Mula Mining Corp. Announces Disposition of Shares of Silver Mountain Resources Inc. to Its Own Shareholders

Toronto, Ontario--(Newsfile Corp. - August 8, 2023) - This news release is being disseminated as required by National Instrument 62-103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues in connection with the filing of an early warning report regarding class A common shares (the "Common Shares") in the capital Silver Mountain Resources Inc. (the "Issuer"), having a head office address located at 82 Richmond Street East, Toronto, ON M5C 1P1.

On August 4, 2023, Mula Mining Corp. (the "Company") entered into agreements with all of the shareholders of the Company (the "Company Shareholders"), pursuant to which the Company transferred the beneficial ownership, direction and control of 13,750,000 Common Shares (the "Disposed Shares"), representing 6.32% of the issued and outstanding Common Shares of the Issuer (the "Disposition"). The Disposition took place to allow the Company Shareholders to hold their interest in the Common Shares directly. The Disposed Shares were transferred at $0.093 per share. The Company will continue to be the registered owner of the Disposed Shares as nominee for a period of time following the Disposition.

Immediately prior to the Disposition, the Company beneficially and directly owned and controlled 25,000,000 Common Shares of the Issuer, representing ownership of approximately 11.50% of the issued and outstanding Common Shares of the Issuer on a non-diluted basis. Immediately following the Disposition, the Company beneficially and directly owned and controlled 11,250,000 Common Shares of the Issuer, representing ownership of approximately 5.17% of the issued and outstanding Common Shares of the Issuer on a non-diluted basis.

The Company disposed of the Disposed Shares to the Company Shareholders in a private sale to allow the Company Shareholders to hold their interest in the Disposed Shares directly. In connection with the Disposition, the Company intends to dispose of additional Common Shares, which are currently subject to an escrow agreement dated January 26, 2022 (the "Escrow Agreement"), to the Company Shareholders once such transfers are permitted in accordance with the Escrow Agreement. The Company currently intends to dispose of an additional 11,250,000 Common Shares (representing all of the Common Shares currently beneficially owned by the Company) in connection with the above noted transactions. The Company may acquire additional securities or dispose of securities either on the open market or through private acquisitions in the future depending on market conditions, reformulation of plans and/or other relevant factors and subject to applicable securities laws. The Company may, from time to time and at any time, acquire additional Common Shares and/or other equity, debt or other securities or instruments of the Issuer in the open market or otherwise, and reserves the right to dispose of any or all of the Common Shares in the open market or otherwise at any time and from time to time, and to engage in similar transactions with respect to the Common Shares, the whole depending on market conditions, the business and prospects of the Issuer and other relevant factors, including compliance with applicable securities laws.

Pursuant to the terms of the Escrow Agreement, the Company is currently restricted in its ability to sell, transfer or pledge, or otherwise dispose of or transfer the economic consequences of securities of the Issuer held by the Company for a period of 36 months following the date on which the Common Shares became listed for trading on the TSX Venture Exchange (the "Listing Date"). Pursuant to the Escrow Agreement, 10% of the subject securities were released on the Listing Date and the remaining securities are released in six equal tranches every six months following the Listing Date.

In addition, the Disposed Shares, the beneficial ownership of which was transferred to the Company Shareholders in connection with the Disposition, remain registered in the name of the Company. The Company will remain the registered owner of such Common Shares until the promissory notes representing the purchase price for the Disposed Shares have been paid in full. The Disposed Shares are subject to nominee agreements between the Company and the Company Shareholders, whereby the Company has agreed to act as bare trustee for the Company Shareholders and vote the Disposed Shares in accordance with the instructions of the relevant Company Shareholder.

A copy of the early warning report describing the above transaction will be filed on SEDAR at www.sedarplus.ca under the profile for the Issuer.

For Further Information Contact: Mula Mining Corp., 150 King Street West, Toronto ON M5H 3T9.
Phone: +51 991688540

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/176402