2 May 2012 To: Company Announcement Officer LAPSE OF SILVER MINES LIMITED 1 MAY 2012 UNLISTED OPTIONS Silver Mines Limited (ASX Code: SVL) advises that 5,000,000 unlisted options, exercisable at $0.35 and expiring 1 May 2012, have lapsed. The options have lapsed in accordance with the terms of the Options. The following tables provide a summary of quoted and unquoted securities as at 2 May 2012: Quoted Securities Number & class of all securities quoted on ASX: Number Class 136,106,168 Fully Paid Ordinary Shares. 6,727,975 Options, listed, exercise price 35 cents, expiring 31 October 2012. Unquoted Securities Number & class of all securities not quoted on ASX: Number Class 3,500,000 Employee Options, exercise price 20 cents, expiry 6 July 2012. 2,000,000 Unlisted Options, exercise price 24 cents, expiry 27 August 2012. 2,000,000 Unlisted Options, exercise price 40 cents, expiry 27 August 2013. 8,500,000 Unlisted Employee Options, exercise price 50 cents, expiry 23 December 2015. 3,000,000 Performance Rights Yours sincerely Kevin Lynn Company Secretary 

Publication Contributing Sources

• Market Wire