The Board of Silver Elephant Mining Corp. (TSX:ELEF) announced the spin-off of 55% stake in Minago Project on August 26, 2021. As of November 29, 2021, The Board of Silver Elephant Mining Corp. announced the spin-off of 54% stake in Minago Project to its shareholders. Under the terms of the agreement, each Shareholder of Silver Elephant Mining Corp. will receive one share of the Minago SpinCo held by them as at the record date of November 3, 2021. In related transactions, Silver Elephant Mining Corp is spinning off Gibellini Vanadium Project and Battery Metals Royalties Corp. Pursuant to the Arrangement, it is currently expected that each Shareholder will receive one share of the Gibellini SpinCo and two Battery Metals Royalties SpinCo shares for every share of Silver Elephant held by such Shareholder on the record date for the Arrangement. The remaining 45% stake in Minago Project held by Silver Elephant will be transferred to Battery Metals Royalties, a wholly owned subsidiary of Silver Elephant, in connection with the completion of the Arrangement. As of November 29, 2021, Silver Elephant Mining Corp. will own approximately 46% of the Minago Project. Following completion of the Arrangement, SpinCo is expected to aim to list on a Canadian securities exchange. Following completion of the Arrangement, it is presently expected that Minago SpinCo will be managed by Danniel Oosterman P.Geo as interim Chief Executive Officer, and Robert Van Drunen as Chief Operating Officer. Van Drunen was the senior project manager at Vale's Thompson operation. The Board of Directors of Minago SpinCo will consist of Mark Scott, John Lee, and Ron Espell.

The transaction is subject to receipt of required Shareholder approval, court approval, no more than 5% of the shareholders shall have exercised Dissent Rights. regulatory, Toronto Stock Exchange and other approvals and satisfaction of other closing conditions. A meeting of shareholders of Silver Elephant Mining will be held on December 22, 2021. The Board of Directors has unanimously determined that the Arrangement is in the best interest of the Company and unanimously recommend the shareholders to vote in favor of the transaction. As of December 22, 2021, shareholders of Silver Elephant Mining Corp. has approved the transaction. The Arrangement is expected to close in December, 2021. As of November 29, 2021, the transaction is expected to close on or about January 14, 2022. Computershare Investor Services Inc. acted as the transfer agent and registrar and Mahdi Shams and Katelyn J. Jones of MLT Aikins LLP acted as the legal advisor to Flying Nickel Mining Corp. and Silver Elephant Mining Corp. Computershare Investor Services Inc. acted as the depository bank and Computershare Trust Company of Canada acted as the transfer agent to Silver Elephant Mining Corp. McKnight Mineral Advisor Services acted as the valuer.

Silver Elephant Mining Corp. completed the Spin-Off of 55% stake in Flying Nickel Mining Corp on January 14, 2022.