Mr. Lorne Waldman reports

SILVERCORP REPORTS FINANCIAL AND OPERATING RESULTS FOR THE FISCAL YEAR AND FOURTH QUARTER ENDED MARCH 31, 2015

Silvercorp Metals Inc. has released its financial and operating results for the fourth quarter and fiscal year ended March 31, 2015.

The company is pleased that management enhancements and operational improvements enacted in fiscal 2015 to address the lower commodity price environment have favourably impacted all aspects of operations, with improvements in head grade and mining tonnage, resulting in improved cash flow and adjusted net income.

Fiscal year 2015 highlights:

• Silver sales of 5.1 million ounces, lead sales of 51.5 million pounds and zinc sales of 15.9 million pounds, up 33 per cent, 39 per cent, and 89 per cent from the prior year;
• Silver and lead head grades at the Ying mining district improving 16 per cent and 24 per cent compared with the prior-year period;
• Sales of $128.5-million, up 19 per cent from the prior year;
• Gross margin of 43 per cent compared with 45 per cent in the prior year, relatively steady despite a 13-per-cent decline in the average selling price of silver from the prior year;
• Cash flow from operations up 50.0 per cent to $54.1-million, or 32 cents per share, compared with $36.1-million, or 21 cents per share, in the prior-year period;
• Adjusted net income attributable to equity shareholders of $15.2-million, or nine cents per share, compared with adjusted net income attributable to equity shareholders of $7.6-million, or four cents per share, in the prior-year period;
• Cash cost per ounce of silver, net of byproduct credits, of 22 cents, compared with $2.16 in the prior year;
• All-in sustaining cost per ounce of silver, net of byproduct credits, of $11.75, compared with $16.33 in the prior year;
• General and administrative costs decrease of 16 per cent to $20.6-million compared with $24.4-million in the prior year;
• GC mine obtaining its safety production permit and ramping up to commercial production, producing 204,925 tonnes of ore with metal sales of 501,000 ounces of silver, 4.8 million pounds of lead and 9.4 million pounds of zinc;
• Ended the fiscal year with $69.5-million in cash and short-term investments.

Fourth quarter highlights:

• Silver sales of 900,000 ounces, an increase of 58 per cent compared with the same prior-year period;
• Lead sales of 9.2 million pounds and zinc sales of 2.5 million pounds, up 78 per cent and 188 per cent, respectively, compared with the same prior-year period;
• Sales of $20.3-million, an increase of 26 per cent compared with the same prior-year period;
• Gross margin of 26 per cent down from 43 per cent, impacted by the decline of metal prices and the inclusion of lower-profit-margin operations at the GC mine;
• Cash flow from operations of $4.8-million, or three cents per share;
• Adjusted net loss of $200,000, or nil per share;
• Cash cost per ounce of silver, net of byproduct credits, of 89 cents;
• All in sustaining cost per ounce of silver, net of byproduct credits, of $13.37.

Financials

Fiscal 2015 versus fiscal 2014

For the year ended March 31, 2015, net loss in fiscal 2015 was $108.7-million compared with $48.4-million in fiscal 2014. Net loss in the current fiscal year includes non-cash impairment charges of $130.3-million, which reduced the carrying value of the GC mine and XHP project to reflect lower metal prices. Net loss attributable to equityholders of the company was $103.1-million, or 60 cents per share compared with $41.0-million, or 24 cents per share in fiscal 2014. Excluding the non-cash impairment charges, adjusted net income attributable to shareholders was $15.2-million, or nine cents per share, compared with $7.6-million, or four cents per share, in fiscal 2014. Adjusted net income acts as a supplemental financial measure that provides a more complete assessment of the company's operations for the year.

In the current fiscal year, the company's financial results were mainly impacted by the following: (i) increase in silver, lead and zinc production of 33 per cent, 39 per cent and 89 per cent, respectively, compared with the prior fiscal year, (ii) increased metal sales of $20.1-million, or 19 per cent, compared with the prior fiscal year, of which $16.1-million was added from the new commercial production at the GC mine, (iii) a 16-per-cent decrease in general and administrative spending compared with the prior year, (iv) lower metal prices, as the realized selling price for silver and lead at the Ying mining district dropped by 11 per cent and 4 per cent, respectively, and (v) lower gold production and sales, as the BYP mine was placed on care and maintenance in the current year.

In fiscal 2015, the company realized sales of $128.5-million compared with $108.4-million in fiscal 2014.

Cost of sales in fiscal 2015 was $73.7-million compared with $60.0-million in fiscal 2014 and included cash costs of $53.0-million compared with $47.9-million in fiscal 2014. The 23-per-cent increase in cost of sales is mainly due to a 28-per-cent increase in ore production along with a 43-per-cent increase in per-tonne non-cash production cost to include GC mine's production results. Per-tonne cash production cost in fiscal 2015 was $65.91 compared with $65.59-per-tonne cash production cost in fiscal 2014.

In fiscal 2015, the gross profit margin was 43 per cent compared with 45 per cent in fiscal 2014. The inclusion of the 5-per-cent gross profit margin from the GC mine reduced the average gross profit margin. Ying mining district's gross profit margin achieved 48 per cent in the current year. The decrease in overall gross profit margin was also due to lower realized metal prices for silver and increased per-tonne production costs.

The non-cash impairment charge of $130.3-million recognized in fiscal 2015, of which $101.0-million related to the GC mine and $29.4-million related to the XHP project, was based on the discounted cash flows for each of the two properties. The discounted cash flows used estimated silver prices of $16.43 per ounce in 2015, increasing to $18.75 per ounce from 2016 to 2019 and long-term silver prices of $20.24 from 2020 onward. The discount rates used for the GC mine and the XHP project were 13.5 per cent and 15 per cent, respectively, which reflects the weighted-average cost of capital of a market participant, adjusted for asset specific risks, in particular the size, stage of development and the commodity for each property.

Cash flow from operations in fiscal 2015 was $54.1-million or 32 cents per share, compared with $36.1-million, or 21 cents per share, in fiscal 2014. The company ended the fiscal year with $69.5-million in cash, cash equivalents and short-term investments.

Fourth quarter fiscal 2015 versus fourth quarter fiscal 2014

For the quarter ended March 31, 2015, net loss was $130.1-million compared with $4.7-million in the three months ended March 31, 2014. Net loss in the current quarter includes $130.3-million non-cash impairment charges on the carrying value of mineral rights and properties, the plant at GC mine, and the XHP project to reflect lower metal prices. Net loss attributable to equityholders of the company was $118.5-million or 69 cents per share compared with $4.5-million or three cents per share in the quarter ended March 31, 2014. Excluding the non-cash impairment charges, adjusted net loss attributable to the equityholders in the quarter was $200,000 or nil per share (fourth quarter fiscal 2014: adjusted net income of $1.1-million, or one cent per share).

The loss incurred in the current quarter was mainly due to: (i) a 16-per-cent decrease in the realized price for silver, from $16.13 in fourth quarter fiscal 2014 to $13.48 in fourth quarter fiscal 2015 in the Ying mining district, (ii) higher mining and milling costs in the fourth quarter resulting from the allocation of fixed costs, to a reduced tonnage of ore mined and milled in the fourth quarter, (iii) reduced tonnage of ore mined due to the Chinese New Year, which results in mine operations of only two months in the quarter; (iv) reduced tonnage at the SGX mine as a result of work interruptions related to the non-renewal of a contract with one out of eight mining contractors, and (v) a $700,000 writedown of inventories at the GC mine.

In fourth quarter fiscal 2015, the company realized sales of $20.3-million compared with $16.1-million in the same quarter last year. The increase in sales was mainly due to the increase of metals produced offset by the decline of metal prices.

Cost of sales in fourth quarter fiscal 2015 was $15.0-million compared with $9.2-million in fourth quarter fiscal 2014. The cost of sales included $8.2-million (fourth quarter fiscal 2014: $7.8-million) cash costs, $6.1-million (fourth quarter fiscal 2014: $1.4-million) depreciation, amortization and depletion charges, and a $700,000 writedown of inventories at the GC mine (fourth quarter fiscal 2014: nil). The increase in cost of sales is mainly due to a 43-per-cent increase in ore production along with higher per-tonne production costs arising from: (i) higher cash mining cost at the Ying ming district as more in-stope drilling and higher-cost mining methods were used to achieve better grade control, and (ii) the inclusion of GC mine's production results. Benefiting from the improved head grades, cash cost per ounce of silver at the Ying ming district reduced to $1.58 in fourth quarter fiscal 2015 compared with $2.82 in fourth quarter fiscal 2014.

The gross profit margin in fourth quarter fiscal 2015 was 26 per cent, compared with 43 per cent in fourth quarter fiscal 2014, and the decrease was mainly due to the decrease of metal prices and the inclusion of lower gross profit margins from the GC mine operations.

Cash flow from operations in fourth quarter fiscal 2015 was $4.8-million or three cents per share, compared with $3.1-million, or two cents per share, in fourth quarter fiscal 2014.

Operations and development

Fiscal 2015 versus fiscal 2014

In fiscal 2015, on a consolidated basis, the company sold 5.1 million ounces of silver, 5,900 ounces of gold, 51.5 million pounds of lead and 15.9 million pounds of zinc, compared with 3.9 million ounces of silver, 11,124 ounces of gold, 37.2 million pounds of lead and 8.4 million pounds of zinc in fiscal 2014.

Ying mining district, Henan province, China

In fiscal 2015, the total ore mined at the Ying mining district was 658,729 tonnes, an increase of 5 per cent compared with total ore production of 625,266 tonnes in fiscal 2014. Silver and lead head grades improved by 16 per cent and 24 per cent, respectively, to 240 grams per tonne for silver and 3.5 per cent for lead from 207 g/t for silver and 2.8 per cent for lead in fiscal 2014.

In fiscal 2015, the Ying mining district sold 4.6 million ounces of silver, 3,200 ounces of gold, 46.7 million pounds of lead and 6.6 million pounds of zinc, compared with 3.9 million ounces of silver, 3,527 ounces of gold, 36.6 million pounds of lead and 7.6 million pounds of zinc in fiscal 2014. The increase in metals sold is mainly due to the higher ore output and improved head grades in fiscal 2015.

Total and cash mining costs per tonne were $64.27 and $49.92, respectively, compared with $61.33 and $50.73, respectively, in fiscal 2014. The overall decrease in cash mining costs per tonne was a result of the improvement in dilution and cost control.

In fiscal 2015, total ore milled at the Ying mining district was 646,943 tonnes, an increase of 2 per cent compared with 634,493 tonnes in fiscal 2014. Cash milling costs were $13.39 per tonne of ore milled compared with $14.14 in fiscal 2014. The decrease in per-tonne milling costs is due to higher tonnage processed and better cost control.

During the year, the company completed approximately 78,018 metres of horizontal tunnels, raises and declines and 63,880 metres of diamond drilling. Excluding the capitalization of the mineral right fee of $17.4-million related to the renewal of the SGX mine for another 10 years, total capitalized exploration and development expenditures for the Ying mining district were $30.4-million compared with $30.4-million in fiscal 2014.

GC mine, Guangdong province, China

Total ore mined at the GC mine in fiscal 2015 was 253,321 tonnes, of which 204,925 tonnes were mined since commercial production at a total mining cost and a cash mining cost of $71.34 and $43.75, respectively, while 48,396 tonnes were mined during the precommercial period in the first quarter of fiscal 2015.

Total ore milled at the GC mine in fiscal 2015 was 261,315 tonnes, of which 205,531 tonnes were milled after commercial production was declared at a total milling cost and a cash milling cost of $29.54 and $22.44, while 55,784 tonnes were milled during the precommercial period in the first quarter of fiscal 2015. Higher mining and milling costs in the fourth quarter resulted from the allocation of fixed costs to a reduced tonnage of ore mined and milled in the fourth quarter due to the Chinese New Year, which reduced mine operations to only two months during the quarter.

The head grades at the GC mine were 107 grams per tonne for silver, 1.3 per cent for lead and 2.7 per cent for zinc while the recovery rates were 76.8 per cent for silver, 86.2 per cent for lead and 80.6 per cent for zinc in fiscal 2015. As fiscal 2015 was the first production year at the GC mine, comparable information was not available.

In fiscal 2015, the company sold 600,000 ounces of silver, 6.3 million pounds of lead and 11.7 pounds of zinc. Revenue realized before commercial production was treated as a credit and directly offset the development expenditures incurred at the GC mine. Revenue contributed by GC mine since commercial production commenced in July, 2014, was $16.1-million.

During the year, the company completed approximately 12,970 metres of horizontal tunnels, raises and declines and 21,381 m of diamond drilling. Total capitalized exploration and development expenditures for the GC mine were $3.3-million compared with $15.9-million in fiscal 2014.

BYP mine, Hunan province, China

Certain capital upgrades are necessary at the BYP mine to sustain continuing production; however, in consideration of the required expenditures and the current market environment, the company has decided to defer such capital investments until a later time. As such, in August, 2014, the company suspended mining activities and put the BYP mine into care and maintenance. The BYP mine is not a core asset, and the company is considering various alternatives for this project.

In fiscal 2015, the BYP mine processed 48,844 tonnes of ore compared with 88,297 tonnes in the same prior-year period. During the same time periods, the company sold 2,711 ounces of gold compared with 7,416 ounces of gold in the prior year. Gold head grade was 2.7 g/t compared with 3.4 g/t in prior year.

Fourth quarter fiscal 2015 versus fourth quarter fiscal 2014

In fourth quarter fiscal 2015, on a consolidated basis, the company sold 900,000 ounces of silver, 600 ounces of gold, 9.2 million pounds of lead and 2.5 million of zinc, compared with 600,000 ounces of silver, 2,300 ounce of gold, 5.2 million of lead and 900,000 of zinc. The increase was mainly due to the improved dilution controls at the Ying mining district and higher metal production contributed by the GC mine.

Ying mining district, Henan province, China

In fourth quarter fiscal 2015, the company mined 112,327 tonnes of ore at the Ying mining district compared with 90,057 tonnes in fourth quarter fiscal 2014. During the quarter, metals sold totalled 800,000 ounces of silver, 600 ounces of gold, 8.3 million pounds of lead and 900,000 pounds of zinc, compared with 600,000 ounces of silver, 461 ounces of gold, 5.2 million pounds of lead and 900,000 pounds of zinc in fourth quarter fiscal 2014. The increase in metals sold is mainly due to the higher ore output and improved head grades in the current quarter.

Head grades were 268 grams per tonne for silver, 3.7 per cent for lead and 0.8 per cent for zinc, compared with 216 g/t for silver, 2.7 per cent for lead and 0.6 per cent for zinc in the same quarter last year, benefiting from continuing dilution and operation improvement in fiscal 2015.

During the quarter, the company renewed mining contracts with seven out of eight of its mining contractors for a further two-year term and terminated one mining contractor upon the expiration of its contract at the end of February, 2015. The company also entered into contracts with three new mining contractors to replace the terminated contractor, which previously worked out of three portals at the SGX mine. Regrettably, the changeover process for the terminated contractor was slow as the company and the terminated contractor have had disagreements and protracted negotiations regarding the final bill payment. The changeover difficulties impacted March's production at the SGX mine and the Ying mining district by 40 per cent and 15 per cent, respectively. At the end of March, 2015, the terminated contractor departed from two of the three occupied portals, which subsequently returned to normal operations. The company is still negotiating for the withdrawal from the last portal, and at this time, it does not anticipate that this disruption will materially impact the production guidance for fiscal 2016.

In fourth quarter fiscal 2015, total and cash mining costs per tonne were $74.84 and $53.25, respectively, compared with $60.85 and $49.04 in fourth quarter fiscal 2014, respectively. The increase of cash mining costs was due to using: (i) more in-stope diamond drilling and (ii) greater use of a higher-cost mining method to achieve better grade and dilution control in the current quarter.

In fourth quarter fiscal 2015, a total of 99,478 tonnes of ore was milled compared with 91,272 tonnes in fourth quarter fiscal 2014. The cash milling cost per tonne was $16.20 in fourth quarter fiscal 2015 compared with $15.08 in fourth quarter fiscal 2014.

Total and cash costs per ounce of silver in fourth quarter fiscal 2015 for the Ying mining district were $5.96 and $1.58, respectively, compared with $5.86 and $2.82, in fourth quarter fiscal 2014, respectively.

GC mine, Guangdong province, China

In fourth quarter 2015, 46,111 tonnes of ore were mined at the GC mine at a total mining cost and cash mining cost of $132.41 and $86.35, respectively, while 46,100 tonnes of ore were milled at a total milling cost and cash milling cost of $58.58 and $42.70. The mining cost and milling cost per tonne in fourth quarter 2015 were substantially higher than the annual average cost because of the allocation of fixed costs to a reduced tonnage of ore mined and milled in the fourth quarter due to the Chinese New Year, which results in mine operations of only two months in the quarter.

Head grades were 107 grams per tonne for silver, 1.2 per cent for lead and 2.6 per cent for zinc with recovery rates of 76.1 per cent for silver, 84.9 per cent for lead and 80.0 per cent for zinc in fourth quarter 2015. The head grades and recovery rates are comparable with the annual average at the GC mine.

Total and cash costs per ounce of silver in fourth quarter fiscal 2015 for the GC mine were $21.19 and negative $4.81, respectively.

Changes to senior management

Alex Zhang, MEng, MSci, PGeo, has joined Silvercorp as vice-president of exploration. Mr. Zhang has 20 years of experience and has worked with Eldorado Gold, Afcan Mining, Sino Gold and most recently with the company's affiliate, New Pacific Metals Corp. Mr. Zhang has supervised the exploration activities of two major gold projects from exploration through development to production, and brings a full range of technical and managerial skills related to exploration and mining projects. Mr. Zhang will also act as the qualified person for Silvercorp under NI 43-101, replacing Ruijin Jiang, who is retiring at the end of June.

Luke Liu, MEng, PhD (mining engineering), has joined Silvercorp as vice-president of China operations. Mr. Liu has over 20 years of mining industry experience in Australia and internationally, including China. He has held a diverse range of technical and engineering positions in mining companies and consulting firms and has demonstrated abilities running a modern mining operation. Based out of the Beijing office, Mr. Liu's duties include leading mine planning, improving mine operation processes, and ensuring that mining operations match or exceed production goals and budgets.

Myles Gao, president, corporate development, and a director, will be resigning, effective May 31, 2015. The company thanks Mr. Gao for his contributions to the company in his various capacities during his 12 years of service with the company and wishes him continued success in his future plans.

Dividend announcement

Silvercorp's board of directors has declared a quarterly dividend of 0.5 cent per share (two cents per share on an annual basis) to be paid on or before July 21, 2015, to shareholders of record at the close of business on June 30, 2015. The dividends are considered eligible dividends for Canadian tax purposes.

Mr. Zhang, PGeo, vice-president of exploration, is the qualified person for Silvercorp under NI 43-101 and has reviewed and given consent to the technical information contained in this news release.

This earnings release should be read in conjunction with the company's management's discussion and analysis, financial statements, and notes to financial statements for the corresponding period, which have been posted on SEDAR and are also available on the company's website. All figures are in U.S. dollars unless otherwise stated.

                                                                                               
                                 CONSOLIDATED STATEMENTS OF INCOME    
                (expressed in thousands of U.S. dollars, except for per-share figures)  
                                                                                        
                                                                        Three months ended         Years ended 
                                                                               March 31,             March 31, 
                                                                           2015       2014       2015       2014

Sales                                                              $     20,269 $   16,135  $ 128,465  $ 108,400
Cost of sales                                                            15,046      9,190     73,747     59,996
Gross profit                                                              5,223      6,945     54,718     48,404
General and administrative                                                4,370      3,531     20,603     24,424
Government fees and other taxes                                           1,148        607      5,946      4,648
Foreign exchange gain                                                    (3,295)      (421)    (4,722)    (3,171)
(Gain) loss on disposal of plant and equipment                              112         10         (6)       154
Loss on disposal of mineral rights and properties                            --      4,295         --      4,476
Share of (gain) loss in associate                                          (225)       (66)      (235)        87
Impairment on associate                                                      --      2,304         --      2,304
Impairment of plant and equipment and mineral rights and properties     130,349         --    130,349     66,573
(Loss) on investments                                                        --        (19)        15        589
Other income                                                               (106)       (20)    (1,086)      (137)
(Loss) from operations                                                 (127,130)    (3,276)   (96,146)   (51,543)
Finance income                                                              117        232        841      3,185
Finance costs                                                              (244)       (33)      (468)      (132)
(Loss) before income taxes                                             (127,257)    (3,077)   (95,773)   (48,490)
Income tax expense (recovery)                                             2,812      1,600     12,967       (134)
Net (loss)                                                         $   (130,069) $  (4,677) $(108,740) $ (48,356)
Attributable to
Equityholders of the company                                       $   (118,549) $  (4,541) $(103,109) $ (41,017)
Non-controlling interests                                               (11,520)      (136)    (5,631)    (7,339)
Total                                                              $   (130,069) $  (4,677) $(108,740) $ (48,356)
(Loss) per share attributable to equityholders of the company
(Loss) per share -- basic and diluted                              $      (0.69) $   (0.03) $   (0.60) $   (0.24)

We seek Safe Harbor.