Interim Results

SILVERMINES GROUP PLC
23 September 1999

               SILVERMINES GROUP plc DELIVERS NEW STRATEGY WITH
                    INTERIMS ANNOUNCING £21.2M OF DISPOSALS

Key Announcements:
- Disposal of UK Aerospace Division for £12.8 million
- Sale of US Aerospace Division for £1.1 million
- Disposal of Electrical Division for £5.5 million
- Sale of Yateley manufacturing site for £1.77 million
- Focused  strategy on two profitable divisions, Broadcast &
  Telecommunications and Video Technology

Results for Six Months to 30th June 1999
- Operating losses were £0.3m (1998 - £3.5m profit) after one off redundancy
  costs of £0.3m.
- Overall Group results for the six months were a loss before taxation of
  £743,000 (1998 - £3.0m profit).
- Losses per share were 0.6p (1998 - earnings per share 2.46p).
- In the circumstances the Board are not recommending an interim dividend
  (1998 - 0.5p).

Bob Morton, Chairman of Silvermines, commented on the announcements:
'The  achievement  of  the  first  phase  of  our  strategy  demonstrates  
the commitment of our new Chief Executive, Ian Scott-Gall, and the Board to
restore the growth and creditability of the Group, and with it, shareholder
value.

The subsequent expansion of the Group will involve making strategic higher
technology acquisitions with the funds realised from the disposal programme.

The board accordingly looks forward to the future with confidence.'

For further information on Thursday 23 September 1999, please contact:

Ian Scott-Gall
Silvermines, Chief Executive 020 7353 1500

Thereafter contact Ian Scott-Gall on 0116 222 2111

Andrew Sharkey / Douglas Trainer
Luther Pendragon 020 7353 1500


                    SILVERMINES GROUP PLC - INTERIM RESULTS

                             CHAIRMAN'S STATEMENT
Introduction

I am pleased to announce that we have made good progress in effecting the
disposal of the Group's non core trading and loss-making activities.  This  
is the first phase of our strategy to focus on our higher technology
businesses which are able to show organic growth and development opportunities.
I am confident that the actions being taken and the strategy developed will
restore shareholder value.

Disposals

Aerospace

Agreement has been reached for the sale of the Group's Aerospace businesses
for £13.9m. The disposal of the UK Aerospace business for £12.8m requires
shareholders' approval and a circular to that effect will be sent to
shareholders. The smaller US Aerospace business was sold on 13 September  
1999 for £1.1m. These sales complete our withdrawal from this market sector.

Electrical

The Board has also reached an agreement to sell the Electrical Division to 
its management for £5.5m, which also requires shareholders' approval.

Security

Following an in-depth review, the Security Division has been separated into
two business segments.  The first is the loss-making UK manufacturing and
distribution operation. This business has faced increasing competition in a
difficult market and discussions are well advanced regarding its sale.

The second business segment of the Security Division comprising the companies
which sell directly to end users, will be retained. They have been brought
together to form our Video Technology Division.

Results for Six Months to 30 June 1999

In my statement to the Annual General Meeting on 2 June 1999, I reported 
that the slow down in orders in the second half of 1998 had impacted on
trading in the first quarter of 1999 and the results for the first half 
year were therefore expected to be disappointing.

The overall Group results for the six months were a loss before taxation  
of £743,000 (1998 - £3.0m profit). Total sales of £48.5m (1998 - £57.6m)  
were £9.1m lower than for the first half of last year, resulting in operating
losses of £0.3m (1998 - £3.5m profit) after one-off redundancy costs of  
£0.3m in the businesses being disposed of. Interest costs were £0.4m 
(1998 - £0.5m).

Group debt (before disposals) has risen from £12.9m to £13.5m, with gearing
increasing from a year-end level of 44% to 46%.

Losses per share were 0.6p (1998 - earnings per share 2.46p)and, in the
circumstances, the Board is not recommending an interim dividend 
(1998 - 0.5p).


BUSINESS REVIEW
     - ONGOING OPERATIONS

Sales at £21.6m (1998 - £22.5m) for ongoing operations were slightly below 
the first half of last year.

Operating profits from ongoing operations, after absorbing the total  
central costs  of the Group, were £0.6m for the six months (1998 - £1.3m,
including a £0.6m contribution from a one-off non-core technology licence
sale).

Broadcast and Telecommunications Division

Turnover of £13.7m is ahead of last year's £12.8m. This is the net result  
of lower   sales  by  Continental  Microwave Limited under the Crown Castle
International (formerly CTI) digital terrestrial television contract in 
this first half year compared with the higher level of deliveries last year
and the inclusion in this half year of Multipoint Communications Limited
(acquired in July 1998).

Operating profits of £0.8million have been depressed by the expected lower
margins achieved within Multipoint Communications Limited and a £0.13m
increased debtor provision.

The supply of equipment by this division for the UK digital TV infrastructure
has been highly successful over the last full year and there are now more 
than 200  transmitters already in service.  The next phase of this project 
should continue to generate good business towards the end of this year and
into next year.

The new generation electronic news gathering and portable links products 
have been  well accepted in the market with over 100 systems now in service 
or on order in 20 countries.

The division's share of the satellite communication market is also 
increasing following  further  development of the satellite news gathering  
('SNG')portfolio  with the launch of small antenna digital news gathering 
terminals. Orders  for  these  alone exceeded £1m within four weeks of 
introduction and overall SNG output exceeded that of digital broadcast in 
the period.

The integration of Multipoint Communications Limited into the divisional
marketing team has proved effective and has given increased field presence 
for a greater range of products.  Significant orders are expected in the 
second half of the year for this business.

The opportunities for this division within the digital TV broadcast market 
and the increasing requirement for outside broadcast units and earth stations
provides the Group with a business showing strong growth prospects.


Video Technology Division

As part of our strategic review, we have brought together those businesses 
of the Security Division which deal directly with the end user. These
businesses will further develop the Group's presence in video networking,
image processing, access control and building management as well as 
specialist video applications.  We have appointed a new Managing Director 
to this division, which brings together Active Imaging, Codepoint, DataCell,
Hernis Scan and American Auto-Matrix, into a customer focused applications
division.

Sales for the first half of 1999 were £7.9m (1998 - £9.7m), reflecting
contracts in 1998 that have not been repeated in 1999 and the one-off 
non-core technology licence sale. Operating profits for the new division 
were £0.4m(1998- £1.0m).

Central Costs

The Group's central costs continue to be high during this phase of
reorganisation and restructuring. We expect that they will be reduced to a
level commensurate with the Group's size and listing on both the London and
Dublin Exchanges.


BUSINESS REVIEW
     -DISCONTINUED and TO BE DISCONTINUED

The corrective actions taken in 1998 did not have the desired effect on  
the Group's trading during the first half of 1999. After a thorough  
strategic review of the Group's divisions and companies by our new Chief
Executive,  Ian Scott-Gall, it became clear that the Group needed to
accelerate the disposal of its non-core and under-performing businesses.

The effect of the UK trading conditions on two of the Group's divisions 
and on the non-core part of the Security Division can be seen by the 
reduction in turnover from the £35.1m reported for the first half of 1998
compared with the £26.9m achieved this year.

The reduced volumes and margin pressures experienced in the first half  
have created losses in the Aerospace and Security businesses. The 
Electrical Division made a small profit of £0.1m (1998 - £0.6m).

The operating losses of the discontinued and to be discontinued businesses
were £0.9m for the first half of 1999 (1998 - £2.2 m profit).

Aerospace Division

In this first half year, the Aerospace Division sales were £10.98m  
compared with  £14.4m for the same period last year.  Despite cost 
reductions and management seeking to restore volumes and margins, a pre 
tax loss of £0.1m was incurred against a £1.1m pre-tax profit for the 
first six months of 1998.

The aerospace industry as a whole is currently undergoing consolidation
particularly amongst the supplier base.  There are many small aerospace
component manufacturers in a market that remains competitive.  Following  
the review, it was decided to dispose of this division.

Agreement has been reached for the sale of the UK Aerospace businesses  
for £12.8m. To complete the strategy of withdrawing from the aerospace 
market, we have sold our US company, Pickering Controls Inc. for £1.lm.

The Group will therefore realise £13.9m (before costs and tax) from the sale
of this division. The surplus over net asset value arising on disposal is
estimated to be £4m but after adjusting for goodwill previously written off 
to reserves, there will be an overall loss of £1.8m.

Electrical Division

We have also announced that we have agreed to dispose of the Electrical
Division.  The sale to the management of this division for £5.5m  
recognises the cyclical nature of the markets and their continuing
competitiveness.  The Board considers that the opportunity for growth in 
these markets is limited.

This disposal will give rise to a net book value loss estimated to be £1.7m
which, after adjusting for goodwill previously written off to reserves
increases to an overall loss of £3.0m.

UK Security

The difficulties facing this business were reported in the 1998 annual 
report and accounts and it was also reported in my statement to the Annual 
General Meeting that the slow down in orders would affect the first half 
year.  The sales  of the UK Security operations at £5.6m show a £1.8m
reduction from the first six month's of last year's £7.4m.

The business incurred an operating loss of £0.8m which, although lower than 
the loss in the second half of 1998, shows little sign of abating and
represents a significant impediment to the Group's future profitability. 
Discussions are therefore at an advanced stage for the sale of this 
business.  This will be at a substantial discount to the net asset value. 
In addition, the £10m of goodwill previously written off to reserves will 
not be recovered.

Agreement was reached in July to sell our freehold manufacturing facility  
at Yateley, Hampshire.  This facility was previously used by Silvermines'
Videmech CCTV business prior to its relocation to the Newport site of the
Company's Security Division.  The consideration of £1.77m was paid on
completion at 3 September 1999, which was £0.3m in excess of book value.

Other Disposals

Discussions are being held for the disposal of our small printed circuit 
board manufacturer, which is a non-core part of the Broadcast and
Telecommunications Division.

Strategy

The disposals achieved to date will realise gross proceeds of £21.2m and  
an estimated surplus over net asset value of £2.6m. However, there will be  
an estimated  overall loss on disposal of £4.5m after adjusting for goodwill 
of £7.1m previously written off to reserves.

The disposal of the remaining non-core businesses will realise further  
funds and put the Group in a strong position from which to grow.

It is the Group's intention to focus on two divisions, Broadcast and
Telecommunications and Video Technology, whose technological base   
and expertise will allow for both organic and acquisition-led growth.

The Broadcast and Telecommunications business is now demonstrating a  
leading global capability in its markets, in the supply of broadcast 
quality transmission equipment via satellite and terrestrial microwave and
also in its developing capability with the supply of earth stations.

The Video Technology Division has to develop its technology, particularly 
that of Internet Video transmission and has a number of very interesting 
existing and potential opportunities.

Current Trading

Current  trading of the ongoing operations is at satisfactory levels, in  
the second  half,  but  trading  in  the businesses  to  be  discontinued 
remains disappointing.   The order book for the Broadcast and 
Telecommunications business, particularly for Multipoint Communications,  
is encouraging and provides a strong platform for next year's growth.

The Video Technology Division continues to perform well and will build on 
its businesses in order to move forward next year.

Outlook

The achievement of the first phase of our strategy demonstrates the 
commitment of our new Chief Executive and the Board to restore  
the growth and creditability of the Group, and with it, shareholder value.

The next phases will be to complete the disposal programme, continue the
development of the businesses within our two remaining divisions and review
the Group's central cost base.

The subsequent expansion of the Group will involve making strategic higher-
technology acquisitions with the benefit of the funds realised from the
disposal programme.

The Board accordingly looks forward to the future with confidence.

A L R Morton
Chairman
23 September 1999


GROUP PROFIT AND LOSS ACCOUNT
for the six months ended 30 June 1999

                 Six        Six       Year
              months to  months to    ended
               30 June    30 June    31 Dec
                1999       1998       1998
                £000       £000       £000
                             
Turnover                                

Continuing
operations

- ongoing      21,571     22,522     43,639
                                        
- to be         6,241      7,962     13,813
  discontinued

- to be        18,964     25,569     53,077
  discontinued,
  awaiting
  approval   
               46,776     56,053     110,529

- discontinued  1,738      1,608       3,649 
  operations

               48,514     57,661     114,178
Operating                               
profit

Continuing
operations

- ongoing         566       1,322      2,145

- to be          (908)        557       (741)
  discontinued

- to be             6       1,844      2,850
  discontinued,
  awaiting
  approval
                 (336)      3,723      4,254

Discontinued       (7)       (206)      (166)
operations
                 (343)      3,517      4,088
                                        
Exceptional        -          -       (3,703)
loss on sale
of businesses

Profit           (343)      3,517        385
(loss) on
ordinary activities
before interest

Interest         (400)       (505)    (1,111)
payable

Profit           (743)      3,012       (726)
(loss) on
ordinary activities
before taxation

Tax on            193        (753)      (770)
profit (loss) on
ordinary activities

Profit           (550)      2,259     (1,496)
(loss) for
the financial period

Dividends          -          459      1,377

Transfer         (550)      1,800     (2,873)
(from) to reserves

Basic and       (0.60) p     2.46 p    (1.63) p
diluted
earnings per share

Earnings per     0.26 p      0.79 p     0.96 p
share from
ongoing operations

Dividend per        - p      0.50 p     1.50 p
share




STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the six months ended 30 June 1999

                 Six        Six       Year
              months to  months to    ended
               30 June    30 June    31 Dec
                1999       1998       1998
                £000       £000       £000
                             
Profit          (550)     2,259     (1,496)
(loss) for
the financial
period

Translation      323       (175)       (78)
difference
on foreign
currency net
investments

Total           (227)     2,084     (1,574)                     
recognised      
gains and losses


RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
for the six months ended 30 June 1999

                 Six        Six       Year
              months to  months to    ended
               30 June    30 June    31 Dec
                1999       1998       1998
                £000       £000       £000
                             
Profit          (550)      2,259     (1,496)
(loss) for
the
financial
period

Dividends         -         (459)    (1,377)

                (550)      1,800     (2,873)
                                        
Shares            -           12         11
issued

Goodwill          -           -        (241)
written off
on acquisitions

Goodwill on       -           -          75
the disposal
of a business

Translation      323        (175)       (78)
difference
on foreign
currency net
investments
                 (227)      1,637     (3,106)
                                        
Opening       29,233      32,339     32,339
equity
shareholders'
funds

Closing       29,006      33,976     29,233
equity
shareholders'
funds


GROUP BALANCE SHEET
as at 30 June 1999

               30 June    30 June    31 Dec
                1999       1998       1998
                £000       £000       £000
                                        
Fixed assets                            

Intangible     2,274        -        2,796
assets

Tangible      11,774     11,448     11,851
assets

Financial         40      3,869         46
assets
              14,538     15,317     14,693
                                        
Current                                 
assets

Stocks        22,035     20,124     21,720

Debtors       25,764     35,270     27,755

Cash at bank     682        975      1,052
and in hand
              48,481     56,369     50,527
                                        
                                        
Creditors -                             
amounts
falling due
within one year

Borrowings     9,878      7,321      9,444

Creditors     18,750     23,245     20,798

              28,628     30,566     30,242
                                        
Net current   19,853     25,803     20,285
assets

                                        
Total assets  34,391     41,120     34,978
less current
liabilities

                                        
Creditors -                             
amounts
falling due
after more
than one year

Borrowing      4,254      4,939      4,508

Creditors         60        617        138
          
               4,314      5,556      4,646
                                        
Provisions     1,071      1,588      1,099
for liabilities
and charges
              29,006     33,976     29,233
                                        
Capital and                             
reserves

Called up      2,182      2,182      2,182
share
capital

Share         45,255     45,256     45,255
premium
account

Other          1,450      1,450      1,450
reserves

Profit and   (19,881)   (14,912)   (19,654)
loss account

                                        
Equity        29,006     33,976     29,233
shareholders'
funds


SUMMARISED STATEMENT OF CASH FLOWS
for the six months ended 30 June 1999

               30 June    30 June    31 Dec
                1999       1998       1998
                £000       £000       £000
                                        
Net cash       1,021     (1,482)     2,043
inflow
(outflow)
from
operating activities

Returns on     (317)       (440)    (1,117)
investments
and servicing 
of finance

Taxation       (336)        (95)      (844)

Capital        (536)       (793)    (1,775)
expenditure

Acquisitions      -        (887)    (1,894)
and disposals

Equity            -          -      (1,300)
dividends
paid
                                        
Net cash       (168)     (3,697)    (4,887)
(outflow)
before
financing

Financing      (797)      1,467        717

(Decrease)     (965)     (2,230)    (4,170)
in cash



RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

               30 June    30 June    31 Dec
                1999       1998       1998
                £000       £000       £000
                                        
(Decrease)      (965)     (2,230)    (4,170)
in cash

Cash inflow       -       (2,000)    (2,000)
from increase 
in loans

Repayment of     256         244        543
bank loans

Finance          541         301        751
lease repayments

Change in       (168)     (3,685)    (4,876)
net debt
resulting
from cash flows

Purchase of     (390)      (617)     (1,046)
tangible
fixed assets
with finance
leases

Finance           -          -            8
leases of
undertakings sold

Effect of          8         17          14
foreign
exchange changes

Movement in     (550)    (4,285)     (5,900)
net debt

Opening net  (12,900)    (7,000)     (7,000)
debt

Closing net  (13,450)   (11,285)    (12,900)
debt


NOTES TO THE INTERIM ACCOUNTS
for the six months ended 30 June 1999

1. SEGMENTAL REPORT

                  Turnover          Operating Profit
              30     30     31     30     30      31
             June   June    Dec   June   June    Dec
By           1999   1998   1998   1999   1998    1998
division:    £000   £000   £000   £000   £000    £000
                                                   
Broadcast  13,671 12,814 26,391    831  1,025   2,463
& Tele-                     
communications

Video       7,900  9,708 17,248    389  1,008   1,037
Technology                   

Central         -      -      -   (654)  (711) (1,355)
Costs                                             

Ongoing    21,571 22,522 43,639    566  1,322   2,145
operations    

Security    5,646  7,426 12,443   (814)   447  (1,127)
                                                
Other         595    536  1,370    (94)   110     386

To be       6,241  7,962 13,813   (908)   557    (741)
discontinued                  

UK          9,242 13,068 25,195    (71) 1,235   1,402
Aerospace             

Electrical  9,722 12,501 27,882     77    609   1,448
                                                                       
To be                                              
dis-       18,964 25,569 53,077      6  1,844   2,850
continued, 
awaiting                
approval

Dis-        1,738  1,608  3,649     (7)  (206)   (166)
continued
operations

Group      48,514 57,661 114,178  (343) 3,517   4,088
total             
                                                                              
Dis-       26,943 35,139  70,539  (909) 2,195   1,943
continued
and to be   
discontinued
operations


The operating profit at 31 December 1998 is stated after deduction of
exceptional reorganisation costs of £465,000 in the UK Aerospace division 
and £325,000 in the Security division.

Turnover analysis

                  Turnover
              30     30     31
             June   June    Dec
By market:   1999   1998   1998
             £000   £000   £000
                             
Ongoing                      
operations

UK &        7,870  7,546 18,831
Ireland                      

Rest of     6,474  5,387  8,437
Europe

North       3,075  3,852  7,258
America

Asia        2,613  1,774  3,557

Other       1,539  3,963  5,556

Other                        

UK &       20,337 27,813 55,069
Ireland       

Rest of     2,777  3,848  7,227
Europe

North       2,475  1,632  3,948
America

Asia          779    837  1,955

Other         575  1,009  2,340

                             
Group      48,514 57,661 114,178
total              


2. TAX ON PROFIT (LOSS) ON ORDINARY ACTIVITIES

The tax charge for the six months ended 30 June 1999 is based on the 
effective tax rate of 26% which it is estimated will apply for the full  year.

3. DIVIDENDS

No interim dividend is proposed for the period.  In 1998 the interim 
dividend was 0.50p and the total dividend 1.50p.

4. EARNINGS PER ORDINARY SHARE

Earnings per share is calculated by reference to a weighted average of
91,767,000 ordinary shares in issue during the period (30 June 1998 -
91,742,000 ; 31 December 1998 - 91,754,000).
There is no difference between earnings per share and diluted earnings per
share as the outstanding share options and warrants are considered
antidilutive.
Earnings per share from ongoing operations excludes after tax amounts 
relating to operations to be discontinued, including to be discontinued
operations awaiting approval and discontinued operations of £786,000 loss 
(30 June 1998 - £1,532,000 profit ; 31 December 1998 - £1,949,000 profit).

               30 June    30 June    31 Dec
                1999       1998       1998
                             
Basic and      (0.60) p    2.46 p    (1.63) p
diluted
earnings per
share

Adjustments:    0.86 p    (1.67) p   (2.12) p
Result after
taxation
from
operations
to be
discontinued,
to be
discontinued
awaiting
approval and
discontinued
operations

Exceptional      - p        - p      4.71 p
items

Earnings per   0.26 p     0.79 p     0.96 p
share from
ongoing
operations


5. RECONCILIATION OF OPERATING PROFIT TO NET CASH FLOW FROM OPERATING ACTIVITIES

               30 June    30 June    31 Dec
                1999       1998       1998
                £000       £000       £000

Profit          (343)     3,517        385
before
interest and
taxation

Depreciation   1,082        977      2,067

Amortisation      72         -          72
of goodwill

Provision         -          -       3,270
against
investments

Goodwill on       -          -          75
disposal of
a business

(Profit) on      (15)       (42)       (54)
sale of
fixed assets

(Increase)      (112)      (529)    (1,924)
in stocks

(Increase)     2,135     (6,648)       398
decrease in
debtors

Increase      (1,770)     1,333     (1,902)
(decrease)
in creditors

(Decrease)       (28)       (90)      (344)
in provisions

Net cash        1,021     (1,482)     2,043
inflow
(outflow)
from operating
activities

6. SUBSEQUENT EVENTS

On 3 September 1999 freehold property at Yateley, Hampshire was disposed 
of for a cash sum of £1.77 million.
The net book value of the property was £1.4 million.
On 13 September 1999 Pickering Controls Inc. was disposed of for a cash 
sum of £1.1 million.  In the six months ended 30 June 1999 Pickering 
Controls Inc. recorded a pre-tax loss of £60,000 (1998 - £100,000 loss) 
on turnover of £1.8 million (1998 - £1.4 million).  Net assets at that 
date were £2.3 million. On 23 September 1999 the UK Aerospace business,
comprising Muirhead Vactric Components Limited and Norcroft Dynamics 
Limited, has been sold, subject to shareholder approval, for £12.8 million
payable on completion.  In the six months ended 30 June 1999 the UK 
Aerospace business recorded a pre-tax profit of £12,000 (1998 - £1.3 million)
on turnover of £9.3 million (1998 - £13.1 million).  Net assets disposed of 
at that date were £7.0 million.
On 23 September 1999 the Electrical division, being Elequip Projects 
Limited, has been sold, subject to shareholder approval, to its management 
for £5.5 million, with £5.15 million payable on completion and £0.35 million
on 30 June 2000.  In the six months ended 30 June 1999 the Electrical 
division recorded a pre-tax profit of £83,000 (1998 - £0.6 million) on
turnover of £9.7 million (1998 - £12.5 million).  Net assets disposed of at
that date were £7.0 million.
In summary, the disposals will realise gross proceeds of £21.2 million, 
the total net assets disposed of are £17.7 million and the resulting 
profit on disposal is £2.6 million, after the deduction of transaction 
costs.  There will be an overall loss on disposal of £4.5 million after
adjusting for goodwill of £7.1 million previously written off to reserves.


7. BASIS OF PREPARATION

The interim accounts, which are unaudited, have been prepared in accordance
with the accounting policies set out in the Annual Report and Accounts for 
the year ended 31 December 1998.
The financial information for the preceding year is based upon the statutory
accounts for the year ended 31 December 1998 upon which the auditors gave an
unqualified opinion and which have been delivered to the Registrar of
Companies.

8. PROFIT AND LOSS ACCOUNT

The profit and loss account comprises:

               30 June    30 June    31 Dec
                1999       1998       1998
                £000       £000       £000
                                        
Accumulated    3,071      7,730      3,226
profits

Goodwill     (22,952)   (22,642)   (22,880)
written off
             (19,881)   (14,912)   (19,654)
                                        
9. YEAR 2000

In the 1998 Annual Report and Accounts it was reported that the Group was 
well advanced in assessing the risks to the business resulting from the 
date change to the Year 2000.  All Group companies instituted a thorough
review of Year 2000 issues and developed comprehensive plans to address the
risks and uncertainties highlighted by the reviews.  The review included
working with suppliers and customers with the objective of avoiding any
business interruption.  This assessment process has now been completed and
action plans fully implemented.  The cost of implementation was not
significant and has been absorbed by the companies involved.


REVIEW REPORT BY PRICEWATERHOUSECOOPERS TO THE DIRECTORS OF SILVERMINES 
GROUP PLC

Introduction
We have been instructed by the company to review the financial information 
set out on pages 5 to 11 and we have read the other information contained 
in the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information.

Directors' responsibilities
The interim report, including the financial information contained therein, 
is the responsibility of, and has been approved by the directors.  The 
Listing Rules of the Irish Stock Exchange in the Republic of Ireland require
that the accounting policies and presentation applied to the interim figures
should be consistent with those applied in preparing the preceeding annual
accounts except where any changes, and the reasons for them, are disclosed.

Review work performed
We conducted our review in accordance with guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board.  A review consists 
principally of making enquiries of group management and applying analytical
procedures to the financial information and underlying financial data and
based thereon, assessing whether the accounting policies and presentation 
have been consistently applied unless otherwise disclosed.  A review 
excludes audit procedures such as tests of controls and verification of
assets, liabilities and transactions. It is substantially less in scope 
than an audit performed in accordance with Auditing Standards and therefore
provides a lower level of assurance than an audit.  Accordingly we do not
express an audit opinion on the interim financial information.

Review conclusion
On the basis of our review we are not aware of any material modifications 
that should be made to the financial information as presented for the six
months ended 30 June 1999.

PricewaterhouseCoopers
Chartered Accountants and Registered Auditors
Leicester
23 September 1999