SILVER MINES LIMITED — Capital/Financing Update 2017

Oct 4, 2017

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

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5 October 2017

Company Announcement Officer ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000

SHARE PLACEMENT

Silver Mines Limited (ASX:SVL) (“Silver Mines” or “the Company”) is pleased to advise that it has successfully completed a capital raising of A$4.3 million (before costs) (“Placement”) to institutional, professional and sophisticated investors.

The Placement was oversubscribed and scaled back to accommodate the Company’s placement capacity under listing rules 7.1 and 7.1A.

The financing will primarily be used for further exploration, along with progressing the Company’s Definitive Feasibility Study (“DFS”) and Environmental Impact Statement (“EIS”) for the Company’s Bowdens Silver Project in New South Wales. Lodgement of the DFS and EIS is expected in the first quarter of calendar 2018.

Bell Potter Securities Limited and RBC Capital Markets acted as Joint Lead Managers to the Placement.

The Placement was conducted at an issue price of $0.08 per share, and will result in the issue of 53,750,000 shares, as follows:

• 18,282,394 shares using the Company’s capacity under ASX listing rule 7.1; and

• 35,467,606 shares using the Company’s capacity under ASX listing rule 7.1A.

Settlement of the Placement is expected to take place on 9 October 2017.

The Company will request that its securities are reinstated to official quotation with immediate effect.

Yours faithfully Silver Mines Limited

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Trent Franklin Company Secretary

Silver Mines Limited

ABN: 45 107 452 942

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