SILVER MINES LIMITED — Interim / Quarterly Report 2022

Oct 28, 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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29[th] October 2021

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

ACTIVITIES REPORT FOR THE QUARTER ENDED

30[th] September 2021

HIGHLIGHTS

Bowdens Silver Project, New South Wales

• Final stages for the approvals for the Bowdens Silver Project open-cut mine development.

• The Company received no objections to the Project from any of the Government agency regulators and received resounding public support for the Project.

Bowdens Silver Expanded Exploration Program

• A 30,000 metre program continues with four rigs operational on site, the largest exploration campaign at Bowdens Silver in four years.

• Recent drilling at the Northwest Zone, the Aegean Zone and the Bundara Zone has demonstrated considerable high-grade potential immediately beneath the current designed open-pit Ore Reserve. These high-grade drill results include:

• 8.3 metres @ 354 g/t silver equivalent (276 g/t silver, 2.15% lead, 0.10% zinc and 0.31 g/t gold) from 263 metres in BD21006.

• 13.0 metres @ 264 g/t silver equivalent (188 g/t silver, 1.66% lead, 0.40% zinc) from 207 metres in BD21011.

• 4.0 metres @ 980 g/t silver from 311 metres in BD21014.

• 6.0 metres @ 382 g/t silver equivalent (349 g/t silver, 0.16% zinc and 0.75% lead) from 191m in BD21021.

Bowdens Silver Underground Mining Scoping Study

• With ongoing outstanding drilling success, a Scoping Study for potential underground mining scenarios at Bowdens Silver has commenced in parallel with high-grade mineral resource estimation.

Silver Mines Limited

ABN: 45 107 452 942

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Silver Mines Limited COVID-19 Response

During the September 2021 quarter, Silver Mines Limited (ASX:SVL) (“Silver Mines” or “the Company”) continued to carry out measures in response to the impact of the COVID-19 pandemic. The Company’s priorities are to protect the health and safety of our staff, contractors and local communities, while maintaining the integrity of our business.

The Company adheres to the directives from Federal and State Government and has put in place comprehensive COVID-19 Policies and Procedures. This has allowed our current operations to continue safely and with minimal interruption.

Bowdens Silver Project

The Bowdens Silver Project is the largest undeveloped silver deposit in Australia and lies within Exploration Licence 5920, which is 100% held by the Company. The Project is located in central New South Wales, approximately 26 kilometres east of Mudgee.

In May 2020, the Company completed and submitted the Bowdens Silver Development Application and associated Environmental Impact Statement (“EIS”) to the New South Wales Department of Planning, Industry and Environment (“DPIE”). In March 2021, the Company announced the submission of its Mining Lease Application (“MLA 601”).

The proposed development comprises an open-cut mine feeding a new processing plant with a conventional milling circuit and differential flotation to produce two concentrates that will be sold for smelting off site.

Plant capacity is designed for 2.0 million tonnes per annum with a mine life of 16.5 years. Life of mine production is planned to be approximately 66 million ounces of silver, 130,000 tonnes of zinc and 95,000 tonnes of lead.

The EIS was placed on an eight-week public exhibition which concluded during the September 2020 quarter. At the end of the June quarter 2021, the Company submitted its Submissions Report to DPIE.

From the exhibition process, the Company received no objections to the Project from any of the Government agencies and received resounding public support with 79% of all public organisations and general public submissions in favour of the Project (of a total of 1,909 submissions). The Company is not aware of a proposed mining Project in recent times in New South Wales that has received this level of support.

The Submissions and Submissions Report may be viewed at the DPIE Major Projects website at https://www.planningportal.nsw.gov.au/major-projects/project/9641.

The Project is currently in the final stages of development approvals.

Silver Mines continues an extensive program of consultation with relevant Government departments, local communities, and other interested stakeholders. The program examines the potential impacts and benefits of exploration and development across the substantial Bowdens Silver tenement portfolio. Consultation processes have focused on the current potential mine development area and the wider area where the Company is commencing or undertaking exploration programs.

Silver Mines Limited

ABN: 45 107 452 942

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Bowdens Project Exploration

Introduction

During the September 2021 quarter, the Company announced its ongoing success in its exploration activities at the Bowdens Silver Project (refer to releases of 27[th] July 2021, 4[th] August 2021 and 26[th] October 2021 (released subsequent to the end of the quarter)). The exploration program has yielded exceptional high grade silver intercepts.

Diamond drilling has continued to test the potential for underground mining scenarios at the Bowdens Silver Deposit with a focus on the Northwest Zone, the Aegean Zone and the Bundarra Zone. These three zones are located beneath the bulk-tonnage Ore Reserve of the Bowdens Deposit (refer to Figure 1).

With highly successful drilling results returned, the Company decided to substantially expand drilling activity at Bowdens Silver. A 30,000 metre program commenced during the June 2021 quarter with four rigs operational on site and is likely to continue into 2022. This campaign is the largest investment in exploration undertaken by Silver Mines at Bowdens Silver in four years. The Company remains very well placed to fund its aggressive drill program with a cash balance at end of September quarter 2021 of $32.4 million.

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Figure 1. Reported drillhole locations and high-grade silver targets at the Bowdens Silver Project.

Silver Mines Limited ABN: 45 107 452 942

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Northwest 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 targeted for high-grade silver underground mining scenarios with continuation and connectivity to the Aegean Zone (refer to Figures 1 & 2). Both zones are defined as shallowly dipping zones 1 metre to 20 metres thick, extending over 450 metres east to west and continuing down plunge/dip to the northwest for at least 300 metres. This entire zone is not yet closed-off with possible extensions along the controlling faults in a north to north-westerly strike.

Mineralisation is developed in two clear horizons within the zones 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 sulphide) and galena (lead sulphide) within the welded tuff of the Rylstone Volcanics. Recent results show continued increasing width of highgrade material. Additionally, closely spaced wedge drilling for Mineral Resource estimation purposes confirms the lateral continuity of mineralisation.

Table 1. Significant intercept calculations from recent results from the Northwest Zone and Aegean Zone.

Hole	From	To	Interval	Silver	Zinc	Lead	Gold	Silver Eq
	(m)	(m)	(m)	(g/t)	(%)	(%)	(g/t)	(g/t)1
BD21006	212	214	2	145.5	3.43	3.80	-	4421
	222	223	1	229	0.37	0.79	-	274
	255	260	5.0	220	0.15	0.26	-	237
	263	271.3	8.3	276.3	0.1	2.15	0.31	3542
	276	277	1	315	0.06	1.78	0.22	3772
BD21011	207	220	13	188.4	0.40	1.66	0.16	2642
BD21013	41	45	4	141	0.45	0.43	-	177
	52	57	5	122	0.39	0.35	-	154
	81	82.6	1.6	149	2.6	1.38	-	324
	220	223	3	149	0.25	1.47	-	211
	235.7	254	18.3	134	0.04	0.44	0.01	1512
Incl.	250	254	4	312	0.05	0.33	0.05	3412
	261	279.2	18.2	132	0.01	0.58	0.07	1522
Incl.	274	279.2	5.2	317	0.01	0.32	0.12	3692
BD21014	311	315	4	980	0.02	0.16	-	986
Incl.	313	315	2	1825	0.01	0.61	-	1836
Incl.	313	314	1	2360	0.01	0.19	-	2367
& incl.	314	315	1	1290	0.01	0.42	-	1305
BD21003A	306	309	3.0	678	0.01	0.03	-	679
BD21016	227	233.3	6.3	209	0.47	0.27	-	242

Silver Mines Limited

ABN: 45 107 452 942

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BD21020	292	301	9.0	207	0.00	0.09	-	211
BD21021	191	197	6.0	349	0.16	0.75	-	382
	265	266	1.0	825	0.03	0.27	-	835
BD21023	166	168	2.0	293	0.88	1.94	-	401
BD21025	322	336	14.0	240	0.07	0.61	-	264
Incl	325	326	1.0	880	0.02	0.04	-	882
&	329	330	1.0	628	0.04	0.04	-	631
BD210030	316.3	319.8	3.5	356	0.02	0.06	-	359

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. 2. 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 Ag Eq cut-off and 3 metre internal dilution factor, with highest individual assay results highlighted as included within overall intercept.

The Northwest Zone and the Aegean Zone intercepts are at similar elevations and dominantly near the welded tuff and crystal tuff contact, which steepens to the north. In this area the favourable geology, proximity to faults and zoning of alteration highlight this untested area to be an excellent target for high grade silver. Drilling is ongoing to prove the continuity between these two bodies below the Ore Reserve. This concept is illustrated in Figure 2.

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Figure 2. Looking southeast at a section 100m south of A’A showing the currently defined Northwest and Aegean Zones, both at similar elevations between which lies an untested target zone of welded tuff.

Silver Mines Limited

ABN: 45 107 452 942

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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 (higher temperature when emplaced) of the Bowdens Silver system. Anomalous gold is common in veins throughout the deeper parts of the system where mineralisation is potentially related to, or controlled by, the emplacement of the dacite intrusion into the Rylstone Volcanics and underlying Ordovician Basement sediments. A large volume beneath the dacite intrusion has not previously been drilled and this position represents a substantial target for potentially proving resources for underground mining scenarios.

Recent results have extended the zone 200 metres southeast from previous drilling (refer to releases dated 27[th] July 2021, 4[th] August 2021 and release of 26[th] October 2021 (subsequent to the end of the quarter)).

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Figure 3. Bowdens Silver Project Long Section looking east.

Table 2. 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)2
BD21007	267	273	6	35	3.6	2.87	0.6	311
BD21015	29	30	1.0	640	3.32	2.01	0.06	872
	212	213	1.0	126	2.94	4.47	1.14	422
	218	219	1.0	53	2.27	3.63	0.87	287
BD21017	221	224	3.0	44	3.18	1.92	0.15	266

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

Silver Mines Limited

ABN: 45 107 452 942

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Limited. 2. 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 Ag Eq cut-off and 3 metre internal dilution factor, with highest individual assay results highlighted as included within overall intercept.

Feeder Vein Exploration

During the September 2021 quarter, three drill holes were completed to test the depth extent of the newly identified Northern Feeder Vein (BD21005, BD21009 and BD21010) where it was modelled to intersect the basement contact and other faults, such as the Eastern Fault. The vein appears to link areas of flat lying mineralisation (typical of Bowdens Silver mineralisation) within the Rylstone Volcanic pile. Drilling targeting of feeder zones is being updated following these results.

Table 3. Significant intercept calculations from recent results from the Northern Feeder Vein drilling.

Hole	From	To	Interval	Silver	Zinc	Lead	Gold	Silver Eq
	(m)	(m)	(m)	(g/t)	(%)	(%)	(g/t)	(g/t)
BD21005	241	242	1	236	0.4	0.19	-	2621
BD21010	340.3	341	0.7	504	0.02	0.01	0.04	5051

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. 2. 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 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.

Bowdens Southern Pit Extensions

One drill hole BD21018, was completed to test an area of the deposit currently outside of the open pit Mineral Reserve. Here the Company has identified the potential for significant zones of shallow mineralisation. In this area there is an association between high-grade silver and gold, with potential similarities to the Northwest Zone where gold is also associated with silver at its core.

Mineralisation is hosted in the base of the Rylstone Volcanic sequence, within fractures in the welded tuff and crystal tuff units, and focussed at the contact between the Rylstone Volcanics and the Ordovician Basement units. Drilling to the south of this hole is sparse and shallow. As such, the Bowdens Resource remains open to the south and drilling here may convert additional Mineral Resource to Ore Reserve.

Table 4. Significant intercept calculations from recent results from the Bowdens Southern Pit drilling.

Hole	From	To	Interval	Silver	Zinc	Lead	Gold	Silver Eq
	(m)	(m)	(m)	(g/t)	(%)	(%)	(g/t)	(g/t)2
BD21018	39	48.8	9.8	180	0.14	0.06	0.31	214
	63	64	1.0	127	0.26	0.10	0.32	169
	72	73	1.0	236	0.44	0.28	0.87	337
	88	92	4.0	146	0.56	0.41	1.94	343
	98	99	1.0	54	1.14	0.98	1.75	283

Silver Mines Limited

ABN: 45 107 452 942

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	105	106	1.0	68	0.87	1.91	0.42	209
	143	144	1.0	38	1.88	0.29	0.70	197

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. 2. 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 Ag Eq 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.

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Figure 4. Bowdens Silver Southern Extensions looking north.

Expanded Program

The Company currently has four drilling rigs on-site undertaking an expanded program of 30,000 metres of diamond drilling. 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. In the south of the deposit, limited previous diamond drilling is available to inform an interpretation of vein orientations and textures and, as such, these areas will be tested for high-grade veins near surface.

The drilling to target Resources beneath the planned open pit for underground mining scenarios will continue until at least the end of 2021. Further drilling will continue into 2022 with four diamond rigs to test for system extensions to the Bowdens Silver Deposit.

Mineral Resource Assessment and Scoping Study

During the September 2021 quarter, the Company announced that due to recent outstanding drilling results from the Bowdens Silver Project a Mineral Resource assessment and Scoping Study for potential underground mining scenarios had commenced. H&S Consultants who estimated the current JORC Mineral Resource for the Bowdens Silver Project, have been

Silver Mines Limited

ABN: 45 107 452 942

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engaged to advise and undertake an assessment of high-grade silver drilling results to complete a Mineral Resource. This estimate will focus on mineralisation outside of the current open-pit Ore Reserve and will include the Northwest High-Grade Zone, the Aegean Zone and the Bundarra Zone (refer to Figure 1).

The Scoping Study commenced during the September 2021 quarter and will complete subject to the final results of the drilling program and the Mineral Resource assessment, which are scheduled to be completed late in 2021 through to early 2022.

The Scoping Study will be 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-pit mine life.

The 30,000 drilling program, the Resource Assessment and 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, Industry and Environment.

Silver Mines Limited ABN: 45 107 452 942

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Barabolar Project

During the September 2021 quarter, the Company continued desktop activities on the Barabolar Project, which is located approximately 26 kilometres east of Mudgee in central New South Wales and 10 kilometres northwest of the Company’s Bowdens Silver Project (refer to Figure 5).

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Figure 5. Barabolar Project geology with prospects.

Due to the COVID-19 pandemic the planned drilling at Barabolar had been put on-hold. However, the Barabolar Project remains a compelling target area with a considerable hydrothermal footprint, and the Company is continuing with desktop studies and application of its internal R&D technologies in this area as it plans for the recommencement of activities.

Silver Mines Limited ABN: 45 107 452 942

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About the Bowdens Silver and Barabolar Projects

The Bowdens Silver Project and Barabolar Projects are located in central New South Wales, approximately 26 kilometres east of Mudgee (see 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 and underlying sediments, intrusions and volcanics of the Macquarie Arc. Multiple target styles and mineral occurrences have potential throughout the district including analogues to Bowdens Silver, high-grade silver-lead-zinc epithermal, volcanogenic massive sulphide (VMS) systems and copper-gold targets.

Bowdens Silver is the largest undeveloped silver deposit in Australia and one of the largest globally with substantial resources and a considerable body of high-quality technical work 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.

Silver Mines Limited ABN: 45 107 452 942

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Table 5. Drill collar locations.

Target	Hole ID	GDA94 East	GDA94 North	RL (m)	Dip	Azimuth (grid)	Depth (m)	Drill Type	Comment
Northern Feeder Vein	BD21005	768878	6385707	619	-65	338.6	385	Core	Assays received
Northwest Zone	BD21006	768684	6385805	618	-75	15	328	Core	Assays received
Bundarra Zone	BD21007	768881	6385468	602	-70	13.6	510.8	Core	Assays received
Northwest Zone	BD21008	768684	6385805	618	-60	15	549.8	Core	No significant results
Northern Feeder Vein	BD21009	768974	6385739	658	-77	10	402	Core	Assays received
Northern Feeder Vein	BD21010	768924	6385734	639	-67	10	363.3	Core	Assays received
Northwest Zone	BD21011	768636	6385757	627	-75	25	404.6	Core	Assays received
Northwest Zone	BD21013	768724	6385809	614	-73	20	336.8	Core	Assays received
Aegean Zone	BD21014	768955	6385845	655	-78	5	400	Core	Partial Assays
Bundarra	BD21012	769137	6385505	629	-70	146.6	328	Core	Assays complete
Bundarra	BD21015	768808	6385419	606	-60	10	327.7	Core	Assays complete
NW Zone	BD21016	768613	6385534	645	-70	20	449.7	Core	Assays complete
Bundarra	BD21017	768808	6385419	606	-75	10	402.9	Core	Assays complete
Bowdens South	BD21018	769189	6385021	630	-65	300	159.7	Core	Assays complete
NW Zone	BD21019	768658	6385821	626	-70	348	351.9	Core	No significant results
Aegean	BD21003A*	768951	6385819	656	-78	21	339.9	Core	Assays complete
Aegean	BD21020	768920	6385840	649	-78	5	385.1	Core	Assays complete
Aegean	BD21021	768890	6385814	638	-78	5	387.9	Core	Assays complete
Aegean	BD21022	768501	6385747	656	-70	47	386	Core	Assays complete
Aegean	BD21023	768887	6385835	639	-76	5	413.2	Core	Assays complete

Silver Mines Limited

ABN: 45 107 452 942

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Aegean	BD21024	768925	6385862	650	-77	5	399.6	Core	Assays complete
NW Zone	BD21025	768684	6385805	618	-65	25	390.6	Core	Partial assays
Aegean	BD21030	768950	6385843	655	-75	40	400.2	Core	Partial assays
NW Zone	BRD21006	768603	6385926	637	-80	190	377.9	RC with diamond tail	Partial assays

*Wedged from BD21003 at 123m Depth.

Silver Mines Limited ABN: 45 107 452 942

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Tuena Gold Project

The Tuena Gold Project is located 80 kilometres south of the city of Orange in New South Wales (refer to Figure 7).

The Tuena area was the scene of a historic gold rush, with gold extracted from several narrow high-grade gold reefs over a regional trend greater than 5 kilometres of strike length. The Company has completed reconnaissance mapping, rock sampling and soil geochemistry; as well as flown a detailed magnetic survey. The Company has defined >15 individual zones with anomalous gold in soil sampling associated with historic workings. Rock samples have also returned highly anomalous gold results at Peeks Reef (up to 76.4 g/t Au in rock sampling), Cooper & McKenzie and the Eastern Prospects (refer to release dated 23[th] October 2019).

During the March 2021 quarter, the Company completed a 20 hole 4,000 metre drill program designed to test beneath several of the historic hard-rock gold workings and associated geochemistry anomalies along an extensive 5.4 kilometre by 1.5-kilometre shear complex within EL8526. In addition, two targets, at Lucky Hit South and Markham’s Prospects, have been identified each with gold and base-metal pathfinder signatures. Both prospects adjoin historic workings at Lucky Hit and Markham’s Hill respectively and are clearly defined by soil chemistry with anomalism of silver, bismuth, lead, tellurium and gold (refer to release dated 19[th] May 2020). These targets are being tested for bulk-tonnage gold mineral systems and have a comparable signature and scale to the McPhillamy’s Gold Project (Regis Resources) located north of the Tuena Gold Project.

For further information on the drilling program and results, refer to the March 2021 quarterly report.

Alteration associated with mineralisation consists of sericite–silica–carbonate with the project area mostly metamorphosed to schist and phyllite. The distribution of gold mineralisation suggests that a substantial hydrothermal system has affected the area. Results from this initial program are being collated and will guide follow-up drilling to test the extents of gold encountered.

This program represents the first modern drilling to be completed in the Tuena project area. However, in recent years there have been substantial gold discoveries made along the strike of the Copperhannia Fault including the McPhillamy’s deposit to the north of Tuena (Regis Resources) and the Cullarin discovery to the south (Sky Metals).

The Company is planning further work in follow up to the Tuena Gold Project drilling program and is also planning an expanded regional exploration program extending from immediately south of the McPhillamy’s Project and across EL8973, EL8974, EL8526 and EL8975.

Silver Mines Limited ABN: 45 107 452 942

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Figure 7: Tuena Gold Project regional setting.

Silver Mines Limited ABN: 45 107 452 942

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About the Tuena Gold Project

The Tuena Gold Project is a regional exploration project that consists of a four exploration licenses covering 747 square kilometres. The project is 100% owned by Silver Mines Limited and is located in the Southern Tablelands of New South Wales, 180 kilometres west of Sydney, 80 kilometres south of Orange and 150 kilometres southwest of the Company’s primary assets the Bowdens Silver Project and the Barabolar Project. Tuena was the site of a mid-1800s alluvial and hard-rock gold rush. A cluster of historic workings closely associated with the major Copperhania Thrust Fault extend over an area approximately six kilometres by four kilometres. The Company is targeting the region for large structurally controlled gold deposits analogous to the nearby McPhillamys Gold Deposit.

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Figure 8. Silver Mines Limited project in the Lachlan Orogen.

Silver Mines Limited ABN: 45 107 452 942

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Corporate

Securities Update

During the September 2021 quarter, new fully paid ordinary shares were issued after the below SVLOB options, with an exercise price of $0.06 per share, were exercised:

• 6,807,715 shares issued on 2 July 2021;

• 6,584,604 shares issued on 30 July 2021;

• 3,997,902 shares issued on 11 August 2021;

• 6,856,910 shares issued on 24 August 2021; and

• 70,347,830 shares issues on 13 September 2021.

On 6 September 2021, the balance of SVLOB options held by security holders expired.

Waiver

On 27[th] November 2020, shareholders approved at the Annual General Meeting of the Company (Approval) a waiver granted by ASX Listing Compliance on 28[th] October 2020 (Waiver). The Waiver relates to the issue of 10,000,000 fully paid ordinary shares (Deferred Consideration Shares) in the Company to be issued to a Director of the Company in accordance with the provisions of the share sale and purchase deed dated 3rd May 2016 (Deed), which effectuated the purchase of the Bowdens Silver Project. In accordance with the Deed the Deferred Consideration Shares are to be issued upon:

• achievement of the mining lease granted by the NSW Department of Planning, Industry and Environment pursuant to the Mining Act 1992 (NSW) in connection with the Bowdens Silver Project; or

• a change of control milestone such as a takeover bid pursuant to section 9 of the Corporations Act 2001 (Cth), (collectively, Milestones)

The Company confirms the Deferred Consideration Shares have not been issued in the September 2021 quarter. The Deferred Consideration Shares may only be issued if either of the Milestones are achieved and occur in the period that is 24 months from the date that Approval is obtained.

Appendix 5B

As set out in the attached Appendix 5B, exploration expenditure during the quarter totalled A$2,955,000. Payments to related parties totalling A$181,000 consisted of remuneration paid to executive and non-executive directors and an associate of a director under respective service agreements.

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

Silver Mines Limited

ABN: 45 107 452 942

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Further information:

Anthony McClure Angela East Managing Director Associate Director Silver Mines Limited M+C Partners +61 2 8316 3997 +61 428 432 025

About Silver Mines Limited

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

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

Competent Persons Statement

The information in this report that relates to mineral exploration from the Bowdens, Barabolar and Tuena projects 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 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.

Silver Mines Limited ABN: 45 107 452 942

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Tenement Information as at 30[th] September 2021

			Silver Mines	Change in
Tenement	Project Name	Location	Ownership	Quarter
EL 5920	Bowdens Silver	NSW	100%	-
EL 6354	Bowdens Silver	NSW	100%	-
EL 8159	Bowdens Silver	NSW	100%	-
EL 8160	Bowdens Silver	NSW	100%	-
EL 8168	Bowdens Silver	NSW	100%	-
EL 8268	Bowdens Silver	NSW	100%	-
EL 73911	Bowdens Silver	NSW	0%	-
EL 8403	Bowdens Silver	NSW	100%	-
EL 8405	Bowdens Silver	NSW	100%	-
EL 8480	Bowdens Silver	NSW	100%	-
EL 8682	Bowdens Silver	NSW	100%	-
EL 8526	Tuena	NSW	100%	-
EL 8973	Tuena	NSW	100%	-
EL 8974	Tuena	NSW	100%	-
EL 8975	Tuena	NSW	100%	-

1. Under joint venture with Thomson Resources Limited (TMZ). Silver Mines Limited (SVL) earning 80%.

Silver Mines Limited ABN: 45 107 452 942

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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	Diamond Drilling – Bowdens:
techniques	specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. • Aspects of the determination of mineralisation that are Material to the Public Report. • In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1m samples from which 3kg was pulverised to produce a 30g charge for fire assay.’) In other cases, more explanation may be required such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.	•Sampling taken continuously downhole from PQ and HQ diameter diamond core. •PQ size core – all samples taken as nominal 2 metre intervals, or as otherwise defined by logged geology intervals, from quarter cut core. •HQ size core – all samples taken as nominal 1 metre intervals where mineralisation observed from half cut core, or as composite 2 metre samples of quarter core, or as otherwise defined by logged geology intervals and from the same side of the core where downhole orientations permit. •Samples vary in weight but are generally between 2 and 4 kilograms of material. •Each sample was sent for multi-element assay using ICP technique (ME-ICP61) with the entire sample pulverized and homogenized with a 25g extract taken for assay. •Select samples were also sent for gold using fire assay technique (Au-AA25 or Au-AA23) with a 30g sample taken for assay. •Assays are considered representative of the sample collected.
Drilling	• Drill type (e.g. core, reverse circulation, open-hole hammer, rotary	Diamond Drilling – Bowdens:
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 other type, whether core is oriented and if so, by what method, etc).	•Diamond drilling undertaken using PQ and HQ diamond core rig with triple tube used. •All core, excluding PQ size, where unbroken ground allows, is
		oriented by drilling team and an orientation line drawn along the base
		of the hole.

Silver Mines Limited ABN: 45 107 452 942

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Criteria	JORC Code explanation	Commentary
Drill sample	• Method of recording and assessing core and chip sample	Diamond Drilling – Bowdens:
recovery	recoveries and results assessed. • Measures taken to maximise sample recovery and ensure representative nature of the samples. • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	•Core recovery is estimated at greater than 98%. •Some zones, (less than 5%) were broken core with occasional clay zones where sample loss may have occurred. However, this is not considered to have materially affected the results. •No significant relationship between sample recovery and grade exists.
Logging	• Whether core and chip samples have been geologically and	Diamond Drilling – Bowdens:
	geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.	•All diamond core is logged using lithology, alteration, veining, mineralisation and structure, including geotechnical structure. •All core is photographed using both a wet and dry image. •In all cases the entire hole is logged by a geologist.
	• 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	Diamond Drilling – Bowdens:
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 sample preparation technique. • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance, results for field duplicate/second-half sampling. • Whether sample sizes are appropriate to the grain size of the	•Selective sub-sampling based on geology to a maximum size of 2 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. •For HQ core the half 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.
	material being sampled.
Quality of	• The nature, quality and appropriateness of the assaying and	Diamond Drilling – Bowdens:
assay data and	laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used indetermining the analysis including	•Samples dispatched to ALS Global in Orange NSW for sample preparation and analysis. Some sample batches were then on shipped to ALS Global in Adelaide, Brisbane and Townsville due to

Silver Mines Limited

ABN: 45 107 452 942

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Criteria	JORC Code explanation	Commentary
laboratory	instrument make and model, reading times, calibration factors	the high volume within the Orange Lab.
tests	applied and their derivation, etc.	•Site standards and blanks are inserted at a rate of 8 per 100 samples,
	• Nature of quality control procedures adopted (e.g. standards,	and duplicates are inserted at a rate of 5 per 100 samples to check
	blanks, duplicates, external laboratory checks) and whether	quality control. Laboratory standards and blanks are inserted every
	acceptable levels of accuracy (i.e. lack of bias) and precision have	25 samples.
	been established.
Verification of	• The verification of significant intersections by either independent or	Diamond Drilling – Bowdens:
sampling and assaying	alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data.	•Significant intersections calculated by Bowdens Silver geologists. •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 SVL database administrator and then entered into the geological
		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	Diamond Drilling – Bowdens:
data points	and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control.	•The collar position is initially surveyed using hand-held GPS with accuracy of +- 3 metres. •Locations were later collected by Real Time Kinetic by VRS to an accuracy of +- 1 centimetre.
		•Down hole surveys collected every 30 metres using an electronic
		downhole reflex survey camera.
		•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.

Silver Mines Limited

ABN: 45 107 452 942

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Criteria	JORC Code explanation	Commentary
Data spacing	• Data spacing for reporting of Exploration Results.	Diamond Drilling – Bowdens:
and distribution	• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.	•This drilling relates to exploration drilling of the Northwest High-Grade Silver Zone as defined by previous drilling at the Bowdens Deposit. Drilling is not defined to a set spacing.
	• Whether sample compositing has been applied.
Orientation of	• Whether the orientation of sampling achieves unbiased sampling of	Diamond Drilling – Bowdens:
data in relation to geological structure	possible 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 mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if	•Drill orientation was designed to intersect the projection of the major structural controls to the Deposit. •An interpretation of the mineralisation has indicated that no sampling bias has been introduced.
	material.
Sample	• The measures taken to ensure sample security.	Diamond Drilling – Bowdens:
security		•All samples bagged on site under the supervision of the senior
		geologist with sample bags tied with cable ties before being driven by
		site personnel to the laboratory in Orange, NSW (~200 kilometres
		from the site).
Audits or	• The results of any audits or reviews of sampling techniques and	Diamond Drilling – Bowdens:
reviews	data.	•The drilling campaign and drill work includes on-going internal
		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	Diamond Drilling – Bowdens:
tenement and	agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests,	•The Bowdens Resource is located wholly within Exploration Licence No 5920,heldwholly by Silver MinesLimited andislocated

Silver Mines Limited

ABN: 45 107 452 942

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Criteria	JORC Code explanation	Commentary
land tenure	historical sites, wilderness or national park and environmental	approximately 26 kilometres east of Mudgee, New South Wales.
status	settings.	•The tenement is in good standing.
	• The security of the tenure held at the time of reporting along with	•The project has a 2.0% Net Smelter Royalty which reduces to 1.0%
	any known impediments to obtaining a licence to operate in the	after the payment of US$5 million over 100% of EL5920
	area.	•The project has a 0.85% Gross Royalty over 100% of EL5920.
Exploration	• Acknowledgment and appraisal of exploration by other parties.	Diamond Drilling – Bowdens:
done by other parties		•The Bowdens project was previously managed by Kingsgate 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.	Diamond Drilling – Bowdens:
		•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). The mineralization reported in this
		report is related to Bowdens and represents a higher-temperature
		zone.
Drill hole	• A summary of all information material to the understanding of the	Diamond Drilling – Bowdens:
Information	exploration results including a tabulation of the following information for all Material drill holes:	•All information is included in Table 1 of this report above.
	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;

Silver Mines Limited ABN: 45 107 452 942

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Criteria	JORC Code explanation	Commentary
	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,	Diamond Drilling – Bowdens:
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. • 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.	•Intersection calculation are weighted to sample length. The average sample represents 1 metre of drill core. •Reported intersections are based on a cut off of 90g/t silver with no internal dilution factors •No top cutting of data or grades was undertaken in the reporting of these results.
	• The assumptions used for any reporting of metal equivalent values
	should be clearly stated.
Relationship	• These relationships are particularly important in the reporting of	Diamond Drilling – Bowdens:
between mineralisatio n widths and intercept lengths	Exploration Results. • 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’).	•Mineralisation is both stratabound and vein hosted. The stratigraphy dips moderately to the north within the volcanics and moderately to 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	Diamond Drilling – Bowdens:
	intercepts should be included for any significant discovery being reported These should include, but not be limited to, a plan view of	•Maps and cross sections provided in the body of this report.
	drill hole collar locations and appropriate sectional views.
Balanced	• Where comprehensive reporting of all Exploration Results is not	Diamond Drilling – Bowdens:
reporting	practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of	•All results received and compiled to date are reported in this release. Drillingis on-goingwith further results expected.

Silver Mines Limited

ABN: 45 107 452 942

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Criteria	JORC Code explanation	Commentary
	Exploration Results.
Other	• Other exploration data, if meaningful and material, should be	Diamond Drilling – Bowdens:
substantive exploration data	reported including but not limited to: geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics	•This report relates to drill data reported from this program.
	and potential deleterious or contaminating substances.
Further work	• The nature and scale of planned further work (e.g. tests for lateral	Diamond Drilling – Bowdens:
	extensions or 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.	•This report relates to a drill program that is designed to test the extension and explore for further zones to the Northwest High-Grade Silver Zone situated beneath the Bowdens Silver Deposit. Drilling is on-going with further results pending.

Silver Mines Limited

ABN: 45 107 452 942

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Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Name of entity Silver Mines Limited ABN Quarter ended (“current quarter”) 456 107 452 942 30 September 2021

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	59 - - - (173) (450) - 25 - - - -	59 - - - (173) (450) - 25 - - - -
	(540)	(540)
2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities (b) tenements (c) property, plant and equipment (d) exploration & evaluation (e) intangible (f) Land and Building	- - (210) (2,955) (100) (1,197)	- - (210) (2,955) (100) (1,197)

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 1

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
2.2 Proceeds from the disposal of: (a) entities (b) tenements (c) property, plant and equipment (d) investments (e) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (Research and Development Tax Incentive Refund) 2.6 Net cash from / (used in) investing activities	- - - - - - - 692	- - - - - - - 692
	(3,769)	(3,769)
3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	- - 5,261 (3) - - - -	- - 5,261 (3) - - - -
	5,259	5,259
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above)	31,421 (540) (3,769) 5,259	31,421 (540) (3,769) 5,259

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 2

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	-	-
	32,371	32,371
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	32,371 - - -	31,421 - - -
	32,371	31,421
6. Payments to related parties of the entity and their associates		Current quarter $A'000
6.1 Aggregate amount of payments to related parties and their associates included in item 1 181 6.2 Aggregate amount of payments to related parties and their associates included in item 2 Nil Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.		181
		Nil

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 3

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

7. 7.1 7.2 7.3 7.4 7.5 7.6	Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 Loan facilities Credit standby arrangements Other (please specify) Total financing facilities Unused financing facilities available at quarter end Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000

8.	Estimated cash available for future operating activities	$A’000
8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8	Net cash from / (used in) operating activities (item 1.9) (540) (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) (2,955) Total relevant outgoings (item 8.1 + item 8.2) (3,495) Cash and cash equivalents at quarter end (item 4.6) 32,371 Unused finance facilities available at quarter end (item 7.5) - Total available funding (item 8.4 + item 8.5) 32,371 Estimated quarters of funding available (item 8.6 divided by item 8.3) 9.26 Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. If item 8.7 is less than 2 quarters, please provide answers to the following questions: 8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?	(540) (2,955) (3,495) 32,371 -
		32,371
	Answer: Not Applicable
	8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
	Answer: Not Applicable

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer: Not Applicable

Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Date: 29 October 2021……................................................

Authorised by: ...................................................................................

(Name of body or officer authorising release – see note 4)

Trent Franklin, Company Secretary

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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