SILVER MINES LIMITED — Capital/Financing Update 2021

Mar 30, 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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31[st] March 2021

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

Completion of Sale of Webbs and Conrad Projects

Silver Mines Limited (ASX:SVL) (“Silver Mines”) is pleased to announce the sale of the Webbs and Conrad Projects (“Sale”) to Thomson Resources Limited (ASX:TMZ) (“Thomson Resources”) has been completed.

The consideration for the Sale comprised the following;

• (a) non-refundable payment of A$800,000 paid to Silver Mines comprising $50,000 on the signing of the initial term sheet and $750,000 on the signing of binding agreements (both paid);

• (b) a payment equivalent to the cash rehabilitation bonds in place at completion and the replacement of any non-cash rehabilitation bonds totaling $269,000 (paid);

• (c) share consideration of 70 million fully paid ordinary shares and 50 million options in Thomson Resources of which;

• (i) 35 million shares have been issued to Silver Mines (“Tranche 1”);

• (ii) 35 million shares have been issued to Silver Mines with a 6-month voluntary escrow) (“Tranche 2”);

• (iii) 50 million options issued to Silver Mines with a vesting date 6 months from the date of issue, an exercise price of $0.124 per option and an expiry date of 3 years from the date of issue (“TMZ Options”).

Each of Tranche 1, Tranche 2 and TMZ Options were subject to Thomson Resources shareholder approval which was achieved on 29[th] March 2021.

Further information can be viewed in the Thomson Resources ASX release of today’s date of 31[st] March 2021.

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

Further information:

Anthony McClure Luke Forrestal Managing Director Associate Director Silver Mines Limited M+C Partners +61 2 8316 3997 +61 411 479 144

Silver Mines Limited

ABN: 45 107 452 942

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