silver production

Do thyne eyes deceive me.

Mineral Resources : Concept to Development
MACMIN SILVER LTD

Company Announcements Office
Australian Stock Exchange
Dear Sir,
SILVER PRODUCTION
Macmin Silver is pleased to announce that the first production of silver powder from the Twin Hills
Silver Mine at Texas, Queensland was achieved on 30th March 2007.
This milestone completes the passage of mine ore through the entire mining and production
circuit, including the Electrometals silver extraction electrowinning plant, to finished product.
Production of silver powder will gradually increase over the next 3 to 6 months to an annualised
rate of 2.5 million ounces of silver. If, at that time, market conditions are appropriate, Macmin will
consider a further gradual increase in annualised production to approximately 4 million ounces of
silver.
The strategy of producing a silver powder and seeking direct sale of the powder is aimed at lower
production costs, elimination of refining costs and potentially obtaining a premium price for this
unique form of silver. Silver powder is used in a number of industrial situations such as
electronics and antibacterial applications and is usually obtained by breaking down silver ingots.
Supplying the powder as a mine gate product will be the subject of substantial marketing initiatives
as production increases. Any silver powder production which does not find an immediate market
can be readily refined and sold in solid form.
In respect to the Non-Standard Environmental Authority (EA) in our ASX release dated 5th March
2007 we note that we have now received the EA conditions from the Environmental Protection
Agency (EPA) and have agreed in writing to those conditions. We await receipt of final
documentation from the EPA. Mining, crushing, stacking, leaching and silver production is
continuing.
Management will continue to optimise processes and equipment utilisation as the mine workforce
gains experience and production levels are built up.
The Board would like to take this opportunity to thank staff, shareholders, suppliers and
contractors for their support during the mine construction phase and into the future as the mine
develops.
Yours faithfully,
MACMIN SILVER LTD
R.D. McNeil
Executive Chairman
kc/ge039.07