Silver Elephant leases Ulaan Ovoo coal mine in Mongolia

Vancouver, British Columbia--(Newsfile Corp. - July 6, 2026) - Silver Elephant Mining Corp. (TSX: ELEF) (OTCQB: SILEF) (FSE: 1P2) ("Silver Elephant" or the "Company")  is pleased to announce that the Company's wholly owned Mongolian subsidiary has executed a lease agreement (the "Lease") with an arms-length major Mongolian mining and industrial conglomerate (the "Lessee"). Under the Lease, the Lessee will extract coal from Silver Elephant's Ulaan Ovoo coal mine ("Ulaan Ovoo") and pay the Company a royalty of US$2 for every tonne of coal removed from the Ulaan Ovoo coal mine site during the first two years of the Lease. The royalty increases to US$3 per tonne from January 1, 2028.

The Lessee intends to blend thermal coal produced from Ulaan Ovoo, which has historically exhibited low ash and sulphur content, with its higher-rank coking coal for sale to a variety of international and domestic customers, including steel mills in China, Mongolia's cement plants, metallurgical plants, metals concentrate and smelter operations, and heat and electric plants. The Ulaan Ovoo coal mine is subject to an underlying royalty in favor of Oracle Commodity Holding Corp. as reported in the Company's news release dated August 29, 2025. About the Lease The Lessee has paid Silver Elephant US$300,000 in cash as a non-refundable advance royalty fee on Lease signing and is preparing, at its own and sole expense, to operate the Ulaan Ovoo coal mine and associated infrastructure with its own equipment, supplies, housing and crew.

The Lessee will pay all government taxes and royalties related to its mining operation at Ulaan Ovoo. The Lease expires on December 31, 2031, unless terminated earlier in accordance with the Lease terms, and may be extended with the mutual consent of the parties. A non-refundable annual advance royalty fee of US$200,000 is payable by the Lessee after the 1 st year of the Lease.

Each annual advance royalty fee is credited towards the Lessee's royalty obligations for the corresponding year. Based on the Lessee's internal sales forecast, the Lessee expects annual coal production from Ulaan Ovoo to range between 300,000 and 1,000,000 tonnes. Silver Elephant retains full oversight of Ulaan Ovoo coal mining operations, including site access rights and owner-operated weighbridge verification of all coal transport volumes.

About Ulaan Ovoo Coal Mine Ulaan Ovoo is located in northern Mongolia, 120 km by paved road from Mongolia's Sukhbaatar railway station, which connects to the Trans-Siberian railway network. Historical production from Ulaan Ovoo totals approximately 1,000,000 tonnes of coal since 2012, which has been sold to international and Mongolian customers. Historical mining operations at Ulaan Ovoo have achieved an average strip ratio of approximately 1.8 bank cubic meters of waste per tonne of coal.

Historical production has yielded coal averaging approximately 5,000 kcal/kg gross calorific value, with sulphur content of less than 1% and ash content of approximately 8%, characteristics that are generally suitable for power generation, cement production and industrial heat boiler applications. According to the 2010 NI 43-101 Prefeasibility Study prepared by Wardrop Engineering (Tetra Tech), the Ulaan Ovoo Project contains an estimated 174 Mt of Measured Coal Resources and 34 Mt of Indicated Coal Resources. Qualified Person The technical content of this news release has been prepared under the supervision of Carlos Zamora, a member of the American Institute of Professional Geologists (AIPG) and a Certified Professional Geologist (CPG) since 2024, who is an employee of the Company and is not considered independent.

Mr. Zamora is a qualified person as defined by National Instrument 43-101. The Qualified Person has reviewed and verified the data disclosed herein, including sampling, analytical and test data, and considers it to be reliable for the purposes of this disclosure. About Silver Elephant Mining Corp. Silver Elephant is a mineral exploration company that optioned the Robinson-Lasher zinc-germanium-gallium project in Kentucky located near a proposed US$7.4 billion smelter.

The Company also operates the Apuradita silver project in Bolivia. Further information on Silver Elephant can be found at www.silverelef.com . SILVER ELEPHANT MINING CORP. ON BEHALF OF THE BOARD "John Lee" CEO and Executive Chairman For more information about Silver Elephant, please contact Investor Relations: +1.604.569.3661 info@silverelef.com www.silverelef.com FORWARD-LOOKING INFORMATION This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities laws.

Forward-looking information is generally identifiable by use of the words "believes," "may," "plans," "will," "anticipates," "intends," "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions. Such forward-looking information, which reflects management's expectations regarding Silver Elephant's future growth, results of operations, performance, business prospects and opportunities, is based on certain factors and assumptions and involves known and unknown risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from future results, performance, or achievements expressed or implied by such forward-looking information. Forward-looking statements involve significant risks and uncertainties, and should not be read as guarantees of future performance, events or results, and may not be indicative of whether such events or results will actually be achieved.

A number of risks and other factors could cause actual results to differ materially from expected results discussed in the forward-looking statements, including but not limited to: market conditions; changes in business plans; ability to secure sufficient financing to advance the Company's mining projects; and general economic conditions. Additional risk factors about the Company are set out in its latest annual and interim management's discussion and analysis and annual information form available under the Company's profile on SEDAR+ at www.sedarplus.ca. Forward-looking information is based on reasonable assumptions by management as of the date of this news release, and there can be no assurance that actual results will be consistent with any forward-looking information included herein.

Readers are cautioned that all forward-looking statements in this news release are made as of the date of this news release. The Company undertakes no obligation to update or revise any forward-looking information in this news release to reflect circumstances or events that occur after the date of this news release, except as required by applicable securities laws. To view the source version of this press release, please visit https://www.newsfilecorp.com/release/304044 Newsfile Corp. July 6, 2026 - 6:29 AM PDT News by QuoteMedia www.quotemedia.com