Silver Mines Limited · ASX:SVL

Silver Mines — Investor Presentation (August 2012)

24 slides from Silver Mines's investor presentation, Aug 28, 2012

1. Slide 1: Investor Presentation

   Investor Presentation Charles Straw MANAGING DIRECTOR | >> Sill LVER David Hobby EXPLORATION MANAGER MINES LIMITED

2. Slide 2: Disclaimer

   DISCLAIMER 01 DISCLAIMER For personal use only This presentation has been prepared by Silver Mines Pty Limited (Silver Mines or the Company) from currently available public domain information to provide background information to enable recipients to review the business activities of Silver Mines. It

3. Slide 3: The Company

   THE COMPANY 02 For personal use only  Silver Mines Limited (ASX: SVL, PLUS: SVLP)  Highly prospective silver focused projects in NSW  Fully owned Webbs Silver Project is the highest grade undeveloped silver project in Australia, 11.75Moz at 245g/t Ag  Positive metallurgical results indicate >90%

4. Slide 4: The Market - ASX SVL Share Price

   THE MARKET - ASX SVL 12 Month Share Price 03 For personal use only  148.6 million shares  Market capitalisation  $10.4m @ A$0.07/share  52 week high: A$0.330  52 week low: A$0.042

5. Slide 5: The Market - Silver Price

   THE MARKET - 5 year Silver Price 04 For personal use only  Strong industrial growth in  the developing world has  increased demand,  particularly for silver  Annual average price in 2011:  A$35.12*  Annual average price in 2009:  A$14.67*  * Source: The Silver Institute’s World Silver Surve

6. Slide 6: Competitor Comparison

   COMPETITOR COMPARISON 05 For personal use only  SVL Resource Grade is a standout amongst our competitors  Excellent chance of substantial resource increase at Webbs  Unlocking value in emerging silver province  1 See Appendix 1  + Silver Producer

7. Slide 7: SVL Projects

   SVL PROJECTS 06 For personal use only  Projects contain hundreds of recorded silver and base metal occurrences and many prospects at various stages of evaluation

8. Slide 8: Webbs Silver Project

   WEBBS SILVER PROJECT 07 For personal use only  Well located 50km north of Glen Innes in northeast NSW  Indicated and Measured resources of 969,000t at 269 g/t Ag for 8.4Moz Ag  Inferred resources of 3.4Moz at 201g/t Ag also exist  Exploration target within the range of 26-57Moz of Ag# (inclusive

9. Slide 9: History of Webbs

   HISTORY OF WEBBS 08 For personal use only  Mined in 1885-1901 and 1962-1965 and produced approx. 55,000t @ 700g/t Ag from the underground operation  Previous work (1947-1970) includes 3,600m of drilling, surface – underground mapping and sampling,  IP, EM and metallurgical test-work  Work by Sil

10. Slide 10: Geology

    GEOLOGY 09 For personal use only  New England Orogen, a significant mineral province in Eastern Australia that hosts a variety of mineral deposits associated with granitic-porphyry intrusions, volcanics and surrounding rocks  Webbs region is former large scale tin mining district, with some precio

11. Slide 11: Resource

    RESOURCE 10 For personal use only Current resource estimate for Webbs at 70g/t Ag cut-off Resource Class Tonnes Ag (g/t) Cu% Pb% Zn% Ag (oz) Measured 194,000 364 0.29 0.75 1.67 2,269,000 Indicated 775,000 245 0.26 0.70 1.49 6,102,000 Total M and I 969,000 269 0.27 0.71 1.53 8,371,000 Inferred 522,00

12. Slide 12: Webbs Resource (Grade x Tonnage)

    WEBBS RESOURCE (Grade x Tonnage2) 11 For personal use only  2 See Appendix 2

13. Slide 13: Webbs

    For personal use only WEBBS 12

14. Slide 14: Selected Webbs Drilling Results

    SELECTED WEBBS DRILLING RESULTS 13 Selected intersections calculated using 50g/t Ag lower cut-off (with up to 3m downhole internal dilution @ <50g/t; no top cut-off). For personal use only

15. Slide 15: Webbs Long Section - Looking West

    WEBBS LONG SECTION - Looking West 14 For personal use only  Note high grade deeper intersections  (purple and red dots)  Deposit completely open at depth  0.62Mt @ g/t Ag, % Cu,% Pb, % Zn

16. Slide 16: Drill Hole Sections - Webbs South

    DRILL HOLE SECTIONS - Webbs South 15 For personal use only Cross Section 6751690N Cross Section 6751770N  Sections are 80m apart along strike  Sections highlight depth potential, grade, width and planar nature of lode

17. Slide 17: Core Hole DDH016 - Webbs South

    CORE HOLE DDH016 - Webbs South 16 For personal use only  DDH016 intersection 83-97m down hole @ 1705g/t Ag incl. 83- 86.5m @ 5802g/t Ag, 5.3% Cu and 8.8% Zn, (shown right)  Note: 85-86m assayed 11,125 g/t or 1.11% Ag

18. Slide 18: Regional Silver Province

    REGIONAL SILVER PROVINCE 17  Unlocking a new silver province For personal use only

19. Slide 19: Metallurgy

    METALLURGY 18 For personal use only  Excellent results from metallurgical test work indicating >90% Ag recovery to doré  SVL are testing a flow sheet incorporating the Albion ProcessTM  Flow sheet utilises conventional grinding and bulk flotation followed by ultra-fine grinding and atmospheric ox

20. Slide 20: Metallurgy

    For personal use only METALLURGY 19

21. Slide 21: The Future

    THE FUTURE 20 Key Focus: further evaluation of SVL projects For personal use only  Additional drilling planned at Webbs to increase current resource  5,000m of RC drilling is prepaid  30,000m of drilling planned, 85% RC/15% DD  Webbs project open pit scoping and conceptual underground studies pl

22. Slide 22: Appendix

    APPENDIX 1 21 For personal use only AgEQ (equivalent) and AuEQ in this document are gross value equivalents utilising the following metal prices in $A : Ag $26.8/oz, Cu, $7500/t, Pb $1800/t, Zn $1800/t and Au $1540/oz. These are calculated by gross $ value of any Ag+Cu+Pb+Zn+Au in resources or drill

23. Slide 23: Appendix - Webbs Resource Estimate (selected cut-offs)

    APPENDIX 2 - Webbs Resource Estimate (selected cut-off’s) 22 For personal use only

24. Slide 24: Silver Mines Limited

    Silver Mines Limited Investor Presentation Level 5, 17-19 Bridge Street Sydney NSW Australia 2000 ‘ Si LVE ie P61 29253 0900 | F 61 29253 0901 MINES LIMITED E info@silvermineslitd.com.au | www.silverminesltd.com.au

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