18 October, 2007
NOTICE OF ANNUAL GENERAL MEETING

Notice is hereby given that the Annual General Meeting of Macmin Silver Ltd will be held at The Paradise Room, Gold Coast Turf Club, Racecourse Drive, Surfers Paradise, Queensland on Tuesday 20th November 2007 at 2.00pm.

ITEMS OF BUSINESS

Financial Report and Directors’ and Auditor’s Reports

The Financial Report, the Directors’ Report and the Independent Auditor’s Report for the year ended 30 June 2007 will be presented for consideration.

Macmin Silver Ltd’s Annual Report which includes the Financial Report for the year ended 30 June 2007 is available on-line at www.macmin.com.au. Following consideration of Reports, the Chairman will give Shareholders a reasonable opportunity to ask questions on the Reports.

A representative of the Auditors will be available to answer questions.

Resolution 1: Re-Election of Director – Mr P.A. McNeil

That Mr P.A. McNeil, who retires as a Director of the Company in accordance with Article 16.1 of the Constitution and, being eligible, offers himself for re-election, be and is hereby re-appointed a Director of the Company.

Resolution 2: Change of Auditor

To consider, and if thought fit, to pass the following resolution as an ordinary resolution:

“That BDO Kendalls be appointed as auditor of Macmin Silver Ltd effective from the close of this meeting.”

A notice of nomination of BDO Kendalls as auditor of the Company is enclosed (Annexure B) with this notice in accordance with Section 328B(3) of the Corporations Act 2001.

Without limitation, Section 327B of the Corporations Act is relevant to this resolution.
Macmin Silver Ltd -Notice of Annual General Meeting

Resolution 3:        Approval for Amendment and Continuation of the Macmin Employee Incentive Option Plan

That in accordance with the Terms and Conditions of the Macmin Employee Incentive Option Plan (“THE PLAN”) and the provisions of the official Listing Rules of the Australian Stock Exchange (“ASX”), the Company and the Directors of the Company are hereby authorised to amend and continue THE PLAN and the issue of options under THE PLAN are approved for the purpose of ASX Listing Rule 7.2, exception 9.

Additional information on this resolution is contained in the explanatory statement attached.

It should be noted that the company will disregard any votes cast (other than in respect of the proxies given by other members of the company which contain clear instructions as to how such votes are to be exercised) on this resolution by any person who will participate in THE PLAN and by any associate of those persons.

Resolution 4: Advisory/Non-binding Vote on Remuneration Report

That the Remuneration Report in the Company’s Annual Report be adopted.

Final Item of Business:

To transact any other business that may be lawfully brought forward in accordance with the Constitution of the Company and the Corporations Act 2001.

Eligibility to Attend and Vote at Meeting

The Company has determined that all shares of the Company that are quoted shares at 7.00pm on 18 November 2007 will be taken for the purposes of the meeting to be held by the persons who held them at that time.

By order of the Board


G.M. Edwards
Company Secretary

Notes

1. A member entitled to attend and vote at the Meeting may appoint not more than twoproxies to attend and vote instead of such member.
2. Where more than one proxy is appointed, each proxy must be appointed to represent a specified proportion of the members’ voting rights and neither proxy may vote on a show of hands.
3. A proxy need not be a Member of the Company.
4. A proxy form and the authority (if any) under which it is signed or a copy of that authority certified as a true copy by statutory declaration must be returned to the Secretary, at the registered office or forwarded to P.O. Box 7996, Gold Coast Mail Centre, Queensland 9726, Australia.  Proxy forms must be received not less than 48 hours before the time for holding the meeting.
   
   

EXPLANATORY STATEMENT TO MEMBERS

Resolution 3: Approval for Amendment and Continuation of the Macmin Employee Incentive Option Plan

The Macmin Employee Incentive Option Plan (“the Plan”) was established with shareholder approval on 22 November 1996 and last amended 24 November 2000.  Approval is now sought for amendment and continuation of the Plan.

Summary of Amendments Proposed for the Macmin Employee Incentive Option Plan

• Remove the requirement for the Managing Director to recommend that the Directors may issue options.
• Alter the exercise period for options under the Plan so that they vest after one year (currently the options vest immediately).
• Alter the formula for calculation of the exercise price so that it is not less han 110% of the average of the market price for company ordinary shares over the 5 trading days prior to the day on which the options are issued (rounded up to the nearest full cent) or a greater price determined by the directors. Currently the exercise price is 130% of the 5 days previous trading prices.
• Alter the exercise period from five years after the date of issue of the options to three years or such earlier date as the Directors determine at the time of issue ("expiry date"). 
• Alter the number of options that may be exercised from multiples of 500 to multiples of 5,000, unless exercising all the holder’s remaining options

Listing Rule 7.2 sets out exceptions whereby issues are not counted toward the number of securities which the directors may issue without shareholder approval.  By approving issues under the Plan as an exception, any issues of unlisted options under the Plan will not be taken into account in determining the amount of securities (shares or options) the directors may issue without shareholder approval. The revised terms and conditions of the Plan are attached at Annexure A.

Resolution 4: Advisory/Non-binding Vote on Remuneration Report

A vote on the adoption of the Remuneration Report is a requirement of the Corporations Act 2001. The vote on the resolution is advisory only and does not bind the Directors or the Company.

The Directors believe remuneration as per the report is modest and is at or below industry levels.

Annexure A

REVISED EMPLOYEE INCENTIVE OPTION PLAN

The following are the revised terms of the Plan:-

Macmin Silver Ltd Employee Incentive Option Plan

The Macmin Silver Ltd Employee Incentive Option Plan ("the Plan") is described in and administered by the terms and conditions set out below.

• The Plan and the terms and conditions of the Plan may only be amended with approval of the shareholders.
• Directors may not issue options under the Plan if to do so would cause the number of options issued under the Plan and not yet exercised or expired to exceed 5% of the number of issued shares in the Company as at that date.

Terms and Conditions

• The Directors of the Company may issue options to subscribe for shares in the Company to employees and consultants of the Company, a company related to the Company ("Related Company") and any joint venture in which the Company or a Related Company participates. However, no options are to be issued to Directors of the Company pursuant to the Plan. Each option entitles the holder to subscribe for one fully paid ordinary share in the capital of the Company.
• The options are exercisable from one year after the date of issue until the expiry date. The options shall expire at 5.00 p.m. eastern standard time, on the first business day three (3) years after the date of issue of the options or such earlier date as the Directors determine at the time of issue ("expiry date"). Options may only be exercised in multiples of 5,000, unless exercising all the holder’s remaining options. Any options not exercised by the expiry date shall lapse.
• The exercise price of each option will be 110% of the average of the market closing price for company ordinary shares over the 5 business days prior to the day on which options are issued (rounded up to the nearest full cent) or a greater price determined by the directors. The amount calculated by that average is to be advised to employees at the time of issue of the options.
• Exercise of the options is effected by delivery of a Notice of Exercise [see back of Option Certificate] to the registered office of the Company together with payment of the exercise price of the options. Shares will be issued pursuant to the exercise of the options not more than 14 days after receipt by the Company from the option holder of the Notice and the exercise price in respect of the options.
• Options may not be exercised if the effect of such exercise and subsequent allotment of shares would be to create a holding of less than a marketable parcel of ordinary shares unless the allottee is already a shareholder of the Company at the time of exercise.
• Options are not transferable. Application will not be made to Australian Stock Exchange Limited ("ASX") for their Official Quotation.
  

REVISED EMPLOYEE INCENTIVE OPTION PLAN

• All shares issued upon exercise of the options and payment of the exercise price will rank pari passu in all respects with the Company's then existing ordinary fully paid shares.  The Company will apply for Official Quotation by ASX Limited of all shares issued upon exercise of the options.
• There are no participating rights or entitlements inherent in the options and holders will not be entitled to participate in new issues of capital offered to shareholders during the currency of the options. However, the Company will ensure that for the purposes of determining entitlements to any such issue, the books closing date will be at least 7 business days after the issue is announced.  This will give optionholders the opportunity to exercise their options prior to the date for determining entitlements to participate in any such issue.
• In the event of any reconstruction, including a consolidation, sub-division, reduction or return of the issued capital of the Company prior to the expiry date, the number of options to which each holder is entitled or the exercise price of the options or both will be reconstructed as appropriate in a manner which is in accordance with the Listing Rules then applying and which will not result in any benefits being conferred on optionholders which are not conferred on shareholders, subject to such provisions with respect to the rounding of entitlements as may be sanctioned by the meeting of shareholders approving the reconstruction of capital, but in all other respects the terms of exercise of the options will remain unchanged.
• If an optionholder under this Plan ceases to be substantially involved with the company, the Directors, at their discretion may cancel all or part of the holder's options obtained under this plan after giving the holder 60 days notice of their intention to do so.

 

Annexure B

COPY OF SHAREHOLDER NOMINATION OF NEW AUDITOR

5 October 2007

Mr Garry Edwards Company Secretary Macmin Silver Ltd PO Box 7996 GOLD COAST MAIL CENTRE QLD 9726


Dear Mr Edwards


Pursuant to Section 328B(1) of the Corporations Act 2001, Robert D. McNeil, as a shareholder of Macmin Silver Ltd hereby nominates BDO Kendalls Chartered Accountants, for appointment as auditors of the Company at the next Annual General Meeting or any adjournment thereof, subject to the resignation of the current auditors, PricewaterhouseCoopers, Brisbane.


Yours sincerely

R.D. McNeil

 

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15 October, 2007
TWIN HILLS SILVER MINE UPDATE

Macmin’s objective is to consolidate its unique position as the premier silver focused company in Australia. This objective is based on our belief that rising silver prices herald a recognition that silver in the 21st Century will be a fundamental metal in technological advances and an important investment asset.

To progress that objective the Board’s plan for 2008 is to: 

• Continue to acquire new silver and or silver/zinc/lead projects throughout Queensland to provide the future advancement and expansion for the Company.  The success at the Tally Ho Project (see ASX release dated 27th September 2007) is an example of this future potential. Former Managing Director, Denis O’Neill, continues as a Director of the Company and has assumed responsibility for planning and directing this part of the strategy.
• Continue to drill other prospects within the Texas Silver Project such as Mt Gunyan and Mt Gunyan South-East.  At Mt Gunyan, Macmin has identified, at least in the upper, near-surface parts, a lower grade silver system than Twin Hills.  However, as noted in the last ASX release, dated 27 September 2007 some very high grades to 592g/t silver and 192g/t gold have been noted, hinting at steeply dipping structures hosting ‘bonanza type’ silver-gold mineralisation. Drilling is expected to continue throughout 2008 and potentially will lead to a decision regarding a mining lease application by the end of 2008. The current Resource figures quoted in the Annual Report are expected to be revised in mid 2008. 
• Continue to improve the mining and processing of silver ore at the Twin Hills mine to achieve, initially a monthly production rate of 180,000ozs of silver. This target is based on leaching 60,000 tonnes per month of medium and high grade ore, crushed to <4mm. Low grade ore treatment is not included in this target, as detailed later in this announcement.  

Bob McNeil, Chairman of Macmin Silver noted “Commissioning at the Twin Hills Silver Mine over the past six months has not led to full scale production as quickly as anticipated.  This is not unusual with new mines, but we believe we have identified all the problems and are moving to overcome them.  We expect silver production to gradually increase over the coming months to a monthly rate of 180,000ozs.  This target may not be achieved until well into 2008.  We will continue to investigate the possibility of further increasing production rates. 

The silver powder produced at the Twin Hills Mine is a unique product which is eventually expected to sell at a premium to the spot silver price.  An initial sale of approximately 250kg (8,000oz) of silver powder is expected to be made this week and will be reported once concluded.

Our exploration program to identify additional silver or silver/lead/zinc resources in Queensland is expected to provide a considerable further upside to the Company in later 2008, particularly as we focus on identifying additional resources at the Texas tenements and in projects such as Tally Ho.  Production of silver is very important to the Company but identification of new projects for future expansion is equally important.”

TWIN HILLS MINE UPDATE

The Twin Hills mine is an open cut mine which, when producing at the rate of 180,000ozs of silver per month, will mine approximately 80,000 tonnes of ore (both higher grade heap leach ore and lower grade dump leach ore) per month. Mining, processing, commissioning of the plant and the move to higher production rates has been much slower than expected.




The process from identification of silver resources to production of silver powder can be summarised as follows:

Resources

Resources are identified by early drilling and later confirmed by detailed “grade control” drilling. Grade control drilling has been completed to an approximate depth of 30m over much of the proposed pit surface and has confirmed the earlier estimates of grade and tonnages – the silver is present in the rock. 

Previously announced Resources for Twin Hills only are shown below (see also 2007 Annual Report):

Measured Resource
Resource		Cut off	Tonnes	Silver	Gold
Type		Grade	(m)	g/t	g/t
Heap Leach		60g/t silver	1.30	95	0.2
Dump Leach		20g/t silver	1.60	35	0.07

Indicated Resource
Resource		Cut off	Tonnes	Silver	Gold
Type		Grade	(m)	g/t	g/t
Heap Leach		60g/t silver	1.49	95	0.2
Dump Leach		20g/t silver	7.12	32	0.07

Inferred Resource
Resource		Cut off	Tonnes	Silver	Gold
Type		Grade	(m)	g/t	g/t
Heap Leach		60g/t silver	1.26	98	0.2
Dump Leach		20g/t silver	5.69	32	0.07

Total Resources are as follows:-

Measured Resource -            2.9Mt at 72g/t silver and 0.1g/t gold for contained silver and gold of 6.7Mozs silver and 9,300 ozs gold

Indicated Resource -             8.6Mt at 43g/t silver and 0.1g/t gold for contained silver and gold of 11.9Mozs silver and 28,000 ozs gold

Inferred Resource -                6.95Mt at 44g/t silver and 0.1g/t gold for contained silver and gold of 9.8Mozs silver and 22,000 ozs gold

A limited number of deep drill holes indicate the current mineralisation at Twin Hills extends at depth and along strike beyond the present Resource.  This mineralisation has not yet been drilled out.

A complete Resource Statement for the Texas Project is stated in the 2007 Annual Report.




Mining

Mining is carried out by drill and blast followed by transport to the crushing facility.  At present two excavators, two bulldozers and four 50t trucks are on site for use in this operation.  High grade ore goes straight to the crushing circuit, low grade ore is presently stockpiled for later silver extraction, and waste is taken to the waste rock dump.

In view of current higher silver prices the pit design is being continually evaluated to allow lower grade ore to be mined and processed.

Mining is progressing satisfactorily and an increase in the mining rate to match increased crushing capacity is achievable. To date 199,000 tonnes of medium-high grade ore, 102,000 tonnes of low grade ore and 242,000 tonnes of waste have been mined.




Crushing, Agglomerating and Stacking

The higher grade ores are crushed to <4mm in size, agglomerated with cement and lime to achieve the required pH, and stacked onto heaps for leaching.

Reliability and availability constraints (particularly the lengthy repair of the jaw crusher failure) within the mobile section of the crushing circuit has reduced crusher throughput. A trained workforce has been difficult to recruit and the Company has followed a program of local recruitment and on-the-job training which has slowed production.  Such workforce training requirements and crusher availability have so far prevented the introduction of a second shift.

Additional employees from outside the local area are presently being recruited to allow implementation of a two shift, 7 day/week operation.  In addition quotations and contracts are being evaluated for a contract crushing arrangement but the installation of any contract crushing equipment is estimated to take 20 to 24 weeks from date of commitment. 

Stacker design and operation initially delayed stacking of the crushed ore, however the characteristics of the ore have proved favourable for leaching and that has allowed for increased use of conventional stacking machinery.




Heap Leaching

After being placed on heaps up to 8m high the ore is saturated with a leaching solution which dissolves the silver.  The solution (pregnant solution) with the dissolved silver is collected by pipes at the base of the heap and stored in specially constructed and covered ponds.

The ore characteristics have facilitated percolation of solution through the heaps and that part of the operation is working well but actual leaching recovery rates have yet to be determined.

Leaching has not been continuous due to a revamp of the irrigation system and a major clean out of the leaching circuit to remove fine material accumulated during construction.

It is estimated that 6,000kg (193,000oz) of silver will be leached from the heaps already in place. Silver in solution inventory in the process ponds awaiting electrowinning amounts to 800kg (25,700oz).




Silver Powder Production

The silver is extracted from the pregnant solutions by an electrowinning process.  This electrowinning plant (EM-EW) contains 180 cells, is modular and can be relatively easily increased in capacity and produces a silver powder containing about 98% silver.  This silver powder is dried, stored in drums and sold “as is” or can be refined into silver ingots. Approximately 280kg (9,000oz) of silver has been produced to date.  Production of 4,000kg (128,600oz) of silver is forecast for the fourth quarter of 2007.

60 of the 180 cells of the electro-winning plant have been utilised in extensive trials with varying conductivity, voltage/current, flow-rates and temperature levels to improve extraction rates of silver powder in the electrowinning cells. During the week ended 28th September the EM-EW plant ran 12 hours per day every day for the first time and produced the highest extraction rates per cell to date. Extraction rates per cell are still 40% below design expectations but the plant was built with extra cell capacity and can be extended as required.

It may be necessary to install a small Merrill Crowe silver extraction plant to recover silver in lower grade leachate solutions which are not economical to treat through the EM-EW plant.

It is apparent that the temperature of the leach solution has more effect on silver recovery by electrowinning than previously thought and the initial trials completed on-site in low winter temperatures were adversely affected. Summer temperatures heating the solution will deliver more efficient recoveries and investigations will be undertaken into heating the solution for winter processing in future.

Continued extraction of silver powder from the cells has now provided data and operating parameters for the finalising of an effective powder filtering, drying and packaging system.




Marketing

The silver powder being produced is a unique product, is of good purity and its very fine texture is providing marketing opportunities which may attract a premium to the spot price for silver. Silver sizing analysis has confirmed the very fine nature of the powder with size range being 1 to 50 microns and 72% of the powder being less than 20 microns.  Two contractual arrangements for sale of small monthly quantities of silver in the powder form are being negotiated. Any silver not sold as powder can be smelted and sold in conventionalingot form.




Low Grade Ore Treatment

The plan for Twin Hills includes processing of lower grade ores without the cost of crushing to the fine size used for the higher grade ore. This component of the production plan relies on stacking the coarse lower grade material on top of fine material which has been fully leached. This eliminates the need for additional leach pad construction costs for the lower grade ore. At this stage the lower grade material is being stockpiled pending availability of re-usable leaching areas.




ENVIRONMENTAL PROTECTION AGENCY APPROVALS (“EPA”)

As per the conditions set out in the Environmental Authority, an independent Site Water Management and Monitoring Plan has been completed and sent to the EPA in draft form.  A consultant group specialising in site rehabilitation has been engaged to prepare the engineering documentation required for the capping of the waste rock dump, stockpiles and heap leach area. Progressive capping and re-vegetation of these areas is an ongoing EPA requirement.  




SILVER SPUR ZINC MINERALISATION

Zinc mineralisation is known to occur adjacent to Twin Hills at the historic Silver Spur silver/zinc mine.

Previously announced Resources at Silver Spur include:

• In ground Inferred Resource – 808,000t at 70g/t silver, 3.56% zinc, 1.25% lead, 0.17% copper.
• Slag dump Inferred Resource – 90,000t at 0.5g/t gold, 0.35% copper, 3.17% lead, 15.8% zinc and 158g/t silver.

 We have not yet determined how best to proceed with the Silver Spur Resources, mainly due to other management priorities. The Resource could, however, add to the Company’s cash flow in the future.

Yours faithfully



Garry Edwards




CHIEF EXECUTIVE OFFICER

The information in the report to which this statement is attached that relates to Exploration Results and Mineral Resources is based on information compiled by Robert McNeil, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Robert McNeil is employed by Macmin Silver Ltd.  Robert McNeil 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’.  Robert McNeil 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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27 September, 2007
MORE HIGH SILVER (711g/t) AND GOLD (10.15g/t) VALUES FROM DRILLING COMPLETED AT TALLY HO

Summary
Macmin Silver Ltd has recently received assay results for the final 12 drill holes from the drilling programme completed at our Tally Ho prospect in May 2007. Highlights of the drill holes are as follows:


GRRC44	15m (21-36m)	at 230g/t Silver, 0.06g/t Gold and 0.05% Zinc
	Incl. 2m (22-24m)	at 676g/t Silver, 0.17g/t Gold and 0.03% Zinc
	10m (49-59m)	at 272g/t Silver, 0.49g/t Gold and 3.90% Zinc
	Incl. 2m (57-59m)	at 711g/t Silver, 2.11g/t Gold and 7.64% Zinc
GRDD9	1m (126-127m)	at 384g/t Silver, 10.15g/t Gold and 0.35% Zinc
GRDD10	1m (135-136m)	at 512g/t Silver, 1.05g/t Gold and 0.34% Zinc
GRDD14	1m (224-225m)	at 283g/t Silver and 3.18g/t Gold
GRDD19	2m (144-146m)	at 177g/t Silver and 1.65g/t Gold

Drilling
Final assay results for the drilling programme completed in May 2007 at the Tally Ho prospect have recently been received. The best intercepts from the final 12 drill holes are presented in Table 1, with hole location data shown in Table 2. The Tally Ho prospect is part of the Central Queensland Project and is situated approximately 45km southwest of Mackay in Central Queensland.

Holes GRRC44, 45 and 47 are from the northern section of the mineralised breccia with a best intercept of 2m at 711g/t Silver, 2.11g/t Gold and 7.67% Zinc in GRRC44 from 57m located within a mineralised zone which extended from surface to 81m downhole assaying 109g/t Silver, 0.12g/t Gold, 1.03% Zinc, 0.16% Lead and 0.19% Copper.

Holes GRDD9, 10, 14 and 19 have all intersected zones of strong silver/gold mineralisation, with a best intercept of 1m at 384g/t Silver and 10.15g/t Gold in GRDD9 from 126m. All of these intercepts are deeper (downhole) than the extensive silver/zinc (+/-gold, lead and copper) mineralisation. Earlier drilling results (see previous ASX releases dated 7th June 2007 and 10th July 2007) also support the existence of a deeper (downhole) silver/gold rich zone of mineralisation.

The exact nature and relationship of the ‘deeper' silver/gold mineralisation and the more extensive silver/ zinc (+/-gold, lead and copper) mineralisation is uncertain at present, but will be reviewed as part of a comprehensive evaluation of all drilling data completed on the Tally Ho prospect. The ‘deeper' silver/gold mineralisation may represent a separate mineralising event, which has over printed or been over printed by the silver/zinc (+/-gold, lead and copper) mineralisation. A better understanding of this relationship will assist with targeting future drilling both on the Tally Ho prospect and exploration on the surrounding tenements.

Production of drill sections spaced 20m apart (on a recently established local grid) over the strike length of the prospect is underway, which will allow a full sectional review of all drilling data with the aim of gaining a greater understanding of the mineralising system (ie breccia pipe) and producing a JORC compliant resource. Two drill sections [5040N and 4980N] show the silver equivalent* mineralisation and its relationship to the breccia granite from the drilling carried out to date.

The breccia mineralising system (ie breccia pipe), which trends north north-east has been drill tested over a strike length of 180-200m. There is potential to locate further mineralisation of this nature either along strike (both to the north north-east and the south south-west) and/or as a parallel system. It is planned to undertake a programme of reconnaissance drilling in the coming months, utilising one of the Company's privately owned drilling rigs, to test for further mineralisation along strike.

A programme of soil sampling and prospecting is currently in progress, over an area of approximately 1.2 x 1.5km (centred on the Tally Ho prospect), with the aim of identifying further drill targets.


Drill Hole Numbers
Hole numbers GRRC39 and GRDD11, 12 and 13 have not been used.

Sampling and Assaying Details
Sampling of reverse circulation holes was undertaken over 1m and 2m intervals within the visual breccia zones (ie mineralised zones) and over 4m intervals through the un-brecciated, unaltered zones (ie non-mineralised zones).

Diamond core has been sampled over 1m intervals (1/2 core) within the breccia zones, with the altered margins being sampled over 2m intervals (1/4 core) for 2-4 samples either side of the breccia zones. Most diamond core has only been sampled in the area of the brecciation and alteration.

A few diamond holes have had more extensive sampling over the full length of the hole at 4m intervals out side of the brecciation and alteration zones.

As part of the Company's quality control programme, a duplicate sample is collected about every 20 samples and submitted under a different sample number providing a check on repeatability.

Assaying is carried out by ALS Chemex in Brisbane. Samples are subjected to an Aqua Regia digest followed by analysis for Silver (Ag), Copper (Cu), Lead (Pb), Zinc (Zn), Arsenic (As), Antimony (Sb), Bismuth (Bi) and Molybdenum (Mo) by the ICP-AES technique and Gold (Au) by the ICP-MS technique.

Table 1 - Best Intercepts



Note:
1. True widths of the intervals quoted are not listed, as the orientation of the mineralisation is uncertain.
   
2. Macmin Silver Ltd is primarily a silver exploration and mining company and as such reports silver equivalent values to provide shareholders and investors with a more easily quantifiable basis for comparison with other silver-bearing projects where the metal ratios are different from those at Tally Ho.
   
   It is the Company's opinion that each of the elements included in the Silver equivalent calculation have a reasonable potential to be recovered if the project proceeds to mining, however no metallurgical testing to determine recoveries has been undertaken to date.

*The calculation process and metal prices used in the calculation of Silver equivalents are:


	Metal			Price in AUD		Factors		Value Calculation	Metal value in AUD
		A		B		C
1	Silver		g/t	$15.00	per oz	31.1035	gms per oz	1A x 1B/1C =	M
2	Gold		g/t	$800.00	per oz	31.1035	gms per oz	2A x 2B/2C =	N
3	Copper		%	$4.66	per lb	0.045359	% per lb	3A x 3B/3C =	O
4	Lead		%	$0.66	per lb	0.045359	% per lb	4A x 4B/4C =	P
5	Zinc		%	$2.00	per lb	0.045359	% per lb	5A x 5B/5C =	Q
Sum of metal values								S =	M+N+O+P+Q
Metal equivalent in Silver g/t								ME =	S / 1B x 1C (g/t)

Table 2 - Hole locations for Table 1.



Yours faithfully

D.M. O'Neill
MANAGING DIRECTOR

The information in this report that relates to Exploration Results is based on information compiled by Denis O'Neill, who is a Member of The Australasian Institute of Mining and Metallurgy