SILVER MINES LIMITED — Capital/Financing Update 2016

Jan 21, 2016

ASX Release: 22 January 2016

White Rock Minerals and Silver Mines Heads of Agreement expires

ASX Code: WRM

Issued Securities Shares: 271.9 million Options: 7 million

Cash on hand (30 Sept 2015 ) $0.2M

Market Cap (12 Jan 2016) $4.1M at $0.015 per share

Directors & Management Brian Phillips Non-Executive Chairman

White Rock Minerals Limited (ASX: WRM) and Silver Mines Limited (ASX: SVL) entered into a Heads of Agreement (HoA) (refer ASX Release dated 23 July 2015) whereby SVL agreed to provide WRM with funding in the order of $A500,000 by way of two (2) private placements plus an interest free loan facility as part of a broader commitment by the parties to consider a corporate transaction. SVL completed the 2 placements, totally $200,000, but has not provided WRM with the unsecured loan facility.

The HoA contained a six-month exclusivity period, ending 23 January 2016.

WRM has decided not to extend the HoA. However, the two companies remain in discussions aimed at considering a possible corporate transaction on a non-exclusive basis.

Geoffrey Lowe Non-Executive Director

Peter Lester Non-Executive Director

Matthew Gill Chief Operating Officer

Rohan Worland Exploration Manager

Shane Turner Company Secretary

For further information contact: Matthew Gill or Shane Turner Phone: 03 5331 4644 info@whiterockminerals.com.au www.whiterockminerals.com.au