Silver Elephant Leases Ulaan Ovoo Coal Mine in Mongolia to Major Mining and Industrial Conglomerate

About this update from Silver Elephant Mining Corp

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 1st 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 U...

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