Silver X Reports Fourth Quarter and Year End 2022 Financial Results

Revenues of $13.9 million on 0.9 million AgEq ounces produced; 2023 expected to build on momentum with increasing production and exploration maximizing the potential of the Nueva Recuperada Silver District

(All dollar amounts expressed in US dollars unless otherwise noted)

VANCOUVER, BC / ACCESSWIRE / April 14, 2023 / Silver X Mining Corp. (TSX-V:AGX)(OTCQB:AGXPF)(F:AGX) ("Silver X"or the "Company") announces financial results for the three- and 12-month period ended December 31, 2022, for the Nueva Recuperada Silver District in Peru.

"This was a transformational year for Silver X as we successfully completed the ramp-up phase of the Nueva Recuperada project's Tangana Mining Unit, leading to the declaration of commercial production this past January," stated José García, President and CEO of Silver X. "Although we saw a slowdown in production due to road closures in Peru late in the fourth quarter, we have now returned to regular run rates and expect future results to continue improving.

"We advanced on many fronts in terms of our commitment to sustainable development through mining, including our efforts to conserve water, recirculating 99% of the water used in underground operations, and as part of our commitment to safety, we implemented extensive improvements and detailed training that will have a positive impact on our operations and our people. "

Mr. García continued: "Throughout the year we were focused on efficient mine development and continuous improvement of production. Furthermore, the 2022 exploration program led to an updated mineral resource estimate with a four-fold increase in Measured and Indicated resources and the Tangana Mining Unit extension PEA that was announced in February outlining a pathway to potentially tripling production levels over the next few years. All these achievements form the building blocks for Silver X to generate value from the Nueva Recuperada Silver District for all stakeholders."

Q4 2022 and FY 2022 Financial Highlights

• Generated revenues of $3.9 million in Q4 2022 and $13.9 million for the year ended 2022 ("FY 2022") reflective of the successful ramp up period initiated during the second quarter of 2022.
• Operating loss in Q4 2022 of $0.3 million, partially affected by demonstrations in Peru during December 2022; $0.5 million operating loss for FY 2022.
• Net loss before tax of $4.7 million in Q4 2022 and $8.6 million in FY 2022.
• Total cash and cash equivalents of $1.0 million at December 31, 2022.
• Cash costs⁽¹⁾ of $14.6 per silver equivalent ("AgEq") ounce produced⁽¹⁾⁽²⁾ and All-In-Sustaining Cost⁽¹⁾ ("AISC") of $21.5 per AgEq ounce produced⁽¹⁾⁽²⁾ during Q4 2022.
• Cash costs⁽¹⁾ of $17.4 per AgEq ounce produced⁽¹⁾⁽²⁾ and AISC ⁽¹⁾ of $25.1 per AgEq ounce produced⁽¹⁾⁽²⁾ during FY 2022.

Notes:

1. Cash costs per AgEq ounce produced and AISC per AgEq ounce produced are non-IFRS financial ratios. These are based on non-IFRS financial measures that do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.Please refer to the "Non-IFRS Measures" section of this news release for further information.
2. AgEq ounce produced were calculated using the average sales prices of each metal for each month, and revenues from concentrate sales do not consider metallurgical recoveries in the calculations as the metal recoveries are built into the sales amounts.

Summary of Selected Financial Results

The information provided below are excerpts from the Company's annual Financial Statements and Management's Discussion and Analysis ("MD&A"), which can be found on the Company's website at www.silverxmining.com/investor#report or on SEDAR at www.sedar.com.

Note:

(1) Restatement due to adoption of amendments to IAS 16 effective for annual reporting period beginning on or after January 1, 2022. The Company changed its fiscal year-end from February 28 to December 31, resulting in a 10-month transition year from March 1, 2021, to December 31, 2021. The Company adopted the standard on the effective date and applying it retrospectively to the fiscal year beginning January 1, 2021 resulted in an increase to revenue from mining operations from the sale of pre-commercial mineral production of $4.1 million, an increase in production costs (including amortization) of $9.6 million during the year ended December 31, 2021, along with a corresponding change in the development property of $5.5 million as at December 31, 2021.

For the three months ended December 31, 2022, the Company recorded a net loss before tax of $4.7 million, compared to a net loss before tax of $5.5 million in the three months ended December 31, 2021 ("Q4 2021").

The reduction in loss in the current period was primarily due to increased operating revenues from the sale of pre-commercial mineral production of $3.9 million (vs. $1.2 million in Q4 2021) reflective of the continued ramp up of production and the reduction in cost of sales of $4.2 million (vs. $4.8 million in Q4 2021) partially offset by increased general and administrative expenses of $0.7 million (vs. $0.1 million in Q4 2021) and by the impairment of the Company's exploration asset in Ecuador (Julian Project) of $ 1.1 million.

Loss on translation for the 12 months ended December 31, 2022, of $0.9 million (vs. $3.3 million gain in FY 2021) resulting in a comprehensive loss of $10.2 million (vs. $9.9 million comprehensive loss in FY 2021).

Loss or gain on translation of foreign operations fluctuates depending on the strength of the Peruvian sol and Canadian dollar against the US dollar. Loss on translation for the three months ended December 31, 2022, of $0.3 million (vs. $2.9 million gain in Q4 2021) resulting in a comprehensive loss of $7.2 million (vs. $0.6 million comprehensive loss in Q4 2021).

For the 12 months ended December 31, 2022, the Company recorded a net loss before tax of 8.6 million, compared to a net loss before tax of $15.2 million in the 10 months ended December 31, 2021 ("FY 2021").

The reduction in loss in FY 2022 was primarily due to increased operating revenues from the sale of pre-commercial mineral production of $13.9 million (vs. $4.1million in FY 2021) reflective of the continued ramp up of production that was partially offset by the increased in cost of sales of $14.4 million (vs. $9.6 million in FY 2021). A reduction in general and administrative expenses of $3.8 million (vs. $6.4 million in FY 2021) further contributed to the reduced loss.

Financial Position

Note:

(1) Restatement due to adoption of amendments to IAS 16 effective for annual reporting period beginning on or after January 1, 2022. The Company changed its fiscal year-end from February 28 to December 31, resulting in a 10-month transition year from March 1, 2021, to December 31, 2021. The Company adopted the standard on the effective date and applying it retrospectively to the fiscal year beginning January 1, 2021 resulted in an increase to revenue from mining operations from the sale of pre-commercial mineral production of $4.1 million, an increase in production costs (including amortization) of $9.6 million during the year ended December 31, 2021, along with a corresponding change in the development property of $5.5 million as at December 31, 2021.

During completion of the ramp-up phase the Company invested approximately $1.9 million in the development of the Tangana Mining Unit and in property, plant and equipment. In the second quarter of the year the Company completed the conversion of an existing convertible debenture in the amount of $4.1 million contributing to the reduction of overall financial debt. The Company continues to actively manage the existing payables either through the cash flow generated from the operations and/or through other available sources of financing to further improve its working capital.

Fourth Quarter and Full Year 2022 Operational Results