Business SummarySilver Lake Resources Limited (SLR) is a gold producing and explorationcompany with resources in the prospective regions in Western Australia. Theflagship projects are Mount Monger and the Murchison goldfields. SLRrecently acquired the Phillip River Assets in Western Australia.

Mount Monger Project (100%): The project is located 50km SE of Kalgoorliein WA and is prospective for gold, covering 165 sqkm. The Mount Mongerlease package contains the Daisy Milano, Daisy East, Rosemary and Haomaunderground mines and the Wombola open pit mines. The mine production ofFY2011 was 405,525t @ 5.9 g/t Au for 77,281 oz Au. As at December 2011,the project had total JORC resources of 6.76Mt @ 7.8g/t Au for 1.71Moz Au.

Murchison Projects (100%): The projects in the Murchison goldfield arelocated 600 km NE of Perth. Murchison assets consist of the Tuckabianna,Comet, and Moyagee projects with a combined total JORC resource of20.64Mt @ 2.8g/t Au for 1.86Moz Au as at December 2011. Production isexpected to commence in the March 2013. In addition, the area has thepotential for copper and other base metals targets. Currently, SLR focuses onthe Eelya Complex, hosting the copper discovery at Hollandaire deposit. Thedeposit has an inferred resource of 1.1Mt @ 2.4%Cu, 0.5g/t Au and 13g/t Agfor 25,400tCu, 18,000oz Au and 440,000oz Ag.

Phillip River Assets: As at March 2012, SLR acquired Phillip River assets inWA from Phillips River Mining Ltd (PRH). The assets include (i) Kundip goldproject has total resources of 8.94Mt @ 2.7g/t Au for 788,000oz Au, 2.3g/t Agfor 668,000oz Ag and 30,000t Cu. The 2P reserves are 2.81Mt @ 3.4g/t Aufor 307,000oz Au, 2.7g/t Ag for 244,000oz Ag and 0.4% Cu for 11,000t Cu.(ii) Trilogy polymetallic project has total resources of 6.24Mt @ 0.8g/t Au for164,000oz Au, 47g/t Ag for 9.34Moz Ag and 1%Cu for 65,000t Cu. The 2Preserves are 4.63Mt for 0.9g/t Au for 135,000oz Au, 54.3g/t Ag for 8.09MozAg and 1.1%Cu for 49,000t Cu.

Munglinup Project: SLR acquired the project in March 2012. The project,containing 5 tenements, covers over 1,600 sqkm located in the Albany Frasergold belt. The belt hosts the 5Moz Tropicana deposit located 500km to theNE.

GICS - Materials

Silver Lake Resources Limited

ASX Code: SLR Price: $2.75

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Snapshot

DateMarket Cap.Shares on issue12 Month High12 Month Low

10 July 2012$620m225.5m$3.87$2.02

Investment FundamentalsFYE 30 Jun 2008A 2009A 2010A 2011A

Profit $m -3.7 10.6 11.8 15.8Profit (norm)* $m -3.7 10.6 11.8 15.8

EPS* ¢ -3.4 6.9 6.2 7.9EPS Growth % 0.0 0.0 -9.9 27.2P/E* x 0.0 39.9 44.2 34.8P/E Relative % 0.0 0.4 1.3 2.0

DPS ¢ 0.0 0.0 0.0 0.0Yield % 0.0 0.0 0.0 0.0Franking % 0.0 0.0 0.0 0.0* Adjusted for unusual itemsSource: Aspect Huntley historical financials

Share Price Chart

Total Return on $10,000 Investment

Profit & Loss ($M)2007A 2008A 2009A 2010A 2011A

Sales Revenue -- 3 58 69 90Total Revenue ex. Int. -- 3 58 69 90EBITDA -- -4 14 24 33Depreciation & Amort. -- -- -- -8 -11Goodwill Amortisation -- -- -- -- --EBIT -- -4 14 16 22Net Interest -- 0 0 1 1Profit Before Tax -- -4 14 17 23Income Tax -- -- -3 -5 -7Outside Equity Int. -- -- -- -- --Profit after Tax -- -4 11 12 16Significant Items after Tax -- -- -- -- --Reported Profit after Tax -- -4 11 12 16Preferred Dividends -- -- -- -- --

Cash Flow ($M)2007A 2008A 2009A 2010A 2011A

Receipts from Customers -- 2 59 68 91Funds from Operations -- -4 25 20 33Net Operating Cashflow -- -4 25 20 33Capex -- -25 -10 -26 -48Acquisitions & Investments -- -- -- -- --Sale of Invest. & Subsid. -- -- -- -- --Net Investing Cashflow -- -24 -10 -25 -46Proceeds from Issues -- 30 -- 19 0Dividends Paid -- -- -- -- --Net Financing Cashflow -- 29 -0 18 -0Net Increase Cash -- 1 15 13 -13Cash at Beginning -- 1 2 17 30Exchange Rate Adjust. -- -- -- -- --Cash at End -- 2 17 30 16

Ratios and Substantial Shareholders2007A 2008A 2009A 2010A 2011A

Profitability RatiosEBITDA Margin % -- -137.93 23.33 34.22 36.81EBIT Margin % -- -137.93 23.33 23.28 24.43Net Profit Margin % -- -124.54 18.34 17.06 17.55Return on Equity % -- -10.79 23.37 15.60 17.28Return on Assets % -- -8.64 18.04 12.27 12.43

Debt/Safety RatiosNet Debt/Equity % -53.02 -2.54 -34.79 -38.15 -17.16Interest Cover x -- 10.30 -376.36 -26.66 -27.76

Top 5 Substantial ShareholdersThe Bank of Nova Scotia 7.5%Sprott Asset Management Inc 7.2%Macquarie Group Limited 5.1%

Balance Sheet ($M)2007A 2008A 2009A 2010A 2011A

Cash & Equivalent 20 2 17 30 16Receivables 0 2 1 2 1Inventories -- 4 2 8 15Other Current Assets -- 0 0 0 0Current Assets 20 8 20 39 34Prop. Plant & Equipment 1 25 26 32 55Intangibles -- -- -- -- --Other Non-Current Assets -- 2 2 2 2Non-Current Assets 19 34 40 58 94Total Assets 39 42 60 97 128Interest Bearing Debt -- 1 1 1 0Other Liabilities 1 7 14 21 36Total Liabilities 1 8 14 22 37Net Assets 38 34 46 76 91Share Capital 38 37 38 56 56Reserves -- 0 1 0 0Retained Earnings -0 -4 7 19 35Outside Equity Int. -- -- -- -- --Total Shareholders Equity 38 34 46 76 91

Current Analyst Recommendations *

* Source: Morningstar. This chart shows the spread of recommendations from thosebroker analyst's in Australia with research coverage of this stock.

Principals & DirectorsPrincipals

Company Secretary Mr Peter Armstrong

Directors

Mr Peter B Johnston(Non-Executive Director)Mr Paul Chapman(Non-Executive Chairman)Mr Brian Anthony Kennedy(Non-Executive Director)Les Davis(Managing Director)Mr Christopher Adam Banasik(Director Exploration & Geology)David Griffiths(Non-Executive Director)

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Silver Lake Resources Limited

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