SILVER MINES LIMITED — Capital/Financing Update 2016

Jun 15, 2016

Level 11, 52 Phillip St Sydney NSW 2000 P: +61 2 8316 3997 F: +61 2 8316 3999 Info@silvermines.com.au www.silverminesltd.com.au

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PLACEMENT OF APPROXIMATELY $35 MILLION TO FUND THE COMPLETION OF THE PURCHASE OF THE BOWDENS SILVER PROJECT

Silver Mines Limited (ASX:SVL) (“Silver Mines”) is pleased to advise that it has successfully completed a capital raising of approximately A$35 million (“Placement”) (before costs) via the issue of up to 233 million ordinary shares at a price of $0.15 (post-consolidation) pursuant to Resolution 5 of the EGM held on 6[th] June 2016.

The financing will be used to complete the acquisition of 85% of the Bowdens Silver Project from Kingsgate Consolidated Limited (ASX:KCN) and for exploration and working capital purposes.

Completion of the Bowdens Silver Project acquisition is an important step in the Silver Mines strategy to consolidate quality silver deposits in New South Wales and to form Australia’s pre-eminent silver company.

Bell Potter Securities acted as Sole Lead Manager to the Placement which received strong support from a combination of international and domestic institutional investors as well as professional and sophisticated investors.

It is expected that settlement will occur on Tuesday 21[st] June 2016. Silver Mines will remain in suspension until Placement settlement.

Yours faithfully

Silver Mines Limited

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Trent Franklin Company Secretary

Released: 16[th] June 2016

Silver Mines Limited ABN: 45 107 452 942

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