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Silver Elephant Mining Corp. Capital/Financing Update 2020

Oct 21, 2020

43875_rns_2020-10-20_b372c426-80fb-4e6e-88ea-d446a9978e25.pdf

Capital/Financing Update

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BC FORM 51-102F3

MATERIAL CHANGE REPORT

ITEM 1. NAME AND ADDRESS OF COMPANY

Silver Elephant Mining Corp. Suite 1610 – 409 Granville Street Vancouver, BC V6C 1T2

ITEM 2. DATE OF MATERIAL CHANGE

October 20, 2020

ITEM 3. NEWS RELEASE

The news release dated October 20, 2020 was disseminated through GlobeNewswire and filed on SEDAR on October 20, 2020.

ITEM 4. SUMMARY OF MATERIAL CHANGE

The Company announced that it has entered into an agreement with Mackie Research Capital Corporation as lead underwriter and sole bookrunner (the “Lead Underwriter”), on behalf of a syndicate of underwriters, including Canaccord Genuity Corp. and Sprott Capital Partners LP (collectively with the Lead Underwriter, the “Underwriters”), pursuant to which ‐ the Underwriters have agreed to purchase, on a bought deal basis, 15,000,000 common shares of the Company (the “Common Shares”) at a price of C$0.40 per Common Shares for gross proceeds of C$6,000,000 (the “Offering”).

The Company has granted the Underwriters an option (the “Over-Allotment Option”) to increase the size of the Offering by up to an additional number of Common Shares that in aggregate would be equal to 15% of the total number of Common Shares to be issued under the Offering, at any time up to 30 days following the closing of the Offering.

The net proceeds from the sale of the Common Shares will be used for the exploration, development and/or improvement of the Company’s mine properties and for working capital purposes.

The Offering is scheduled to close on or about November 13, 2020, or such later or earlier date as the Lead Underwriter may agree upon, and is subject to a number of conditions, including receipt of all necessary securities regulatory approvals and the approval of the Toronto Stock Exchange.

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.

ITEM 5. FULL DESCRIPTION OF MATERIAL CHANGE

Please refer to the Company’s news release dated October 20, 2020, which is available for review under the Company’s SEDAR profile at www.SEDAR.com.

ITEM 6. RELIANCE ON SUBSECTION 7.1(2) OR 7.1(3) OF NATIONAL INSTRUMENT 51-102

Not applicable

ITEM 7. OMITTED INFORMATION

Not applicable

ITEM 8. SENIOR OFFICER Contact: Brigitte McArthur, Corporate Secretary Telephone: (604) 569-3661 Email: [email protected]

ITEM 9. DATE OF REPORT

October 20, 2020