About Silver Elephant Mining

Silver Elephant Mining Corp. operates as an exploration stage company. The company has projects in the United States, Canada, Bolivia and Mongolia. The company is governed under the laws of the province of British Columbia pursuant to the Business Corporations Act (British Columbia) (the BCBCA). The company’s principal projects are the Pulacayo Project located in Bolivia. The Pulacayo Project comprises seven mining areas covering an area of approximately 3,560 hectares of contiguous areas centered on the historical Pulacayo mine and town site. The Pulacayo Project is located 18 km east of the town of Uyuni in the Department of Potosí, in southwestern Bolivia. It is located 460 km south-southeast of the national capital of La Paz and 150 km southwest of the City of Potosí, which is the administrative capital of the department. The Pulacayo Project is fully permitted with secured social licenses for mining. The Pulacayo Project mining rights are recognized by two legally independent contractual arrangements, one covering all, except Apuradita from the Pulacayo MPC between the company and COMIBOL, a Bolivian state mining company, and the original holder of the rights, executed on October 3, 2019. The Pulacayo MPC grants the company the 100% exclusive right to develop and mine at the Pulacayo and Paca concessions for up to 30 years against certain royalty payments. It is comparable to a mining license in Canada or the United States. In connection with Apuradita, its rights are covered by a second contractual arrangement, with the Bolivian Jurisdictional Mining Authority, acting for the State, which is in process of formalization, as a mean of recognition of the acquired rights to what was originally the mining concession. Until such time as the contract is formalized, all mining rights, as recognized in the Bolivian Mining Law 535, can be exercised by the holder of the ex-concession. On March 6, 2020, the company released additional results from its first 2,598 meters of drilling, which focused on the western portion of the Pulacayo Project and on August 11, 2020, the company announced further diamond infill drilling results from the Pulacayo Project. In March 2020 the company further announced that it had commenced district exploration program at its Pulacayo Project. In December 2020 the company commenced a 940 meter diamond drilling program at the Pero target within its Pulacayo Project in Bolivia. The company also holds, through leasehold assignments, a 100% interest in the Ulaan Ovoo coal property located in Selenge province, Mongolia; and a 100% interest in each of the Chandgana Tal coal property and the Khavtgai Uul coal property located in Khentii province, Mongolia. The company also holds the land use right and construction license for the Chandgana 600MW Coal-Fired Mine Mouth Power Plant project located in Khentii province, Mongolia. During the year ended December 31, 2021, the company reported drilling at the Pulacayo Projects continued past 1,972m of its 2,000 m drill program and Triunfo Project grab samples assayed up to 294 g/t silver; started a 2,000-meter drilling program at Pulacayo Project; and identified of a large linear anomaly measuring over 1,400 meters in length, up to 250 meters wide, starting at a depth of approximately 250 meters from surface at its Pulacayo silver project in Potosi department, Bolivia. The Triunfo Project area covers approximately 256 hectares located in the La Paz Department. The Triunfo Project is located about 35 kilometers east of the Bolivian capital of La Paz at an elevation of approximately 4,500 meters. The Triunfo Project is consisted of predominantly Silurian rocks of the Llallagua and Uncia Formations, which consist predominantly of fine-grained metasedimentary rocks, principally as black shales interbedded with quartzites. Principal Products, Markets and Marketing The company is working to bring the Gibellini Project into production as soon as possible in order to address the supply-demand gap for vanadium projected to 2023. The projected demand is largely driven by environmental-related actions by the Chinese government which is intensified by increasing demand for vanadium redox flow storage batteries. The company held its 100% interest in the Gibellini Project by way of a lease agreement and staked claims. Claims are in the name of the Company’s indirect, wholly-owned Nevada subsidiaries, VC Exploration (US), Inc. (VC Exploration) and Nevada Vanadium, LLC (Nevada Vanadium). The Gibellini Project consists of a total of 587 unpatented lode mining claims that includes: the Gibellini group of 40 claims, the VC Exploration group of 105 claims, the Bisoni group of 201 claims and the company group of 241 claims. The Gibellini Project is located in Eureka County, Nevada, as well as 28 of the Bisoni group of claims, with the remaining 173 claims extending southwest into Nye County, Nevada. The company’s marketing efforts have mostly been in assessing the reasons and sources of demand, but it has also conducted concept-level negotiations for supplying vanadium from the Gibellini Project to traders and battery manufacturers. The company’s possible principle markets for vanadium pentoxide product may be Europe and/or China. The Gibellini Project is situated on the south east flank of the Fish Creek Range in the Fish Creek Mining District, about 25 miles south of Eureka, Nevada and is accessed by dirt road extending westward from State Route 379. As of December 31, 2021, the company held mining and energy properties and projects through the company and the following subsidiaries: Nevada Vanadium LLC: Holds the Gibellini Project, which is consisted of Gibellini and Louie Hill deposits by 209 Nevada Vanadium claims and 40 Deitrich claims under the Deitrich Lease Agreement as amended on April 19, 2018, as well as the historic Bisoni deposit (201 lode claims). Nevada Vanadium owns 450 Gibellini claims and 100% interest of the Bisoni deposit claims in Nevada, USA. VC Exploration (US) Inc.: Holds a 100% interest in 105 unpatented lode mining claims that comprise a portion of the Gibellini Project in Nevada, the U.S.A. Silver Elephant Mining Corp.: Holds a 100% interest in the Titan vanadium-titanium-iron property located in the Province of Ontario, Canada. Silver Elephant Mining Corp.: Holds a 100% interest in 94 mineral claims and 2 mining leases covering 197 square kilometers located in the Province of Manitoba, Canada. Red Hill Mongolia LLC: Holds a 100% interest in the Ulaan Ovoo Property located in Selenge Province, Mongolia. Chandgana Coal LLC: Holds a 100% interest in the Chandgana Tal coal property and Khavtgai Uul Property located in Khentii province, Mongolia. The company refers to the Chandgana Tal coal property and the Khavtgai Uul Property collectively as the Chandgana Project. The Chandgana Project consist of the Chandgana Tal property and the Khavtgai Uul property, which are within nine kilometers of each other in the Nyalga Coal Basin in east central Mongolia and approximately 280 kilometers east of Ulaanbaatar. Prophecy Power Generation LLC: Holds the land use right and construction license for the Chandgana Project planned in Khentii province, Mongolia. ASC Bolivia LDC Sucursal Bolivia: Holds a 100% exclusive right to develop and mine at the Pulacayo and Paca concessions for up to 30 years against certain royalty payments. Rights include Temeridad and Real De Monte concessions at Paca and are administered by COMIBOL (state-owned Bolivian Mining Corporation) and thus are part of the Pulacayo MPC. Illumina Silver Mining Corp.: Holds the Triunfo SPA to acquire the El Triunfo Gold-Silver-Lead-Zinc Project in La Paz District, Bolivia. Illumina Silver Mining Corp.: Holds the SPA to acquire the Sunawayo Project. The Sunawayo Project is patented land which the company has acquired through the Sunawayo SPA, whereas the adjacent Malku Khota silver project in Bolivia is unpatented land administered by COMIBOL. In January 2020, the company applied for a mining production contract with COMIBOL that would give it the rights to mine and explore Malku Khota. The application was received by COMIBOL and is under review. Located in central Bolivia, the company’s Sunawayo Project is contiguous with the Malku Khota project (MK). On September 7, 2020, the company announced that it had entered into a binding sales and purchase agreement (the Sunawayo SPA) with a private party (the Sunawayo Vendor) to acquire the Sunawayo silver-lead mining project (the Sunawayo Project). As of December 31, 2021, the company was in the process of completing a strategic reorganization of the business through a statutory plan or arrangement (the Arrangement) under the Business Corporations Act (British Columbia). As of April 30, 2022, as a result of the Arrangement, the company holds mining and energy properties and projects through the company and the following subsidiaries: Silver Elephant Mining Corp.: Holds a 100% interest in the Titan vanadium-titanium-iron property located in the Province of Ontario, Canada. Silver Elephant Mining Corp.: Holds a 100% interest in 94 mineral claims and 2 mining leases covering 197 square kilometers located in the Province of Manitoba, Canada. Red Hill Mongolia LLC: Holds a 100% interest in the Ulaan Ovoo Property located in Selenge Province, Mongolia. Chandgana Coal LLC: Holds a 100% interest in the Chandgana Tal coal property and Khavtgai Uul Property located in Khentii province, Mongolia. The company refers to the Chandgana Tal coal property and the Khavtgai Uul Property collectively as the Chandgana Project. Prophecy Power Generation LLC: Holds the land use right and construction license for the Chandgana Project planned in Khentii province, Mongolia. ASC Bolivia LDC Sucursal Bolivia: Holds a 100% exclusive right to develop and mine at the Pulacayo and Paca concessions for up to 30 years against certain royalty payments. Rights include Temeridad and Real De Monte concessions at Paca and are administered by the Corporación Minera de Bolivia (COMIBOL) and thus are part of the Pulacayo MPC. Illumina Silver Mining Corp.: Holds the Triunfo SPA to acquire the El Triunfo Gold-Silver-Lead-Zinc Project in La Paz District, Bolivia. On July 13, 2020, the company announced that it had entered into a binding sales and purchase agreement (the Triunfo SPA) with a private party to acquire the El Triunfo Gold-Silver-Lead-Zinc Project in La Paz District, Bolivia (the Triunfo Project). Illumina Silver Mining Corp.: Holds the Sunawayo SPA to acquire the Sunawayo Project. The Sunawayo Project is patented land which the company has acquired through the Sunawayo SPA, whereas the adjacent Malku Khota silver project in Bolivia is unpatented land administered by COMIBOL. In January 2020, the company applied for a mining production contract with COMIBOL that would give it the rights to mine and explore Malku Khota. The application was received by COMIBOL and is under review. Deposit Descriptions Gibellini Deposit The Gibellini deposit occurs within organic-rich siliceous mudstone, siltstone, and chert of the Gibellini facies of the Devonian Age Woodruff Formation. Louie Hill The Louie Hill deposit lies approximately 500 m south of the Gibellini deposit, being separated from the latter by a prominent drainage. Middle Earth Prospect (200m by 70m) The Middle Earth prospect occurs 1.7 kilometers southeast of the Gibellini Hill deposit and 300 meters south of the Louie Hill deposit. A total of 50 samples were collected of which 68% (n=34) returned assays >0.101% V2O5 or the Gibellini Project cut-off grade. Water and Power supply On August 20, 2018, the company secured water supply for the Gibellini Project construction and operation. The company signed a 10-year agreement (the Water Supply Agreement) with the owner of a private ranch, located approximately 14.5 kilometers from the Gibellini Project. Bisoni-McKay Claims Acquisition On August 24, 2020 the company announced that its wholly owned subsidiary Nevada Vanadium had entered into the Bisoni APA with CellCube to acquire the Bisoni Vanadium Project (Bisoni Project) situated immediately southwest to Nevada Vanadium’s Gibellini Project. Government Regulations The company is required to expend significant resources to comply with numerous corporate governance and disclosure regulations and requirements adopted by U.S. federal and Canadian federal and provincial governments. History The company was founded in 2011. The company was incorporated in 2011. The company was formerly known as Prophecy Development Corp. and changed its name to Silver Elephant Mining Corp. in 2020.