Silver One Resources: Fully-Funded Drill Program to Commence in Fall 2024 to Unlock Value in US Silver Assets

• Silver One Resources is focused on developing silver projects in the southwestern United States, particularly in Nevada and Arizona.
• The company's main projects are Candelaria, a past-producing silver mine in Nevada, and Phoenix Silver, a high-grade silver prospect in Arizona.
• Candelaria has potential for near-term production from existing heap leach pads, with ongoing metallurgical work to improve silver recovery.
• Phoenix Silver shows extremely high-grade silver values at surface and will be drilled soon to test the source of mineralization.
• With a recently closed $6 million private financing, Silver One is well-funded for current work programs and sees increasing industrial demand supporting higher silver prices going forward.

As industrial and investment demand for silver continues to grow, junior mining companies with quality assets in stable jurisdictions are attracting increased attention. Silver One Resources (TSXV:SVE) is positioning itself to capitalize on this trend with a portfolio of advanced and early-stage silver projects in Nevada and Arizona mining-friendly states.

The company's flagship Candelaria project in Nevada offers near-term production potential from existing heap leach pads. At the same time, its Phoenix Silver property in Arizona has yielded some of the highest-grade silver samples ever recorded. With an experienced management team and a well-funded treasury, Silver One is advancing these assets towards development at a time when silver's critical role in green technologies is driving demand to new heights.

Company Background & Strategy

Silver One Resources was founded in 2016 and is led by President and CEO Gregory Crowe, a geologist with over 30 years of experience in the mining industry. The company initially focused on Mexican silver assets, but it pivoted to the southwestern United States in search of projects closer to development. This strategy led to the acquisition of Candelaria from SSR Mining (formerly Silver Standard) in 2017, followed by the addition of the Phoenix Silver and Cherokee projects.

Crowe explains the company's approach:

"When we started the company, we did a deal with a group called First Mining Finance, which is one of Keith Neumeyer's subsidiary companies. We acquired three Mexican silver assets. But since then, we decided that we needed something closer to development, and we ended up doing a deal with Silver Standard, now SSR Mining, on a past-producing silver mine in Nevada called Candelaria."

This focus on the United States has allowed Silver One to operate in jurisdictions with well-established mining industries and supportive regulatory environments. Crowe notes:

"In Nevada, we're dealing with a combination of patented, which are private claims and BLM claims, but the BLM offices that we're dealing with are very, very pro-mining and very helpful in terms of getting permits."

Flagship Project: Candelaria

The Candelaria Silver Mine in Nevada is Silver One's most advanced asset and offers the nearest-term path to production. The project has a rich history, producing over 68 million ounces of silver before operations ceased in 1997 due to low prices. Silver One acquired the property with a large historical resource base, including mineralization in two open pits and on two heap leach pads.

Current development efforts at Candelaria are focused on the heap leach pads, which offer a potential low-capital route to restarting production. The company is conducting extensive metallurgical testing in partnership with a group called Extract, which has developed proprietary solutions that may significantly improve silver recovery rates compared to traditional cyanide leaching.

Crowe is optimistic about the potential impact of this work:

"We're currently conducting metallurgical testing. We have partnered with a group called Extract, which is in association with the big engineering group called Beal, and they've developed some proprietary solutions that seem to be working better than classic cyanide in extracting silver from these old heap leach pads."

The results of this metallurgical work, expected later this year or early next year, will feed into an updated resource estimate and economic study for Candelaria. If successful, the project could move quickly towards a production decision, with Crowe suggesting a two to three-year timeline in an optimistic scenario.

Beyond the heap leach pads, Candelaria offers significant upside for exploration. The company has identified mineralization between and adjacent to the existing open pits and deeper sulfide mineralization that has never been fully quantified. This potential for resource expansion could extend the project's life well beyond the initial 5-8-year estimate based on the heap leach material alone.

Phoenix Silver: High-Grade Potential

While Candelaria represents near-term production potential, Silver One's Phoenix Silver project in Arizona offers exciting exploration upside. The property has yielded exceptionally high-grade silver samples at surface, with values up to 459,000 grams per ton (g/t) silver reported from vein fragments.

Crowe emphasizes the unique nature of this discovery:

"We have uncovered huge silver vein fragments just below the surface that we think are very close to the source, and we've targeted what we believe to be the source with this drill program. Some of those vein fragments return values up to 459,000 grams per ton silver, which is unheard of."

A fully funded drill program is set to begin at Phoenix Silver in the fall of 2024. The program aims to locate the source of these high-grade silver fragments. If successful, this program could rapidly elevate Phoenix Silver to a priority development project for the company.

In addition to the silver potential, Phoenix Silver is located within a major porphyry copper district. The property shows signs of porphyry-style mineralization, with surface samples returning over 1% copper in some areas. This dual potential for both high-grade silver and large-scale copper mineralization adds significant value to the project.

Market Outlook & Silver Demand

Silver One's development timeline aligns well with the growing industrial demand for silver, particularly in green technologies. Crowe points out several key drivers for silver demand:

"One big new usage for silver, which a lot of people kind of haven't quite hit on yet, is artificial intelligence. Silver is used extensively in all of the computing devoted to artificial intelligence. Not only in electric vehicles, which is phenomenal, but also in solar panels, which is expanding exponentially."

This increasing demand is creating a significant supply deficit in the silver market. Crowe notes:

"The world's currently mining 850 million ounces of silver per year. We're consuming 1.2 billion. Part of that's made up by recycling, etc., but we're still shy of a 200 to 250 million ounces deficit yearly. How will that be made up without new mines coming into production?"

This supply-demand imbalance supports a positive outlook for silver prices, with Crowe stating that prices in the $30-$35 per ounce range would be "perfect" for Silver One's development plans.

Financials & Recent Developments

Silver One recently raised approximately $6 million, which will fund its planned work programs over the next 12-24 months. These include the metallurgical work and economic studies at Candelaria and the upcoming drill program at Phoenix Silver.

The company's management team has demonstrated fiscal responsibility and a focus on minimizing dilution. The acquisition of Candelaria, for example, was structured primarily through share issuance and the posting of a reclamation bond, preserving cash for development activities.

Looking forward, Silver One has multiple options for financing future development, including potential off-take agreements, royalty deals, and debt financing. The company has already received expressions of interest from various parties, even before completing its economic studies.

Risks & Challenges

As with any junior mining company, Silver One faces several risks and challenges:

• Exploration risk: While both Candelaria and Phoenix Silver show promising mineralization, further drilling and studies are required to confirm economically viable resources.
• Metallurgical performance: The success of the Candelaria heap leach project depends on achieving satisfactory recovery rates from the historical pads.
• Permitting: Although operating in mining-friendly jurisdictions, the company will still need to navigate regulatory processes for any future mining operations.
• Metal price volatility: Silver prices can impact project economics and investor sentiment.
• Financing: Advancing projects to production will require significant capital, which may result in dilution or debt obligations.

Silver One Resources offers investors exposure to silver exploration and development in the stable jurisdictions of Nevada and Arizona. With a past-producing asset nearing potential restart and a high-grade exploration project, the company provides a balance of near-term catalysts and long-term growth potential.

As silver demand continues to grow, driven by industrial applications in green technologies and artificial intelligence, Silver One is well-positioned to benefit from rising prices and increased investor interest in the sector. While risks remain, the company's experienced management team and well-funded treasury provide a solid foundation for executing its development plans.

The Investment Thesis for Silver One Resources

• Exposure to silver in safe, mining-friendly U.S. jurisdictions
• Near-term production potential from Candelaria heap leach project
• High-grade exploration upside at Phoenix Silver
• Increasing industrial demand supporting higher silver prices
• Experienced management team with a track record of value creation
• Well-funded for current work programs
• Multiple catalysts expected in the next 12-18 months:
  • Metallurgical results and economic studies for Candelaria
  • Drill results from Phoenix Silver
  • Updated resource estimates
  • Potential strategic partnerships or financing arrangements

Silver One Resources presents a compelling opportunity for investors seeking exposure to silver exploration and development in the United States. The company's Candelaria project offers near-term production potential with significant resource expansion opportunities, while the Phoenix Silver property provides high-grade exploration upside. With a strong management team, well-funded treasury, and multiple catalysts on the horizon, Silver One is well-positioned to advance its projects and potentially benefit from rising silver demand and prices. However, investors should be aware of the risks inherent in junior mining stocks and carefully consider their investment objectives and risk tolerance before making any investment decisions.

Macro Thematic Analysis

The silver market is currently at an inflection point, driven by a convergence of factors reshaping supply and demand dynamics. On the demand side, silver's critical role in green technologies propels consumption to new heights. The metal's unparalleled electrical conductivity makes it indispensable in solar panels, electric vehicles, and 5G infrastructure. Moreover, the rapid expansion of artificial intelligence and cloud computing is creating additional demand for silver in data centers and advanced electronics.

Simultaneously, the global push for decarbonization is accelerating the adoption of these technologies, further amplifying silver demand. The International Energy Agency projects that solar power capacity could grow by over 20% annually through 2025, while electric vehicle sales are expected to rise from 6.6 million units in 2021 to 26.8 million by 2030.

On the supply side, silver production has struggled to keep pace with this surging demand. Many primary silver mines have experienced declining grades. In contrast, base metal mines (which produce silver as a by-product) have seen reduced output due to various factors, including COVID-19 disruptions and underinvestment in new projects.

This supply-demand imbalance creates a structural deficit in the silver market, as Gregory Crowe's statement highlights: "The world's currently mining 850 million ounces of silver per year. We're consuming 1.2 billion. Part of that's made up by recycling, etc., but we're still shy 200 to 250 million ounces deficit yearly."

This deficit, coupled with silver's dual role as both an industrial and precious metal, sets the stage for potential price appreciation. As industrial demand continues to grow and investors seek inflation hedges and safe-haven assets, companies with quality silver assets in stable jurisdictions are well-positioned to benefit from this macro trend.