Silver Elephant Mining Corp. — Capital/Financing Update 2020

Oct 21, 2020

October 20, 2020

SILVER ELEPHANT MINING CORP.

BOUGHT-DEAL SHORT-FORM PROSPECTUS OFFERING OF COMMON SHARES

TERM SHEET

A preliminary short form prospectus containing important information relating to the securities described in this document has not yet been filed with the securities regulatory authorities in those provinces of Canada as the Underwriter may designate (other than Quebec). A copy of the preliminary short form prospectus is required to be delivered to any investor that received this document and expressed an interest in acquiring the securities.

There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final short form prospectus has been issued. This document does not provide full disclosure of all material facts relating to the securities offered. Investors should read the preliminary short form prospectus, final short form prospectus and any amendment, for disclosure of those facts, especially risk factors relating to the securities offered, before making an investment decision.

Issuer: Silver Elephant Mining Corp. (“Silver Elephant” or the “Company”).

Offering: Bought-deal, short-form prospectus offering of 15,000,000 common shares of the Company for gross proceeds to the Company of $6,000,000 (the “Offering”).

Offering Price: $0.40 per Common Share.

Over-Allotment Option: Up to 15% of the number of Common Shares issued pursuant to the Offering to cover any over-allotments and for market stabilization purposes, exercisable within 30 days following the closing of the Offering (the “Over-Allotment Option”).

Use of Proceeds: The net proceeds from the Offering will be used for exploration, development and/or improvement of the Company’s mine properties and for working capital purposes.

Offering Basis: The Common Shares will be offered by way of a short form prospectus to be filed in those provinces of Canada, other than Quebec, as the Underwriters may designate pursuant to National Instrument 44-101 – Short Form Prospectus Distributions and may be offered in the United States on a private placement basis pursuant to an appropriate exemption from the registration requirements under applicable U.S. law.

Listing: The Company shall obtain the necessary approvals to list the Common Shares and the Common Shares issuable on the exercise of the compensation options for trading on the Toronto Stock Exchange.

Eligibility: The Common Shares shall be eligible for RRSPs, RRIFs, RDSPs, RESPs, TFSAs and DPSPs.

Commission: 6.0% cash commission and 6.0% non-transferable compensation options.

Underwriters: Mackie Research Capital Corporation as lead underwriter and sole bookrunner (the “Lead Underwriter”), and on behalf of a syndicate of underwriters, including Canaccord Genuity Corp. and Sprott Capital Partners LP (together with the Lead Underwriter, the “Underwriters”).

Closing: The closing of the Offering is expected to occur on or about November 13, 2020 (the “Closing”), or such later or earlier date as the Lead Underwriter and the Company may agree upon.