SILVER ELEPHANT MINING CORP.

Condensed Interim Consolidated Financial Statements (Unaudited)

For the Three and Six Months Ended
September 30, 2025

(Expressed in Canadian Dollars)

NOTICE OF NO REVIEW BY AUDITOR

In accordance with National Instrument 51-102 Continuous Disclosure Obligations of The Canadian Securities Administrators we hereby give notice that our condensed interim consolidated financial statements for the three and six months ended September 30, 2025, which follow this notice, have not been reviewed by an auditor.

Silver Elephant Mining Corp.
Condensed Interim Consolidated Statements of Financial Position (Unaudited)
(Expressed in Canadian Dollars)

	September 30, 2025 ($)	March 31, 2025 ($)
Assets
Current assets
Cash	237,096	271,838
Receivables (note 4)	5,888	52,294
Prepaid expenses	69,519	62,901
Derivative assets (note 5)	-	5,099
	312,503	392,132
Non-current assets
Exploration and evaluation assets (note 6)	22,764,211	21,986,161
Investment in Oracle (note 7)	141,948	-
Investment in CleanTech (note 8)	-	546,719
Other non-current assets (note 9)	79,640	192,730
Total assets	23,298,302	23,117,742
Liabilities And Equity
Current liabilities
Accounts payable and accrued liabilities (note 16)	2,554,225	2,518,677
Derivative liabilities (note 11)	1,760,591	987,018
Other current liabilities (note 12)	321,896	29,968
Provision for Mongolia tax dispute (note 24)	27,317,571	27,682,126
	31,954,283	31,217,789
Non-current liabilities
Provision for closure and reclamation (note 13)	1,595,010	1,750,990
Lease liability (note 10)	27,678	36,916
Total liabilities	33,576,971	33,005,695
Equity
Share capital (note 14)	222,006,702	221,208,020
Subscriptions received (note 14)	141,000	60,000
Reserves (note 14)	29,200,391	28,678,391
Accumulated other comprehensive income (loss)	907,200	(764,823)
Deficit	(262,533,962)	(258,794,402)
Equity attributable to equity holders of parent	(10,278,669)	(9,612,814)
Equity attributable to non-controlling interest (note 15)	-	(275,139)
Total equity	(10,278,669)	(9,887,953)
Total liabilities and equity	23,298,302	23,117,742

Nature of Operations and Going Concern (note 1)
Subsequent Events (note 25)

Approved by the Board of Directors

"John Lee" "Greg Hall"
John Lee – Director Greg Hall – Director

The accompanying notes are an integral part of these consolidated financial statements.

Silver Elephant Mining Corp.
Condensed Interim Consolidated Statements of Loss (Unaudited)
(Expressed in Canadian Dollars)

	Three Months Ended		Six Months Ended
	September 30, 2025
($)	September 30, 2024
($)
(Restated –
Note 24)	September 30, 2025
($)	September 30, 2024
($)
(Restated –
Note 24)
General and administrative expenses
Amortization (note 10)	4,670	1,206	9,340	25,630
Advertising and promotion	-	3,654	10,149	46,451
Consulting and management fees (note 16)	114,539	131,382	305,814	269,718
Directors fees (note 16)	38,200	38,000	75,400	71,200
Insurance	11,615	19,619	24,260	54,394
Office and administration	62,864	31,269	98,510	79,374
Professional fees	165,586	29,512	398,390	198,721
Salaries and benefits (note 16)	136,362	161,200	304,129	564,158
Share-based payments (notes 14c, 15b and 15c)	95,310	245,485	209,948	367,356
Stock exchange and shareholder services	64,622	89,974	101,662	203,468
Travel and accommodation	11,400	24,672	34,954	28,546
	(705,168)	(775,973)	(1,572,556)	(1,909,016)
Other items
Other income (loss)	16,576	167,004	(17,254)	178,986
Gain on sale of asset (note 6)	154,999	-	154,999	-
Gain (loss) on warrant modification (note 11)	1,392	-	(44,521)	-
Ulaan Ovoo tax assessment interest (note 24)	(621,499)	(652,678)	(1,243,660)	(1,301,435)
Loss from equity accounted investment in CleanTech (note 8)	(202,520)	(718,662)	(250,560)	(1,470,677)
Loss from equity accounted investment in Oracle (note 7)	(102,038)	-	(102,038)	-
Loss from deconsolidation of Oracle (note 15e)	(582,195)	-	(582,195)	-
Loss from deconsolidation of Nevada Vanadium	-	(1,188,283)	-	(1,188,283)
Gain from changes in interest in CleanTech	-	271,087	-	271,087
Gain (loss) from care and maintenance of coal properties (note 18)	(80,993)	(176,048)	2,308	(145,640)
Gain (loss) from fair value change in derivative liabilities (note 11)	376,035	19,011	(377,003)	(178,934)
Impairment of exploration and evaluation asset (note 6)	-	(20,495)	-	(20,495)
Finance expense	(2,803)	-	(3,576)	(79,925)
Foreign exchange gain (loss)	(175,690)	3,802	37,987	(7,771)
Net loss for the period	(1,923,904)	(3,071,235)	(3,998,069)	(5,852,103)

The accompanying notes are an integral part of these consolidated financial statements.

Silver Elephant Mining Corp.
Condensed Interim Consolidated Statements of Comprehensive Loss (Unaudited)
(Expressed in Canadian Dollars)

	Three Months Ended		Six Months Ended
	September 30, 2025
($)	September 30, 2024
($)
(Restated –
Note 24)	September 30, 2025
($)	September 30, 2024
($)
(Restated –
Note 24)
Net loss for the period	(1,923,904)	(3,071,235)	(3,998,069)	(5,852,103)
Other comprehensive income:
Foreign currency translation	133,788	553,782	1,672,023	652,575
Comprehensive loss for the period	(1,790,116)	(2,517,453)	(2,326,046)	(5,199,528)
Net loss attributable to:
Equity holders of parent	(1,748,492)	(2,891,724)	(3,739,560)	(4,985,252)
Non-controlling interest (note 15)	(175,412)	(179,511)	(258,509)	(866,851)
	(1,923,904)	(3,071,235)	(3,998,069)	(5,852,103)
Comprehensive loss attributable to:
Equity holders of parent	(1,614,704)	(2,337,942)	(2,067,537)	(4,471,698)
Non-controlling interest (note 15)	(175,412)	(179,511)	(258,509)	(727,830)
	(1,790,116)	(2,517,453)	(2,326,046)	(5,199,528)
Basic and diluted loss per share attributable equity holders of parent	(0.04)	(0.08)	(0.08)	(0.14)
Basic and diluted weighted average number of shares outstanding (note 14e)	47,154,708	36,220,483	45,666,353	34,997,541

The accompanying notes are an integral part of these consolidated financial statements.

Silver Elephant Mining Corp.

Condensed Interim Consolidated Statements of Changes in Equity (Unaudited)

(Expressed in Canadian Dollars)

	Number of Shares	Share Capital ($)	Subscriptions Received ($)	Reserves ($)	AOCI^{1} ($)	Deficit ($)	Total Shareholders’ Equity ($)	NCI^{2} ($)	Total ($)
Balance, April 1, 2024 (restated)	32,841,918	219,568,237	-	28,740,877	(272,777)	(250,565,748)	(2,529,411)	13,379,057	10,849,646
Bonus shares (note 14)	124,270	37,380	-	-	-	-	37,380	-	37,380
Private placements (note 14)	3,679,054	1,636,815	-	-	-	-	1,636,815	-	1,636,815
Finders’ fees (note 14)	193,578	(87,289)	-	-	-	-	(87,289)	-	(87,289)
Stock options exercised	50,000	21,500	-	-	-	-	21,500	-	21,500
Share-based payments (“SBP”) (note 14(c))	-	-	-	246,512	-	-	246,512	-	246,512
Changes in NCI ownership (note 15(a))	-	-	-	-	-	-	-	(215,257)	(215,257)
Derecognition of NCI – Nevada Vanadium (note 15(e))	-	-	-	83,095	(191,466)	-	(108,371)	(13,340,680)	(13,449,051)
SBP - Nevada Vanadium (note 15(c))	-	-	-	-	-	-	-	17,630	17,630
SBP - Oracle (note 15(b))	-	-	-	-	-	-	-	104,907	104,907
Net loss (restated) (note 24)	-	-	-	-	-	(4,985,252)	(4,985,252)	(866,851)	(5,852,103)
Other comprehensive income (restated) (note 24)	-	-	-	-	513,554	-	513,554	139,021	652,575
Balance, September 30, 2024 (restated)	36,888,820	221,176,643	-	29,070,484	49,311	(255,551,000)	(5,254,562)	(782,173)	(6,036,735)
Balance, April 1, 2025	41,439,633	221,208,020	60,000	28,678,391	(764,823)	(258,794,402)	(9,612,814)	(275,139)	(9,887,953)
Shares for services (note 14)	365,672	72,188	-	-	-	-	72,188	-	72,188
Private placements (note 14)	6,603,203	770,302	(60,000)	-	-	-	710,302	-	710,302
Finders’ fees (note 14)	241,239	(43,808)	-	-	-	-	(43,808)	-	(43,808)
Shares to be issued (note 14)	-	-	141,000	-	-	-	141,000	-	141,000
SBP (note 14(c))	-	-	-	192,447	-	-	192,447	-	192,447
Changes in NCI ownership (note 15(a))	-	-	-	178,085	-	-	178,085	(84,115)	93,970
Derecognition – Oracle (note 15(e))	-	-	-	151,468	-	-	151,468	600,261	751,729
SBP – Oracle (note 15(b))	-	-	-	-	-	-	-	17,502	17,502
Net loss	-	-	-	-	-	(3,739,560)	(3,739,560)	(258,509)	(3,998,069)
Other comprehensive income	-	-	-	-	1,672,023	-	1,672,023	-	1,672,023
Balance, September 30, 2025	48,649,747	222,006,702	141,000	29,200,391	907,200	(262,533,962)	(10,278,669)	-	(10,278,669)

1 Accumulated other comprehensive income (loss) (“AOCI”)
2 Non-controlling interest (“NCI”)

The accompanying notes are an integral part of these consolidated financial statements.

Silver Elephant Mining Corp.
Condensed Interim Consolidated Statements of Cash Flows (Unaudited)
(Expressed in Canadian Dollars)

Six Months Ended
September 30,
2025
($)	September 30,
2024
($)
(Restated –
Note 24)
Operating Activities
Net loss for the period	(3,998,069)	(5,852,103)
Items not involving cash:
Amortization	9,340	25,630
Share-based payments	209,948	367,356
Impairment of exploration and evaluation asset (note 6)	-	20,495
Loss from fair value change in derivative liabilities (note 11)	377,003	178,934
Loss on warrant modification (note 11)	44,521	-
Loss from deconsolidation of Oracle (note 15e)	582,195	-
Loss from equity accounted in CleanTech (note 8)	250,560	1,470,677
Loss from equity accounted in Oracle (note 7)	102,038	-
Loss from deconsolidation of Nevada Vanadium	-	1,188,283
Gain from changes in interest in CleanTech	-	(271,087)
Change in provision for closure and reclamation	(148,413)	8,790
Finance expense	3,576	72,488
Unrealized foreign exchange	38,854	(20,659)
	(2,528,447)	(2,811,196)
Changes in non-cash working capital
Accounts receivable	44,444	1,179
Prepaid expenses	(64,275)	(115,020)
Accounts payable and accrued liabilities	180,563	285,373
Provision for Mongolia tax dispute (note 24)	1,243,660	1,301,435
Other current liabilities	303,684	(1,016,076)
Other non-current liabilities	-	427,229
Cash used in operating activities	(820,371)	(1,927,076)
Investing Activities
Exploration and evaluation assets	(1,140,859)	(465,920)
Derivative assets (note 5)	(4,583)	(178,934)
Sale of common shares of Oracle	497,316	-
Sale of common shares of CleanTech	84,009	15,742
Proceeds from sale of Triunfo Project	155,000	-
Deconsolidation of cash held by Oracle	(53,048)	-
Deconsolidation of cash held by Nevada Vanadium	-	(18,335)
Cash used in investing activities	(462,165)	(647,447)

Silver Elephant Mining Corp.
Condensed Interim Consolidated Statements of Cash Flows (Unaudited)
(Expressed in Canadian Dollars)

Consolidated Statements of Cash Flows - continued

	Six Months Ended
	September 30, 2025
($)	September 30, 2024
($)
(Restated –
Note 24)
Financing Activities
Proceeds from share issuances (note 14(b))	1,117,138	1,549,526
Subscription receipts (note 14)	141,000	-
Lease payments (note 10)	(10,200)	(11,447)
Proceeds from stock options exercised	-	21,500
Proceeds from share issuance of subsidiaries (note 15(a))	-	399,150
Partial repayment of promissory note	-	(344,240)
Cash from financing activities	1,247,938	1,614,489
Effect of foreign exchange on cash	(144)	3,167
Decrease in cash	(34,742)	(956,867)
Cash, beginning of period	271,838	2,209,099
Restricted cash	-	(28,750)
Cash, end of period	237,096	1,223,482

Supplemental cash flow information (note 19)

The accompanying notes are an integral part of these consolidated financial statements.

Silver Elephant Mining Corp.

Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)

For the Three and Six Months Ended September 30, 2025

(Expressed in Canadian Dollars except where noted)

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1. Description of Business and Nature of Operations

Silver Elephant Mining Corp. (the "Company" or "Silver Elephant") is incorporated under the laws of the province of British Columbia, Canada. The common shares of the Company are listed for trading on the Toronto Stock Exchange (the "TSX") under the symbol "ELEF" and on the Frankfurt Stock Exchange under the symbol "1P2" and are quoted on the OTCQB under the symbol "SILEF". The Company maintains its registered and records office at Suite 1008 – 409 Granville Street, Vancouver, British Columbia, Canada, V6C 1T2.

The Company is a mineral exploration company, with interests in the following projects; (a) the Pulacayo-Paca silver-lead-zinc project in Bolivia (the "Pulacayo Paca Project"), (b) the Ulaan Ovoo coal project located in Mongolia, and (c) the Chandgana coal project, located in Mongolia. The Ulaan Ovoo coal project and the Chandgana coal project have all been fully impaired. The recoverability of the amounts shown for exploration and evaluation assets are dependent upon the existence of economically recoverable reserves (the Company has not completed the studies required to categorize any of its current resource as reserves), the ability of the Company to obtain necessary financing to complete the development of those reserves and upon future profitable production or from proceeds of disposition. The Company's exploration and evaluation activities are not dependent on seasonality and may operate year-round; however, the Company may adjust the level of exploration and evaluation activities to manage its capital structure in light of changes in global economic conditions. To date, the Company has not received any revenue from commercial mining operations and is not in commercial production.

These consolidated financial statements have been prepared on a going concern basis which implies that the Company will continue realizing assets and discharging liabilities in the normal course of business for the foreseeable future. Should the going concern assumption not continue to be appropriate, further adjustments to carrying values of assets and liabilities may be required.

At September 30, 2025 (the "Financial Position Date"), the Company had working capital deficiency of $31,641,780 (March 31, 2025 - $30,825,657) and an accumulated deficit of $262,533,962 (March 31, 2025 - $258,794,402). Accordingly, the ability of the Company to realize the carrying value of its assets and continue operations as a going concern is dependent upon its ability to raise additional debt or equity to fund ongoing costs of operations and/or secure new or additional partners in order to advance its projects. These material uncertainties may cast significant doubt upon the Company's ability to continue as a going concern. These consolidated financial statements do not include any adjustments relating to the recovery of assets and classification of assets and liabilities that may arise should the Company be unable to continue as a going concern and such adjustments could be material.

2. Basis Of Presentation

(a) Statement of Compliance

These condensed interim consolidated financial statements have been prepared in accordance with International Accounting Standards 34, Interim Financial Reporting ("IAS 34") using accounting policies consistent with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). These condensed interim consolidated financial statements have been prepared using the same accounting policies and methods of computation as the most recent annual financial statements for the year ended March 31, 2025.

Where necessary, comparative figures for the consolidated statements of financial position, consolidated statements of profit or loss and the consolidated statements of cash flows have been reclassified to conform to the current year's presentation. Such reclassifications enhance consistency and comparability with the current year's financial statements.

These condensed interim consolidated financial statements were approved by the Board of Directors and authorized for issue on November 12, 2025.

Silver Elephant Mining Corp.

Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)

For the Three and Six Months Ended September 30, 2025

(Expressed in Canadian Dollars except where noted)

2. Basis Of Presentation - continued

(b) Basis of Measurement

These consolidated financial statements have been prepared on the historical cost basis. In addition, these consolidated financial statements have been prepared using the accrual basis of accounting, except for cash flow information.

(c) Basis of Consolidation

Subsidiaries are all entities over which the Company has control. The Company controls an entity where the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. Subsidiaries are deconsolidated from the date that control ceases. All intercompany balances, transactions, income and expenses, and profits or losses are eliminated on consolidation.

These consolidated financial statements include the accounts of the Company and its subsidiaries as follows:

Entity	Location	Ownership Interest at September 30, 2025	Project
Apogee Minerals Bolivia SA (“Apogee Bolivia”)	Bolivia	100%	Paca Project
ASC Bolivia LDC (“ASC Bolivia”)	Cayman	100%	Paca Project
ASC Holdings Limited (“ASC Holdings”)	Cayman	100%	n/a
Chandgana Coal LLC	Mongolia	100%	Chandgana Project
Empresa Minera Silver Elephant Bolivia S.A.	Bolivia	100%	n/a
Illumina Silver Mining Corp. (“ISMC”)	Canada	100%	Triunfo Project
Mega Thermal Coal Corp. (formerly Asia Mining Inc.)	Canada	100%	n/a
Prophecy Power Generation LLC	Mongolia	100%	n/a
Red Hill Mongolia LLC	Mongolia	100%	Ulaan Ovoo Project
UGL Enterprises LLC	Mongolia	100%	Ulaan Ovoo Project

De facto control exists in circumstances when an entity owns less than $50\%$ voting rights in another entity but has control for reasons other than voting rights or contractual and other statutory means. These consolidated financial statements included the results of Oracle Commodity Holding Corp. ("Oracle"), and Nevada Vanadium Mining Corp. ("Nevada Vanadium") and its subsidiaries, as applicable, as management has determined that the Company had de facto control over these entities as the Company has the practical ability to direct the relevant activities of these entities for certain periods presented.

As at the date of the Spin-off Arrangement (note 14), the Company had a $40\%$ ownership interest in Oracle and had de facto control over Oracle since the Company had: 1) power over Oracle, 2) exposure or rights to variable returns from its involvement with Oracle, and 3) the ability to use its power over Oracle to affect the amount of its returns from Oracle. As a result, the Company consolidated the accounts of Oracle in its consolidated financial statements, which also included the accounts of Nevada Vanadium (and its subsidiaries) for certain periods.

On August 16, 2024, CleanTech Vanadium Mining Corp. ("CleanTech") acquired Nevada Vanadium and therefore Nevada Vanadium was deconsolidated (the "Nevada Vanadium Deconsolidation) (note 14d and 25).

On August 14, 2025, Oracle was deconsolidated from the Company's consolidated financial statements as a result of loss of defacto control from the sale of shares of Oracle (note 15e).

Silver Elephant Mining Corp.

Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)

For the Three and Six Months Ended September 30, 2025

(Expressed in Canadian Dollars except where noted)

2. Basis Of Presentation - continued

(d) Significant Judgments and Estimates

The preparation of financial statements in accordance with IFRS requires management to make estimates and assumptions which affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company's management reviews these estimates and underlying assumptions on an ongoing basis, based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to estimates are adjusted for prospectively in the period in which the estimates are revised.

Estimates and assumptions used by management where there is risk of material adjustments to assets and liabilities in future accounting periods include the estimated useful lives of depreciated and amortized assets, assumptions used in determination of the fair value of share-based payments, estimation of taxes and related penalties and interest, the timing and amount of decommissioning, restoration and similar liabilities and contingent liabilities.

The Company assesses its mineral properties' rehabilitation provision at each reporting date or when new material information becomes available. Exploration, development and mining activities are subject to various laws and regulations governing the protection of the environment. In general, these laws and regulations are continually changing, and the Company has made, and intends to make in the future, expenditures to comply with such laws and regulations. Accounting for reclamation obligations requires management to make estimates of the future costs that the Company will incur to complete the reclamation work required to comply with existing laws and regulations at each location. Actual costs incurred may differ from those amounts estimated.

The preparation of financial statements in accordance with IFRS requires the Company to make judgments, apart from those involving estimates, in applying accounting policies. The most significant judgments in preparing the Company's financial statements include determination of whether the Company has title and rights to the MPC Area within its Pulacayo Project (note 6), tax assessments, specifically the Ulaan Ovoo Tax Assessment (note 24), contingent liabilities (note 23), the assumption that the Company will continue as a going concern and whether the Company has significant influence over other entities, classification of expenditures as exploration and evaluation expenditures or operating expenses, the classification of financial instruments and determining de facto control (note 2(c)).

3. Material Accounting Policy Information

(a) Future Changes in Accounting Standards

In April 2024, the IASB issued IFRS 18, Presentation and Disclosure in Financial Statements ("IFRS 18"), the new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss. The key new concepts introduced in IFRS 18 relate to:

the structure of the statement of profit or loss;
required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity's financial statements; and
enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general.

IFRS 18 will replace IAS 1; many of the other existing principles in IAS 1 are retained, with limited changes. IFRS 18 will not impact the recognition or measurement of items in the financial statements, but it might change what an entity reports as its 'operating profit or loss'. IFRS 18 will apply for reporting periods beginning on or after 1 January 2027 and also applies to comparative information.

Silver Elephant Mining Corp.
Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)
For the Three and Six Months Ended September 30, 2025
(Expressed in Canadian Dollars except where noted)

Material Accounting Policy Information - continued

The Company is currently evaluating the impact of IFRS 18 on its consolidated financial statements.

Certain accounting standards or amendments to existing accounting standards that have been issued but have future effective dates are either not applicable or are not expected to have a significant impact on the Company's consolidated financial statements.

Receivables

	September 30, 2025 ($)	March 31, 2025 ($)
Value added tax receivables	5,888	52,294

Derivative Assets

The Company's derivative assets are comprised of commodity and treasury contracts.

	$
Balance, April 1, 2024	-
Investment in derivative assets	208,309
Realized loss on derivative assets	(203,210)
Balance, March 31, 2025	5,099
Investment in derivative assets	4,583
Realized loss on derivative assets	(2,992)
Deconsolidation of Oracle	(6,690)
Balance, September 30, 2025	-

6. Exploration and Evaluation Assets

	Bolivia		USA
	Pulacayo Paca ($)	Triunfo ($)	Gibellini ($)	Total ($)
Balance, April 1, 2024	23,064,200	1	19,189,310	42,253,511
Licenses, tax and permits	3,031	73,929	16,389	93,349
Geological and consulting	462,782	310	6,862	469,954
Feasibility study	-	-	4,334	4,334
Exploration and drilling	11,913	-	-	11,913
Personnel, camp and general	532,377	-	1,693	534,070
Proceeds from MSA¹	(2,650,929)	-	-	(2,650,929)
Impairment	-	(71,985)	-	(71,985)
Foreign exchange	562,786	(2,254)	190,640	751,172
Deconsolidation of Nevada Vanadium (note 15d)	-	-	(19,409,228)	(19,409,228)
Balance, March 31, 2025	21,986,160	1	-	21,986,161
Geological and consulting	650,324	-	-	650,324
Personnel, camp and general	182,295	-	-	182,295
Metallurgy	293,204	-	-	293,204
Sale of project	-	(1)	-	(1)
Foreign exchange	(347,772)	-	-	(347,772)
Balance, September 30, 2025	22,764,211	-	-	22,764,211

¹ Net of $944,475 to be settled with APM.

Pulacayo Paca Project, Bolivia

The Company is predominantly focused on the development of the Pulacayo Paca Project in Southwestern Bolivia.

The Pulacayo Paca Project Area is made up of eight concessions in total: one concession held directly by the Company (the "Apurudita Area") and seven concessions (the "MPC Area") held through temporary permits and a Mining Production Contract ("MPC") dated October 3, 2019 with the Corporacion Minera de Bolivia ("Comibol").

The Apurudita concession is held through a Mining Administrative Contact ("MAC"). The MAC provides the Company with direct ownership rights. To maintain the Apurudita Area concession in good standing, the Company must make certain annual payments. The Apurudita Area concession permits the Company to explore and develop the Apurudita Area. The MPC grants, once approved by the Plurinational Legislative Assembly, the Company exploration rights and an exclusive right to develop the MPC Area for up to 30 years. As at the Financial Position Date, approval has not yet been received.

In December 2024, the Company received a notice of cancellation (the "Notice of Cancellation") of the approval process for the MPC from Comibol citing alleged illegal mining. The Company maintains that it has operated in full compliance under temporary permits issued by Comibol and received proper authorizations for its activities in the MPC Area. The Company remains committed to the development path for the Pulacayo Paca Project and has filed certain applications and appeals in Bolivia to reverse the Notice of Cancellation. The Notice of Cancellation does not affect the Apurudita Area.

Silver Elephant Mining Corp.

Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)

For the Three and Six Months Ended September 30, 2025

(Expressed in Canadian Dollars except where noted)

6. Exploration and Evaluation Assets – continued

On September 11, 2023, the Company entered into a sales and purchase agreement (the "SPA") with Andean Precious Metals Corp. ("APM") and its subsidiary (together "APM Group"), for the sale of up to 800,000 tonnes (the "SPA Quantity") of silver-bearing oxide materials from the Company's Pulacayo Paca property. In addition, the Company entered into a master services agreement (the "MSA") with APM Group to provide expertise in mining operations, community relations, logistics and access to technical and geological information, in exchange for APM Group agreeing to pay the Company an aggregate of $6,959,500 (US$5,000,000) (the MSA Payments") in installments, of which $4,286,358 (US$3,150,000) has been received.

In connection with the MSA, shares of ISMC, Apogee Bolivia, ASC Bolivia and ASC Holdings are held in escrow. These shares will be released upon the earlier of:

(a) the escrow agent receiving a joint written notice from Silver Elephant and APM; or
(b) the escrow agent receives a written direction or decision of a duly appointed arbitrator or court of competent jurisdiction in each case pursuant to the dispute resolution mechanisms provided for in the MSA directing the escrow agent to release the shares.

On December 30, 2024, the Company terminated the MSA and SPA (the "MSA and SPA Termination") as a result of APM Group's failure to pay a $1,391,900 (US$1,000,000) bonus payment based on silver price reaching a certain threshold (the "First Additional Consideration"). The First Additional Consideration became due once the London Bullion Market Association silver spot price averaged over US$28 per oz for the previous 260 trading-day interval. The Company maintains that the First Additional Consideration is payable and is pursuing appropriate action.

Royalty

The Pulacayo Paca Project is subject to a two percent (2%) royalty on all mineral products produced from certain mineral leases in Bolivia relating to Pulacayo Paca project if the average price per ounce of silver exceeds US$30.00 in a quarter.

On August 20, 2025, the Company executed amended and restated net smelter return ("NSR") royalty agreements covering Silver Elephant's Bolivian silver properties. Subject to the terms of the royalty agreements and any applicable regulatory or stock exchange approval, Silver Elephant and Oracle have agreed that 1) silver royalty based on raw or unprocessed minerals is reduced to 2% of (70% of gross metal value of sold materials), from 2% of (100% of gross metal value of sold materials), 2) silver royalty is payable regardless of silver price. The threshold silver price of $30 per oz is removed, and 3) Silver Elephant is to provide a guarantee of silver royalty payments on behalf of Silver Elephant's Bolivian subsidiaries who are the silver royalty payors. This amendment remains subject to the approval of the TSXV as at the date of these financial statements.

Triunfo Project, Bolivia

On July 10, 2020, the Company entered into an agreement (the "Triunfo Agreement") with a third party (the "Triunfo Vendor") for the right to conduct mining exploration activities (the "Exploration Right") within the El Triunfo gold-silver-lead-zinc project in La Paz District, Bolivia (the "Triunfo Project") and the right, at the Company's election, to purchase the Triunfo Project for $1,391,900 (US$1,000,000) (the "Purchase Right" and together with the Exploration Right, the "Triunfo Rights").

On April 8, 2025, the Company entered into an option assignment agreement (the "Triunfo Assignment Agreement") with CleanTech pursuant to which the Company proposed to assign its rights in and to the Triunfo Agreement to CleanTech in exchange for $155,000 (received). The Triunfo Assignment Agreement was completed on August 6, 2025 and the Company recorded a gain on sale of asset of $154,999.

Exploration and Evaluation Assets – continued

Gibellini Project, USA

The Gibellini Project is comprised of the Gibellini, Bisoni and Louie Hill vanadium deposits and associated claims located in the State of Nevada, USA.

On September 18, 2020, the company completed the acquisition of the Bisoni vanadium property situated immediately southwest of the Gibellini Project pursuant to an asset purchase agreement (the "Bisoni APA") dated August 18, 2020, with Cellcube Energy Storage Systems Inc. ("Cellcube"). The Bisoni property comprised of 201 lode mining claims. As consideration for the acquisition of the Bisoni property under the Bisoni APA, the Company issued 4 million Common Shares (the "Bisoni APA Shares") and paid $200,000 cash to Cellcube. Additionally, subject to TSX approval, if, on or before December 31, 2023, the price of European vanadium pentoxide on the Metal Bulletin (or an equivalent publication) exceeds US$12 a pound for 30 consecutive days, the Company will issue to Cellcube additional common shares with a value of $500,000 calculated based upon the 5-day volume weighted average price of the common shares immediately following the satisfaction of the vanadium pentoxide pricing condition (the "Bisoni Condition"). The Gibellini Project and its obligations were transferred to Nevada Vanadium on January 14, 2022 as a result of the Spin-off Arrangement. The Bisoni condition was potentially met on April 5, 2022, and derivative liabilities of $500,000 was recognized (the "Bisoni Liability") by Nevada Vanadium.

On August 16, 2024, the Gibellini Project along with the Bisoni Liability was deconsolidated from the Company's consolidated financial statements (note 15d).

7. Investment in Oracle Commodity Holding Corp.

On August 14, 2025, Oracle was deconsolidated from the Company's consolidated financial statements as a result of loss of defacto control from the sale of shares of Oracle (the "Oracle Deconsolidation"). However, as the Company still maintains significant influence over Oracle, thus the Company has applied the equity method of accounting for Oracle. The Company has significant influence over Oracle as a result of having the power to participate in the financial and operating policy decisions of Oracle but does not have control or joint control.

The Company recorded the carrying value of its investment in Oracle at its fair value of $494,002, resulting in a loss from deconsolidation of $582,195. The fair value of the Company's investment in Oracle is determined based on share price of Oracle during August 14, 2025.

	$
Balance, April 1, 2025	-
Derecognition of net assets of Oracle	557,776
Derecognition of non-controlling interest of Oracle	600,261
Consideration received	(81,840)
Fair value loss from deconsolidation of Oracle	(582,195)
	494,002
Disposition of Oracle common shares	(250,016)
Proportionate share of losses	(102,038)
Balance, September 30, 2025	141,948

As at September 30, 2025, the Company owned approximately 12% (March 31, 2025 - 35%) of the common shares of Oracle.

7. Investment in Oracle Commodity Holding Corp. – continued

The following tables illustrates the summarized financial information of Oracle:

| | September 30, 2025
($) | March 31, 2025
($) |
| --- | --- | --- |
| Current assets | 439,110 | 687,571 |
| Non-current assets | 203,916 | 722,875 |
| Current liabilities | 524,667 | 360,698 |
| Equity | 118,359 | 1,049,748 |
| | Three Months Ended | | Six Months Ended | |
| --- | --- | --- | --- | --- |
| | September 30, 2025
($) | September 30, 2024
($) | September 30, 2025
($) | September 30, 2024
($) |
| General and administrative expenses | (159,446) | (200,206) | (308,607) | (854,365) |
| Other items | (518,888) | (3,720,069) | (650,420) | (4,637,212) |
| Net loss for the period | (678,334) | (3,920,275) | (959,027) | (5,491,577) |

Oracle had no contingent liabilities or capital commitments as at September 30, 2025 and March 31, 2025.

8. Investment in CleanTech Vanadium Mining Corp.

As a result of the Spin-off Arrangement (note 15), the Company consolidated CleanTech from January 14, 2022 to September 30, 2023, the period for which the Company had de facto control over CleanTech. Effective October 1, 2023, the Company deconsolidated CleanTech as de facto control was lost due to dilution. However, as Oracle still maintained significant influence over CleanTech, the Company through its defacto control over Oracle, has applied the equity method of accounting for CleanTech. Oracle has significant influence over CleanTech as a result of having the power to participate in the financial and operating policy decisions of CleanTech but does not have control or joint control.

On August 16, 2024, CleanTech acquired Nevada Vanadium (note 15d), and as a result, the Company's 27,602,912 shares of Nevada Vanadium were exchanged for 27,602,912 shares of CleanTech with a fair value of $698,997.

	$
Balance, April 1, 2024	1,534,784
Disposition of CleanTech common shares	(12,448)
Fair value of considerations received	698,997
Proportionate share of losses	(1,160,582)
Gain from changes in interest	271,087
Impairment of investment in associate	(785,119)
Balance, March 31, 2025	546,719
Proportionate share of losses	(250,560)
Disposition of CleanTech common shares	(93,369)
Deconsolidation of Oracle	(202,790)
Balance, September 30, 2025	-

Investment in CleanTech Vanadium Mining Corp. – continued

As a result of the Oracle Deconsolidation, Oracle’s investment in CleanTech was also deconsolidated from the Company’s consolidated financial statements.

As at September 30, 2025, the Company owned nil% (March 31, 2025 – 13%) of the common shares of CleanTech.

Other non-current assets

	September 30, 2025 ($)	March 31, 2025 ($)
Royalty interests	-	75,000
Right of use asset (note 10)	45,140	54,480
Restricted cash equivalents	34,500	63,250
Total other current liabilities	79,640	192,730

Royalty interests were held by Oracle and deconsolidated from the Company’s consolidated financial statements as a result of the Oracle Deconsolidation.

Right of Use Assets and Lease Liabilities

The Company leases its office in Vancouver, Canada and has recognized a right of use asset and lease liability accordingly. The incremental borrowing rate for lease liability initially recognized as at August 1, 2022 was 5.6%. Right of use assets are included in other non-current assets and lease liabilities are included other current liabilities and non-current lease liability.

	Right of Use Assets ($)	Lease Liabilities ($)
Balance, April 1, 2024	27,422	(30,286)
Additions	56,036	(56,036)
Amortization	(20,410)	-
Lease payments	-	23,182
Accretion	-	(1,364)
Cancellations	(8,568)	9,896
Balance, March 31, 2025	54,480	(54,608)
Amortization	(9,340)
Lease payments		10,200
Accretion		(1,482)
Balance, September 30, 2025	45,140	(45,890)
Current portion		18,212
Non-current portion		27,678

11. Derivative Liabilities

	September 30, 2025 ($)	March 31, 2025 ($)
Derivative liabilities – fair value of warrants	1,760,591	958,218
Derivative liabilities – January 14, 2022 Warrants (note 14(d))	-	28,800
Total other current liabilities	1,760,591	987,018

Fair value of warrants include warrants issued by the Company that have a voluntary adjustment clause to provide the Company with the option to reduce the applicable warrant exercise price to any amount, subject to any requisite stock exchange approval. As a result, such warrants are measured at fair value using the Black-Scholes Option Pricing Model further discussed in note 14(c).

A continuity of derivative liabilities related to fair value of warrants is as follows:

	$
Balance, April 1, 2024	-
Derivative liabilities – fair value of warrants	1,438,647
Gain on change in fair value	(480,429)
Balance, March 31, 2025	958,218
Loss on warrant modification	44,521
Derivative liabilities – fair value of warrants	450,643
Loss on change in fair value	402,811
Deconsolidation of Oracle	(95,602)
Balance, September 30, 2025	1,760,591

Silver Elephant Mining Corp.

Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)

For the Three and Six Months Ended September 30, 2025

(Expressed in Canadian Dollars except where noted)

Derivative Liabilities - continued

Expiry Date	Number of Warrants	Share Price at September 30, 2025 ($)	Exercise Price ($)	Expected Price Volatility^{1}	Risk Free Interest Rate	Expected Life (Years)	Expected Dividend Yield	Fair Value Per Warrant ($)	Total Fair Value ($)
December 5, 2025	3,152,266	0.205	0.30	109%	2.56%	0.18	-	0.01	31,523
December 9, 2025	30,000	0.205	0.30	109%	2.56%	0.19	-	0.01	300
March 22, 2026	1,500,000	0.205	0.30	109%	2.56%	0.47	-	0.04	60,000
March 31, 2026	1,162,761	0.205	0.30	109%	2.56%	0.50	-	0.04	46,510
August 17, 2026	319,999	0.205	0.30	109%	2.56%	0.88	-	0.06	19,200
April 29, 2027	456,900	0.205	0.30	109%	2.56%	1.58	-	0.09	41,121
May 24, 2027	125,000	0.205	0.30	109%	2.56%	1.64	-	0.09	11,250
July 23, 2027	2,475,778	0.205	0.30	109%	2.56%	1.81	-	0.09	222,820
August 13, 2027	163,254	0.205	0.30	109%	2.56%	1.87	-	0.10	16,325
October 17, 2027	409,900	0.205	0.30	109%	2.56%	2.05	-	0.10	40,990
November 4, 2027	595,000	0.205	0.30	109%	2.56%	2.10	-	0.10	59,500
January 27, 2028	2,319,000	0.205	0.30	109%	2.56%	2.33	-	0.11	255,090
February 16, 2028	921,000	0.205	0.30	109%	2.56%	2.38	-	0.11	101,310
May 5, 2028	4,065,266	0.205	0.30	109%	2.56%	2.60	-	0.12	487,832
June 25, 2028	893,250	0.205	0.30	109%	2.56%	2.74	-	0.12	107,190
June 27, 2028	220,000	0.205	0.30	109%	2.56%	2.74	-	0.12	26,400
September 17, 2028	1,665,926	0.205	0.20	109%	2.56%	2.97	-	0.14	233,230
	20,475,300								1,760,591

1 The expected volatility was estimated by considering the average price volatility of the Company's shares over a historical period, taking into account the expected option life.

A continuity of derivative liabilities related to January 14, 2022 Warrants is as follows:

	$
Balance, April 1, 2024	72,000
Gain on change in fair value	(43,200)
Balance, March 31, 2025	28,800
Gain on change in fair value	(28,800)
Balance, September 30, 2025	-

Other Current Liabilities

	September 30, 2025 ($)	March 31, 2025 ($)
Due to Cleantech (note 16)	5,890	12,276
Due to Oracle (note 16)	297,794	-
Lease liability	18,212	17,692
Total other current liabilities	321,896	29,968

Provision for Closure and Reclamation

The Company's closure and reclamation costs consists of costs accrued based on the current best estimate of mine closure and reclamation activities that will be required at the Ulaan Ovoo site upon completion of mining activity. These activities include costs for earthworks, including land re-contouring and re-vegetation, water treatment and demolition. The Company's provision for future site closure and reclamation costs is based on the level of known disturbance at the reporting date, known legal requirements and estimates prepared by a third-party specialist.

Management used a risk-free interest rate of 3.67% at the Financial Position Date (March 31, 2025 – 3.32%) in preparing the Company's provision for closure and reclamation. Although the ultimate amount of reclamation costs to be incurred cannot be predicted with certainty, the total undiscounted amount of estimated cash flows required to settle the Company's estimated obligations is $2,575,470 (March 31, 2025 - $2,734,764) over the next 23 years from the Financial Position Date. The cash expenditures are expected to occur over a period of time extending several years after the projected mine closure of the mineral properties.

	($)
Balance, April 1, 2024	2,085,996
Change in estimate	40,262
Accretion	51,581
Foreign currency translation	(426,849)
Balance, March 31, 2025	1,750,990
Change in estimate	(204,970)
Accretion	56,557
Foreign currency translation	(7,567)
Balance, September 30, 2025	1,595,010

Share Capital

(a) Authorized

The authorized share capital of the Company consists of an unlimited number of common shares. At the Financial Position Date, the Company had 48,649,747 (March 31, 2025 – 41,439,633) common shares issued and outstanding.

(b) Equity Issuances

During the Six Months Ended September 30, 2025

On May 5, 2025, the Company closed a non-brokered private placement and issued 3,871,277 units at a price of $0.18 per unit for aggregate gross proceeds of $696,830. Each unit consists of one common share of the Company and one share purchase warrant. Each warrant entitles the holder to purchase one additional common share of the Company at a price of $0.30 per share until May 5, 2028. In connection with the closing, the Company issued 193,989 units as finder's fees with a value of $34,918. The Company allocated $438,006 of the proceeds to the share component, and $258,824 to the warrant component.

Share Capital – continued

On June 25, 2025, the Company closed the first tranche of a non-brokered private placement offering raising gross proceeds of $172,000 through the issuance sale of 860,000 units at a price of $0.20 per unit. Each unit consists of one common share of the Company and one share purchase warrant with each whole warrant entitling the holder to purchase one additional common share of the Company at a price of $0.30 per share for a period of three years from issuance. In connection with the closing, 33,250 units were issued as finders’ fees with a value of $6,650. The Company allocated $109,455 of the proceeds to the share component, and $62,545 to the warrant component.

On June 27, 2025, the Company closed the second and final tranche of a non-brokered private placement offering raising gross proceeds of $44,000 through the issuance sale of 220,000 units at a price of $0.20 per unit. Each unit consists of one common share of the Company and one share purchase warrant with each whole warrant entitling the holder to purchase one additional common share of the Company at a price of $0.30 per share for a period of three years from issuance. The Company allocated $28,000 of the proceeds to the share component, and $16,000 to the warrant component.

On September 17, 2025, the Company closed the first tranche of a non-brokered private placement offering raising gross proceeds of $264,308 through the issuance sale of 1,651,926 units at a price of $0.16 per unit. Each unit consists of one common share of the Company and one share purchase warrant with each whole warrant entitling the holder to purchase one additional common share of the Company at a price of $0.20 per share for a period of three years from issuance. In connection with the closing, 14,000 units were issued as finders’ fees with a value of $2,240. The Company allocated $151,033 of the proceeds to the share component, and $113,275 to the warrant component.

During the six months ended September 30, 2025, the Company issued 365,672 (2025 – nil) shares for services to certain of its directors, officers, employees, and consultants with a fair value of $72,188 (2025 - $nil).

As at the Financial Position Date, the Company received an aggregate of $141,000 for a private placement in progress, which closed on October 15, 2025.

During the Year Ended March 31, 2025

On April 2, 2024, the Company issued 124,270 bonus shares with a deemed price of $0.3008 per common share to the Company’s directors, officers, employees, and consultants valued at $37,380.

On April 29, 2024, the Company closed a non-brokered private placement and issued 950,000 units at a price of $0.30 per unit for aggregate gross proceeds of $285,000. Each unit consists of one common share of the Company and one-half of one share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share of the Company at a price of $0.45 per share until April 29, 2027. In connection with the closing, the Company issued 33,600 units as finder’s fees with a value of $10,080 and $420 in cash. The Company allocated $185,596 of the proceeds to the share component, and $98,984 to the warrant component.

On May 23, 2024, the Company closed a non-brokered private placement and issued 250,000 units at a price of $0.30 per unit for aggregate gross proceeds of $75,000. Each unit consists of one common share of the Company and one-half of one share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share of the Company at a price of $0.45 per share until May 23, 2027. The Company allocated $46,084 of the proceeds to the share component, and $28,916 to the warrant component.

14. Share Capital - continued

On July 23, 2024, the Company closed the first tranche of a non-brokered private placement offering raising gross proceeds of $1,111,584 through the issuance sale of 2,315,800 units at a price of $0.48 per unit. Each unit consists of one common share of the Company and one share purchase warrant with each warrant entitling the holder to purchase one additional common share of the Company at a price of $0.70 per share for a period of three years from issuance. In connection with the closing, 159,978 units were issued as finders' fees. The Company allocated $723,649 of the proceeds to the share component, and $387,935 to the warrant component.

On August 13, 2024, the Company closed a non-brokered private placement and issued 163,254 units at a price of $0.48 per unit for aggregate gross proceeds of $78,362. Each unit consists of one common share of the Company and one share purchase warrant. Each warrant entitles the holder to purchase one additional common share of the Company at a price of $0.70 per share until August 13, 2027. The Company allocated $52,447 of the proceeds to the share component, and $25,915 to the warrant component.

On October 17, 2024, the Company closed the first tranche of a non-brokered private placement offering raising gross proceeds of $198,450 through the issuance sale of 405,000 units at a price of $0.49 per unit. Each unit consists of one common share of the Company and one share purchase warrant with each warrant entitling the holder to purchase one additional common share of the Company at a price of $0.55 per share for a period of three years from issuance. In connection with the closing, 4,900 units were issued as finders' fees. The Company allocated $121,055 of the proceeds to the share component, and $77,395 to the warrant component.

On November 4, 2024, the Company closed the second tranche of a non-brokered private placement offering raising gross proceeds of $291,550 through the issuance sale of 595,000 units at a price of $0.49 per unit. Each unit consists of one common share of the Company and one share purchase warrant with each whole warrant entitling the holder to purchase one additional common share of the Company at a price of $0.55 per share for a period of three years from issuance. The Company allocated $182,619 of the proceeds to the share component, and $108,931 to the warrant component.

On January 27, 2025, the Company closed the first tranche of a non-brokered private placement offering raising gross proceeds of $330,000 through the issuance sale of 2,200,000 units at a price of $0.15 per unit. Each unit consists of one common share of the Company and one share purchase warrant with each whole warrant entitling the holder to purchase one additional common share of the Company at a price of $0.30 per share for a period of three years from issuance. In connection with the closing, 119,000 units were issued as finders' fees. The Company allocated $222,558 of the proceeds to the share component, and $107,442 to the warrant component.

On February 19, 2025, the Company closed the first tranche of a non-brokered private placement offering raising gross proceeds of $135,000 through the issuance sale of 900,000 units at a price of $0.15 per unit. Each unit consists of one common share of the Company and one share purchase warrant with each whole warrant entitling the holder to purchase one additional common share of the Company at a price of $0.30 per share for a period of three years from issuance. In connection with the closing, 21,000 units were issued as finders' fees. The Company allocated $82,742 of the proceeds to the share component, and $52,258 to the warrant component.

During the year ended March 31, 2025, the Company issued 105,000 shares in connection with stock options exercised (2024 - nil). The stock options were exercised for total proceeds of $36,350 (2024 - $nil).

During the year ended March 31, 2025 a total of 34,900 share purchase warrants with an exercise price of $0.45 were exercised for total proceeds of $15,705.

During the year ended March 31, 2025, the Company issued 216,013 (2024 - nil) shares for services to certain of its directors, officers, employees, and consultants with a fair value of $49,375 (2024 - $nil).

Silver Elephant Mining Corp.

Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)

For the Three and Six Months Ended September 30, 2025

(Expressed in Canadian Dollars except where noted)

Share Capital - continued

During the year ended March 31, 2025, the Company received an aggregate of $60,000 for a private placement in progress, which closed on May 5, 2025.

The Company has a 10% (based on the Company's issued and outstanding common shares) rolling equity-based compensation plan in place for the issuance of options and stock appreciation rights and a separate 5% (based on the Company's shares issued and outstanding common shares as of the last financial year end) rolling equity-based compensation plan in place for bonus shares, as approved by the Company's shareholders on September 10, 2021 (the "2021 Plan"). Under the 2021 Plan the Company may grant stock options, bonus shares or stock appreciation rights. All stock options and other share-based awards granted by the Company, or to be granted by the Company, since the implementation of the 2021 Plan will be issued under, and governed by, the terms and conditions of the 2021 Plan. The stock option vesting terms are determined by the Board of Directors on the date of the grant with a maximum term of 10 years.

The continuity of the Company's share options is as follows:

	Number of Options	Weighted Average Exercise Price ($)
Balance, April 1, 2024	2,494,500	0.43
Granted	1,275,000	0.51
Exercised	(105,000)	0.27
Cancelled	(195,625)	0.43
Balance, March 31, 2025	3,468,875	0.46
Granted	1,345,000	0.24
Cancelled	(214,375)	0.44
Balance, September 30, 2025	4,599,500	0.40

The following table summarizes the stock options outstanding as at the Financial Position Date.

Exercise Price ($)	Options Outstanding		Options Exercisable
	Number of Options Outstanding	Weighted Average Remaining Contractual Life (Years)	Number of Options Exercisable	Weighted Average Remaining Contractual Life (Years)
0.195	50,000	-	-	-
0.24	1,295,000	4.72	161,875	4.72
0.56	30,618	4.01	11,482	4.01
0.65	69,382	4.01	26,018	4.01
0.465	200,000	3.84	100,000	3.84
0.51	835,000	3.77	347,500	3.77
0.27	809,500	2.97	809,500	2.97
0.51	180,000	2.57	180,000	2.57
0.43	230,000	2.24	230,000	2.24
0.57	900,000	1.90	900,000	1.90
	4,599,500	3.43	2,766,375	2.78

14. Share Capital - continued

The fair value of each share option is estimated on the date of grant using the Black-Scholes Option Pricing Model that uses the assumptions noted in the table below. Expected volatilities are based on the historical volatility of the Company's shares, and other factors. The expected term of share options granted represents the period of time that share options granted are expected to be outstanding. The risk-free rate of periods within the contractual life of the share option is based on the Canadian government bond rate. Assumptions used for share options granted for the periods presented are as follows:

For the Six Months Ended September 30, 2025

Grant Date	Number of Share Options	Share Price ($)	Exercise Price ($)	Expected Price Volatility	Risk Free Interest Rate	Expected Life (Years)	Expected Dividend Yield	Fair Value Per Option ($)	Total Fair Value ($)
September 24, 2025	50,000	0.195	0.195	102%	2.75%	5.0	-	0.15	7,500
June 20, 2025	1,295,000	0.245	0.24	102%	2.96%	5.0	-	0.19	246,050
	1,345,000								253,550

For the Year Ended March 31, 2025

Grant Date	Number of Share Options	Share Price ($)	Exercise Price ($)	Expected Price Volatility	Risk Free Interest Rate	Expected Life (Years)	Expected Dividend Yield	Fair Value Per Option ($)	Total Fair Value ($)
November 7, 2024	30,618	0.57	0.56	99%	3.01%	5.0	-	0.43	13,166
October 3, 2024	69,382	0.64	0.65	99%	2.85%	5.0	-	0.48	33,303
July 31, 2024	200,000	0.455	0.465	101%	3.03%	5.0	-	0.35	70,000
July 7, 2024	975,000	0.52	0.51	101%	3.41%	5.0	-	0.40	390,000
	1,275,000								506,469

(d) Warrants

The continuity of the Company's warrants is as follows:

	Number of Warrants	Weighted Average Exercise Price ($)
Balance, April 1, 2024	7,450,426	0.69
Exercised	(34,900)	0.45
Issued	7,500,732	0.49
Balance, March 31, 2025	14,916,258	0.59
Expired	6,844,442	0.28
Issued	(1,285,400)	0.30
Balance, September 30, 2025	20,475,300	0.29¹

¹ Exercise price for 8,924,393 and 2,751,865 warrants were amended to $0.30 on April 8, 2025, and September 25, 2025 respectively. See below for further details.

14. Share Capital – continued

As of the Financial Position Date, the following warrants were outstanding:

Expiry Date	Remaining Life (Years)	Number of Warrants	Exercise Price ($)
December 5, 2025	0.18	3,152,266	0.30
December 9, 2025	0.19	30,000	0.30
March 22, 2026	0.47	1,500,000	0.30
March 31, 2026	0.50	1,162,761	0.30
August 17, 2026	0.88	319,999	0.30
April 29, 2027	1.58	456,900	0.30
May 24, 2027	1.65	125,000	0.30
July 23, 2027	1.81	2,475,778	0.30
August 13, 2027	1.87	163,254	0.30
October 17, 2027	2.05	409,900	0.30
November 4, 2027	2.10	595,000	0.30
January 27, 2028	2.33	2,319,000	0.30
January 27, 2028	2.33	921,000	0.30
May 5, 2028	2.60	4,065,266	0.30
June 25, 2028	2.74	893,250	0.30
June 27, 2028	2.74	220,000	0.30
September 17, 2028	2.97	1,665,926	0.20
	1.76	20,475,300	0.29

As a result of the Spin-off Arrangement (note 15), each holder of the Company's warrants (the "January 14, 2022 Warrants") as at closing on January 14, 2022, is entitled to receive, upon exercise of each such warrant at the same original exercise price and in accordance with the terms of such warrant, one share of each of CleanTech and Nevada Vanadium; two shares of Oracle and one share of Silver Elephant. As at January 14, 2022, there were 1,447,814 January 14, 2022 Warrants outstanding. As at the Financial Position Date there were nil (March 31, 2025 – 960,000) January 14, 2022 Warrants outstanding.

14. Share Capital - continued

On April 22, 2025, the exercise price of 8,924,393 share purchase warrants was amended to $0.30 as follows:

Expiry Date	Original Exercise Price ($)	Amended Exercise Price ($)	Number of Warrants Repriced
May 1, 2025	1.60	0.30	463,800
May 20, 2025	1.60	0.30	496,200
August 25, 2025	0.65	0.30	175,400
December 5, 2025	0.55	0.30	1,652,266
December 9, 2025	0.55	0.30	30,000
March 22, 2026	0.55	0.30	1,500,000
March 31, 2026	0.55	0.30	851,650
August 17, 2026	0.45	0.30	229,999
April 29, 2027	0.45	0.30	331,900
May 24, 2027	0.45	0.30	125,000
July 23, 2027	0.70	0.30	2,475,778
August 13, 2027	0.70	0.30	87,500
October 17, 2027	0.55	0.30	409,900
November 4, 2027	0.55	0.30	95,000
			8,924,393

On September 25, 2025, the exercise price of 2,751,865 share purchase was amended to $0.30 as follows:

Expiry Date	Original Exercise Price ($)	Amended Exercise Price ($)	Number of Warrants Repriced
August 25, 2025	0.65	0.30	150,000
December 5, 2025	0.55	0.30	1,500,000
March 31, 2026	0.55	0.30	311,111
August 17, 2026	0.45	0.30	90,000
April 29, 2027	0.45	0.30	125,000
August 13, 2027	0.70	0.30	75,754
November 4, 2027	0.55	0.30	500,000
			2,751,865

14. Share Capital - continued

(e) Loss per Share

	Three Months Ended		Six Months Ended
	September 30, 2025 ($)	September 30, 2024 ($)	September 30, 2025 ($)	September 30, 2024 ($)
Basic loss per share attributable to equity holders of parent	(0.04)	(0.08)	(0.08)	(0.14)
Diluted loss per share attributable to equity holders of parent	(0.04)	(0.08)	(0.08)	(0.14)
Loss for the period attributable to equity holders of parent	(1,748,492)	(2,891,724)	(3,739,560)	(4,985,252)
	Three Months Ended		Six Months Ended
---	---	---	---	---
	September 30, 2025 ($)	September 30, 2024 ($)	September 30, 2025 ($)	September 30, 2024 ($)
Shares outstanding, beginning of the period	46,781,119	34,249,788	41,439,633	32,841,918
Effect of shares issued for share offerings	251,380	1,848,972	3,854,357	1,914,511
Effect of finder's fees	2,130	121,723	176,824	89,652
Effect of bonus shares	-	-	-	123,591
Effect of shares for services	120,079	-	195,539	-
Effect of stock options exercised	-	-	-	27,869
Basic weighted average number of shares outstanding	47,154,708	36,220,483	45,666,353	34,997,541
Effect of dilutive share options	-	-	-	-
Effect of dilutive warrants	-	-	-	-
Diluted weighted average number of shares outstanding	47,154,708	36,220,483	45,666,353	34,997,541

For the three and six months ended September 30, 2025 and 2024, the Company's common share equivalents including stock options and warrants were not included in the diluted loss per share calculation as the effect would be anti-dilutive.

Silver Elephant Mining Corp.

Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)

For the Three and Six Months Ended September 30, 2025

(Expressed in Canadian Dollars except where noted)

15. Non-Controlling Interest

On January 14, 2022, the Company completed a strategic reorganization of the Company's business through a statutory plan of arrangement (the "Spin-off Arrangement") under the Business Corporations Act (British Columbia), dated November 8, 2021. Pursuant to the Spin-off Arrangement, the common shares of the Company were consolidated on a 10:1 basis and each holder of common shares of the Company received in exchange for every 10 pre-consolidation common shares held: (i) one post-consolidation common share of the Company; (ii) one common share of CleanTech; (iii) one common share of Nevada Vanadium; and (iv) two common shares of Oracle.

As a result of the Spin-off Arrangement:

i. certain intercompany royalties held by the Company were transferred to Oracle in exchange for the issuance of 1,785,430 Oracle shares;
ii. the Minago Project was spun out, into CleanTech in exchange for the issuance of 50,000,000 CleanTech shares, and the assumption of certain liabilities related to the underlying assets;
iii. and the Gibellini Project was spun out, into Nevada Vanadium in exchange for the issuance of 50,000,000 Nevada Vanadium shares, and the assumption of certain liabilities related to the underlying assets; and
iv. Oracle purchased 22,953,991 of the outstanding shares of both Nevada Vanadium and CleanTech in exchange for the issuance of 78,214,570 Oracle shares to the Company.

In addition, as a result of the Spin-off Arrangement, each of the Company's option and warrant holders as at January 14, 2022, (a "Holder") is entitled to receive, upon exercise of each such warrant and option at the same original exercise price and in accordance with the terms of such warrant and option, one share of each of CleanTech and Nevada Vanadium; two shares of Oracle (collectively, the "Reserved Shares"); and one share of Silver Elephant.

The following table presents the movements of non-controlling interests:

	Nevada Vanadium ($)	Oracle ($)	Total ($)
Balance, April 1, 2024	13,489,421	(110,364)	13,379,057
Change in ownership (a)	87,344	366,878	454,222
Net loss	(445,342)	(697,675)	(1,143,017)
Share-based payments (b, c and d)	17,630	166,022	183,652
Other comprehensive income	191,627	-	191,627
Deconsolidation of Nevada Vanadium	(13,340,680)	-	(13,340,680)
Balance, March 31, 2025	-	(275,139)	(275,139)
Change in ownership (a)	-	(84,115)	(84,115)
Net loss	-	(258,509)	(258,509)
Share-based payments (b, c and d)	-	17,502	17,502
Deconsolidation of Oracle	-	600,261	600,261
Balance, September 30, 2025	-	-	-

As Nevada Vanadium was deconsolidated from the Company's consolidated financial statements (note 15d) on August 16, 2024, non-controlling interest disclosure relating to Nevada Vanadium is provided up until this date of deconsolidation.

As Oracle was deconsolidated from the Company's consolidated financial statements (note 15e) on August 14, 2025 (the "Oracle Deconsolidation Date"), non-controlling interest disclosure relating to Oracle is provided up until this date of deconsolidation.

Non-Controlling Interest – continued

a) Change in ownership of subsidiaries:

Oracle

On May 9, 2024, Oracle closed a non-brokered private placement and issued 200,000 units at a price of $0.05 per unit for aggregate gross proceeds of $10,000. Each unit consists of one common share of Oracle and one share purchase warrant. Each warrant entitles the holder to purchase one additional common share of Oracle at a price of $0.06 per share until May 9, 2027.

On June 12, 2024, Oracle closed a non-brokered private placement raising gross proceeds of $548,350 through the issuance of 4,985,000 units at a price of $0.11 per unit. Each unit consists of one common share of Oracle and one share purchase warrant with each warrant entitling the holder to purchase one additional share at a price of $0.15 per share until June 12, 2027. In addition, 148,750 units were issued in connection with this private placement as finder's fees.

On July 22, 2024, Oracle issued 105,263 shares to settle liability with a deemed price of $0.095 per common share to the Oracle's director valued at $10,000.

From July 1, 2025 to the Oracle Deconsolidation Date (the "Final Oracle Quarter"), Oracle issued nil shares in connection with stock options exercised (July 1, 2024 to September 30, 2024 (the "Oracle Prior Year Quarter – nil"). The stock options were exercised for total proceeds of $nil (Oracle Prior Year Quarter - $nil).

From April 1, 2025 to the Oracle Deconsolidation Date (the "Final Oracle Period"), Oracle issued nil shares in connection with stock options exercised (April 1, 2024 to September 30, 2024 (the "Oracle Prior Year Period") – 50,000). The stock options were exercised for total proceeds of $nil (Oracle Prior Year Period - $2,500).

During the Final Oracle Quarter, Oracle cancelled 65,150 (Oracle Prior Year Quarter – nil) shares for services to certain of its directors, officers, employees, and consultants with a fair value of $1,641 (Oracle Prior Year Quarter - $nil).

During the Final Oracle Period, Oracle cancelled 37,372 (Oracle Prior Year Period – nil) shares for services to certain of its directors, officers, employees, and consultants with a fair value of $1,016 (Oracle Prior Year Period - $nil).

Nevada Vanadium

On April 3, 2024, Nevada Vanadium closed a non-brokered private placement and issued 725,733 units at a price of $0.06 per unit for aggregate gross proceeds of $43,544. Each unit consists of one common share of Nevada Vanadium and one share purchase warrant. Each warrant entitles the holder to purchase one additional common share of Nevada Vanadium at a price of $0.08 per share until April 3, 2027.

b) During the Final Oracle Quarter, Oracle recorded share-based payments of $nil (Oracle Prior Year Quarter – $45,416) and was expensed as general and administrative expenses.

During the Final Oracle Period, Oracle recorded share-based payments of $17,502 (Oracle Prior Year Period – $104,907) and was expensed as general and administrative expenses.

The fair value of each stock option is estimated on the date of grant using the Black-Scholes Option Pricing Model with the assumptions presented in the table below. Expected volatilities are based on historical volatility of the comparable companies as Oracle has a limited history of trading. The expected term of share options granted represents the period of time that the granted share options are expected to be outstanding. The risk-free interest rate is based on the Canadian government bond rate.

15. Non-Controlling Interest - continued

Assumptions used for stock options granted by Oracle are as follows:

Grant Date	Number of Share Options	Exercise Price ($)	Expected Price Volatility	Risk Free Interest Rate	Expected Life (Years)	Expected Fair Value Per Dividend Yield	Option ($)	Total Fair Value ($)
December 4, 2023	7,990,000	0.05	101%	3.46%	5.0	-	0.04	319,600
February 1, 2024	300,000	0.05	101%	3.24%	5.0	-	0.04	12,000
October 3, 2024	200,000	0.09	98%	2.85%	5.0	-	0.07	14,000
November 19, 2024	500,000	0.05	99%	3.13%	5.0	-	0.03	15,000

Oracle did not grant any share purchase options during the period from April 1, 2025 to August 14, 2025.

c) During the period from April 1, 2024 to August 16, 2024, Nevada Vanadium recorded share-based payments of $17,630 of which $1,693 was capitalized as exploration cost and the reminder of $15,937 was expensed as general and administrative expenses.

Nevada Vanadium did not grant any share purchase options during the period from April 1, 2024 to August 16, 2024.

d) On August 16, 2024, CleanTech acquired Nevada Vanadium (the "Nevada Vanadium Transaction"). Nevada Vanadium shareholders received one (1) (the "Exchange Ratio") CleanTech common share (a "CleanTech Share") for each Nevada Vanadium share held immediately prior to the effective time of the Nevada Vanadium Transaction. All convertible securities of Nevada Vanadium outstanding immediately prior to the effective time of the Nevada Vanadium Transaction were exchanged for securities of CleanTech bearing substantially the same terms as the securities replaced based on the Exchange Ratio.

Effective August 16, 2024, the Company deconsolidated Nevada Vanadium as it was acquired by CleanTech. Accordingly, the Company recognized a loss on deconsolidation of Nevada Vanadium of $1,188,283 with detail as follows:

	$
Assets
Exploration and evaluation assets	19,189,310
Land	3,671,554
Building	658,400
Liabilities
Accounts payable and accrued liabilities	(1,669,984)
Promissory note	(3,745,062)
Due to related parties	(2,542,995)
Other net assets	(141,797)
Derecognition of net assets of Nevada Vanadium	(15,419,426)
Derecognition of non-controlling interest of Nevada Vanadium	13,340,680
Fair value of considerations received	698,997
Derecognition of AOCI of Nevada Vanadium	191,466
Loss from deconsolidation of Nevada Vanadium	(1,188,283)

15. Non-Controlling Interest - continued

e) Effective August 14, 2025, the Company deconsolidated Oracle, and recognized a loss on deconsolidation of Oracle of $582,195 with detail as follows:

	$
Assets
Current assets	520,756
Investment in CleanTech	202,790
Royalty interests	70,000
Liabilities
Accounts payable and accrued liabilities	(143,643)
Derivative liability	(95,602)
Derecognition of net assets of Oracle	(557,776)
Derecognition of non-controlling interest of Oracle	(600,261)
Retained investment in Oracle	494,002
Consideration received	81,840
Loss from deconsolidation of Oracle	(582,195)

16. Related Party Transactions

The Company has a cost sharing agreement (the "CSA") with CleanTech and Oracle pursuant to which the companies provide each other with general, technical and administrative services, as reasonably requested, on a cost reimbursement basis.

During the three and six months ended September 30, 2025, the Company had related party transactions with key management personnel who provide management and consulting services to the Company. Key management personnel are persons responsible for planning, directing and controlling the activities of an entity, and include, but are not limited to, the Chief Executive Officer ("CEO"), Chief Financial Officer ("CFO"), Chief Legal Officer ("CLO") and executive and non-executive directors.

16. Related Party Transactions - continued

A summary of related party transactions is as follows:

	Three Months Ended		Six Months Ended
	September 30, 2025 ($)	September 30, 2024 ($)	September 30, 2025 ($)	September 30, 2024 ($)
CSA fees charged by CleanTech, a company with certain directors and officers in common	-	37,594	-	125,448
CSA recoveries from CleanTech	(106,010)	(72,747)	(217,165)	(159,349)
CSA fees charged by Nevada Vanadium, a company with certain directors and officers in common	-	7,216	-	7,216
CSA recoveries from Nevada Vanadium	-	(50,453)	-	(50,453)
CSA recoveries from Oracle	(17,545)	-	(17,545)	-
Management fees charged by Linx Partners Ltd., a company controlled by John Lee, Director, CEO and Executive Chairman of the Company	48,938	105,000	157,875	210,000
Directors’ fees	22,200	22,200	48,400	46,400
Salaries and benefits paid to key management of the Company	109,461	140,618	214,541	243,525
Salaries and benefits paid to former key management of the Company	11,200	-	31,200	68,009
Share-based payments – John Lee	24,113	44,561	42,935	57,155
Share-based payments – directors	13,592	20,196	22,610	28,425
Share-based payments – former directors	-	260	-	1,339
Share-based payments – key management of the Company	26,839	62,867	49,739	72,377

The Company had balances due to related parties as follows:

	September 30, 2025 ($)	March 31, 2025 ($)
Due to CleanTech	(5,890)	(12,276)
Due to Oracle	(297,794)	-
Directors’ fees payable	(98,800)	(48,400)
Management fees payable to John Lee	(59,000)	(4,750)

17. Segmented Information

The Company operates in one operating segment, being the acquisition, exploration and development of mineral properties. Assets by geographical area are as follows:

	September 30, 2025 ($)	March 31, 2025 ($)
Current assets
Canada	297,587	364,859
Mongolia	1,793	1,479
Bolivia	13,123	25,794
	312,503	392,132
Non-current assets
Canada	221,588	739,449
Bolivia	22,764,211	21,986,161
	22,985,799	22,725,610
Total assets
Canada	519,175	1,104,308
Mongolia	1,793	1,479
Bolivia	22,777,334	22,011,955
	23,298,302	23,117,742

18. Care and Maintenance of Coal Properties

The Company's Ulaan Ovoo Project has been impaired to value of $nil (2024 - $nil) and all property costs incurred, including changes in the provision for closure and reclamation costs, are presented net of incidental income earned from the property.

	Three Months Ended		Six Months Ended
	September 30, 2025 ($)	September 30, 2024 ($)	September 30, 2025 ($)	September 30, 2024 ($)
Property income (cost)	(49,287)	53,150	(134,857)	(43,502)
Provision for closure and reclamation – change in estimate	(27,638)	(212,872)	204,970	(1,565)
Provision for closure and reclamation – accretion	-	(11,161)	(56,557)	(7,225)
Bad debt expense	(4,068)	(5,165)	(11,248)	(93,348)
	(80,993)	(176,048)	2,308	(145,640)

18. Care and Maintenance of Coal Properties - continued

The Ulaan Ovoo Project and Chandgana Project is subject to a royalty payable to Oracle as follows: (i) two percent (2%) of returns in respect of all mineral products, other than coal after the commencement of commercial production; and (ii) in respect of coal (taking into account all interim multi-party transactions and calculated based on the final destination of coal extracted from the royalty area), the greater of: (a) US$3.00 per tonne of coal extracted; (b) five percent (5%) of the money received per tonne of coal including transportation costs, subject to adjustment as provided; (c) in respect of coal sold, shipped and used in China, three percent (3%) per tonne of Newcastle 5,500 kcal/kg NAR as reported on the Intercontinental Exchange, Inc.; (d) four percent (4.0%) of the price per tonne of coal at the relevant port of location of export from Mongolia; and (e) if such price is not readily ascertainable, four percent (4.0%) of the average price of the China 5,500 kcal/kg NAR price per tonne as reported on the Zhengzhou Commodity Exchange for coal that was delivered to China.

On August 20, 2025, the Company and Oracle executed amended and restated net smelter return ("NSR") royalty agreements covering Silver Elephant's Mongolian coal properties. For the Mongolian coal properties, subject to the terms of the royalty agreements and any applicable regulatory or stock exchange approval, Silver Elephant and Oracle agreed that coal royalty is revised to the greater of US$2 per tonne or 3% of NSR. Silver Elephant agreed to provide a guarantee of coal royalty payments on behalf of Silver Elephant's Mongolian subsidiaries who are the royalty payors. This amendment remains subject to the approval of the TSXV as at the date of these financial statements.

19. Supplemental Cash Flow Information

	Six Months Ended
	September 30, 2025 ($)	September 30, 2024 ($)
Non-Cash Financing and Investing Activities:
Exploration and evaluation expenditures included in accounts payable	15,036	225,226
Shares issued to settle liability	-	10,000
Share-based payments capitalized in mineral properties	-	1,693
Bonus shares	-	37,380
Shares for services	72,188	-
Finders' units	43,808	86,869
	131,032	361,168

20. Capital Management

Management considers its capital structure to consist of share capital, stock options and warrants. The Company manages its capital structure and makes adjustments to it, based on the funds available to, and required by the Company in order to support the acquisition, exploration and development of exploration and evaluation assets. The Board of Directors does not establish quantitative returns on capital criteria for management. In order to facilitate the management of its capital requirements, the Company prepares annual expenditure budgets that are updated as necessary depending on various factors.

The properties in which the Company currently holds interests are predominantly in the exploration and development stage; as such, the Company is dependent on external financing to fund its activities. In order to carry out exploration and development plans and pay for administrative costs, the Company will spend its existing working capital and raise additional amounts as needed. There were no changes in management's approach to capital management during the three and six months ended September 30, 2025. Neither the Company nor its subsidiaries are subject to externally imposed capital requirements.

Silver Elephant Mining Corp.

Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)

For the Three and Six Months Ended September 30, 2025

(Expressed in Canadian Dollars except where noted)

21. Fair Value Measurements and Financial Instruments

(a) Classification

The Company's classification of its financial instruments as follows:

Asset or Liability	IFRS 9 Classification
Cash and accounts payable	Amortized cost
Restricted cash equivalents included in other non-current assets	Amortized cost
Due to related parties in other current liabilities	Amortized cost
Accounts payable and accrued liabilities	Amortized cost
Derivative assets, derivative liabilities	FVTPL^{1}

1 Fair value through profit and loss ("FVTPL")

(b) Fair Value

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value. The Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value as follows:

Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 – inputs are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability (for example, interest rate and yield curves observable at commonly quoted intervals, forward pricing curves used to value currency and commodity contracts and volatility measurements used to value option contracts), or inputs that are derived principally from or corroborated by observable market data or other means; and

Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs.

The Company has determined the estimated fair values of its financial instruments based upon appropriate valuation methodologies. As at the Financial Position Date, there were no financial assets measured and recognized in the statement of position that would be categorized as Level 2 or Level 3 in the fair value hierarchy above.

The fair value of the Company's financial instruments including cash, accounts payable and accrued liabilities and due to related parties approximates their carrying value due to the immediate or short-term maturity of these financial instruments. Restricted cash equivalents included in other non-current assets is readily convertible into cash, and therefore its carrying value approximates fair value. Derivative assets and liabilities except when the Company issues a unit comprising common shares and warrants that have variability in its settlement ("Variable Warrants") are recorded at fair value based on the quoted market price at the end of each reporting period with changes in fair value through profit or loss. As at the Financial Position Date, the fair value of: 1) derivative assets is $nil (March 31, 2024 - $5,099), and 2) derivative liabilities is $1,760,591 (March 31, 2024 - $987,018). The Company does not offset financial assets with financial liabilities. Variable Warrants are classified as level 2. There were no transfers between Level 1, 2 and 3 for the three and six months ended September 30, 2025.

Silver Elephant Mining Corp.

Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)

For the Three and Six Months Ended September 30, 2025

(Expressed in Canadian Dollars except where noted)

22. Financial Risk Management

The Company's financial instruments are exposed to certain financial risks. The risk exposures and the impact on the Company's financial instruments at the Financial Position Date are summarized below. The Board of Directors periodically reviews with management the principal risks affecting the Company and the systems that have been put in place to manage these risks.

(a) Liquidity risk

Liquidity risk is the risk that an entity will be unable to meet its financial obligations as they fall due. The Company manages liquidity risk by preparing cash flow forecasts of upcoming cash requirements. As at the Financial Position Date, the Company had a cash balance of $237,096 (March 31, 2025 – $271,838) and accounts payable and accrued liabilities of $2,554,225 (March 31, 2025 - $2,518,677). Liquidity risk is assessed as very high.

The Company has a planning and budgeting process in place by which it anticipates and determines the funds required to support normal operation requirements as well as the growth and development of its mineral property interests. The Company coordinates this planning and budgeting process with its financing activities through the capital management process in normal circumstances.

(b) Credit risk

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company is exposed to credit risk primarily associated with cash, restricted cash equivalents included in other non-current assets and receivables, net of allowances. The carrying amount of financial assets included on the statements of financial position represents the maximum credit exposure.

(c) Market risk

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. The Company's cash and restricted cash equivalents included in other non-current assets primarily include highly liquid investments that earn interest at market rates that are fixed to maturity. Due to the short-term nature of these financial instruments, fluctuations in market rates do not have significant impact on the fair values of the financial instruments as of the Financial Position Date. The Company manages interest rate risk by maintaining an investment policy that focuses primarily on preservation of capital and liquidity.

(ii) Foreign currency risk

The Company is exposed to foreign currency risk to the extent that monetary assets and liabilities held by the Company are not denominated in Canadian dollars. The Company has foreign exploration and development projects in Mongolia and Bolivia and undertakes transactions in various foreign currencies. The Company is therefore exposed to foreign currency risk arising from transactions denominated in a foreign currency and the translation of financial instruments denominated in US dollars, Mongolian tugrik, and Bolivian boliviano into its reporting currency, the Canadian dollar.

22. Financial Risk Management - continued

(iii) Commodity and equity price risk

Commodity price risk is defined as the potential adverse impact on earnings and economic value due to commodity price movements and volatilities. Commodity prices fluctuate on a daily basis and are affected by numerous factors beyond the Company's control. The supply and demand for these commodities, the level of interest rates, the rate of inflation, investment decisions by large holders of commodities including governmental reserves and stability of exchange rates can all cause significant fluctuations in prices. Such external economic factors are in turn influenced by changes in international investment patterns and monetary systems and political developments. The Company is also exposed to price risk with regards to equity prices. Equity price risk is defined as the potential adverse impact on the Company's earnings due to movements in individual equity prices or general movements in the level of the stock market.

(iv) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Company's derivative financial liability includes Variable Warrants. A 10% increase or decrease in the market price of common shares of the Company has a corresponding effect of approximately $176,000 to net loss.

The Company closely monitors commodity prices, individual equity movements and the stock market to determine the appropriate course of action to be taken by the Company. Fluctuations in value may be significant.

Sensitivity Analysis

A 1% change in interest rates does not have a material effect on the Company's profit or loss and equity.

The Company has certain cash balances, and accounts payables denominated in either the US Dollar, Mongolian Tugrik or Bolivian Boliviano (the "Foreign Currencies"), currencies other than the functional currency of Company. Based on the above, net exposures as at the Financial Position Date, with other variables unchanged, a 10% strengthening (weakening) of the Canadian dollar against the Mongolian Tugrik would impact net loss and comprehensive loss with other variables unchanged by approximately $2,498,000. A 10% strengthening (weakening) of the Canadian dollar against the Bolivian Boliviano would impact net loss and comprehensive loss with other variables unchanged by approximately $134,000. A 10% strengthening (weakening) of the US Dollar against the Canadian Dollar would impact net gain with other variables unchanged by approximately $2,000. The Company currently does not use any foreign exchange contracts to hedge this currency risk.

23. Contingencies

On January 14, 2025, the Company commenced an arbitration in British Columbia against APM related to the MSA and SPA Termination (the "Andean Dispute"), seeking payment of the First Additional Consideration (note 6). The MSA governs the parties' mining activities in Bolivia. On March 14, 2025, APM filed a counter claim against the Company for US$2,097,510, alleging breaches of contract and payments owed. The Company evaluated the applicable IFRS' for the accounting treatment of the Andean Dispute, applying IAS 37 – Provisions, Contingent Liabilities and Contingent Assets and recorded $1,174,860 (US$860,451) as advances that still need to be settled from either deduction of eligible costs under the MSA/SPA or refunded, and included in accounts payable and accrued liabilities. The Company maintains APM's counter claim is without merit and such amount is recorded only for IFRS compliance purposes.

Silver Elephant Mining Corp.

Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)

For the Three and Six Months Ended September 30, 2025

(Expressed in Canadian Dollars except where noted)

24. Mongolia Tax Matter and Restatement

During the year ended March 31, 2025, the Company has identified an error in relation to taxes payable with respect to the transfer of certain licenses of its Ulaan Ovoo project from one wholly owned subsidiary to another wholly owned subsidiary (the "Ulaan Ovoo License Transfer").

On September 11, 2024, the Company received a tax notice of assessment of $24,699,111 (63,787,924,960 Mongolian Tugriks) (the "Ulaan Ovoo Tax Assessment") from Mongolia's Capital City Tax Office ("CCTO") in connection with the Ulaan Ovoo License Transfer. The Ulaan Ovoo Tax Assessment is comprised of: 1) $12,305,720 (31,780,752,566 Mongolian Tugriks) related to corporate income tax ("CIT") and related penalties and interest, and 2) $12,393,391 (32,007,172,394 Mongolian Tugriks) related to value added tax ("VAT") and related penalties and interest. The Ulaan Ovoo License Transfer was completed on January 5, 2022. Prior to the completion of the Ulaan Ovoo License Transfer, the Company sought tax clarifications and on October 11, 2021 received confirmation from Mongolia's Large Taxpayer's Office ("LTPO") confirming the Ulaan Ovoo License Transfer would not be subject to CIT as the ultimate owner of the subsidiaries affected by the Ulaan Ovoo License Transfer remain unchanged. The Company is also of the opinion VAT should not apply to the Ulaan Ovoo License Transfer as there was no consideration transferred to and received by the applicable subsidiaries, and treatment of such would generally follow the same treatment as CIT. Accordingly, the Company filed a dispute for the Ulaan Ovoo Tax Assessment on October 18, 2024. There can be no assurance the Company will be successful in this dispute.

The LTPO and CCTO are sister offices both reporting directly to the Deputy Commissioner of the General Department of Taxation of Mongolia.

As a result of the Mongolia Tax Matter the Company restated its consolidated financial statements as noted below, which also includes a restatement relating to the Nevada Vanadium Deconsolidation.

Consolidated Statements of Financial Position

	Original March 31, 2024 ($)	Ulaan Ovoo Tax Assessment ($)	Restated March 31, 2024 ($)
Liabilities
Provision for Mongolia tax dispute	-	24,454,707	24,454,707
Total current liabilities	10,903,584	24,454,707	35,358,291
Total liabilities	15,435,430	24,454,707	39,890,137
Shareholders' Equity
Accumulated other comprehensive income	530,098	(802,875)	(272,777)
Deficit	(226,913,916)	(23,651,832)	(250,565,748)
Equity attributable to equity holders of parent	21,925,296	(24,454,707)	(2,529,411)
Total equity	35,304,353	(24,454,707)	10,849,646

The increase in the provision for Mongolia tax dispute from $24,454,707 at March 31, 2024 to $27,682,126 at March 31, 2025 is attributable to accrual of interest of $2,624,646 and the effect of foreign exchange of $602,773.

Mongolia Tax Matter and Restatement - continued

	Original September 30, 2024 ($)	Ulaan Ovoo Tax Assessment ($)	Nevada Vanadium Deconsolidation ($)	Restated September 30, 2024 ($)
Assets
Non-current assets
Investment in CleanTech	1,493,430	-	(471,687)	1,021,743
Total assets	26,286,113	-	(471,687)	25,814,426
Liabilities
Provision for Mongolia tax dispute	-	25,633,425	-	25,633,425
Total current liabilities	2,310,222	25,633,425	-	27,943,647
Total liabilities	6,217,736	25,633,425	-	31,851,161
Shareholders' Equity
Reserves	28,813,475	-	257,009	29,070,484
Accumulated other comprehensive income	163,551	(680,158)	565,918	49,311
Deficit	(230,067,476)	(24,953,267)	(530,257)	(255,551,000)
Equity attributable to equity holders of parent	20,086,193	(25,633,425)	292,670	(5,254,562)
Equity attributable to non-controlling interest	(17,816)	-	(764,357)	(782,173)
Total equity	20,068,377	(25,633,425)	(471,687)	(6,036,735)
Total liabilities and equity	26,286,113	-	(471,687)	25,814,426

24. Mongolia Tax Matter and Restatement - continued

Consolidated Statements of Comprehensive Loss

| | Original
Three Months Ended
September 30,
2024
($) | Ulaan Ovoo
Tax
Assessment
($) | Nevada Three Months Ended
September 30,
2024
($) |
| --- | --- | --- | --- |
| Other items | | | |
| Ulaan Ovoo Tax Assessment Interest | - | (652,678) | (652,678) |
| Loss from deconsolidation of Nevada Vanadium | (386,939) | - | (801,344) |
| Gain from changes in interest in CleanTech | - | - | 271,087 |
| Net loss for the period | (1,888,300) | (652,678) | (530,257) |
| Other comprehensive income (loss): | | | |
| Foreign currency translation | 189,110 | 323,953 | 40,719 |
| Comprehensive loss for the period | (1,699,190) | (328,725) | (489,538) |
| Net loss attributable to equity holders of parent | (1,708,789) | (652,678) | (530,257) |
| Comprehensive loss attributable to equity holders of parent | (1,519,679) | (328,725) | (489,538) |
| Basic and diluted loss per common share attributable to equity holders of parent | (0.05) | (0.02) | (0.01) |

Mongolia Tax Matter and Restatement - continued

| | Original
Six Months Ended
September 30,
2024
($) | Ulaan Ovoo
Tax
Assessment
($) | Nevada
Vanadium
Deconsolidation
($) | Restated
Six Months Ended
September 30,
2024
($) |
| --- | --- | --- | --- | --- |
| Other items | | | | |
| Ulaan Ovoo Tax Assessment Interest | - | (1,301,435) | - | (1,301,435) |
| Loss from deconsolidation of Nevada Vanadium | (386,939) | - | (801,344) | (1,188,283) |
| Gain from changes in interest in CleanTech | - | - | 271,087 | 271,087 |
| Net loss for the period | (4,020,411) | (1,301,435) | (530,257) | (5,852,103) |
| Other comprehensive income (loss): | | | | |
| Foreign currency translation | 489,139 | 122,717 | 40,719 | 652,575 |
| Comprehensive loss for the period | (3,531,272) | (1,178,718) | (489,538) | (5,199,528) |
| Net loss attributable to equity holders of parent | (3,153,560) | (1,301,435) | (530,257) | (4,985,252) |
| Comprehensive loss attributable to equity holders
of parent | (2,803,442) | (1,178,718) | (489,538) | (4,471,698) |
| Basic and diluted loss per common share
attributable to equity holders of parent | (0.09) | (0.03) | (0.02) | (0.14) |

Consolidated Statements of Cashflows

| | Original
Six Months Ended
September 30,
2024
($) | Ulaan Ovoo
Tax
Assessment
($) | Nevada
Vanadium
Deconsolidation
($) | Restated
Six Months Ended
September 30,
2024
($) |
| --- | --- | --- | --- | --- |
| Operating Activities | | | | |
| Net loss for the period | (4,020,411) | (1,301,435) | (530,257) | (5,852,103) |
| Items not involving cash: | | | | |
| Loss from deconsolidation of Nevada Vanadium | 386,939 | - | 801,344 | 1,188,283 |
| Gain from changes in interest in CleanTech | - | - | (271,087) | (271,087) |
| Changes in non-cash working capital | | | | |
| Provision for Mongolia tax dispute | - | 1,301,435 | - | 1,301,435 |
| Cash used in operating activities | (1,927,076) | - | - | (1,927,076) |

Subsequent Event(s)

On October 1, 2025, the Company granted 100,000 stock options to a consultant of the Company at an exercise price of $0.215 per share. The options vest over 24 months and expire on October 1, 2030.

On October 10, 2025, the Company granted 100,000 stock options to an officer of the Company at an exercise price of $0.225 per share. The options vest over 24 months and expire on October 10, 2030.

On October 15, 2025, the Company closed the second and final tranche of a non-brokered private placement offering raising gross proceeds of $445,411 through the issuance sale of 2,783,824 units at a price of $0.16 per unit. Each unit consists of one common share of the Company and one share purchase warrant with each warrant entitling the holder to purchase one additional common share of the Company at a price of $0.20 per share for a period of three years from issuance. In connection with the closing, 145,250 units were issued as finders' fees.

On October 16, 2025, the Company granted 410,000 stock options to certain employees, directors and consultants of the Company at an exercise price between $0.30 and $0.39 per share. The options vest over 24 months and expire on October 16, 2030.

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Silver Elephant Mining Corp. — Interim / Quarterly Report 2026

43875_rns_2025-11-14_6745d979-3c56-4b1c-8282-0c099ec79ff1.pdf

SILVER ELEPHANT MINING CORP.

Approved by the Board of Directors

1. Description of Business and Nature of Operations

2. Basis Of Presentation

(a) Statement of Compliance

2. Basis Of Presentation - continued

(b) Basis of Measurement

(c) Basis of Consolidation

2. Basis Of Presentation - continued

(d) Significant Judgments and Estimates

3. Material Accounting Policy Information

(a) Future Changes in Accounting Standards

6. Exploration and Evaluation Assets

Pulacayo Paca Project, Bolivia

6. Exploration and Evaluation Assets – continued

Royalty

Triunfo Project, Bolivia

Gibellini Project, USA

7. Investment in Oracle Commodity Holding Corp.

7. Investment in Oracle Commodity Holding Corp. – continued

8. Investment in CleanTech Vanadium Mining Corp.

11. Derivative Liabilities

14. Share Capital - continued

14. Share Capital - continued

(d) Warrants

14. Share Capital – continued

14. Share Capital - continued

14. Share Capital - continued

15. Non-Controlling Interest

15. Non-Controlling Interest - continued

15. Non-Controlling Interest - continued

16. Related Party Transactions

16. Related Party Transactions - continued

17. Segmented Information

18. Care and Maintenance of Coal Properties

18. Care and Maintenance of Coal Properties - continued

19. Supplemental Cash Flow Information

20. Capital Management

21. Fair Value Measurements and Financial Instruments

(a) Classification

(b) Fair Value

22. Financial Risk Management

(a) Liquidity risk

(b) Credit risk

(c) Market risk

(i) Interest rate risk

(ii) Foreign currency risk

22. Financial Risk Management - continued

(iii) Commodity and equity price risk

(iv) Market risk

Sensitivity Analysis

23. Contingencies

24. Mongolia Tax Matter and Restatement

24. Mongolia Tax Matter and Restatement - continued

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Silver Elephant Mining Corp. Interim / Quarterly Report 2026