold (Au) and copper (Cu). To highlight the continuity of this vein system, the grades and widths of individual channels were averaged over the 87 m-long well-mineralized shoot exposed in the western half of the sublevel. Weighted metal grades reached 71.1 g/t Ag, 2.34% Pb, 4.81% Zn, 0.14% Cu and 0.35 g/t Au with an average channel width of 1.59 m. Individual Ag assays returned a maximum value of 621 g/t Ag. A total of 17 individual rock channel samples assayed over 0.5 g/t Au, with a maximum value of 7.64 g/t Au. The Matacaballo structure exhibits hydrothermal brecciation, irregular banding, and crustiform textures typical of intermediate sulphidation veins. Sulphide minerals are present as semi-massive pods, fine veinlets, or in disseminated form, within a matrix composed of several generations of quartz, with minor rhodochrosite. Galena, sphalerite, silver sulpho-salts, lesser disseminated chalcopyrite, and minor pyrite were encountered. In the hanging as well as the foot wall, the central Matacaballo vein is accompanied by 20 to 50 cm wide splays, which show brecciation and contain
sulphides as matrix or in cockade textures around argillized or silicified wall rock clasts with disseminated pyrite. The following table provides more detail regarding the channel sample results from sublevel 735-2 of the Matacaballo
Vein structure. On Behalf of the Board of Directors of Silver Mountain Resources Inc.Alfredo Bazo, Chief Executive Officer and Director Qualified Person The scientific and technical information contained in this news release has been reviewed and approved by Antonio Cruz, an independent consultant of the Company and a Qualified Person within the meaning of NI 43-101.