SILVER MINES LIMITED — Capital/Financing Update 2017

Sep 14, 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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15[th] September 2017

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

PENDING EXPIRY OF QUOTED OPTIONS

Silver Mines Limited (‘Silver Mines’ or ‘the Company’) advises that its 23,393,614 SVLO Options, with an exercise price of $0.30 are due to expire on 13[th] October 2017 at 5:00 pm (AEST).

Silver Mines has been granted a waiver from the Australian Securities Exchange (‘ASX’) from compliance with Listing Rule 6.24 as the SVLO Options are currently “out of the money” and it is unlikely that option-holders will exercise the SVLO Options prior to their expiry. Accordingly, the Company will not be sending option expiry letters to the SVLO Option holders.

For the purpose of ASX Listing Rules Appendix 6A, the Company provides the following information:

• a) There are 23,393,614 SVLO Options on issue.

• b) Each SVLO Options entitles the holder, upon exercise, to receive one fully paid ordinary SVL share.

• c) The exercise price is $0.30 per option.

• d) The due date for payment of the exercise price, if a holder wishes to exercise SVLO Options, is 5:00 pm (AEST) on 13[th] October 2017.

• e) If the SVLO Options remain unexercised and payment is not received before 13[th] October 2017, the SVLO Options will lapse.

• f) Quotation of the SVLO Options will end on 9[th] October 2017.

• g) The latest market price of the Silver Mines Shares is $0.098.

Silver Mines Limited ABN: 45 107 452 942

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• h) The highest market price of fully paid Silver Mines shares in the past three months was $0.13 on 23 June 2017 and the lowest market price in the past three months was $0.095 on 21 August 2017.

• i) The SVLO Options are not underwritten.

Yours faithfully

Silver Mines Limited

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Trent Franklin

Company Secretary

About Silver Mines Limited

The Silver Mines strategy has been to consolidate quality silver deposits in New South Wales and to form Australia’s pre-eminent silver company.

The Company’s goal is to provide exceptional returns to shareholders through the acquisition, exploration and development of quality silver projects and by maximising leverage to an accretive silver price.

Silver Mines Limited ABN: 45 107 452 942

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