Amended Appendix 3B and Additional Information Amended Appendix 3B to adjust the number of securities that will be issued under this Appendix 3B per ASX Listing Rule 7.1 and 71.A (as announced 14 February 2013) and provide further information as set out below. The difference of 7,917,972 options and the securities placed will be the subject of a shareholder meeting to approve/ratify the placement and thus refreshing the Company's ability to raise capital in future under Listing Rule 7.1. In addition; please find attached further information required under Listing Rule 3.10.5A: a) Details regarding dilution are as follows: ---------------------------------------------------------------------------- Fully paid ordinary shares on issue prior to most recent 165,887,091 capital raising ---------------------------------------------------------------------------- Shares issued as a result of most recent capital raising 27,332,848 ---------------------------------------------------------------------------- Total number of shares in issue 193,219,939 ---------------------------------------------------------------------------- b) The Company issued the equity securities as a placement under Rule 7.1A and not as a pro-rata issue or other type of issue in which existing ordinary security holders would have been eligible to participate as the Company had initiated a drilling programme at its Webbs Project in New England, NSW and found that a placement of securities was more timely and critical given the timing and funding required for the drilling program. c) There is no underwriting arrangement, including any fees payable to an underwriter; and d) Broker fees of up to 7% will be paid to brokers. Appendix 3B New issue announcement, application for quotation of additional securities and agreement Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public. Introduced 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12 Name of entity ---------------------------------------------------------------------------- Silver Mines Limited ---------------------------------------------------------------------------- ABN --------------------------------------- 107 452 942 --------------------------------------- We (the entity) give ASX the following information. Part 1 - All issues You must complete the relevant sections (attach sheets if there is not enough space). ------------------------------------ 1 +Class of +securities issued or to Ordinary and Options be issued ------------------------------------ ------------------------------------ 2 Number of +securities issued or to 27,332,848 Fully Paid Ordinary be issued (if known) or maximum Shares number which may be issued 5,748,452 Listed Options ------------------------------------ ------------------------------------ 3 Principal terms of the +securities Fully Paid Ordinary Shares: and (eg, if options, exercise price and expiry date; if partly paid Listed Options, exercise price 10 +securities, the amount outstanding cents and expiry 13 November 2013 and due dates for payment; if +convertible securities, the conversion price and dates for conversion) ------------------------------------ ------------------------------------ 4 Do the +securities rank equally in Yes all respects from the date of allotment with an existing +class of quoted +securities? If the additional securities do not rank equally, please state: - the date from which they do - the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment - the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment ------------------------------------ ------------------------------------ 5 Issue price or consideration $0.047 ------------------------------------ ------------------------------------ 6 Purpose of the issue The issue was as a result of a (If issued as consideration for the placement to professional and acquisition of assets, clearly sophisticated investors. identify those assets) ------------------------------------ ------------------------------------ 6a Is the entity an +eligible entity Yes that has obtained security holder approval under rule 7.1A? If Yes, complete sections 6b - 6h in relation to the +securities the subject of this Appendix 3B, and comply with section 6i ------------------------------------ ------------------------------------ 6b The date the security holder 19 November 2012 resolution under rule 7.1A was passed ------------------------------------ ------------------------------------ 6c Number of +securities issued without 16,681,591 Fully Paid Ordinary; and security holder approval under rule 7.1 ------------------------------------ ------------------------------------ 6d Number of +securities issued with 10,651,257 Fully Paid Ordinary and security holder approval under rule 5,748,452 Listed Options 7.1A ------------------------------------ ------------------------------------ 6e Number of +securities issued with N/A security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting) ------------------------------------ ------------------------------------ 6f Number of securities issued under an N/A exception in rule 7.2 ------------------------------------ ------------------------------------ 6g If securities issued under rule The securities were issued above 75% 7.1A, was issue price at least 75% of the 15 day VWAP. of 15 day VWAP as calculated under rule 7.1A.3? Include the issue date and both values. Include the source of the VWAP calculation. ------------------------------------ ------------------------------------ 6h If securities were issued under rule N/A 7.1A for non-cash consideration, state date on which valuation of consideration was released to ASX Market Announcements ------------------------------------ ------------------------------------ 6i Calculate the entity's remaining Nil issue capacity under rule 7.1 and rule 7.1A - complete Annexure 1 and release to ASX Market Announcements ------------------------------------ ------------------------------------ 7 Dates of entering +securities into 25 February 2013 uncertificated holdings or despatch of certificates ------------------------------------ ------------------------------------ Number +Class ------------------------------------ 8 Number and +class of all +securities 193,219,939 Fully Paid quoted on ASX (including the Ordinary Shares securities in section 2 if applicable) 19,888,795 Listed Options exercise price 10 cents, expiry 13 November 2013 ------------------------------------ ------------------------------------ Number +Class ------------------------------------ 9 Number and +class of all +securities 2,000,000 Unlisted Options not quoted on ASX (including the exercise price 40 securities in section 2 if cents, expiry 27 applicable) August 2013. Vest - 27 August 2011. 8,500,000 Unlisted Options exercise price 50 cents, expiry 23 December 2015. ------------------------------------ ------------------------------------ 10 Dividend policy (in the case of a Unchanged trust, distribution policy) on the increased capital (interests) ------------------------------------ Part 2 - Bonus issue or pro rata issue ------------------------------------ 11 Is security holder approval N/A required? ------------------------------------ ------------------------------------ 12 Is the issue renounceable or non- N/A renounceable? ------------------------------------ ------------------------------------ 13 Ratio in which the +securities will N/A be offered ------------------------------------ ------------------------------------ 14 +Class of +securities to which the N/A offer relates ------------------------------------ ------------------------------------ 15 +Record date to determine N/A entitlements ------------------------------------ ------------------------------------ 16 Will holdings on different registers N/A (or subregisters) be aggregated for calculating entitlements? ------------------------------------ ------------------------------------ 17 Policy for deciding entitlements in N/A relation to fractions ------------------------------------ ------------------------------------ 18 Names of countries in which the N/A entity has +security holders who will not be sent new issue documents Note: Security holders must be told how their entitlements are to be dealt with. Cross reference: rule 7.7. ------------------------------------ ------------------------------------ 19 Closing date for receipt of N/A acceptances or renunciations ------------------------------------ ------------------------------------ 20 Names of any underwriters N/A ------------------------------------ ------------------------------------ 21 Amount of any underwriting fee or N/A commission ------------------------------------ ------------------------------------ 22 Names of any brokers to the issue N/A ------------------------------------ ------------------------------------ 23 Fee or commission payable to the N/A broker to the issue ------------------------------------ ------------------------------------ 24 Amount of any handling fee payable N/A to brokers who lodge acceptances or renunciations on behalf of +security holders ------------------------------------ ------------------------------------ 25 If the issue is contingent on N/A +security holders' approval, the date of the meeting ------------------------------------ ------------------------------------ 26 Date entitlement and acceptance form N/A and prospectus or Product Disclosure Statement will be sent to persons entitled ------------------------------------ ------------------------------------ 27 If the entity has issued options, N/A and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders ------------------------------------ ------------------------------------ 28 Date rights trading will begin (if N/A applicable) ------------------------------------ ------------------------------------ 29 Date rights trading will end (if N/A applicable) ------------------------------------ ------------------------------------ 30 How do +security holders sell their N/A entitlements in full through a broker? ------------------------------------ ------------------------------------ 31 How do +security holders sell part N/A of their entitlements through a broker and accept for the balance? ------------------------------------ ------------------------------------ 32 How do +security holders dispose of N/A their entitlements (except by sale through a broker)? ------------------------------------ ------------------------------------ 33 +Despatch date N/A ------------------------------------ Part 3 - Quotation of securities You need only complete this section if you are applying for quotation of securities 34 Type of securities (tick one) (a) X Securities described in Part 1 (b) All other securities Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities Entities that have ticked box 34(a) Additional securities forming a new class of securities Tick to indicate you are providing the information or documents 35 If the +securities are +equity securities, the names of the 20 largest holders of the additional +securities, and the number and percentage of additional +securities held by those holders 36 If the +securities are +equity securities, a distribution schedule of the additional +securities setting out the number of holders in the categories 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over 37 A copy of any trust deed for the additional +securities Entities that have ticked box 34(b) ------------------------------------ 38 Number of securities for which N/A +quotation is sought ------------------------------------ ------------------------------------ 39 Class of +securities for which N/A quotation is sought ------------------------------------ ------------------------------------ 40 Do the +securities rank equally in N/A all respects from the date of allotment with an existing +class of quoted +securities? If the additional securities do not rank equally, please state: - the date from which they do - the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment - the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment ------------------------------------ ------------------------------------ 41 Reason for request for quotation now N/A Example: In the case of restricted securities, end of restriction period (if issued upon conversion of another security, clearly identify that other security) ------------------------------------ ------------------------------------ Number +Class ------------------------------------ 42 Number and +class of all +securities N/A quoted on ASX (including the securities in clause 38) ------------------------------------ Quotation agreement 1 +Quotation of our additional +securities is in ASX's absolute discretion. ASX may quote the +securities on any conditions it decides. 2 We warrant the following to ASX. - The issue of the +securities to be quoted complies with the law and is not for an illegal purpose. - There is no reason why those +securities should not be granted +quotation. - An offer of the +securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act. Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty - Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any +securities to be quoted and that no-one has any right to return any +securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the +securities be quoted. - If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the +securities be quoted. 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement. 4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before +quotation of the +securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete. Sign here: Date: 14th February 2013 (Company secretary) Print name: Kevin Lynn == == == == == Appendix 3B - Annexure 1 Calculation of placement capacity under rule 7.1 and rule 7.1A for +eligible entities Introduced 01/08/12 Part 1 ---------------------------------------------------------------------------- Rule 7.1 - Issues exceeding 15% of capital ---------------------------------------------------------------------------- Step 1: Calculate "A", the base figure from which the placement capacity is calculated ---------------------------------------------------------------------------- Insert number of fully paid ordinary 136,106,468 Fully Paid Ordinary securities on issue 12 months before date Shares of issue or agreement to issue ---------------------------------------------------------------------------- Add the following: - Number of fully paid ordinary securities issued in that 12 month period under an 27,890,623 Fully Paid Ordinary exception in rule 7.2 Shares - Number of fully paid ordinary securities issued in that 12 month period with shareholder approval - Number of partly paid ordinary securities that became fully paid in that 12 month period Note: - Include only ordinary securities here - other classes of equity securities cannot be added - Include here (if applicable) the securities the subject of the Appendix 3B to which this form is annexed - It may be useful to set out issues of securities on different dates as separate line items ---------------------------------------------------------------------------- Subtract the number of fully paid ordinary Nil securities cancelled during that 12 month period ---------------------------------------------------------------------------- "A" 163,997,091 Fully Paid Ordinary Shares ---------------------------------------------------------------------------- Step 2: Calculate 15% of "A" ---------------------------------------------------------------------------- "B" 0.15 (Note: this value cannot be changed) ---------------------------------------------------------------------------- Multiply "A" by 0.15 24,599,564 Securities ---------------------------------------------------------------------------- Step 3: Calculate "C", the amount of placement capacity under rule 7.1 that has already been used ---------------------------------------------------------------------------- Insert number of equity securities issued Options Issued under Share or agreed to be issued in that 12 month Placement Plan on 2 October 2012 period not counting those issued: - 6,942,972; - Under an exception in rule 7.2 Shortfall Fully paid ordinary Shares Issued in relation to - Under rule 7.1A Share Purchase Plan on 15 November 2012 - 650,000; - With security holder approval under rule 7.1 or rule 7.4 Shortfall Options issued in relation to Share purchase Plan Note: on 15 November 2012 - 325,000; - This applies to equity securities, and unless specifically excluded - not just ordinary securities Placement of Fully Paid Ordinary - Include here (if applicable) the Shares to Professional and securities the subject of the Appendix Sophisticated Investors on 14 3B to which this form is annexed February 2013 - 16,681,591. - It may be useful to set out issues of securities on different dates as separate line items ---------------------------------------------------------------------------- "C" 24,599,563 Securities ---------------------------------------------------------------------------- Step 4: Subtract "C" from ("A" x "B") to calculate remaining placement capacity under rule 7.1 ---------------------------------------------------------------------------- "A" x 0.15 24,599,564 Securities Note: number must be same as shown in Step 2 ---------------------------------------------------------------------------- Subtract "C" 24,599,563 Securities Note: number must be same as shown in Step 3 ---------------------------------------------------------------------------- Total ("A" x 0.15) - "C" Nil (Note: this is the remaining placement capacity under rule 7.1) ---------------------------------------------------------------------------- Part 2 ---------------------------------------------------------------------------- Rule 7.1A - Additional placement capacity for eligible entities ---------------------------------------------------------------------------- Step 1: Calculate "A", the base figure from which the placement capacity is calculated ---------------------------------------------------------------------------- "A" 163,997,091 Fully Paid Ordinary Shares Note: number must be same as shown in Step 1 of Part 1 ---------------------------------------------------------------------------- Step 2: Calculate 10% of "A" ---------------------------------------------------------------------------- "D" 0.10 Note: this value cannot be changed ---------------------------------------------------------------------------- Multiply "A" by 0.10 16,399,709 Securities ---------------------------------------------------------------------------- Step 3: Calculate "E", the amount of placement capacity under rule 7.1A that has already been used ---------------------------------------------------------------------------- Insert number of equity securities issued Placement of Fully Paid Ordinary or agreed to be issued in that 12 month Shares to Professional and period under rule 7.1A Sophisticated Investors on 14th February 2013 - 10,651,257. Notes: - This applies to equity securities - not Issue of Options to Professional just ordinary securities and Sophisticated Investors on - Include here - if applicable - the February 2013 - 5,748,452. securities the subject of the Appendix 3B to which this form is annexed - Do not include equity securities issued under rule 7.1 (they must be dealt with in Part 1), or for which specific security holder approval has been obtained - It may be useful to set out issues of securities on different dates as separate line items ---------------------------------------------------------------------------- "E" 16,399,709 Securities ---------------------------------------------------------------------------- Step 4: Subtract "E" from ("A" x "D") to calculate remaining placement capacity under rule 7.1A ---------------------------------------------------------------------------- "A" x 0.10 16,399,709 Securities Note: number must be same as shown in Step 2 ---------------------------------------------------------------------------- Subtract "E" 16,399,709 Securities Note: number must be same as shown in Step 3 ---------------------------------------------------------------------------- Total ("A" x 0.10) - "E" Nil Note: this is the remaining placement capacity under rule 7.1A ---------------------------------------------------------------------------- + See chapter 19 for defined terms. 

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