SILVER MINES LIMITED — Capital/Financing Update 2015

Mar 16, 2015

==> picture [122 x 34] intentionally omitted <==

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

To: Australian Securities Exchange Limited From: Silver Mines Limited Date: 17 March, 2015 Subject: Update on proposed Corporate Transaction

Silver Mines Limited wishes to advise that the Company has been unable to finalise agreement as yet in respect to the material Corporate Transaction it referred to in a request for a Trading Halt in its securities it made on Friday, 13 March, 2015 and negotiations are continuing.

It is now anticipated that finalising the agreement may happen by end of March and has requested the ASX to lift the temporary Trading Halt pending the conclusion of an agreement or further update.

Yours faithfully Silver Mines Limited

==> picture [85 x 44] intentionally omitted <==

Vaz Hovanessian Company Secretary

1