P.O. Box 7996 Telephone: (07) 5592 2274Gold Coast Mail Centre...

P.O. Box 7996 Telephone: (07) 5592 2274
Gold Coast Mail Centre Facsimile: (07) 5592 2275
Queensland 9726 Email: [mail][email protected][/mail]
AUSTRALIA Internet: [url]www.macmin.com.au[/url]

[b]ASX Announcement 22nd October 2008
ZINC/LEAD/SILVER MINERALISATION EXTENDED AT SILVER SPUR[/b]

A recently completed diamond core hole at Silver Spur, Texas Project, Southeast Queensland, Australia, has extended the known and previously mined mineralisation to depth by at least 50
metres. Silver Spur is located 1.5km south-east of the Twin Hills Silver Mine.

Historically, Silver Spur was mined for silver in the late 1800’s to early 1900’s. Approximately 2 million ozs of silver was recovered from 100,000 tonnes of ore mined at an average mined
grade of 800g/t silver, 25% zinc, 13% lead and 1.5g/t gold (historical record from Rimfire Pacific Mining NL prospectus).

The mine closed at the advent of World War 1.
The first diamond core hole (SSD5) of our current exploration programme, targeting depth extensions of the historic Silver Spur Mine workings has recently been completed.

The hole has intersected a significant mineralized zone from 215.73–237.17m (21.44m downhole) at 9g/t Silver:cry:, 1.53% Zinc, 0.86% Lead and 0.05% Copper.

This zone in turn contains several higher
grade zones as specified above (Figure 2). This mineralised zone sits approximately 50m below the position of the historically mined ore zones.
Several significant intercepts were encountered within a wider zone of zinc/lead/pyrite mineralisation.

Those intercepts are:
2.62m @[b] 33g/t Silver[/b], 4.88% Zinc, 2.80% Lead & 0.14% Copper from 221.36m
incl. 0.49m @ [b]82 g/t Silver[/b], 11.90% Zinc, 7.26% Lead & 0.32% Copper from 221.36m
1.61m @ [b]7g/t Silver[/b], 3.08% Zinc, 1.56% Lead & 0.01% Copper from 227.84m
0.40m @ [b]51g/t Silver[/b], 8.36% Zinc, 5.36% Lead & 1.12% Copper from 234.25m
Figure 1

Figure 1 shows the chlorite altered host rocks (black areas) hosting sphalerite and galena (lighter coloured areas e.g. between the core block and pen) from 221.5m downhole.
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Figure 2, is a schematic cross section showing the position of SSD5 in relation to the Silver Spur Mine workings, SS26 and an historic government drill hole (NS5). Historic literature
indicates that hole NS5 intersects a pyrite rich zone approximately 35m along strike to the south and 60-70m below the mineralised interval intersected in Macmin’s SSD5 hole.

Historic Rimfire Pacific Mining drill holes are also shown on Figure 2 and intersected two sub/parallel mineralised zones. Results were as follows:

SS26 6m @ [b]132g/t Silver[/b], 0.33g/t Copper, 4.82% Lead and 5.95% Zinc from 130m
8m @ [b]95 g/t Silver[/b], 0.3g/t Copper, 3.4% Lead and 8.65% Zinc from 152m
SS27 8.5m @ [b]182g/t Silver[/b], 0.2% Copper, 3.4% Lead and 7.5% Zinc from 148m

The interval outlined in hole SS26 is approximately 10m along strike to the north of hole SSD5 in plan view, while the interval outlined in hole SS27 is approximately 10m along strike to the
north of hole SS26 in plan view.
The historic Rimfire holes (mentioned above) indicate significant widths of mineralisation located beside (to the east) of the workings, with hole SS27 having a very large mineralised
interval beyond that outlined above (53.55m at [b]88 g/t Silver,[/b] 0.14% Copper, 1.93% Lead, and 4.46% Zinc from 116m as reported by Rimfire Pacific Mining in 1999).

[u]Paul Abbott, Manager Geological Services for Macmin noted:[/u] “These historic intercepts combined with the results from the recently completed Macmin hole (SSD5) indicate that there
is considerable scope to delineate economic grade mineralisation both below and along the strike from the current workings. However, considerable further drilling will be required to
establish if sufficient tonnes of this material can be outlined.
Follow up drilling will include targeting below the Rimfire holes situated to the north of Macmin’s SSD5 drill hole, as well as below and along strike to the south of hole SSD5.[b] This drilling as
well as other major exploration expense, will be deferred until the Twin Hills Silver Mine is cash flow positive”.[/b]


Collar locations for the Rimfire Pacific holes are as follows: SS26 was collared at 331640E 6805660N* with an inclination of -60 degrees on a bearing of 270 degrees magnetic, SS27 was
collared at 331596E 605690N* with an inclination of -80 degrees on a bearing of 270 degrees magnetic. (*AGD66/AMG56)

Macmin Drill Hole SSD5 was collared at 331670E 6805635N (AGD66/AMG56) with and inclination of -60 degrees on a bearing of 300 degrees magnetic. A percussion pre-collar was
drilled from surface to 57m, followed by diamond core drilling to a final depth of 254.5m downhole.

[b]Sampling & Assaying Details[/b]

Sampling of Diamond Core was undertaken over mineralised and altered zones, sample intervals were determined from geological intervals. In broad zones of alteration 2 metre intervals were selected.
As part of the Company’s quality control programme, a duplicate sample is collected about every 20 samples and submitted under a different sample number providing a check on repeatability.
Assaying is carried out by ALS Chemex in Brisbane using the ICP technique for silver, copper, lead, zinc, arsenic and antimony. Gold is assayed by the Aqua Regia technique.

Drill holes Collars have been located with a hand-held Garmin GPS unit. Down hole surveys are recorded with an Eastman style single shot camera.

Yours faithfully,
MACMIN SILVER LTD
R.D. McNeil
CEO & CHAIRMAN
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The Company
Macmin Silver Ltd is a silver focused company that has been listed on the ASX since 1993, whose primary
projects are the Texas Silver Project, South-East Queensland, Australia where the Twin Hills Silver Mine is
located, and the Tally Ho and Mt Scott Projects near Mackay, Central Queensland. The Company aims to
utilise its accumulated knowledge and skilled team of staff to consolidate a position as the premier silver
focussed company in Australia. This objective is based on our belief that rising silver prices herald a
recognition that silver in the 21st Century will be a fundamental metal in technological advances and an
important investment asset.
Macmin has exposure to gold by way of an investment of 10.4 million shares in New Guinea Gold Corporation
(NGG) and a 1% NSR royalty on production by NGG. In addition, Macmin maintains equity investments in
junior Australian explorers, Malachite Resources NL and Frontier Resources Ltd.
Further information is available at www.macmin.com.au.
The information in this report that relates to Exploration Results is based on information compiled by, or compiled
under the supervision of Denis O’Neill, Member of the AustIMM. Denis O’Neill is employed by Macmin Silver Ltd and
has sufficient experience which is relevant to the type of mineralisation and type of deposit under consideration to
qualify as Competent Persons as defined in the 2004 Edition of the Australasian Code of Reporting Exploration
Results, Mineral Resources and Ore Resources. Denis O’Neill consents to the inclusion in the report of the matters
based on their information in the form and context in which it appears.


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