SILVER X REPORTS SECOND QUARTER 2023 PRODUCTION RESULTS, PLACES OPERATIONS TEMPORARILY ON HOLD TO LAUNCH AN OPERATIONS IMPROVEMENT PLAN, AND PROVIDES UPDATE ON THE EXTENSION OF THE AGREEMENT WITH LOCAL COMMUNITY

Vancouver, BC, July 26, 2023 – Silver X Mining Corp. (TSX-V: AGX) (OTCQB: AGXPF) (F: AGX) (“Silver X” or the “Company”) reports production results for the three months ended June 30, 2023, for the Company’s wholly-owned Nueva Recuperada project (the “Project”) in central Peru, announces the implementation of an operational performance enhancing plan at the Project and provides an update on the negotiations of the community agreement.

Second Quarter 2023 Production Highlights

• Steady production continued during the quarter with total throughput of 35,392 tonnes (20,877 in the second quarter (“Q2”) of 2022).
• Total processed 296,493 silver equivalent (“AgEq”)⁽²⁾ ounces in Q2 2023, 35% more than 219,488 AgEq ounces in Q2 2022.
• Metal production of 248,42 AgEq ounces with an average head grade of 269 g/t AgEq (156,501 AgEq ounces with an average head grade of 310 g/t AgEq in Q2 2022).

“Silver X keeps on making progress with our Nueva Recuperada Project. We experienced unexpected drop in grades in some mineralized areas, which drove the metal production down, staying at the previous quarter’s level (see Silver X’s press release dated May 11, 2023). At the same time, project development remained on track with 2,133 meters of underground development during the quarter”, stated Jose M. Garcia, CEO of Silver X.

Second Quarter 2023 Production Results

Notes:

(1) In December 20222 Nueva Recuperada Project completed the ramp up period of its operations and declared the start of the Commercial production in January 2023.
(2) AgEq ounces produced were calculated based on all metals produced using the average sales prices of each metal for each month during the period. Revenues from concentrate sales does not consider metallurgical recoveries in the calculations as the metal recoveries are built into the sales amounts.
In Q2 2023, AgEq was calculated using metal prices of US$24.09 per oz Ag, U$1,977 per oz Au, US$0.96 per lb of Pb and US$1.14 per lb of Zn. In Q2 2022, AgEq was calculated using metal prices of US$20.70 per oz Ag, U$1,803 per oz Au, US$0.93 per lb of Pb and US$1.57 per lb of Zn. For the YTD 2023, AgEq was calculated using metal prices of US$23.40 per oz Ag, U$1,934 per oz Au, US$0.96 per lb of Pb and US$1.28 per lb of Zn.  For the YTD 2022, AgEq was calculated using metal prices of US$21.87 per oz Ag, U$1,823 per oz Au, US$0.98 per lb of Pb and US$1.68 per lb of Zn.

Operational Performance enhancing plan and update on negotiations of the community agreement.  

“We have been working with our technical team, consultants, and contractors on several alternatives to enhance metal throughput at the Project while reducing operating costs. Within this context, the Company has decided to place the operations on hold for an estimated period between 30 and 45 days to implement a strategic operational reset (“Operational Reset”). Additionally, we have commenced an accelerated in-fill drilling program the goal of which is to increase the category of our resource and to provide a more solid mine schedule for the next few years” stated Jose M. Garcia, CEO of Silver X. 

Jose M. Garcia continued: “In recent weeks, our operations have been disrupted by certain local suppliers pursuing individual benefits. These disruptions have included road blockades and other unlawful actions, causing distress for our workforce and key partners. We are currently in negotiations to extend our social agreement for a minimum of ten years, which would represent a significant endorsement to the project. In the meantime, we are safely slowing down our operations to ensure the safety of all involved. Silver X remains fully committed to the Huachocolpa community and our vision of making a positive impact in its history. This pause in operations presents an opportunity for us to finalize a mutually beneficial agreement in a spirit of collaboration and harmony.” 

As part of the Operational Reset the Company aims to reduce operational costs by 20% and bring production back to the 165koz AgEq per month (50% throughput increase). The Company has been working to define a more solid mine plan, including a detailed mine development schedule and improvements in the mining method. As a result of this Operational Reset, the Company expect to accelerate underground development ahead of production, allow the preparation of multiple headings and the leveling of production tonnage and grades. Furthermore, the Company will reduce its headcount, will rationalize operations in close collaboration with its main mine contractor, and will implement a specific mill maintenance program.  

A summary of the Operational Reset’s objectives is: 

• 50% metal throughput increase, 20% cost reduction. 

• Accelerated in-fill drilling program. 
• Reduction of headcount, rationalization of mine operations, reinforcing its strategic alliance with the main mine contractor 
• Wide implementation of sublevel stoping mining method and mill maintenance program 
• Negotiation with local communities for the extension of social agreement for a minimum of 10 additional years 

 Corporate Update 

Silver X also announces the resignation of Fiona Grant Leydier as Vice President, Investor Relations, and Corporate Marketing effective immediately.  Ms. Grant Leydier is leaving the Company to pursue other opportunities.  The Company wishes Ms. Grant Leydier every success in her future endeavors. 

Qualified Person 

Mr. A. David Heyl, B.Sc., C.P.G who is a qualified person under NI 43-101, has reviewed and approved the technical content of this news release for Silver X. Mr. A. David Heyl is a consultant for Silver X. 

Cautionary Note regarding Production without Mineral Reserves 

The decision to commence production at the Nueva Recuperada Project and the Company’s ongoing mining operations as referenced herein (the “Production Decision and Operations“) are based on economic models prepared by the Company in conjunction with management’s knowledge of the property and the existing estimate of inferred mineral resources on the property. The Production Decision and Operations are not based on a preliminary economic assessment, a pre-feasibility study or a feasibility study of mineral reserves demonstrating economic and technical viability. Accordingly, there is increased uncertainty and economic and technical risks of failure associated with the Production Decision and Operations, in particular: the risk that mineral grades will be lower than expected; the risk that additional construction or ongoing mining operations are more difficult or more expensive than expected; and production and economic variables may vary considerably, due to the absence of a detailed economic and technical analysis in accordance with NI 43-101.