Graynic agrees to sell Yanco Glen Project to Silver City October 29, 2008

Australian exploration company Graynic Metals Limited (ASX: GYN) has completed a Sale Agreement for its Yanco Glen Project with Silver City Mining Limited. The Yanco Glen Project (Corona – EL6489) is located 40km to the north of Broken Hill in eastern New South Wales.

The consideration for Silver City’s purchase of 100% of Graynic’s interest in Yanco Glen is a combination of Silver City shares and options, along with participation in a pool of converting performance shares. Participation will be based on exploration success.

Silver City will be responsible for developing and implementing exploration programmes for Yanco Glen, and for maintaining the tenement in good standing in accordance with all statutory requirements, including the annual tenement expenditure requirements set by the New South Wales Department of Primary Industries – Mineral Resources.

The Sale Agreement is subject to, and conditional upon, the Australian Stock Exchange granting Silver City conditional approval for its ordinary shares to be listed for quotation on the ASX on or before 30 June 2010. If Silver City fails to meet this timeframe Silver City will be deemed to have withdrawn from the Agreement and ownership of the tenement will revert to Graynic.

Silver City Mining Limited was incorporated for the purposes of acquiring and exploring a significant tenement package at Broken Hill in western New South Wales, which includes the Yanco Glen project and is home to the world’s largest lead-zinc-silver deposit. Silver City Mining intends to use funds raised via seed capital and through a planned IPO on the ASX to carry out exploration work on the Company’s tenements targeting MVT style mineralisation.

Click here to read the full announcement.

For further information, please contact:

Bronwyn Barnes
Managing Director
08 6364 0518
0417 093 256
bronwyn@graynicmetals.com.au
www.graynicmetals.com.au

Bob Richardson
Silver City Mining
0414 592 080

James Moses
Fortbridge Consulting
0420 991 574
James.moses@fortbridge.com