Mr. John Lee reports

SILVER ELEPHANT ANNOUNCES CONVERSION OF FLYING NICKEL S FT SUBSCRIPTION RECEIPTS

Silver Elephant Mining Corp. has provided the following update further to its news release dated Nov. 30, 2021, with respect to previously completed private placement of flow-through subscription receipts of Silver Elephant's wholly owned Flying Nickel Mining Corp.

Gross proceeds of $1,534,176 were released from escrow to Flying Nickel upon converting an aggregate of 1,992,437 flow-through subscription receipts of Flying Nickel into 1,992,437 flow-through common shares of Flying Nickel at a price of 77 cents per share, pursuant to the subscription receipt agreement between Flying Nickel, Computershare Trust Company of Canada and Red Cloud Securities Inc.

In addition, the company further confirms that proceeds of $7,065,823 from the issuance of 10,094,033 non-flow-through subscription receipts of Flying Nickel remain subject to escrow and will be released to Flying Nickel upon satisfaction of certain additional escrow release conditions, including receipt of final approval of the Supreme Court of British Columbia (court date scheduled for Jan. 11, 2022), in connection with the company's previously announced plan of arrangement.

In connection with the conversion, an aggregate of 119,546 broker warrants were issued to the agents for the Flying Nickel offering. Each broker warrant entitles the holder to acquire one common share of Flying Nickel at an exercise price of 70 cents per common share until Nov. 29, 2023.

For further information regarding the plan of arrangement, shareholders should review the company's prior news release and management information circular available on SEDAR and the company's website.

The company also announces that, further to its press release dated Feb. 9, 2021, and pursuant to the asset purchase agreement (APA) dated Jan. 21, 2021, between the company and Victory Nickel Inc. (VN), the company issued 4,607,180 common shares in the capital of the company at a deemed price per share of 27.7914 cents to VN on Dec. 30, 2021, in satisfaction of the company's obligation to issue $1-million (U.S.) in shares to VN by no later than Dec. 31, 2021.

The company further confirms that, pursuant to the APA, 10,081,502 shares at a deemed price per share of 25.03 cents were issued to VN on Aug. 31, 2021, in satisfaction of the company's obligation to issue $2-million (U.S.) in shares by no later than Aug. 31, 2021.

There are no further payments to VN under the APA unless the price of nickel exceeds $10 (U.S.) per pound for 30 consecutive business days before Dec. 31, 2023, upon which Silver Elephant will issue VN an additional $2-million in Silver Elephant common shares.

About Silver Elephant Mining Corp.

Silver Elephant Mining is a premier mining and exploration company in silver, nickel and vanadium.

We seek Safe Harbor.