SILVER MINES LIMITED — Capital/Financing Update 2016

May 4, 2016

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

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ANNOUNCEMENT: CONTINUATION OF VOLUNTARY SUSPENSION

The Company is in the process of finalising some aspects of the financing arrangements for the second tranche of the Bowdens Silver Project previously announced to the market. Accordingly, the Company has requested a continuation of the voluntary suspension whilst the financing arrangements are completed, with the expectation of a request to remove the suspension on or before the opening of trading on Tuesday, 31[st] May 2016.

Yours faithfully Silver Mines Limited

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Trent Franklin Company Secretary

Released: 5[th] May 2016

Silver Mines Limited ABN: 45 107 452 942

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