Silver Mines
LSE : SVLP

May 20, 2010 07:41 ET

Drilling Report

To: Company Announcements Officer
Australian Securities Exchange

20th May 2010.

                              BONANZA GRADE SILVER CONFIRMED BY LABORATORY ASSAYS  -
                                        UP TO 197 OUNCES PER TONNE SILVER.

-       Laboratory assays confirm bonanza grades in RC076 previously announced on 21st April 2010.

-       RC076 returned a 25m downhole intersection at an average silver grade of 1,175 g/t silver.

-       The highest grade intersection was 1m at 6,150 g/t silver, 5.7% copper and 7.9% zinc.

-       Table 1 below details the intersection in RC076

---------------------------------------------------------------------------------------------------------        
     Depth Downhole             Interval          Ag g/t         Cu %           Zn %
     (From m-To m)           (m downhole)#
---------------------------------------------------------------------------------------------------------        
        146-171                    25             1,175          1.3            4.3
---------------------------------------------------------------------------------------------------------        
                   This interval includes the following intersections
---------------------------------------------------------------------------------------------------------        
     incl. 150-151                 1              2,010          1.5            3.1
---------------------------------------------------------------------------------------------------------        
     incl. 156-167                 11             2,264          2.1            6.4
---------------------------------------------------------------------------------------------------------        
     incl. 162-163                 1              6,150          5.7            7.9
---------------------------------------------------------------------------------------------------------        
     incl. 163-164                 1              4,190          3.9            11.7
---------------------------------------------------------------------------------------------------------        
  Table 1: RC076 mineralised 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.


Silver Mines Limited (SVL) is pleased to announce that lab assays have been received for RC076 (previously
reported using a Niton XRF Analyser) and confirm the bonanza silver grades previously announced on April 21. See
Table 1 above. The results are considered excellent with the confirmation of previously released results,
particularly silver grades very encouraging. Drilling is now continuing at the Webbs Silver Project.

The program is designed to test readily accessible geophysical anomalies on the Webbs Silver North prospect
approximately 100m north of the historical underground mine shaft where a number of chargeable anomalies have been
delineated using induced polarisation (IP) geophysics. An additional IP survey was completed last week with an
updated model expected shortly. Further drilling results will be released over the coming weeks as assays are
received.

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 CEO, 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.

The Directors of Silver Mines Limited accept responsibility for the content of this announcement.

PLUS Markets Corporate Adviser:  Loeb Aron & Company Ltd.
Peter Freeman +44 207 628 1128 peter@loebaron.co.uk

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