webbs project upgraded 400%.

27th February, 2012

INDICATED AND MEASURED JORC RESOURCE AT WEBBS PROJECT UPGRADED 400%.

Silver Mines Limited (ASX:SVL ) is pleased to announce a 400% upgrade of its Indicated and Measured
JORC resource to 969,000 tonnes averaging 269g/t Ag for a contained resource of 8.4 million ounces of
silver at its fully-owned Webbs silver project in north-eastern NSW. Additional Inferred resources of 3.4
million ounces also exist.
The average grade of the resource provides further confirmation that Webbs is currently one of the
highest grade undeveloped silver projects in Australia. The significance of the upgrade is clearly shown in
the Webbs resources estimates for 2010 and 2012 (see Table 1).
Further upgrades and increases in overall tonnage and contained silver ounces are anticipated following
additional deeper and extensional drilling as the deposit still remains open along strike to the south and
down plunge at Webbs Main and Webbs South (see Figure 1). These targets are considered high priority
as some of the widest and highest grade intercepts are still open at relatively shallow depth of
approximately 80-140m below surface (see Figure 2).
A new round of drilling is scheduled to begin in April 2012, with 6,000m of pre-paid and cost competitive
RC drilling. The primary objective of this drilling will be to grow the overall resource inventory.
Additional highlights from the latest resource assessment include:
? The ‘Exploration Target’ at Webbs within the range of 26-57Moz of Ag remains intact for the
project (see ASX Release 17th February 2011 for detail on Exploration Target).
? Major project milestone achieved with a demonstrated high conversion rate of Inferred resource
to Indicated and Measured categories.
? The 2011 drilling program has significantly improved understanding of the 3-dimensional
geometry of the deposit and will help to optimize further drilling campaigns aimed at increasing
the existing resource base.
? Webbs remains open at depth with excellent potential for growth in the resource with additional
deeper drilling as demonstrated by wide high grade intersections as depicted in Figure 2.