Silver Mines
LSE : SVLP

February 17, 2011 09:50 ET

Exploration targed defined at Webbs Silver Project

Silver Mines Ltd.

EXPLORATION TARGET DEFINED AT WEBBS SILVER PROJECT

    *   Exploration target between 4.0 and 7.0 million tonnes at 200-260g/t silver has been
        identified at the Webbs silver project.

EXPLORATION TARGET

    *   Silver Mines is pleased to announce it has defined an exploration target of between 4.0
        million and 7.0 million tonnes 200-260g/t silver for Webbs Silver project.
    *   This target has the potential to contain between 26-57 Moz of silver.
    *   The exploration target includes the existing JORC compliant Inferred and Indicated
        Resources of 1.23Mt at 256g/t silver containing 10.14Moz1
    *   An exploration target has not brrn determined for copper, lead and zinc grades known to
        occur in the resource.

In accordance with Clause 18 of the JORC Code, readers are advised that the defining of an
exploration target provides the following:

The potential quantity and grade is conceptual in nature, that there has been insufficient
exploration to define Mineral Resources (aside from the resources included and previously
reported) and that it is uncertain if further exploration will result in the determination of a
Mineral Resource2.

The quantity and grade of the exploration target (aside from the resources included) is based on
conservative upper and lower limits applied to a base case estimate. The base case estimate was
made using average thicknesses, grade and density data derived from the Webbs resource model and
other relevant data. The 'exploration target zones' as shown in figure 1 are located within
undrilled areas adjacent to the current resource (Zone 1), in undrilled areas along strike to the
north and south (Zone 2) and at depth extending to 250 metres below surface (Zone 3).

Mineral potential can be demonstrated in these zones based on one or more of; geology,
geochemistry, geophysics and drilling. The exploration potential in the southern area of the
deposit is highlighted in Figure 2 where the near surface high grade mineralisation intersected in
previous drilling remains open to the south and at depth.

Silver Mines has an exploration strategy designed to methodically test these exploration targets
and determine if Mineral Resources are present. This will include an 8500m RC drilling program due
to commence in late March.

Figure 1 Webbs Long section showing exploration target zones and existing drilling (please see
company website)

Figure 2 Cross section 6751770N - Webbs South Looking MGA North (please see company website)

DIAMOND DRILLING

Silver Mines has recently completed 1,236m of diamond drilling in 11 holes in the Webbs project.
The aim of the diamond program is to provide samples for metallurgical testwork, geotechnical
data, provide additional assay data and improve the geological understanding of the deposit.
Several previously drilled RC holes were twinned. Other holes were designed to intersect
mineralisation relatively near surface and target larger gaps in the existing RC drill
coverage(see Figure 1)

All diamond holes intersected mineralisation and the Company is preparing a separate news release
on the initial results of this program.
Please direct any queries regarding the content of this report to:
Charles Straw (CEO) on +61 9253 0900 or cstraw@silverminesltd.com.au

1 The information in this Document that relates to Exploration Results, Mineral Resources or Ore
Reserves is based on information compiled by Mr Robin Rankin, who is a Member of the Australasian
Institute of Mining and Metallurgy (MAusIMM) and registered as a Chartered Professional Geologist
(CPGeo).  Robin Rankin is Principal Consulting Geologist and operator of the independent
geological consultancy GeoRes.  He has sufficient experience which is relevant to the style of
mineralization 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' (the JORC Code).
He consents to the inclusion in the report of the matters based on his information in the form and
context in which it appears.



  JORC Category        Tonnes       Ag g/t       Cu %         Pb %        Zn %      Contained
                                                                                    Ag (M Oz)
    Inferred         1,066,000        240        0.27         0.83        1.83        8.20
    Indicated         167,000         360        0.32         0.55        1.96        1.93
      TOTAL          1,233,000        256        0.28         0.79        1.84        10.19
                  1Resource estimate for Webb's Silver Project at 70ppm Ag lower cut-off.

2 The information in this Document that relates to Exploration Results, Mineral Resources or Ore
Reserves is based on information compiled by Mr David Hobby, consulting geologist to SVL, who is a
Member of the Australasian Institute of Mining and Metallurgy (MAusIMM.) Mr Hobby has sufficient
experience which is relevant to the style of mineralization 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' (the JORC Code).  Mr Hobby 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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