Definitive Agreement To Acquire Minago Nickel Project

VANCOUVER - Silver Elephant Mining Corp. reported that it has entered into a binding definitive Asset Purchase Agreement (APA) with Victory Nickel Inc. to acquire the Minago Nickel Project located in Thompson nickel belt (TNB), Manitoba, Canada. Subject to the terms of the APA, Silver Elephant has agreed to acquire the Minago Project from Victory Nickel for aggregate consideration of US$11,675,000, which consists of a US$6,675,000 ("Property Payment") credit against certain secured debt owed by Victory Nickel to Silver Elephant at closing and US$5,000,000 in Silver Elephant common shares ("Consideration Shares") to be issued over a one-year period.

Additionally, Silver Elephant will agree to issue to Victory Nickel C$2,000,000 in Silver Elephant common shares, upon the price of nickel exceeding US$10 per pound for 30 consecutive business days, occurring before December 31, 2023.

At closing, pursuant to the APA, Silver Elephant will also subscribe for 40,000,000 common shares of Victory Nickel (each, a "VN Share") at a price per VN Share of $0.025 for consideration of C$1,000,000.

Dan Oosterman, Vice President, Exploration and Canadian Operations, said, "The Minago acquisition immediately propels Silver Elephant to the forefront of the nickel sulphide mining space to supply much needed Class 1 nickel for long-range, high-intensity, fast charging NMC 811 (80% nickel, 10% manganese, 10% cobalt) cathode standard in lithium batteries to fuel mass electric vehicle (EV) adoption.

EV penetration is expected to reach 22 to 30% by 2030 according to a recent research report by Ken Hoffman of Mckinsey & Company. Annual production of 30 million EV's requires over 2 billion pounds of Class 1 nickel. The 2019 global nickel production was approximately 5 billion pounds consisting of 2.5 billion pounds of Class 1 high-purity nickel from sulphide deposits, and 2.5 billion pounds of Class 2 nickel from laterite deposits. Nickel production from sulphide deposits has been in decline due to their rarity. Silver Elephant's value proposition is to fill the insatiable and eruptive Class 1 nickel demand from EV's by expanding nickel sulphide resource at Minago to district scale and eventually bringing the Minago project to production with industry partners."