SILVER MINES LIMITED — Capital/Financing Update 2021

Dec 2, 2021

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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3[rd] December 2021

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

Bundarra Zone Drilling Results - Increasing Grade and Width

HIGHLIGHTS

• Drilling of the 30,000m resource program at Bowdens Silver continues with wide and high-grade results returned from the Bundarra Zone.

• BD21035;

• 14.2 metres @ 374g/t silver equivalent (36g/t silver, 4.86% zinc, 2.35% lead and 0.23g/t gold) from 238 metres, including;

  • 4.6 metres @ 694g/t silver equivalent (72g/t silver, 8.76% zinc, 4.40% lead and 0.49g/t gold) from 245.4 metres.

• New quartz - sulphide vein style of high-grade mineralisation intersected

• 3.0 metres @ 437g/t silver equivalent (52g/t silver, 5.57% zinc, 0.50% lead and 1.14g/t gold) from 294.4 metres, including;

  • 1.4 metres @ 749g/t silver equivalent (78g/t silver, 9.14% zinc, 0.87% lead and 2.36g/t gold) from 296 metres.

• BD21036;

• 9.0 metres @ 296g/t silver equivalent (29g/t silver, 3.23% zinc, 1.86% lead and 0.55g/t gold) from 300.7 metres, including;

  • 1.5 metres @ 470g/t silver equivalent (48g/t silver, 5.55% zinc, 3.69% lead and 0.30g/t gold) from 301.5 metres, and

  • 1.0 metre @ 615g/t silver equivalent (67g/t silver, 4.65% zinc, 3.32% lead and 2.58g/t gold) from 308 metres.

Underground Scoping Study

• Drilling continuing into 2022 with four rigs operational to deliver maiden underground Mineral Resource estimation as part of the initial Scoping Study of underground mining scenarios.

Silver Mines Limited

ABN: 45 107 452 942

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Introduction

Silver Mines Limited (ASX:SVL) (“Silver Mines” or “the Company”) is pleased to announce recent assay results from the underground resource drilling program at the Bowdens Silver Project located near Mudgee in New South Wales.

Diamond drilling has continued to test mineralised zones for potential underground mining scenarios at the Bowdens Silver Deposit, with a focus on the Northwest Zone, Aegean Zone and Bundarra Zone. The Aegean to Northwest Zone is dominated by high-grade silver vein systems of substantial widths, while the Bundarra Zone is dominated by wide zones of highgrade zinc and lead mineralisation, associated with gold and silver. All three zones are located beneath the bulk-tonnage open-pit Ore Reserve of the Bowdens Deposit with the Aegean Zone situated directly beneath Main Zone.

Results have been received for holes BD21026 through to BD21036 with BD21035 and BD21036 drilled within the Bundarra Zone (refer to Figure 1). The resource drilling has focused on the Aegean and Northwest Zones through 2021, with drilling now being focused on the Bundarra Zone in aid of Mineral Resource estimation.

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Figure 1. Reported drillhole locations and underground mining targets at the Bowdens Silver Project.

Bundarra Zone Results

The Bundarra Zone is a base metal (zinc and lead) dominant sulphide zone below the current silver–zinc–lead resource, which represents a hotter part of the Bowdens Silver system. Gold is common in veins throughout the deeper parts of the system where mineralisation is related

Silver Mines Limited

ABN: 45 107 452 942

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to, or controlled by, the emplacement of a dacite intrusion into the Rylstone Volcanic pile and underlying Ordovician Basement. A large area below the known extent of the dacite intrusion has not been tested, with this area presenting a significant target. Current modelling supports the idea that the dacite has acted to trap migrating hydrothermal fluids, as well as fracturing surrounding rocks (Rylstone Volcanics and Ordovician Basement) during its emplacement, thus increasing the permeability and potential for mineral deposition immediately surrounding the intrusion.

Drill holes BD21035 and BD21036 were drilled to extend the Bundarra Zone directly south of the semi-massive sulphide intersection in BD17011 (refer releases dated 15[th] March 2017, 11[th] April 2017, 12[th] May 2017 and 7[th] June 2017 and recent releases 27[th] July 2021 and 26[th] October 2021) and west of more recent BD21017 and BD21015. Two zones of significant mineralisation have been intersected in BD21035 which define the Bundarra Zone, with an upper zone being the typical banded/brecciated, semi massive sphalerite (zinc sulphide) – pyrite (iron sulphide) – galena (lead sulphide) with carbonate alteration, and the lower zone being a quartz-carbonate-sphalerite-pyrite-galena-chalcopyrite (copper sulphide) vein system. The two styles of mineralisation have a vertical separation of approximately 50 metres with the separation increasing with distance to the south (refer Figures 2 and 3).

Significant intercepts from BD21035 include 14.2 metres @ 374 g/t silver equivalent from 238 metres, and 3.0 metres @ 437 g/t silver equivalent from 294.4 metres. The high-grade core of 4.6 metres @ 694 g/t silver equivalent from 245.4 metres represents the highestgrade intercept to date in the Bundarra Zone. The quartz–sulphide vein (3.0 metre intercept) appears to represent a conduit to the Bundarra style mineralisation, and which forms a new component to the Bowdens Silver System. This style of mineralisation, deeper in an epithermal environment, is prospective for gold.

The significant intercept from BD21036 from within the upper semi massive sulphide zone includes 9.0 metres @ 296 g/t silver equivalent from 300.7 metres. Results from BD21035 and BD21036 give the Bundarra zone a thickness of 3 to 20 metres, 200 metres of strike (north to south) and a width of 150 metres (east to west). Drilling is continuing for continuations of the main semi massive sulphide and new quartz – sulphide horizons to the south and west.

Hole BD21042 (awaiting assays), has been drilled in the Bundarra Zone to the south (50 to 80 metres) of BD21035 and has intersected a 2.5 metre wide quartz-carbonate-sphaleritegalena-pyrite-chalcopyrite vein (refer Figure 3) and another 1.5 metre wide vein. These veins, in addition to the 3.0 metres @ 437 g/t silver equivalent intercept from BD21035, represent a substantial new high grade target including gold to the Bowdens Silver system .

Silver Mines Limited ABN: 45 107 452 942

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Figure 2 & 3. Bundarra Zone mineralisation styles (left) massive to semi massive sphalerite – galena – pyrite in BD17011 and (right) 2.5 metre wide quartz – carbonate – sphalerite – galena – pyrite – chalcopyrite in BD21042 (results pending).

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Figure 4. Bowdens Silver Project Long Section looking east.

Silver Mines Limited ABN: 45 107 452 942

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Table 1. Significant intercept calculations from recent results from the Bundarra Zone.

Hole	From	To	Interval	Silver	Zinc	Lead	Gold	Silver Eq
	(m)	(m)	(m)	(g/t)	(%)	(%)	(g/t)	(g/t)1
BD21035	238	252.2	14.2	36	4.86	2.35	0.23	374
incl.	245.4	250	4.6	72	8.76	4.40	0.49	694
	294.4	297.4	3.0	52	5.57	0.50	1.14	437
incl.	294.4	295.8	1.4	78	9.14	0.87	2.36	749
BD21036	300.7	309.7	9.0	29	3.23	1.86	0.55	296
incl.	301.5	303	1.5	48	5.55	3.69	0.30	470
& incl.	308	309	1.0	67	4.65	3.32	2.58	615

1.Bowdens’ reported silver equivalent is consistent with previous reports and current resource modelling based on assumptions: Ag Eq (g/t) = Ag (g/t) + 33.48Pb (%) + 49.61Zn (%) calculated from prices of US$20/oz silver, US$1.50/lb zinc, US$1.00/lb lead, and metallurgical recoveries of 85% silver + gold, 82% zinc and 83% lead estimated from test work commissioned by Silver Mines Limited. Silver equivalent updated to also include significant gold credit assuming the same recovery as silver, with gold:silver price ratio of 80:1 based on the approximate price ratio: Ag Eq (g/t) = Ag (g/t) + 33.48Pb (%) + 49.61Zn (%) + 80*Au(g/t). Intercepts calculated using a 90g/t AgE cut-off and 3 metre internal dilution factor, with highest individual assay results highlighted as included within overall intercept.

Northwest Zone and Aegean Zones Results

The Northwest Zone starts approximately 30 metres below the base of the proposed Bowdens Silver open pit. This mineralised zone is a high-grade silver target at depth with continuation and connectivity to the Aegean Zone (refer Figure 1 and Figure 5). Both zones are defined as shallowly dipping zones 1 metre to 20 metres thick, extending over 520 metres (east to west) and continuing down plunge/dip to the northwest for at least 300 metres.

Mineralisation is developed in two clear horizons with the Aegean Zone being dominated by silver sulphides (acanthite), while the Northwest Zone has a silver and base metal association (zinc, lead and minor copper). Gold is associated with silver in high concentrations in the centre of the Northwest Zone.

Drilling in the Northwest Zone has previously intersected breccia and veined sulphides dominated by silver sulphides, sphalerite (zinc) and galena (lead) within the welded tuff of the Rylstone Volcanics (refer releases dated 26[th] October 2021, 4[th] August 2021, 27[th] July 2021, 14[th] May 2021, and 28[th] January 2021). Results received for BD21031 thicken the Northwest Zone continuation towards the Aegean. BD21031 is situated 40 metres east of BD21013 and 65 metres southeast of BD21025. Significant intersections in BD21031 include 17.0 metres @ 129 g/t silver equivalent from 230 metres and 1.0 metre @ 519 g/t silver equivalent from 276 metres.

BD21030, BD21032 and BD21033 define extensions east and southeast of the Aegean Zone, while BD21028 defines an extension north. BD21032 intersected the eastern fault prior to target depth. BD21033 intersected 4.0 metres @ 138 g/t silver equivalent from 271 metres at the position of the Eastern Fault, while BD21030 intersected 3.5 metres @ 359 g/t silver equivalent from 316.3 metres. The Aegean and Northwest Zones both remain open each in a north to northwest strike with drilling in 2022 to target extensions to these two zones.

Silver Mines Limited ABN: 45 107 452 942

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Figure 5: Oblique Section A-A' looking southwest through the Aegean and Northwest High-Grade Zones with mineralisation and new intercepts.

Table 2. Significant intercept calculations from recent results from the Northwest and Aegean Zones.

Hole	From	To	Interval	Silver	Zinc	Lead	Gold	Silver Eq
	(m)	(m)	(m)	(g/t)	(%)	(%)	(g/t)	(g/t)1
BD21028	201	202	1	496	0.73	2.27	-	6081
	332	336	4	228	-	0.04	-	2291
BD21030	316.3	319.8	3.5	356	0.02	0.06	-	3591
BD21031	175	176	1	229	0.10	0.62	-	2551
	230	247	17	107	0.05	0.57	-	1291
incl.	233	234	1	207	0.03	0.16	-	2141
& incl.	237	238	1	218	0.05	0.91	-	2811
	276	277	1	505	0.02	0.39	-	5191
BD21032	164	165	1	87	0.15	0.72	-	1181*
	169	176	7	245	0.11	0.69	-	2741*
	181	202	21	234	0.07	0.45	-	2521
	226	227	1	103	0.02	0.04	-	1051
BD21033	169.8	170.8	1	647	0.72	0.78	-	7091*
	199	206	7	190	0.30	0.34	-	2161
	271	275	4	120	0.11	0.35	-	1381

Silver Mines Limited

ABN: 45 107 452 942

Page 6

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• Denotes an interval within current ore reserves

1.Bowdens’ reported silver equivalent is consistent with previous reports and current resource modelling based on assumptions: Ag Eq (g/t) = Ag (g/t) + 33.48Pb (%) + 49.61Zn (%) calculated from prices of US$20/oz silver, US$1.50/lb zinc, US$1.00/lb lead, and metallurgical recoveries of 85% silver + gold, 82% zinc and 83% lead estimated from test work commissioned by Silver Mines Limited. Intercepts calculated using a 90g/t Ag cut-off and 3 metre internal dilution factor, with highest individual assay results highlighted as included within overall intercept.

Scoping Study and Mineral Resource Drilling Program

The Company currently has four drilling rigs on site continuing a 30,000 metre diamond drilling program. Targets include high-grade veins and feeder zones outside of the current open pit Ore Reserve in the north, central and southern parts of the Bowdens Silver Deposit. Results from this drilling will form the basis for a Mineral Resource estimate as part of a Scoping Study of underground mining scenarios. The program of drilling has been extended into 2022 in line with the outstanding new results and extensions from the Bundarra Zone. The Scoping Study is now advanced and is expected complete in the first half 2022, following the completion of resource drilling.

Silver Mines Limited ABN: 45 107 452 942

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About the Bowdens Silver Project

The Bowdens Silver Project is located in central New South Wales, approximately 26 kilometres east of Mudgee (refer to Figure 6 ) . The consolidated project area comprises 2,007 km[2] (496,000 acres) of titles covering approximately 80 kilometres of strike of the highly mineralised Rylstone Volcanics. Multiple target styles and mineral occurrences have potential throughout the district including analogues to Bowdens Silver, high-grade silver-lead-zinc epithermal and volcanogenic massive sulphide (VMS) systems and copper-gold targets.

Bowdens Silver is the largest undeveloped silver deposit in Australia with substantial resources and a considerable body of high-quality technical work already completed. The projects boast outstanding logistics for future mine development.

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Figure 6: Silver Mines Limited tenement holdings in the Mudgee district.

This document has been authorised for release to the ASX by the Company’s Managing Director, Mr Anthony McClure.

Further information:

Anthony McClure Managing Director Silver Mines Limited +61 2 8316 3997

Angela East Associate Director M+C Partners +61 428 432 025

Silver Mines Limited ABN: 45 107 452 942

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Competent Persons Statement

The information in this report that relates to mineral exploration from the Bowdens Silver Project is based on information compiled by the Bowdens Silver team and reviewed by Darren Holden who is an advisor to the Company. Dr Holden is a member of the Australasian Institute of Mining and Metallurgy and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration, and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC code). Dr Holden consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.

Table 3. Drill collar locations for new results.

Target	Hole ID	GDA94 East	GDA94 North	RL (m)	Dip	Azimuth (grid)	Depth (m)	Drill Type	Comment
NW Zone	BD21026	768501	6385748	656	-76	36	430	Core	Assays complete
Aegean	BD21027	768897	6385857	642	-75	5	408.9	Core	Assays complete
Aegean	BD21028	768954	6385845	655	-75	0	399.9	Core	Assays complete
Aegean	BD21029	768827	6385861	618	-78	5	405.9	Core	Assays complete
Aegean	BD21030	768950	6385843	655	-75	40	400	Core	Assays complete
NW Zone	BD21031	768724	6385809	614	-71	35	402.8	Core	Partial assays
Aegean	BD21032	769090	6385792	642	-67	5	305.4	Core	Partial assays
Aegean	BD21033	769045	6385811	650	-75	10	325.1	Core	Partial assays
Aegean	BD21034	768840	6385817	619	-78	5	399.9	Core	Partial assays
Bundarra	BD21035	768806	6385419	604	-65	335	379.7	Core	Partial assays
Bundarra	BD21036	768613	6385534	645	-57	75	408.9	Core	Partial assays

Silver Mines Limited ABN: 45 107 452 942

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Table 4. Summary of all recent drilling intercepts.

Hole	From	To	Interval	Silver	Zinc	Lead	Gold	Silver Eq
	(m)	(m)	(m)	(g/t)	(%)	(%)	(g/t)	(g/t)
BD21026	240	241	1	95	0.07	0.24	-	1071
	259	262	3	47	0.23	1.54	-	1101
	299	300	1	51	1.36	0.56	-	1371
BD21027	70	76	6	167	0.16	0.23	-	1821*
	106	107	1	133	0.08	0.11	-	1411
	128	129	1	91	0.49	0.12	-	1191
BD21028	201	202	1	496	0.73	2.27	-	6081
	332	336	4	228	-	0.04	-	2291
BD21029	36	37	1	75	0.38	0.12	-	981*
BD21030	95	97	2	87	0.10	0.07	-	941*
	132	133	1	226	0.56	0.58	-	2731*
	138	154	16	75	0.49	0.38	-	1121*
	185	186	1	92	0.11	0.21	-	1041
	206	207	1	96	0.48	0.30	-	1301
	316.3	319.8	3.5	356	0.02	0.06	-	3591
BD21031	28	29	1	182	0.04	0.29	-	1941*
	35	39	4	54	0.34	0.16	-	761*
	48	53	5	306	0.29	0.83	-	3491*
	146	153.6	7.6	139	0.53	0.81	-	1931
	160	162	2	24	1.61	0.26	-	1121
	166	167	1	61	0.73	0.23	-	1041
	175	176	1	229	0.10	0.62	-	2551
	230	247	17	107	0.05	0.57	-	1291
incl.	233	234	1	207	0.03	0.16	-	2141
& incl.	237	238	1	218	0.05	0.91	-	2811
	276	277	1	505	0.02	0.39	-	5191
BD21032	164	165	1	87	0.15	0.72	-	1181*
	169	176	7	245	0.11	0.69	-	2741*
	181	202	21	234	0.07	0.45	-	2521
	226	227	1	103	0.02	0.04	-	1051
BD21033	105	109	4	218	0.11	0.21	-	2311*
	130	133	3	242	0.10	0.51	-	2641*
	148	149	1	287	0.70	0.63	-	3431*
	153	154	1	219	0.62	0.83	-	2781*
	159	160.1	1.1	114	1.12	0.35	-	1811*
	169.8	170.8	1	647	0.72	0.78	-	7091*

Silver Mines Limited

ABN: 45 107 452 942

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Hole	From	To	Interval	Silver	Zinc	Lead	Gold	Silver Eq
	(m)	(m)	(m)	(g/t)	(%)	(%)	(g/t)	(g/t)
	199	206	7	190	0.30	0.34	-	2161
	271	275	4	120	0.11	0.35	-	1381
BD21034	9	10	1	81	0.52	0.27	-	1161*
	19	20	1	302	0.54	0.95	-	3601*
	34	36	2	882	0.95	1.61	-	9831*
	63	64	1	149	0.28	1.26	-	2051*
	72	73.1	1.1	117	0.24	0.45	-	1441*
	79.4	84.3	4.9	90	0.64	0.63	-	1421*
	227	228	1	36	0.32	1.25	-	931
BD21035	53	58	5	145	0.98	0.33	-	2051*
	84	85	1	296	1.03	0.98	-	3801
	91	96	5	65	0.40	0.19	-	911
	101	102	1	51	1.02	0.40	0.01	1142
	128	134	6	11	1.11	0.65	0.03	892
	207	208	1	74	0.20	3.56	0.32	2282
	214	216	2	21	1.67	1.09	0.18	1552
	238	252.2	14.2	36	4.86	2.35	0.23	**3742 **
incl.	245.4	250	4.6	72	8.76	4.40	0.49	6942
	285	287	2	29	2.95	0.31	0.08	1922
	294.4	297.4	3.0	52	5.57	0.50	1.14	4372
incl.	294.4	295.8	1.4	78	9.14	0.87	2.36	7492
	305	309	4	16	1.64	0.07	0.10	1082
	315	318	3	17	2.90	0.13	0.01	1652
BD21036	146	147	1	15	1.49	0.28	-	992
	155	156	1	30	2.04	0.66	0.02	1532
	164	170	6	102	1.09	0.58	-	1762
	184	208	24	59	0.94	0.31	0.01	1172
	212	224	12	23	1.10	0.67	0.03	1032
	230	231.4	1.4	22	1.50	0.89	0.05	1302
	245	246	1	90	0.17	0.64	0.10	1282
	271.8	275	3.2	26	1.11	1.33	0.20	1412
	280	281	1	25	1.16	0.87	0.19	1272
	288	289	1	25	0.79	0.98	0.93	1712
	300.7	309.7	9.0	29	3.23	1.86	0.55	2962
incl.	301.5	303	1.5	48	5.55	3.69	0.30	4702
& incl.	308	309	1.0	67	4.65	3.32	2.58	6152
	329	330	1.0	9	1.86	0.38	1.91	2672

Silver Mines Limited

ABN: 45 107 452 942

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• Denotes an interval within current ore reserves

1.Bowdens’ reported silver equivalent is consistent with previous reports and current resource modelling based on assumptions: Ag Eq (g/t) = Ag (g/t) + 33.48Pb (%) + 49.61Zn (%) calculated from prices of US$20/oz silver, US$1.50/lb zinc, US$1.00/lb lead, and metallurgical recoveries of 85% silver + gold, 82% zinc and 83% lead estimated from test work commissioned by Silver Mines Limited. Intercepts calculated using a 90g/t Ag cut-off and 3 metre internal dilution factor, with highest individual assay results highlighted as included within overall intercept. Intercepts are outside of current reserve

1. Silver equivalent updated to also include significant gold credit assuming the same recovery as silver, with gold:silver price ratio of 80:1 based on the approximate price ratio: Ag Eq (g/t) = Ag (g/t) + 33.48Pb (%) + 49.61Zn (%) + 80*Au(g/t). Intercepts calculated using a 90g/t AgE cut-off and 3 metre internal dilution factor, with highest individual assay results highlighted as included within overall intercept. Intercepts are outside of current reserve.

Silver Mines Limited

ABN: 45 107 452 942

Page 12

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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

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary
Sampling	• Nature and quality of sampling (e.g. cut channels, random chips, or	•Sampling taken continuously downhole from PQ and HQ diameter
techniques	specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole	diamond core. •PQ size core – all samples taken as nominal 1 or 2 metre intervals, or
	gamma sondes, or handheld XRF instruments, etc). These	as otherwise defined by logged geology intervals, from quarter cut
	examples should not be taken as limiting the broad meaning of	core.
	sampling.	•HQ size core – all samples taken as nominal 1 metre intervals where
	• Include reference to measures taken to ensure sample	mineralisation observed from half cut core, or as otherwise defined by
	representivity and the appropriate calibration of any measurement	logged geology intervals and from the same side of the core where
	tools or systems used.	downhole orientations permit.
	• Aspects of the determination of mineralisation that are Material to	•Samples vary in weight but are generally between 2 and 4 kilograms
	the Public Report.	of material.
	• In cases where ‘industry standard’ work has been done this would	•Each sample was sent for multi-element assay using ICP technique
	be relatively simple (e.g. ‘reverse circulation drilling was used to	(ME-ICP61) with the entire sample pulverized and homogenized with
	obtain 1m samples from which 3kg was pulverised to produce a	a 25g extract taken for assay.
	30g charge for fire assay.’) In other cases, more explanation may	•Select samples were also sent for gold using fire assay technique
	be required such as where there is coarse gold that has inherent	(Au-AA23) with a 30g sample taken for assay.
	sampling problems. Unusual commodities or mineralisation types	•Assays are considered representative of the sample collected.
	(e.g. submarine nodules) may warrant disclosure of detailed
	information.
Drilling	• Drill type (e.g. core, reverse circulation, open-hole hammer, rotary	•Diamond drilling undertaken using PQ and HQ diamond core rig with
techniques	air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or	triple tube used. •All core, excluding PQ size, where unbroken ground allows, is
	other type, whether core is oriented and if so, by what method, etc).	oriented by drilling team and an orientation line drawn along the base
		of the hole.
Drill sample	• Method of recording and assessing core and chip sample	•Core recovery is estimated at greater than 98%.
recovery	recoveries and results assessed. • Measures taken to maximise sample recovery and ensure	•Some zones, (less than 5%) were broken core with occasional clay zones where sample loss may have occurred. However, this is not
	_representative nature of the samples. _	considered tohavematerially affected theresults.

Silver Mines Limited

ABN: 45 107 452 942

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Criteria	JORC Code explanation	Commentary
	• Whether a relationship exists between sample recovery and grade	•No significant relationship between sample recovery and grade
	and whether sample bias may have occurred due to preferential	exists.
	loss/gainof fine/coarse material.
Logging	• Whether core and chip samples have been geologically and	•All diamond core is logged using lithology, alteration, veining,
	geotechnically logged to a level of detail to support appropriate	mineralisation and structure, including geotechnical structure.
	Mineral Resource estimation, mining studies and metallurgical	•All core is photographed using both a wet and dry image.
	studies.	•In all cases the entire hole is logged by a geologist.
	• Whether logging is qualitative or quantitative in nature. Core (or
	costean, channel, etc) photography.
	• The total length and percentage of the relevant intersections
	_logged. _
Sub-sampling	• If core, whether cut or sawn and whether quarter, half or all core	•Selective sub-sampling based on geology to a maximum size of 2
techniques and sample preparation	were taken. • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the	metres and a minimum of 0.3 metres. •All core is cut using a Corewise core saw with core rotated 10 degrees to the orientation line to preserve the orientation for future reference.
	sample preparation technique.	•For HQ core the half of the core without the orientation line is
	• Quality control procedures adopted for all sub-sampling stages to	removed, bagged and sent to the laboratory for assay.
	maximise representivity of samples.	•Sample sizes are considered appropriate for the rock type, style of
	• Measures taken to ensure that the sampling is representative of the	mineralisation, the thickness and consistency of the intersections and
	in situ material collected, including for instance, results for field	assay ranges expected at Bowdens.
	duplicate/second-half sampling.
	• Whether sample sizes are appropriate to the grain size of the
	_material being sampled. _
Quality of	• The nature, quality and appropriateness of the assaying and	•Samples dispatched to ALS Global in Orange NSW for sample
assay data and laboratory tests	laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibration factors	preparation and analysis. Some sample batches were then on shipped to ALS Global in Adelaide, Brisbane and Townsville due to the high volume within the Orange Lab. •Site standards and blanks are inserted at a rate of 8 per 100 samples, and duplicates are inserted at a rate of 5 per 100 samples to check
	applied and their derivation, etc.	quality control. Laboratory standards and blanks are inserted every
	• Nature of quality control procedures adopted (e.g. standards,	25 samples.
	blanks, duplicates, external laboratory checks) and whether
	acceptable levels of accuracy (i.e. lack of bias) and precision have
	been established.

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Criteria	JORC Code explanation	Commentary
Verification of	• The verification of significant intersections by either independent or	•Significant intersections calculated by Bowdens Silver geologists.
sampling and assaying	alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data	•All geological logging is entered digitally before inputting into a Maxwell Geoservices database schema. •Primary assay data is sent electronically from the laboratory to the
	verification, data storage (physical and electronic) protocols.	SVL database administrator and then entered into the geological
	• Discuss any adjustment to assay data.	database for validation.
		•All assays matched with the logging sheets and loaded directly from
		the output provided by the laboratory with no manual entry of assays
		undertaken.
		•No adjustments were made or required to be made to the assay data.
Location of	• Accuracy and quality of surveys used to locate drill holes (collar	•The collar position is initially surveyed using hand-held GPS with
data points	and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	accuracy of +- 3 metres. •Down hole surveys collected every 30 metres using an electronic
	• Specification of the grid system used.	downhole reflex survey camera.
	• Quality and adequacy of topographic control.	•The terrain includes steep hills and ridges with a digital elevation
		model derived from a combination of locally flown LIDAR and
		publically available point cloud data.
		•All collars recorded in MGA94 zone 55.
Data spacing	• Data spacing for reporting of Exploration Results.	•The drilling results relate to exploration drilling of the Aegean,
and	• Whether the data spacing and distribution is sufficient to establish	Northwest and Bundarra Zones. Drilling is not defined to a set
distribution	the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and	spacing.
	classifications applied.
	• _Whether sample compositing has been applied. _
Orientation of	• Whether the orientation of sampling achieves unbiased sampling of	•Drill orientation was designed to intersect the projection of the major
data in	possible structures and the extent to which this is known,	structural controls to the Deposit.
relation to geological structure	considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if	•An interpretation of the mineralisation has indicated that no sampling bias has been introduced.
	material.
Sample	• The measures taken to ensure sample security.	•All samples bagged on site under the supervision the senior geologist
security		with sample bags tied with cable ties before being driven by site personnelto thelaboratoryinOrange,NSW(~200kilometresfrom

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Criteria	JORC Code explanation	Commentary
		the site)
Audits or	• The results of any audits or reviews of sampling techniques and	•The drilling campaign and drill work includes on-going internal
reviews	data.	auditing with advice taken on process from external advisors.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral	• Type, reference name/number, location and ownership including	•The Bowdens Resource is located wholly within Exploration Licence
tenement and	agreements or material issues with third parties such as joint	No 5920, held wholly by Silver Mines Limited and is located
land tenure status	ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.	approximately 26 kilometres east of Mudgee, New South Wales. •The tenement is in good standing. •The project has a 2.0% Net Smelter Royalty which reduces to 1.0%
	• The security of the tenure held at the time of reporting along with	after the payment of US$5 million over 100% of EL5920
	any known impediments to obtaining a licence to operate in the	•The project has a 0.85% Gross Royalty over 100% of EL5920.
	_area. _
Exploration	• Acknowledgment and appraisal of exploration by other parties.	•The Bowdens project was previously managed by Kingsgate
done by other parties		Consolidated and Silver Standard Ltd, however the new results under this table are based on work conducted solely by Silver Mines/Bowdens Silver.
Geology	• Deposit type, geological setting and style of mineralisation.	•The Bowdens Deposit is a low sulphidation epithermal base-metal
		and silver system hosted in Permian aged Volcanic rocks.
		•Mineralisation includes veins, shear veins and breccia zones within
		tuff and ignimbrite rocks.
		•Mineralisation is overall shallowly dipping (~15 degrees to the north)
		with high-grade zones preferentially following a volcanic dome. There
		are several vein orientations within the broader mineralised zones
		including some areas of stock-work veins.
		•The mineralisation reported in this release is hosted in the main
		Rylstone Volcanics which unconformably overlie the Ordovician
		Coomber Formation(sediments). Themineralization reportedinthis

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Criteria	JORC Code explanation	Commentary
		report is related to Bowdens and represents a higher-temperature
		zone.
Drill hole	• A summary of all information material to the understanding of the	•All information is included in Table 1 and Table 2 of this report above.
Information	exploration results including a tabulation of the following
	information for all Material drill holes:
	o easting and northing of the drill hole collar;
	o elevation or RL (Reduced Level elevation above sea level in
	metres) of the drill hole collar;
	o dip and azimuth of the hole;
	o down hole length and interception depth; and
	o hole length.
	• If the exclusion of this information is justified on the basis that the
	information is not Material and this exclusion does not detract from
	the understanding of the report, the Competent Person should
	_clearly explain why this is the case. _
Data	• In reporting Exploration Results, weighting averaging techniques,	•Intersection calculation are weighted to sample length. The average
aggregation methods	maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.	sample represents 1 metre of drill core. •Reported intersections are based on a cut off of 90g/t silver equivalency including gold with a 3 metres internal dilution factor, or a
	• Where aggregate intercepts incorporate short lengths of high-grade	cut off of 90g/t silver with a 3 metres internal dilution factor.
	results and longer lengths of low-grade results, the procedure used	•No top cutting of data or grades was undertaken in the reporting of
	for such aggregation should be stated and some typical examples	these results.
	of such aggregations should be shown in detail.
	• The assumptions used for any reporting of metal equivalent values
	_should be clearly stated. _
Relationship	• These relationships are particularly important in the reporting of	•Mineralisation is both stratabound and vein hosted. The stratigraphy
between	Exploration Results.	dips moderately to the north within the volcanics and moderately to
mineralisatio n widths and intercept lengths	• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).	the west in the basement units, while the majority of mineralised veins dip west. Some individual veins intersected were sub-parallel (~10 to 20 degrees to core axes). However, given the stratigraphic controls on the zone, the drilling width is estimated to be 100 to 140% of true- width for stratabound mineralized zone.
Diagrams	• Appropriate maps and sections (with scales) and tabulations of	•Maps and cross sections provided in the body of this report.
	intercepts should be included for any significant discovery being
	_reported These should include, but not be limited to, a plan view of _

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Criteria	JORC Code explanation	Commentary
	_drill hole collar locations and appropriate sectional views. _
Balanced	• Where comprehensive reporting of all Exploration Results is not	•All results received and compiled to date are reported in this release.
reporting	practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of	Drilling is on-going with further results expected.
	_Exploration Results. _
Other	• Other exploration data, if meaningful and material, should be	•This report relates to drill data reported from this program.
substantive	reported including but not limited to: geological observations;
exploration data	geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics
	_and potential deleterious or contaminating substances. _
Further work	• The nature and scale of planned further work (e.g. tests for lateral	•This report relates to a drill program that is designed to test the
	extensions or depth extensions or large-scale step-out drilling).	extension and explore for further zones of high-grade silver situated
	• Diagrams clearly highlighting the areas of possible extensions,	beneath the Bowdens Silver Deposit. Drilling is on-going with further
	including the main geological interpretations and future drilling	results pending.
	_areas, provided this information is not commercially sensitive. _

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