SILVER MINES LIMITED — Capital/Financing Update 2014

Jun 10, 2014

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11[th] June, 2014

To: Company Announcement Officer

US AND CORPORATE UPDATE

• Due diligence complete on three new highly prospective precious and base metal properties in Arizona and Nevada.

• Ground geophysics and geochemical surveys planned to begin in July to better define drilling targets on these new projects.

• Confidentiality Agreements have been executed with a number of parties regarding possible joint ventures on the Company’s NSW projects.

Silver Mines Limited (ASX:SVL) is pleased to provide an update regarding its due diligence studies on a number of highly prospective projects in Arizona and Nevada in line with the Company’s US strategy. SVL is in the process of finalizing the terms of the transaction(s) with the owners of the properties and as such expects to have further news on this available in the near term as well as more detailed technical information on these new projects.

NEW PROJECT SUMMARIES.

Project 1 - Central Arizona

• Target : Cu-Au-Ag-Zn-Pb VMS.

• Similarities : 20 Mt United Verde Cu-Au-Ag-Zn-Pb VMS deposit (AZ), Eskay Creek (BC, Can).

• Current exploration has identified drill ready targets.

• Airborne geophysics (EM) to be flown.

• 1km strike length still open.

Project 2 – Northern Arizona

• Target : Porphyry Au-Ag-Mo-Cu.

• Similarities : Mineral Park (AZ), +400Mt at 0.3% CuEQ.

• Coincident Au/Ag/Cu/Mo geochemical and magnetics targets identified, drill ready.

• Gold and silver in the system improves economic potential significantly.

• Major US copper producer actively looking for new projects and have done site visit.

• NI43-101 May 2012.

• Close to infrastructure.

Project 3– Central Nevada

• Bulk tonnage, low-sulphidation epithermal property in Walker Lane Gold-Silver Belt.

• Project has affinities to many bulk tonnage precious metal properties in Nevada such as Bullfrog District (+20Moz Au) and Round Mountain (+25Moz Au).

• Field work to begin US Summer 2014.

• Excellent District wide potential, with lack of systematic modern exploration.

Please direct any queries regarding the content of this report to: Charles Straw (CEO) on +61 2 9253 0900 or cstraw@silverminesltd.com.au

The information in this report that relates to Mineral Reserves, Mineral Resources and Exploration Results is based on information compiled by Mr Charles Straw, Managing Director of SVL. Mr Straw is a Member of The Australasian Institute of Mining and Metallurgy. Mr Straw has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Straw consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.