Disposal

SILVERMINES GROUP PLC
15 July 1999


SILVERMINES GROUP PLC ('Silvermines' or 'the Company')

DISPOSAL OF PROPERTY

Silvermines is pleased to announce that it has reached agreement to sell its
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 for this sale is £1.77 million payable in cash on
completion, which is expected to be on 2 September 1999.  The net book value
of these premises at 31 December 1998 was £1.4 million.

The proceeds from the disposal will be used partly to fund a £0.5 million
acquisition of a long leasehold property at Finchampstead in Berkshire, for
the use of Silvermines image analysis business, Datacell Ltd, which is
currently based at the Yateley factory, and partly to reduce borrowings.

Further Information:

Silvermines Group plc
Ian Scott-Gall, Chief Executive                  0116 222 2111

Luther Pendragon
Andrew Sharkey                                   0171 353 1500