Silver Mines
LSE : SVLP

December 29, 2009 11:59 ET

Drilling Report

Drilling Results Extend mineralisation at Webbs Silver Project.

Silver Mines Limited(SVL) is pleased to announce that drilling results form the recently completed 1,634m reverse circulation program at the 100% owned Webbs Silver Project have extended high grade silver rich poly-metallic mineralisation at the Webbs Silver South and Adit Prospects to a total combined strike length of over 600m, and remains open in all directions.

The final batch of assays was received on December 21. The new results have not been incorporated into the existing resource model, this will be completed as a priority in the New Year. The results are considered excellent and support SVL?s view that the Webbs Silver South and Adit Prospects are a continuously mineralised lode system rather than two discrete pipes. The best intersections are shown in table 1 and hole locations in Table 2. Funds recently raised will be used to complete further drilling in March 2010 as well as progress the mining, metallurgical and other studies on the project.

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Hole ID   From # (m) To #(m)  Ag g/t Ag Oz/t Zn%  Cu%   Pb%   Sb%  Comment
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RC058     116        124      33     1.1     0.3  0.03  0.6   0.01 RC pre-collar for Diamond tail in 2010
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RC059     9          11       142    4.6     0.2  0.1   1.1   0.05     
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RC059     15         16       178    5.7     0.4  0.2   1.9   0.1     
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RC060     54         60       213    6.8     0.9  0.3   0.7   0.2     
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RCO61     NSI*                                        
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RC062     NSI*                                        
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RC063     99         100      143    4.6     0.9  NSA** 0.5   NSA     
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RC064     NSI                                        
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RC065     22         24       614    19.7    0.3  0.2   0.4   0.1     
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RC066     NSI                                        
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RC067     143        152      312    10.0    2.2  0.3   0.5   0.1     
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RCO68     63         69       76     2.4     1.6  NSA   3     NSA  RC pre-collar for Diamond tail in 2010
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RCO69     32         37       283    9.1     1.7  0.3   1.7   0.2     
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RC070     36         39       347    11.2    0.4  0.3   0.9   0.2     
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RCO71     105        118      223    7.2     1.9  0.2   0.2   0.1     
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Table 1 - most significant assays from October-November 2009 drilling program, EL5674.

# depths are downhole intersections and NOT true widths of lode. Due to the geometry of the lode versus the angle of each drill hole the true width of mineralised interval is approximately one third of the downhole intersection. The true widths will be clarified once all the new drillholes have been incorporated into the existing 3D model and interpreted.
NSI - no significant intersection. ** NSA - no significant assay

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Hole ID     Total Depth (m) Azimuth (°MAG)  Dip (°) Easting (MGA)   Northing (MGA)
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RC058       124             280             55      358906          6751692
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RC059       48              280             55      358883          6751820
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RC060       72              280             75      358883          6751820
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RCO61       129             280             55      358958          6752123
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RC062       144             280             63      358958          6752122
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RC063       120             280             55      358970          6752129
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RC064       114             280             55      358975          6752150
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RC065       78              280             55      358953          6752173
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RC066       150             280             75      358954          6752172
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RC067       162             280             55      358910          6751664
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RCO68       185             280             55      358915          6751643
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RCO69       60              320             60      358909          6751919
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RC070       102             320             68      358910          6751917
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RCO71       126             310             55      358889          6751717
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TABLE 2: Drill hole collars

A full updated interpretation will be provided in early 2010 once the results have been incorporated into the resource model.

The Company wishes all a happy and safe holiday and a prosperous 2010.

Please direct any queries regarding the content of this report to Charles Straw (CEO) on +61 2 9436 0533 or cstraw@silverminesltd.com.au.

The information in this report that relates to Exploration Results is based on information compiled by Charles Straw, consulting geologist and General Manager, who is a Member of The Australasian Institute of Mining and Metallurgy. Charles Straw has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ?Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves?. Charles Straw consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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