letters to shareholders

The following letters have been printed and mailed to shareholders and MMNO optionholders
today.

Dear Shareholder,

I am writing to you in regard to the Macmin Entitlements Issue which closed on 19th September
2008. The Issue was undersubscribed, largely due, I believe, to the turmoil in share markets
around the world, and substantial drop in the silver price. Under the terms of the Prospectus,
Macmin now intends to place the shortfall.
If you have subscribed already I thank you for your support. You now have a further chance to
subscribe for any amount of shares that you wish, at the original price of 7 cents (AUD) for a
package of one Share and one free attaching 2011 Option exercisable at 8 cents. The 2011
options are listed on the ASX as MMNOB and have initially traded at 3.1 cents giving the package
a market value as at the opening of trading on 1st October 2008 of 7.9 cents. The silver price
appears to be recovering and as at 1st October was approximately AUD$15/oz.
We need your support to ensure that the current upgrade at the Twin Hills Silver Mine is
completed so that silver production can increase.
In the interim, Macmin, on 23rd September sold 7 million New Guinea Gold shares through Bolder
Investment Partners of Vancouver to net approximately AUD$1.75 million. These funds will
supplement the funds received from the Issue and subsequent placement. Further sales could be
made if necessary.
The Entitlements Issue to shareholders was to raise a maximum of AUD$11.5M by the issue of up
to 164 million Shares and 164 million 2011 Options. The proceeds were primarily to be used to
upgrade the Twin Hills Silver Mine at Texas, in Queensland, Australia, increase silver production at
that mine, repay debt to Cornell Capital, and exploration and working capital.
Approximately 150 million Shares and 150 million 2011 Options are available for placement, which,
if the present 2008 Options are ignored (unlikely to be converted to shares) would represent
approximately 23% of Macmin’s issued capital as at the end of 2008. Further, if the 2011 Options
are assumed to be converted to Shares, the present shortfall represents 36% of Macmin’s fully
diluted capital (excluding approximately 20 million unlisted out of the money options) as at the end
of 2008. This represents an excellent opportunity for an incoming major shareholder.
This shortfall placement offers investors, shareholders and existing optionholders the chance to
acquire additional Shares and 2011 Options in Macmin Silver at, in my opinion, a very favourable
price.

Details of the Entitlements Issue are set out in the Prospectus (originally mailed to you), or
available at www.macmin.com.au.

Mineral Resources : Concept to Production
- 2 -
If you wish to discuss this offer please contact Bob McNeil or Garry Edwards on
+61 7 5592 2274 or email [email protected], or [email protected].

Applications may only be made on the shortfall application form which will be forwarded with a
copy of the prospectus – please contact Coralie Mansell-Simon on +61 7 5592 2274 or email
[email protected] for an application form.
To indicate their confidence in the company, Bob McNeil and Rosemary McNeil have subscribed
AUD $42,000 to the Issue.
We intend to finalise this placement as soon as possible and recommend an early response. We
intend to accept applications for the shortfall on a “first come, first served” basis.
Yours sincerely,
MACMIN SILVER LTD
R.D. McNeil
CEO & CHAIRMAN





Kc/rdm020.08
Mineral Resources : Concept to Production
MACMIN SILVER LTD
(A.B.N. 53 056 776 160)
P.O. Box 7996 Telephone: (07) 5592 2274
Gold Coast Mail Centre Facsimile: (07) 5592 2275
Queensland 9726 Email: [email protected]
AUSTRALIA Internet: www.macmin.com.au
3rd October 2008

Dear Optionholder,

I am writing to you in regard to the Macmin Entitlements Issue which closed on 19th September
2008. The Issue was undersubscribed, largely due, I believe, to the turmoil in share markets
around the world, and substantial drop in the silver price. Under the terms of the Prospectus,
Macmin now intends to place the shortfall. This is now an opportunity for you to subscribe to the
Issue.
You may subscribe for any amount of shares that you wish, at the original price of 7 cents (AUD)
for a package of one Share and one free attaching 2011 Option at 8 cents. The 2011 options are
listed on the ASX as MMNOB and have initially traded at 3.1 cents giving the package a market
value as at the opening of trading on 1st October 2008 of 7.9 cents. The silver price appears to be
recovering and as at 1st October was approximately AUD$15/oz.
We regret that the existing 2008 Options are unlikely to be “in the money” on the expiry date. As
the holder of some 2008 Options myself, I can understand your concern in this matter, but can only
suggest that this is an opportunity to acquire new long-term options with a low exercise price.
We need your support to ensure that the current upgrade at the Twin Hills Silver Mine is completed
so that silver production can increase.
In the interim, Macmin, on 23rd September, sold 7 million New Guinea Gold shares through Bolder
Investment Partners of Vancouver to net approximately AUD$1.75 million. These funds will
supplement the funds received from the Issue and subsequent placement. Further sales could be
made if necessary.
The Entitlements Issue to shareholders was to raise a maximum of AUD$11.5M by the issue of up
to 164 million Shares and 164 million 2011 Options. The proceeds were primarily to be used to
upgrade the Twin Hills Silver Mine at Texas, in Queensland, Australia, increase silver production at
that mine, repay debt to Cornell Capital, continuing exploration and working capital.
This shortfall placement offers investors, shareholders and existing optionholders the chance to
acquire additional Shares and 2011 Options in Macmin Silver at, in my opinion, a very favourable
price.
Details of the Entitlements Issue are set out in the Prospectus available at www.macmin.com.au.
If you wish to subscribe, or discuss the placement, please contact Bob McNeil or Garry Edwards
on +61 7 5592 2274 or email [email protected], or [email protected].
Mineral Resources : Concept to Production
- 2 -
Applications may only be made on the shortfall application form which will be forwarded with a
copy of the prospectus – please contact Coralie Mansell-Simon on +61 7 5592 2274 or email
[email protected] for an application form.
To indicate their confidence in the company, Bob McNeil and Rosemary McNeil have subscribed
AUD $42,000 to the Issue.
We intend to finalise this placement as soon as possible and recommend an early response. We
intend to accept applications for the shortfall on a “first come, first served” basis.
Yours sincerely,
MACMIN SILVER LTD
R.D. McNeil
CEO & CHAIRMAN
Kc/rdm021.08