SILVER MINES LIMITED — Capital/Financing Update 2022

Sep 4, 2022

Level 28, 88 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[th] September 2022

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

42.9M Ounces Silver Equivalent Mineral Resource for Bowdens Underground

HIGHLIGHTS

• Maiden Mineral Resource for Bowdens Silver Underground totaling 42.9 million ounces silver equivalent.

Underground Mineral Resource Estimate at 150 g/t Eq Ag Cut-off Grade

		Ag Eq	Ag	Zn	Pb	Au	Moz
CLASS	Mt
		g/t	g/t	%	%	g/t	Ag Eq
Measured	1.55	212	139	0.82	0.73	0.10	10.6
Indicated	2.01	217	55	2.02	1.12	0.31	14.1
Inferred	2.81	202	26	2.26	0.99	0.38	18.3
Total	6.37	209	63	1.84	0.97	0.29	42.9

• 56% of tonnes in Measured and Indicated categories.

• The estimate lies directly underneath the Open Cut Mineral Resource, itself standing at 275 million ounces silver equivalent (including 97 million ounces silver equivalent Ore Reserve) currently undergoing final development approvals.

Silver Mines Limited Managing Director, Anthony McClure stated, “Since the discovery of the three zones directly under the planned open pit, the drill-out has been hugely successful. The potential for a contiguous underground operation, in addition to the planned open pit operation, has firmed significantly as we further prove this large mineral system. We will now move to the completion of the underground mining scoping study.”

Mr McClure added, “Although Mineral Resources at Bowdens now totals over 315 million ounces of silver equivalent, both the open pit and underground resource areas remain open. In addition, it is very encouraging to now see a higher tenor of gold in the system as we move south and east.”

Silver Mines Limited

ABN: 45 107 452 942

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Bowdens Silver Underground Mineral Resource

Silver Mines Limited (ASX:SVL) (“Silver Mines” or “the Company”) is pleased to provide an update of additional Mineral Resources to the existing Mineral Resource and Ore Reserve at the Bowdens Silver Project. The Project is located in central New South Wales, approximately 26 kilometres east of Mudgee.

The Bowdens Silver Underground Mineral Resource Estimate has been calculated by H&S Consultants and reported in this release in accordance with the 2012 JORC Code and Guidelines. Please refer to Tables 1, 2 and 3 and for 4 in conjunction with Appendix 1 for further details.

Table 1. Total Underground Mineral Resource Estimate at 150 g/t Silver Equivalent (Ag Eq) Cut-off Grade

		Silver Eq	Silver	Zinc	Lead	Gold	Moz	Mt
CATEGORY	Mt
		g/t	g/t	%	%	g/t	Silver Eq	%
Measured	1.55	212	139	0.82	0.73	0.10	10.6	24%
Indicated	2.01	217	54.7	2.02	1.12	0.31	14.1	32%
Inferred	2.81	202	26.1	2.26	0.99	0.38	18.3	44%
Total	6.37	209	62.5	1.84	0.97	0.29	42.9	100%

Notes: Refer to Table 2 and Appendix 1 for full details.

Bowdens’ silver equivalent: Ag Eq (g/t) = Ag (g/t) + 33.48Pb (%) + 49.61Zn (%) +80*Au (g/t) calculated from prices of US$20/oz silver, US$1.50/lb zinc, US$1.00/lb lead, US$1600/oz gold and metallurgical recoveries of 85% silver, 82% zinc and 83% lead, 85% gold estimated from test work commissioned by Silver Mines Limited.

1. Bowdens Silver Mineral Resource Estimate is reported to a 150g/t Ag Eq cut off material outside existing pits.

2. In the Company’s opinion, the silver, zinc, lead and gold included in the metal equivalent calculations have a reasonable potential to be recovered and sold.

3. Variability of summation may occur due to rounding.

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Figure 1 Plan of Drill type and mineralisation envelopes projected to surface

Silver Mines Limited

ABN: 45 107 452 942

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The Underground Mineral Resource Estimate is the result of diamond drilling of 34,942 metres completed by the Company during 2020/21 and 2021/22, in addition to drilling completed prior to this by Silver Mines, Kingsgate Consolidated and Silver Standard Australia.

The estimate was undertaken using Ordinary Kriging. Estimates were generated for silver, zinc, lead, gold and other elements along with dry bulk density.

Detailed statistical and geostatistical investigations were completed on the estimation data set. A four-pass dynamic search strategy was employed.

Each of the major stratigraphic units (Rylstone Volcanics, Coomber Formation) were estimated using separate approaches. Where fracture fill styles of mineralisation dominate (Aegean and Northwest Zones) in the Rylstone Volcanics, estimation domains were assumed to be soft and mineralisation trends were used to reflect changes in mineralisation orientation via dynamic searches. The domains were assumed to be hard for the Bundarra Zone lenses, where controls on mineralisation are dominated by stratigraphy and geology at time of mineral emplacement.

The resource model block size is 12.5 x 12.5 x 2.0m, which is half the nominal drill hole spacing of 25 x 25m in the closer drilled areas of the deposit. This is considered appropriate for Ordinary Kriging estimation. Minimum sub-block size is 6.25 x 6.25 x 1.0m in the Coomber Formation, while parent blocks were used in the Rylstone Volcanics; these block sizes are effectively the selective mining units.

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Figure 2 Bowdens Silver Deposit Underground Mineral Resource, 150g/t silver equivalent cut off (3D view looking south east).

The Underground Mineral Resource Estimate reflects the distribution of metal across the Bowdens Silver Deposit with a changing metal zonation and geometry beneath the existing Open

Silver Mines Limited

ABN: 45 107 452 942

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Cut Mineral Resources and Ore Reserves. Importantly, the Aegean and Northwest Zones both steepen to the north, while the Bundarra Zone; stacked flat lying lenses of mineralisation centred around the dacite intrusion and Gully Fault, plunge southwest with stratigraphy and continuations of dacite.

With the components of the Bowdens Silver mineral system defined by drilling and in conjunction with the recently processed 2D seismic data, there is a clear understanding of the controls to the mineralisation and this understanding highlights areas of likely extension and higher-grade mineralisation. Certainly, all three zones forming the estimate remain open with the Aegean and Northwest Zones open to the north-northwest, while the Bundarra Zone remains open to the west, south and southwest.

Gold has been estimated at the Bowdens Silver Deposit for the first time within the Bundarra Zone. The Bundarra Zone represents the highest temperature component of the Bowdens System where gold is associated with zinc, lead and minor copper. There also exists untested potential for gold over 600 metres of strike from the Bundarra Zone to near surface at Bowdens South. Drilling is currently being completed through in this area as part of optimisation work.

Significantly, this estimate highlights the additional value represented in over 59,000 ounces of gold in the Bundarra Zone. A major control to high-grade mineralisation within the Bundarra Zone, is the dacite intrusion. The Bundarra Zone remains open to the south and west, with continuations evident into the southern proposed open pits currently being drill tested for both gold and silver.

Table 2. Bowdens Underground Mineral Resource Grade-Tonnage Data by Silver Equivalent (Ag Eq) Cut-off Grade.

Silver Eq	Tonnes	Silver Eq	Silver	Zinc	Lead	Gold	Silver Eq
Cut-off
	Mt	g/t	g/t	%	%	g/t	**Moz **
100	20.9	147	44	1.29	0.67	0.20	98.9
110	16.2	159	48	1.39	0.73	0.22	83.2
120	12.8	171	51	1.49	0.79	0.24	70.3
130	10.1	184	54	1.60	0.85	0.27	59.4
140	8.09	196	58	1.71	0.90	0.28	50.9
150	6.37	209	62	1.84	0.97	0.29	42.9
160	5.23	221	66	1.94	1.03	0.31	37.2
170	4.35	233	69	2.05	1.09	0.32	32.5
180	3.66	243	72	2.17	1.15	0.32	28.7
190	3.09	254	74	2.29	1.20	0.33	25.3
200	2.65	264	75	2.41	1.26	0.34	22.5
250	1.19	317	86	2.93	1.60	0.41	12.1
300	0.57	364	93	3.37	1.96	0.46	6.7
350	0.26	410	106	3.87	2.28	0.45	3.5
400	0.12	456	117	4.33	2.56	0.48	1.8
450	0.06	495	138	4.57	2.68	0.50	0.9
500	0.02	542	189	4.43	2.72	0.54	0.3

Silver Mines Limited ABN: 45 107 452 942

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Figure 3. Underground Mineral Resource Grade Tonnage Curve.

Underground Scoping Study

The Underground Mineral Resource Estimate will be used as part of a Scoping Study for potential underground mining scenarios.

The Scoping Study is being undertaken by;

• GR Engineering Services Limited - Project Lead and Engineering

• Entech Pty Ltd - Mine Design

• KYSPYmet - Metallurgy

• Neville Bergin - Project Management

The Scoping Study will consider potential underground mining scenarios beneath the planned open-pit development, currently in the final stages of the approval process. Although yet to be determined, a concept may be for a planned underground development to commence operations in around years 3-4 of the open-pit development to supplement plant feed with high-grade material at a rate of up to 500,000 tonnes per year. An alternative would be for an underground development at the end of the open-cut mine life.

The Scoping Study will not have any impact on the ongoing approval process for the Bowdens Silver open-pit development currently before the New South Wales Department of Planning and Environment.

Further drilling of mineralised zones is ongoing and is intended to convert higher grade portions of the deposit, extend existing resources and discover new deposits near proposed operations.

Silver Mines Limited

ABN: 45 107 452 942

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Open-Cut Mineral Resource and Ore Reserve

The Underground Mineral Resource Estimate is in addition to the Open-Cut Mineral Resource Estimate dated September 2017 and Open-Cut Ore Reserve dated May 2018 as tabled below.

Table 3. Open-Cut Mineral Resource Estimate as of September 2017

Resource Category	Tonnes (Mt)	Silver Eq. (g/t)	Silver (g/t)	Zinc (%)	Lead (% )	Contained Silver Moz	Silver Eq. Moz
Measured	76	72	45	0.37	0.25	111	175
Indicated	29	59	31	0.38	0.25	29	55
Inferred	23	60	31	0.40	0.28	23	45
Total	128	67	40	0.38	0.26	163	275

Refer to ASX release dated 19[th] September 2017 for further information on Table 3.

Table 4. Open-Cut Ore Reserve as of May 2018

Reserve Category	Tonnes	Reserve Grades	Reserve Grades	Reserve Grades	Contained Metal	Contained Metal	Contained Metal
		Silver	Zinc	Lead	Silver	Zinc	Lead
	(Mt)	(g/t)	(%)	(%)	Moz	(kt)	(kt)
Proved	28.6	69.75	0.44	0.32	64.05	125.11	91.43
Probable	1.3	53.15	0.43	0.29	2.27	5.74	3.91
Total	29.9	69.01	0.44	0.32	66.32	130.84	95.33

Refer to ASX release dated 30[th] May 2018 for further information on Table 4.

Silver Mines Limited ABN: 45 107 452 942

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Mineral Resources – Other Material Information Summary

A summary of other material information pursuant to ASX Listing Rules 5.8 is provided below for the additional Bowdens Silver Underground Mineral Resource Estimate. The Assessment and Reporting Criteria in accordance with the 2012 JORC Code and Guidelines are presented in Appendix 1 to this announcement.

Geology and Geological Interpretation

The Bowdens Silver Project is situated on the north-eastern margin of the Lachlan Fold Belt. The deposit is hosted within the flat-lying middle Carboniferous Rylstone Volcanics and extends through the Ordovician Coomber Formation mafic-derived sediments. The Rylstone Volcanics are partially overlain by a sequence of post-mineralisation marine sediments of the Sydney Basin (Shoalhaven Group). The Rylstone Volcanics range from 10 to 200 metres thick and are dominated by silica-rich volcanically derived rocks. The silver dominant mineralisation is associated with sulphides of iron, arsenic, lead and zinc and is hosted predominantly within flow banded rhyolite and rhyolite breccia, ignimbrites, and tuffs of the Rylstone Volcanics. The zinc dominant mineralisation in Bundarra occurs as stacked, flat-lying to moderately dipping zones of veins, breccias and fracture-fill sulphides associated with zinc, iron, lead, silver and gold within siltstones, shales and sandstones of the Coomber Formation.

Sampling and Sub-Sampling Techniques

The Underground Mineral Resource Estimate is the result of diamond drilling and core sampling of 34,942 metres completed by Silver Mines during 2020/21 and 2021/22, in addition to drilling and sampling completed prior to this by Silver Mines, Kingsgate Consolidated and Silver Standard Australia. Drilling has been completed on a nominal 50 metre (northing) 50 metre (easting) spacing. Sampling has typically been undertaken on 1 metre intervals.

Drilling Techniques

The drilling used for the resource estimation includes diamond drilling with diameter of NQ (47.6mm), HQ3 (61.1mm) and with PQ3 (83mm) for the upper sections of holes. Core orientations were completed using REFLEX ACT tools.

Sample Analysis Method

For pre-Kingsgate Consolidated drilling, samples were analysed by acid digestion and AA or ICP determination. Since Kingsgate’s era, samples have been analysed by a 4-acid digest with a multi-element ICP-AES determination.

Estimation Methodology

All attributes for this estimate were estimated by Ordinary Kriging (‘OK’). OK Estimates were generated for silver (Ag), zinc (Zn), lead (Pb), gold (Au), copper (Cu), iron (Fe), arsenic (As), antimony (Sb), manganese (Mn), sulphur (S), cadmium (Cd), vanadium (V), calcium (Ca), sodium (Na) and potassium (K) along with dry bulk density.

Detailed statistical and geostatistical investigations were completed on the estimation data set. A four-pass dynamic search strategy was employed.

Each of the major stratigraphic units (Rylstone Volcanics, Coomber Formation) were estimated using separate approaches. Where fracture fill styles of mineralisation dominate (Aegean and Northwest Zones) in the Rylstone Volcanics, estimation domains were assumed to be soft and mineralisation trends were used to reflect changes in mineralisation orientation via dynamic searches. The domains were assumed to be hard for the Bundarra Zone lenses, where controls on mineralisation are dominated by stratigraphy and geology at time of mineral emplacement.

Silver Mines Limited

ABN: 45 107 452 942

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The resource model block size is 12.5 x 12.5 x 2.0m, which is half the nominal drill hole spacing of 25 x 25m in the better drilled areas of the deposit. This is considered appropriate for OK estimation. Minimum sub-block size is 6.25 x 6.25 x 1.0m in the Coomber Formation, while parent blocks were used in the Rylstone Volcanics; these block sizes are effectively the selective mining units.

Classification Criteria

The classification scheme is based on the estimation search pass for silver. This scheme is considered to take appropriate account of all relevant factors, including the relative confidence in tonnage and grade estimates, confidence in the continuity of geology and metal values, and the quality, quantity, and distribution of the data.

The classification appropriately reflects the Competent Person’s view of the deposit.

Specifically:

• Measured Resources are effectively based on a nominal sample spacing of 35 x 35m

• Indicated Resources are based on a spacing of 70 x 70m

• Inferred Resources are based on a spacing of 140 x 140m

Cut-off Grades

The cut-off grade is a silver equivalent (Ag Eq) value, based on grades and recoveries for silver, zinc, lead and gold as shown below.

Metal	Unit	Price (USD)	Recovery
Silver (Ag)	Ounce (oz)	$20.00	85%
Zinc (Zn)	Pound (lb)	$1.50	82%
Lead (Pb)	Pound (lb)	$1.00	83%
Gold (Au)	Ounce (oz)	$1600	85%

The equivalent silver formula is: Ag Eq (g/t) = Ag (g/t) + 33.48Pb (%) + 49.61Zn (%) + 80*Au(g/t)

The adopted cut-off grade of 150 g/t silver equivalent is considered by the Company likely to be economic for the mining method and scale of operation envisioned using a mix of mining methods with room and pillar to jumbo development.

Mining and Metallurgical Methods and Parameters and other modifying factors considered

to date.

The Company has engaged with Entech Pty Ltd to scope potential mine design scenarios and GR Engineering Services Limited to co-ordinate process plant flowsheet and design criteria. KYSPYmet has been engaged to assess metallurgical recoveries of the respective zones.

Minimum widths of 3 metres were estimated to minimise external mining dilution in the Bundarra Zone. The Aegean and Northwest Zone estimates factored in likely dilution from potential mining methods by using unconstrained estimation methods. There has been considerable previous metallurgical test work completed for the Bowdens Silver deposit. Test work to date has informed the stated recoveries in this Estimate.

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 (Figure 4). The recently consolidated project area comprises 1,654 km[2] (408,000 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 boasts outstanding logistics for future mine development.

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Figure 4. Bowdens Silver 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

Christina Gardner Account Director M+C Partners +61 438 117 286

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 Dr Darren Holden who is an advisor to the company. Dr Holden is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) 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.

The information in this report that relates to Mineral Resources is based on work compiled by Mr Arnold van der Heyden who is a Director of H & S Consultants Pty Ltd. Mr van der Heyden is a member and Chartered Professional (Geology) of the Australian 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). Mr van der Heyden consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.

Silver Mines Limited

ABN: 45 107 452 942

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APPENDIX 1:JORC Code, 2012 Edition – ANNEXURE 1

Section 1 Sampling Techniques and Data

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

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sampling techniques	•	Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments,	• •	Resources were estimated from RC and diamond core sampling. Results from exploratory RAB and Aircore drilling were not included in the resource dataset.
		etc). These examples should not be taken as limiting the broad meaning of	•	For pre-Kingsgate drilling, RC holes were generally sub-sampled by riffle splitting, or
		sampling.		spear or grab sampling for rare wet samples and diamond core was halved with a
	•	Include reference to measures taken to ensure sample representivity and the		diamond saw. Samples were analysed by several accredited commercial laboratories
		appropriate calibration of any measurement tools or systems used.		by either 3, 4 or aqua-regia acid digestion and AA or ICP determination. Quality control
	•	Aspects of the determination of mineralisation that are Material to the Public Report.		measures included use of standards, blanks, field duplicates and external laboratory
	•	In cases where ‘industry standard’ work has been done this would be relatively		checks by a variety of methods including neutron activation
		simple (e.g. ‘reverse circulation drilling was used to obtain 1m samples from which	•	For Kingsgate and Silver Mines drilling, RC holes were sub-sampled by cyclone
		3kg was pulverised to produce a 30g charge for fire assay.’) In other cases, more		mounted cone splitters and diamond core was either halved or quartered with a
		explanation may be required such as where there is coarse gold that has inherent		diamond saw to provide representative assay sub-samples. The samples were
		sampling problems. Unusual commodities or mineralisation types (e.g. submarine		analysed for a suite of elements including silver, lead and zinc by multi-acid digest with
		nodules) may warrant disclosure of detailed information.		ICPAES determination. Measures taken to ensure the sample representivity included
				routine monitoring of sample recovery, RC field duplicates, and comparison of assay
				grades from closely spaced drill holes of different phases and types. Assay quality
				control measures included field duplicates, coarse blanks and reference standards. The
				available QAQC data demonstrate that the sampling and assaying are of appropriate
				quality for use in the current estimate.
Drilling techniques	•	Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by	• • •	Diamond core diameters are nominally either PQ, HQ or NQ. Selected diamond core prior to Silver Mines was orientated by conventional spear. Silver Mines diamond core was oriented using Reflex ACT orientation tools.
		what method, etc).	•	RC drilling was completed using face sampling hammers.
Drill sample recovery	• •	Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of	• •	Core recovery is estimated at greater than 95%. Some zones (less than 10%) were broken core with occasional clay zones where some sample loss may have occurred. However, this is not considered to have materially
		the samples.		affected the results.
	•	Whether a relationship exists between sample recovery and grade and whether	•	RC samples are weighed for each metre and assessed for recovery, contamination and
		sample bias may have occurred due to preferential loss/gain of fine/coarse material.		effect of water if present.
			•	No significant relationship between sample recovery and grade exists.
Logging	•	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining	•	All diamond holes are logged using lithology, alteration, veining, mineralization and structure including geotechnical structure.

Silver Mines Limited

ABN: 45 107 452 942

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		studies and metallurgical studies.	•	RC chip samples are logged using lithology, alteration, veining and mineralization.
	•	Whether logging is qualitative or quantitative in nature. Core (or costean, channel,	•	All core and chip trays are photographed using both wet and dry photography.
		etc) photography.	•	In all cases the entire hole is logged by a geologist.
	•	_The total length and percentage of the relevant intersections logged. _
Sub-sampling techniques	• •	If core, whether cut or sawn and whether quarter, half or all core were taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.	• •	Minor selective sub-sampling based on geology to a maximum size of 1.3m and a minimum of 0.3m. Pre-Kingsgate RC holes were sampled over one to two metre intervals with sub-
and sample preparation	• •	For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise		samples generally collected by riffle splitting, or spear or grab sampling for rare wet samples. Un-mineralised samples were composited over intervals of up to five metres for assaying. Diamond core was halved with a diamond saw with samples collected
		representivity of samples.		over intervals ranging from 0.2 to 5.0 metres and averaging 1.0 metre.
	•	Measures taken to ensure that the sampling is representative of the in situ material	•	Kingsgate’s RC drilling was sampled over one metre intervals and sub-sampled by
		collected, including for instance, results for field duplicate/second-half sampling.		cyclone mounted cone splitters. The majority of these samples (97%) were dry with wet
	•	Whether sample sizes are appropriate to the grain size of the material being sampled.		samples generally coming from deeper drilling testing Inferred portions of the estimated resources. Kingsgate’s diamond core was sampled over lengths ranging from 0.3 to 2.2 with around 92% of samples representing one metre lengths. Core was either halved or
				more commonly quartered with a diamond saw to provide assay sub-samples.
			•	Silver Mines RC samples are collected from a cone splitter at a 6% split. The
				cyclone/splitter system is checked periodically throughout each hole and cleaned when
				necessary. To assess the representation of material sampled a duplicate 6% split
				sample is collected from a secondary -sample chute on the opposite side of the rotary
				cone splitter at the rate of 1/20.
			•	Silver Mines core is cut using a Corewise core saw over lengths ranging from 0.5 to
				1.5m with the majority of samples representing one metre lengths with core rotated 10
				degrees to the orientation line to preserve the orientation for future reference. The half
				(NQ & HQ) or quarter (PQ) of the core without the orientation line is removed, bagged
				and sent to the laboratory for assay.
			•	Sample sizes are considered appropriate for the rock type, style of mineralisation, the
				thickness and consistency of the intersections and assay ranges expected at Bowdens.
Quality of assay data	• •	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the	•	Samples from all drilling phases were sent to commercial laboratories for preparation and analysis. No geophysical methods or hand-held XRF devices have been used for resource estimation.
and laboratory tests	•	parameters used in determining the analysis including instrument make and model, reading times, calibration factors applied and their derivation, etc. Nature of quality control procedures adopted (e.g. standards, blanks, duplicates,	•	Samples from pre Kingsgate drilling were analysed by several accredited commercial laboratories by either 3, 4 or aqua-regia acid digestion and AA or ICP determination. Quality control measures included use of standards, blanks, field duplicates and
		external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of		external laboratory checks by a variety of methods including neutron activation
		bias) and precision have been established.		assaying.
			•	Kingsgate’s samples were analysed by ALS in Orange, NSW. After oven drying, and
				jaw crushing for core samples, the samples were pulverised to nominally 85% passing
				75 microns and 25 gram sub-samples digested by multi-acid digest and analysed by
				ICPAES for a suite of elements including silver, lead and zinc. Quality control measures
				included field duplicates, coarse blanks and reference standards.
			•	Silver Mines samples were dispatched to ALS Global laboratories in Orange. At ALS
				the samples were pulverised to nominally 85% passing 75 microns with subsequent 4
				acid digest and 33multi-element analysis completed atALSBrisbane usingmethod

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ABN: 45 107 452 942

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				ME-ICP61 and 4 acid digest and 38 multi-element analysis at SGS Townsville using
				method DIG41Q.
			•	Site Standards are inserted every 20 samples to check quality control and laboratory
				standards and blanks every 25 samples to further check results.
Verification of	•	The verification of significant intersections by either independent or alternative	•	Significant intersections calculated by site-geologists and verified by an independent
sampling and	•	company personnel. The use of twinned holes.	•	geological consultant. Several independent authors reviewed pre-Silver Mines sampling data during
assaying	•	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	•	preparation of previous resource estimates. Both Silver Mines and Kingsgate’s sampling, logging and survey data were
	•	Discuss any adjustment to assay data.		electronically merged into a central database directly from original source files using
				Logchief field software and imported into an SQL database in accordance with
				database protocols and manuals. Data was viewed and interpreted using Leapfrog and
				Micromine software.
			•	Grade cutting was applied to the assay data for resource estimation where assay
				populations coefficient of variation (CV) were unsuitably high for OK Kriging.
Location of	•	Accuracy and quality of surveys used to locate drill holes (collar and down-hole	•	Accredited surveyors using high accuracy DGPS surveys accurately surveyed all
data points		surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	•	resource drill hole collars. Pre-Kingsgate holes were down-hole surveyed by single shot cameras. Kingsgate’s
	•	Specification of the grid system used.		drilling was surveyed by either Reflex EZ-shot or Eastman camera. Silver Mines drilling
	•	Quality and adequacy of topographic control.		was surveyed by a Reflex EZ-shot electronic camera at 30m intervals down hole.
			•	The terrain includes steep hills and ridges and with a LIDAR topographical model of
				0.034 metre accuracy.
			•	All collars recorded in MGA94 zone 55
Data spacing and	• •	Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore	• •	This drilling is designed as both infill and extensional to the overall mineral resource envelope. The nominal drill hole spacing is 50m (northing) by 50m (easting). Hole spacing varies from around 50 by 50 m and locally closer parts of the higher
distribution		Reserve estimation procedure(s) and classifications applied.		grade ore zones to more than 100 by 100 m in peripheral areas.
	•	Whether sample compositing has been applied.	•	The majority of holes were either orientated near vertically or northerly traversing
				mineralisation and easterly across regional structures..
			•	The data spacing and distribution establishes geological and grade continuity
				adequately for the current resource estimates.
Orientation of	•	Whether the orientation of sampling achieves unbiased sampling of possible	•	Drill orientation was designed to intersect the projection of breccia zones and zones of
data in relation	•	structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key	•	veins within an overall mineralized envelope. An interpretation of the mineralization has indicated that no sampling bias has been
to geological structure		mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.		introduced.
Sample security	•	The measures taken to ensure sample security.	•	All samples bagged on site under the supervision of two senior geologists with sample bags tied with cable ties before being driven by site personnel to the independent laboratory or sample pickup by the independent laboratory.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Audits or	•	The results of any audits or reviews of sampling techniques and data.	•	Pre-Kingsgate sampling techniques and data have been reviewed previously by
reviews				renowned external geological consultants and most recently by Silver Mines geoscience staff.
			•	Kingsgate sampling techniques and data have been reviewed by several external
				geological consultants including MPR and AMC.
			•	Silver Mines sampling techniques and data have been independently reviewed by a
				number of external geological consultants including AMC, GeoSpy and H&S.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Mineral	•	Type, reference name/number, location and ownership including agreements or	•	The Bowdens Resource is located wholly within Exploration Licence No EL5920, held
tenement and		material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and		wholly by Silver Mines Limited and is located approximately 26 kilometres east of Mudgee, New South Wales.
land tenure		environmental settings.	•	The tenement is in good standing.
status	•	The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	•	The project has a 2.0% Net Smelter Royalty which reduces to 1.0% after the payment of US$5 million over 100% of the EL5920.
			•	The project has a 0.85% Gross Royalty over 100% of EL5920.
Exploration done by other	•	Acknowledgment and appraisal of exploration by other parties.	•	The Bowdens project was previously managed by Kingsgate Consolidated, Silver Standard Ltd, Golden Shamrock Mines and CRAE. The new results under this table draw on work from the previous owners.
parties
Geology	•	Deposit type, geological setting and style of mineralisation.	•	The Bowdens Deposit is a low to intermediate sulphidation epithermal base-metal and silver system hosted in Carboniferous aged Volcanic rocks and Ordovician aged
				sediments.
			•	Mineralisation includes veins, breccias and fracture fill veins within tuff and ignimbrite
				rocks, and semi massive veins, breccias and fracture fill in siltstone, shale and
				sandstone.
			•	Mineralisation is overall shallowly dipping (~15 degrees to the north) with high-grade
				zones preferentially following a volcanic intrusion. There are several vein orientations
				within the broader mineralized zones including some areas of stock-work veins.
Drill hole	•	A summary of all information material to the understanding of the exploration results	•	Not applicable as there are no exploration results reported as part of this statement.
Information		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

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		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, maximum and/or	•	This release is in relation to a Mineral Resource Estimate with no exploration results
aggregation		minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.		being reported.
methods	•	Where aggregate intercepts incorporate short lengths of high grade results and
		longer lengths of low grade results, the procedure used for such aggregation should
		be stated and some typical examples of such aggregations should be shown in
		detail.
	•	The assumptions used for any reporting of metal equivalent values should be clearly
		_stated. _
Relationship between	• •	These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.	•	Mineralisation is both stratabound and vein hosted. The stratigraphy dips moderately to the north in the Aegean and Northwest zones, while the majority of mineralised veins dip west. In Bundarra the mineralization is also stratbound and vein hosted dipping
mineralisation	•	If it is not known and only the down hole lengths are reported, there should be a		moderately to the Southwest
widths and		clear statement to this effect (e.g. ‘down hole length, true width not known’).	•	The majority of holes have been drilled angled -60° to -80° to the north and east with occasional angled vertically.
intercept
lengths
Diagrams	•	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not	•	Maps and cross-sections provided in the body of this report.
		be limited to, a plan view of drill hole collar locations and appropriate sectional
		_views. _
Balanced	•	Where comprehensive reporting of all Exploration Results is not practicable,	•	Not applicable as there are no exploration results reported as part of this statement.
reporting		representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.
Other	•	Other exploration data, if meaningful and material, should be reported including but	•	The Bowdens diamond holes were also utilised for bulk density measurements.
substantive		not limited to: geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test		Geotechnical logging has determined suitable ground conditions underground mining.
exploration data		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 extensions or	•	Further drilling is ongoing bother laterally and up and down dip to the estimated zones.
		depth extensions or large-scale step-out drilling).
	•	Diagrams clearly highlighting the areas of possible extensions, including the main
		geological interpretations and future drilling areas, provided this information is not
		commercially sensitive.

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Section 3 Estimation and Reporting of Mineral Resources

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

Criteria	JORC Code explanation	Commentary
Database	• Measures taken to ensure that data has not been corrupted by, for example,	All geological data is stored electronically with limited automatic validation prior to upload
integrity	transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.	into the secure DataShed database, managed in the on-site office by the Database Geologist. The master drill hole database is located on a SQL server, which is backed up
	• Data validation procedures used.	on a daily basis.
		Basic checks were performed prior to this resource estimate to ensure data consistency,
		including checks for FROM_TO interval errors, missing or duplicate collar surveys, excessive
		down hole deviation, and extreme or unusual assay values.
		All data errors/issues were reported to the Database Geologist to be corrected or flagged in
		the primary DataShed database.
Site visits	• Comment on any site visits undertaken by the Competent Person and the outcome	The Competent Person has visited the Bowdens project site on two occasions: for 2 days in
	of those visits.	late January 2022 and over a 2 week period in late July and early August 2017. During these
	• If no site visits have been undertaken indicate why this is the case.	visits, core samples and outcrops were examined, and discussion were held with SVL
		personnel about the geology and mineralisation of the deposit. The Competent Person
		concludes that data collection and management were being performed in a professional
		manner.
Geological interpretation	• Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit. • Nature of the data used and of any assumptions made.	SVL has developed a geological interpretation of the Bowdens deposit based on geological logging and chemical assays. SVL personnel have a good understanding of the geology of the Bowdens deposit, and this is reflected in the wireframe models they prepared, which form
	• The effect, if any, of alternative interpretations on Mineral Resource estimation.	a solid framework for mineral resource estimation.
	• The use of geology in guiding and controlling Mineral Resource estimation. • The factors affecting continuity both of grade and geology.	SVL has interpreted a series of the mineralised horizons or lenses in the Rylstone Volcanics and the underlying Coomber Formation, which have an average intersection length of 2.90m
		in the Rylstone and 6.25m in the Coomber. The Rylstone Mineralised Horizons (RMHs) are
		typically silver rich, while the Bundarra lenses in the Coomber Formation are primarily base
		metal (lead-zinc) dominant. The seven RMHs are thought to represent paleo-boiling horizons
		and can be quite discontinuous with numerous gaps and embayments, while the six Bundarra
		lenses appear to be stratabound and are reasonably continuous spatially. The mineralisation
		is generally shallow dipping, with the RMHs dipping around 12°>330°, while the Bundarra
		lenses typically dip 15°>180°.
		There is some scope for alternative geological interpretations of the deposit, principally in the
		correlation of intersections that comprise the different mineralised horizons or lenses. While
		this could affect estimates locally, it appears unlikely to have a significant impact on the global
		Mineral Resource Estimate.
		Geology guides and controls Mineral Resource estimation by constraining mineralisation to
		specific horizons or lenses, while the eastern edge of mineralisation is truncated by the
		Eastern fault.

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Criteria	JORC Code explanation	Commentary
		The continuity of geology at Bowdens is controlled by stratigraphy and faulting. Continuity of
		grade has a weak stratigraphic control and is primarily controlled by local fracturing; faulting
		also appears to act as a broad control on localising mineralisation.
Dimensions	• The extent and variability of the Mineral Resource expressed as length (along strike	The underground Mineral Resources at Bowdens occur below the current pit shell, and have
	or otherwise), plan width, and depth below surface to the upper and lower limits of	an approximate extent of:
	the Mineral Resource.
		• 900m east-west,
		• 1,000m north-south,
		• From 40 to 550m below surface,
		• Mineralisationtypically occurs asnarrowdiscontinuouslenses.
Estimation and	• The nature and appropriateness of the estimation technique(s) applied and key	Samples were composited to nominal 1.0m intervals within each unit for data analysis and
modelling techniques	assumptions, including treatment of extreme grade values, domaining, interpolation parameters, maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used. • The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of	resource estimation, reflecting the thin mineralised lenses. All attributes were estimated by ordinary kriging (OK), with estimates generated for Ag, Pb, Zn, Au, Cu, Fe, As, Sb, Mn, S, Cd, V, Ca, Na, K and dry bulk density. OK is considered appropriate because the coefficients of variation (CV=SD/mean) are generally low to moderate, and the grades are reasonably well structured spatially.
	such data.	OK estimates were produced in Datamine software, with variography generated using GS3
	• The assumptions made regarding recovery of by-products.	software.
	• Estimation of deleterious elements or other non-grade variables of economic significance (e.g. sulphur for acid mine drainage characterisation). • In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed. • Any assumptions behind modelling of selective mining units. • Any assumptions about correlation between variables. • Description of how the geological interpretation was used to control the resource estimates.	The Bundarra lenses are considered to be more robust stratabound units and therefore a hard boundary model was considered appropriate, with a minimum thickness requirement of 3.0m. The RMHs are thinner and more subjective, so a soft boundary approach was considered more suitable in this case, to better account for the uncertainty in their interpretation. The contact between the Coomber and Rylstone was treated as a hard boundary. Dynamic interpolation was implemented to reflect the local orientation of mineralisation.
	• Discussion of basis for using or not using grade cutting or capping.	A four pass search strategy was used for the OK grade estimates:
	• The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.	1. 35x35x5m search, 8-24 samples, minimum of 4 octants informed 2. 70x70x10m search, 8-24 samples, minimum of 4 octants informed
		3. 140x140x20m search, 8-24 samples, minimum of 4 octants informed
		4. 140x140x20m search, 6-24 samples, minimum of 2 octants informed
		The maximum extrapolation distance will be close to the maximum search radius of 140m.
		No assumptions were made regarding the correlation of variables during estimation because
		each element was estimated independently. Some elements do show moderate to strong
		correlation in the drill hole samples, and the similarity in variogram models effectively
		guarantees that this correlation will be preserved in the estimates.
		A number potentially deleterious elements have been estimated, including As, Sb and S.
		Dry bulk density was estimated directly into the model from the drill hole samples for the
		Rylstone Volcanics, using a similar methodology to the other elements.

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Criteria	JORC Code explanation	Commentary
		The resource model block size is 12.5x12.5x2.0m, which is half the nominal drill hole spacing
		of 25x25m in the better drilled areas of the deposit. This is considered appropriate for OK
		estimation. Minimum sub-block size is 6.25x6.25x1.0m in the Coomber, while only parent
		blocks were used in the Rylstone; these block sizes are effectively the selective mining units.
		The current resource model uses GDA (Geocentric Datum of Australia) grid coordinates.
		The geological interpretation controls the Mineral Resource estimates by constraining
		mineralisation to specific horizons or lenses, while the eastern edge of mineralisation is
		truncated by the Eastern fault. Dynamic interpolation reflects the local orientation of
		mineralisation.
		The new model was validated in a number of ways – visual comparison of block and drill hole
		grades, statistical analysis, examination of grade-tonnage data, and comparison with
		previous models. All the validation checks indicate that the grade estimates are reasonable
		when compared to the composite grades, allowing for data clustering.
		Minimal top cutting was applied to the elements with more skewed grade distributions.
		Grades were cut at around the 99.95th percentile in the Coomber and at similar levels in the
		Rylstone.
		The new Mineral Resource estimate is compatible with, although larger than, previous in-
		house estimates due to additional drilling and assays. This indicates that the new Mineral
		Resource estimate takes appropriate account of previous estimates. The deposit remains
		unmined so there is no reconciliation data.
Moisture	• Whether the tonnages are estimated on a dry basis or with natural moisture, and the	Tonnages are estimated on a dry weight basis. Moisture content has been determined for
	method of determination of the moisture content.	some of the density samples, by comparing sample weights before and after oven drying.
Cut-off	• The basis of the adopted cut-off grade(s) or quality parameters applied.	The cut-off grade is an equivalent Ag (EqAg) value, based on grades and recoveries for Ag,
parameters		Pb, Zn and Au as shown below. The equivalent silver formula is: EqAg = Ag +Pb x 33.48 + Zn x 49.61 + Au x 80.0
		Metal Price/Unit Recovery
		Ag US$ 20/oz 85%
		Pb US$ 1.0/lb 83%
		Zn US$ 1.5/lb 82%
		Au US$1,600/oz 85%
		The cut-off grade of 150 g/t Eq Ag is considered likely to economic for the mining method
		and scale of operation envisioned for Bowdens, based on preliminary mining studies.
Mining factors or assumptions	• Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It may not always be possible to make assumptions regarding mining methods and parameters when estimating Mineral Resources. Where no assumptions have been made, this should be reported.	Underground mining is planned for the deeper parts of the Bowdens deposit. The estimates implicitly incorporate internal mining dilution at the scale of the assumed SMU. Estimates in the Rylstone are unconstrained, so include some external mining dilution in the Mineral Resource estimates, while a minimum thickness of 3.0m was imposed for the Bundarra lenses.

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Criteria		JORC Code explanation	Commentary
Metallurgical factors assumptions	or	• The basis for assumptions or predictions regarding metallurgical amenability. It may not always be possible to make assumptions regarding metallurgical treatment processes and parameters when reporting Mineral Resources. Where no assumptions have been made, this should be reported.	The recoveries for each metal are based on available metallurgical test work. It is assumed that sulphide ore will be treated by conventional froth flotation to produce a bulk Ag-Pb-Zn concentrate. Gold may also be recovered by gravity concentration.
Environmental factors or		• Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects	It is currently assumed that all process residue and waste rock disposal will take place on site in purpose built and licensed facilities.
assumptions		for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not	All waste rock and process residue disposal will be done in a responsible manner and in accordance with any mining license conditions.
		always be well advanced, the status of early consideration of these potential
		environmental impacts should be reported. Where these aspects have not been
		considered this should be reported with an explanation of the environmental
		_assumptions made. _
Bulk density		• Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of	Dry bulk density is measured on-site using an immersion method (Archimedes principle) on selected core intervals for nominal 10cm samples. The Bowdens database contains 4,457 of
		the measurements, the nature, size and representativeness of the samples.	these measurements in 160 drill holes. There are also a number of density measurements
			derived from weighing trays of core – this information confirms the immersion method results.
			Samples are weighed before and after oven drying overnight at 110ºC to determine dry
			weight and moisture content.
Classification		• The basis for the classification of the Mineral Resources into varying confidence	The classification scheme is based on the estimation search pass for Ag; Pass 1 = Measured,
		categories.	Pass 2 = Indicated and Passes 3 & 4 = Inferred.
		• Whether appropriate account has been taken of all relevant factors (i.e., relative confidence in tonnage/grade estimations, confidence in continuity of geology and metal values, quality, quantity and distribution of the data). • Whether the result appropriately reflects the Competent Person’s view of the deposit.	This scheme is considered to take appropriate account of all relevant factors, including the relative confidence in tonnage and grade estimates, confidence in the continuity of geology and metal values, and the quality, quantity and distribution of the data.
			The classification appropriately reflects the Competent Person’s view of the deposit.
Audits	or	• The results of any audits or reviews of Mineral Resource estimates.	This Mineral Resource estimate has been reviewed by SVL personnel and no material issues
reviews			were identified.
Discussion	of	• Where appropriate a statement of the relative accuracy and confidence level in the	The relative accuracy and confidence level in the Mineral Resource estimates are considered
relative accuracy/		Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence	to be in line with the generally accepted accuracy and confidence of the nominated JORC Mineral Resource categories. This has been determined on a qualitative, rather than quantitative, basis, and is based on the estimator’s experience with a number of similar
confidence		limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.	deposits elsewhere. The main factor that affects the relative accuracy and confidence of the Mineral Resource estimate is drill hole spacing, because there are no strong geological
		• The statement should specify whether it relates to global or local estimates, and, if	controls on the primary mineralisation.
		local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used. • These statements of relative accuracy and confidence of the estimate should be	The estimates are local, in the sense that they are localised to model blocks of a size considered appropriate for local grade estimation. The tonnages relevant to technical and economic analysis are those classified as Measured and Indicated Mineral Resources.
		compared with production data, where available.	No production data is available as this deposit has not been previously mined.

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