SILVER MINES LIMITED — Capital/Financing Update 2012

Jun 3, 2012

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MARKET RELEASE

4 June 2012

SILVER MINES LIMITED

TRADING HALT

The securities of Silver Mines Limited (the “Company”) will be placed in Trading Halt Session State at the request of the Company, pending the release of an announcement by the Company. Unless ASX decides otherwise, the securities will remain in Trading Halt Session State until the earlier of the commencement of normal trading on Wednesday, 6 June 2012 or when the announcement is released to the market.

Security Code: SVL

Charlotte Hope Senior Adviser, Listings (Sydney)

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Level 5 17-19 Bridge Street Sydney, NSW, 2065 P: +61 2 9253 0900 E: info@silverminesltd.com.au W: www.silverminesltd.com.au

4 June 2012

ASX Limited Company Announcements Exchange Centre 20 Bridge Street Sydney NSW 2000

Security Code: SVL

REQUEST FOR TRADING HALT

Silver Mines Limited (‘the Company’) as required under ASX Listing Rule 17.1 requests that an immediate a trading halt be placed on its securities pending an announcement by the Company.

1. The Company seeks a trading halt regarding the announcement of a funding initiative and wish and to maintain an orderly market in our securities.

2. The Company anticipates a detailed announcement will be made concerning the funding initiative on or before the commencement of trading on Wednesday 6 June 2012. The Company requests that its securities to remain in the trading halt until the announcement is made.

3. The Company is not aware of any reason why the trading halt should not be granted by the ASX, and is in compliance with the Listing Rules of the ASX, and in particular Listing Rule 3.1.

Please advise if there is any further information you require.

Yours faithfully

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Kevin Lynn Company Secretary

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Silver Mines Limited ACN 107 452 942