Silver Mines

April 21, 2010 02:00 ET

Drilling Report

Silver Mines Limited

Drilling results

21(st) April 2010.

- Preliminary results (to be verified by laboratory) obtained using Handheld Thermo
  Scientific Niton x-ray fluorescence (XRF) analyzer.

- Handheld XRF has been used by SVL for past 18 months with good correlation between
  laboratory assays and field analysis (see table 3 below for previous results comparisons).

- RC076 returned a down hole intersection as follows;

Interval (m         
downhole)##     Ag g/t##  Ag Oz/t  Cu %   Zn %  Pb %
156-168           1901.3     93.8   2.6    9.9   0.1
incl. 161-162     3124.8    100.5   4.6   14.1   0.0
incl. 162-163     4435.3    142.6   6.9   13.5   0.0
incl. 163-164     3443.5    110.7   6.3   24.0   0.1
Table 1: RC076 high grade intersection.
# Downhole intersections are NOT true widths due to the geometry of the lodes and angle of intersection of the
drill hole. True widths are estimated to be half to one third of downhole interval.
## Average of multiple readings on bulk bag collected per meter from drilling rig cyclone.

- RC076 is 109m further south than the previously drilled high grade pod at Webbs Silver South which was
discovered in 2008.

Silver Mines Limited (SVL) is pleased to announce that preliminary Handheld Niton XRF(i) results from the current
reverse circulation program at the 100% owned Webbs Silver Project have again intersected very high grade silver-
rich polymetallic mineralisation further south along strike in the prospect. The results are very exciting and
demonstrate that very high grade (exceeding 100 ounces per tonne silver) mineralisation is not only localised in
the one area at Webbs Silver South as had previously been suggested by earlier drilling. This high grade
intersection is less than 100m vertically below surface and so would be within the proposed
initial open pit currently being modelled. ((i) readers can go to the manufacturers website for more information
on the analyser's technical data

Drilling will continue in 2 weeks after a rostered-off break for the drilling contractor. New drill sites are
being prepared to test IP anomalies to the north of the historic Webbs Silver Mine where a broad IP Chargeability
anomaly exists. Further RC drilling will also be completed to the south of RC076 to
test for further lateral continuity to the mineralisation. SVL is very pleased with our ongoing success at Webbs
and sees the project as expanding rapidly with further targeted drilling in the short term.

Mineralised intersections have been sent to ALS Chemex in Brisbane for analysis. Readers are to be aware that
these Niton XRF results should be viewed with caution and may differ from actual assays. SVL has conducted
extensive testwork with the Niton Handheld XRF on previous drilling programs at Webbs and is confident yet
cautious that it provides a sound preliminary indication of metal content. Visually the drill drips are highly
mineralised showing a high percentage of sulphide minerals providing further confidence in the results.

Hole ID   Easting  Northing   RL  Azimuth  Dip
RC075      358907   6751691  722      290   60
RC076      358911   6751664  722      290   60
RC077      358917   6751644  722      290   60
RC078      358917   6751630  722      290   55
RC079      358920   6751615  722      290   55
Table 2 - Webbs Silver South RC collars (not surveyed), April 2010 program.

RC075 - drilled at an angle of 60 degrees to a depth of 168m and is the 2(nd) hole on the same section as RC058
(drilled in October 2009). RC075 and 58 were designed as a pre-collar holes for an upcoming diamond drilling
program planned for May/June 2010 where diamond core 'tails' will be extended at the bottom of both holes. Both
holes were stopped approximately 10m short of the predicted main lode.

RC076 - drilled at an angle of 60 degrees to a total depth of 180m and is the 2(nd) hole on the same section line
with RC067 (drilled in October 2009). RC067 was drilled to a depth of 162m at 55 degrees and intersected 940g/t Ag
at 147m. A diamond tail will be drilled from RC067 in the upcoming diamond program.

Map 1: Webbs Silver South Prospect RC Drill Holes

Map will be available in full version on Company's website, from the Plus markets
website or from Loeb Aron & Co


SVL use the Thermo Scientific Niton XL3t XRF Analyser in all aspects of exploration, including obtaining an
instant geochemical analysis for completed RC drill samples during the drilling of each hole. As well as obtaining
preliminary geochemical data of the sample, including metal content, the XRF's also provides guidance for
terminating or extending holes when very fine grained sulphide mineralisation may not be quickly recognised. The
analyser also assists in determining which samples to composite and which to send as single one meter samples for
independent assay analysis, this saves cost and improves efficiency on each program.

For a successful XRF field analysis, a trained SVL senior geologist first calibrates the Niton XL3t using the in-
built calibration on the device. Additional calibration against known standards is also regularly done. The XRF is
used by placing the sensor directly onto the bulk sample bag, after the bag area has been wiped down. Each reading
is taken for at least 1 minute, which is the minimum recommended time for a successful reading. This process is
repeated at several different points on the bag with at least three individual readings taken of mineralised
material prior to the results being recorded. The average of these results is then used as an indicator of what to
expect from the lab. SVL geologists will regularly double check high grade results by using a mortar and pestle
and grinding a sample to less than 50 microns and re-analysing.

Table 3 below shows a comparison between Niton XRF results collected on drill chips using the method discussed
above and laboratory results. These analyses were done in late 2009.

Please Note Table 3 will be available in full version on Company's website, from the
Plus Markets website or from Loeb Aron & Co

The updated resource model, expected imminently, does NOT include these results. Once the assays have been
received from the laboratory in the next few weeks, they will be incorporated into the evolving and growing model.

Please direct any queries regarding the content of this report to Charles Straw (CEO) on +61 2 9436 0533 or

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.

Contact Information

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