SILVER MINES LIMITED — Capital/Financing Update 2015

Sep 9, 2015

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Silver Mines Limited ABN: 45 107 452 942 10[th] Floor, 2 Bligh Street, Sydney NSW 2000 P: +61 2 8188 2557 F: +61 2 9235 2203

10 September 2015

ASX ANNOUNCEMENT

DESPATCH OF REPLACEMENT PROSPECTUS AND LETTER TO INELIGIBLE SHAREHOLDERS

A replacement prospectus ( Replacement Prospectus ) and personalised entitlement and acceptance form in connection with Silver Mines Limited (ASX: SVL) ( Company ) four for one fully underwritten pro rata renounceable rights issue of new fully paid ordinary shares in the Company at $0.001 per new share, together with one free new option for every two new shares subscribed for under the rights issue (with each new option exercisable for one share in the Company at $0.003) announced by the Company on Tuesday, 1 September 2015 ( Rights Issue ) are being despatched today to all eligible shareholders with a registered address in Australia or New Zealand. A copy of the Replacement Prospectus was lodged with ASIC and given to ASX on Wednesday, 9 September 2015.

Further information

The Replacement Prospectus is available and copies can be obtained by calling the Share Registry for the Company referred to below. Offers of securities under the Rights Issue will be made in, or accompanied by a copy of, the Replacement Prospectus. Eligible shareholders should consider the Replacement Prospectus in deciding whether to acquire securities under the Rights Issue. Eligible shareholders who want to acquire securities under the Rights Issue will need to complete the personalised entitlement and acceptance form that is in or accompanies the Replacement Prospectus.

Shareholders who have questions regarding the Rights Issue should phone the Share Registry for the Company on (02) 9290 9600 (within Australia) or +61 2 9290 9600 (from outside Australia) at any time between 9am and 5pm (Sydney time) on Monday to Friday during the Rights Issue period.

Order of the Board Silver Mines Limited

For further information contact:

Vaz Hovanessian

Company Secretary Level 10, 2 Bligh St Sydney NSW 2000 Tel: 02 8188 2557

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