Issue of Equity Amendment

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:
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Fully paid ordinary shares on issue prior to most recent 165,887,091
capital raising
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Shares issued as a result of most recent capital raising 27,332,848
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Total number of shares in issue 193,219,939
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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
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Silver Mines Limited
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ABN
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107 452 942
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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).

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1 +Class of +securities issued or to Ordinary and Options
be issued
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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)
------------------------------------

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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
------------------------------------

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5 Issue price or consideration $0.047
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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)
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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
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6b The date the security holder 19 November 2012
resolution under rule 7.1A was
passed
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6c Number of +securities issued without 16,681,591 Fully Paid Ordinary; and
security holder approval under rule
7.1
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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
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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)
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6f Number of securities issued under an N/A
exception in rule 7.2
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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.
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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
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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
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7 Dates of entering +securities into 25 February 2013
uncertificated holdings or despatch
of certificates
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Number +Class
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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
------------------------------------

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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.
------------------------------------

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10 Dividend policy (in the case of a Unchanged
trust, distribution policy) on the
increased capital (interests)
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Part 2 - Bonus issue or pro rata issue

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11 Is security holder approval N/A
required?
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12 Is the issue renounceable or non- N/A
renounceable?
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13 Ratio in which the +securities will N/A
be offered
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14 +Class of +securities to which the N/A
offer relates
------------------------------------

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15 +Record date to determine N/A
entitlements
------------------------------------

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16 Will holdings on different registers N/A
(or subregisters) be aggregated for
calculating entitlements?
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17 Policy for deciding entitlements in N/A
relation to fractions
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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.
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19 Closing date for receipt of N/A
acceptances or renunciations
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20 Names of any underwriters N/A
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21 Amount of any underwriting fee or N/A
commission
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22 Names of any brokers to the issue N/A
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23 Fee or commission payable to the N/A
broker to the issue
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24 Amount of any handling fee payable N/A
to brokers who lodge acceptances or
renunciations on behalf of +security
holders
------------------------------------

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25 If the issue is contingent on N/A
+security holders' approval, the
date of the meeting
------------------------------------

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26 Date entitlement and acceptance form N/A
and prospectus or Product Disclosure
Statement will be sent to persons
entitled
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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
------------------------------------

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28 Date rights trading will begin (if N/A
applicable)
------------------------------------

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29 Date rights trading will end (if N/A
applicable)
------------------------------------

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30 How do +security holders sell their N/A
entitlements in full through a
broker?
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31 How do +security holders sell part N/A
of their entitlements through a
broker and accept for the balance?
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32 How do +security holders dispose of N/A
their entitlements (except by sale
through a broker)?
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33 +Despatch date N/A
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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)

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38 Number of securities for which N/A
+quotation is sought
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39 Class of +securities for which N/A
quotation is sought
------------------------------------

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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
------------------------------------

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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)
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Number +Class
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42 Number and +class of all +securities N/A
quoted on ASX (including the
securities in clause 38)
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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

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Rule 7.1 - Issues exceeding 15% of capital
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Step 1: Calculate "A", the base figure from which the placement capacity is
calculated
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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
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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
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Subtract the number of fully paid ordinary Nil
securities cancelled during that 12 month
period
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"A" 163,997,091 Fully Paid Ordinary
Shares
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Step 2: Calculate 15% of "A"
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"B" 0.15

(Note: this value cannot be
changed)
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Multiply "A" by 0.15 24,599,564 Securities
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Step 3: Calculate "C", the amount of placement capacity under rule 7.1 that
has already been used
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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
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"C" 24,599,563 Securities
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Step 4: Subtract "C" from ("A" x "B") to calculate remaining placement
capacity under rule 7.1
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"A" x 0.15 24,599,564 Securities

Note: number must be same as shown in
Step 2
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Subtract "C" 24,599,563 Securities

Note: number must be same as shown in
Step 3
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Total ("A" x 0.15) - "C" Nil

(Note: this is the remaining
placement capacity under rule
7.1)
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Part 2

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Rule 7.1A - Additional placement capacity for eligible entities
----------------------------------------------------------------------------
Step 1: Calculate "A", the base figure from which the placement capacity is
calculated
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"A" 163,997,091 Fully Paid Ordinary
Shares
Note: number must be same as shown in
Step 1 of Part 1
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Step 2: Calculate 10% of "A"
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"D" 0.10

Note: this value cannot be
changed
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Multiply "A" by 0.10 16,399,709 Securities
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Step 3: Calculate "E", the amount of placement capacity under rule 7.1A that
has already been used
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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
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"E" 16,399,709 Securities
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Step 4: Subtract "E" from ("A" x "D") to calculate remaining placement
capacity under rule 7.1A
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"A" x 0.10 16,399,709 Securities

Note: number must be same as shown in
Step 2
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Subtract "E" 16,399,709 Securities

Note: number must be same as shown in
Step 3
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Total ("A" x 0.10) - "E" Nil

Note: this is the remaining
placement capacity under rule
7.1A
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+ See chapter 19 for defined terms.

Contact Information

Silver Mines