An anonymous director reports

SILVERCORP REPORTS OPERATIONAL RESULTS AND THE FINANCIAL RESULTS RELEASE DATE FOR THE FIRST QUARTER OF FISCAL 2022

Silvercorp Metals Inc. has released production and sales figures for the first quarter of fiscal year 2022 ended June 30, 2021. The company expects to release its Q1 fiscal 2022 unaudited financial results on Aug. 5, 2021, after market close.

In Q1 fiscal 2022, the company produced approximately 1.5 million ounces of silver, 1,000 ounces of gold, 15.9 million pounds of lead and 7.2 million pounds of zinc, and sold approximately 1.6 million ounces of silver, 1,000 ounces of gold, 16.8 million pounds of lead and 7.3 million pounds of zinc, representing decreases of 12 per cent, 9 per cent and 20 per cent, respectively, in silver, gold and lead sold, and an increase of 4 per cent in zinc sold over the first quarter of fiscal 2021.

The production decline in the current quarter resulted mainly from the company's mining contract renewal negotiations at the Ying mining district. As reported in the company's news release dated April 28, 2021, the company's two-year mining contracts with the eight mining contractors at the Ying mining district expired on March 31, 2021, and the parties reached a temporary two-month extension. During negotiations, some contract workers took breaks or left due to the uncertainty, which caused some disruption to mining activities. When the contracts were renewed for an additional two-year term in mid-May, 2021, it took some time for the contractors to bring back all their workers and ramp the operations back up to full capacity. Notwithstanding the production decline in Q1 fiscal 2022, the company expects to increase production in the remaining three quarters and meet its annual guidance to produce between 6.3 million and 6.6 million ounces of silver, between 65.7 million and 68.9 million pounds of lead, and between 26.9 million and 28.5 million pounds of zinc in fiscal 2022.

Q1 fiscal 2022 operating highlights:

• At the Ying mining district, ore mined was 142,907 tonnes, down 18 per cent compared with Q1 fiscal 2021, and ore milled was 155,407 tonnes, down 13 per cent over Q1 fiscal 2021. Approximately 1.3 million ounces of silver, 1,000 ounces of gold, 13.3 million pounds of lead and 1.5 million pounds of zinc were produced, representing production decreases of 17 per cent in silver, 9 per cent in gold, 22 per cent in lead and 21 per cent in zinc over Q1 fiscal 2021.
• At the GC mine, ore mined was 88,328 tonnes, up 10 per cent over Q1 fiscal 2021, and ore milled was 87,670 tonnes, up 4 per cent over Q1 fiscal 2021. Approximately 190,000 ounces of silver, 2.6 million pounds of lead and 5.7 million pounds of zinc were produced, representing an increase of 1 per cent in zinc production, and decreases of 9 per cent and 17 per cent in silver and lead production over Q1 fiscal 2021.
• On a consolidated basis, ore mined was 231,235 tonnes, down 9 per cent over Q1 fiscal 2021, and ore milled was 243,077 tonnes, down 7 per cent over Q1 fiscal 2021. Approximately 1.5 million ounces of silver, 1,000 ounces of gold, 15.9 million pounds of lead and 7.2 million pounds of zinc were produced, down 16 per cent, 9 per cent, 21 per cent and 4 per cent, respectively, over Q1 fiscal 2021.
• On a consolidated basis, the company sold approximately 1.6 million ounces of silver, 1,000 ounces of gold, 16.8 million pounds of lead and 7.3 million pounds of zinc, representing decreases of 12 per cent, 9 per cent and 20 per cent, respectively, in silver, gold and lead sold, and an increase of 4 per cent in zinc sold over Q1 fiscal 2021.

The operational results for Q1 fiscal 2022 are summarized in the attached table.

Ying mining district

In Q1 fiscal 2022, ore mined at the Ying mining district was 142,907 tonnes, a decrease of 18 per cent, compared with 174,176 tonnes in Q1 fiscal 2021. Ore milled was 155,407 tonnes, with average head grades of 279 grams per tonne for silver, 4.2 per cent for lead and 0.8 per cent for zinc, compared with 177,689 tonnes of ore milled with average head grades of 293 g/t for silver, 4.6 per cent for lead and 0.8 per cent for zinc in Q1 fiscal 2021. Metal production was approximately 1.3 million ounces of silver, 1,000 ounces of gold, 13.3 million pounds of lead and 1.5 million pounds of zinc, compared with approximately 1.5 million ounces of silver, 1,100 ounces of gold, 16.9 million pounds of lead and 1.9 million pounds of zinc in Q1 fiscal 2021. The decrease was mainly due to the mining disruptions arising from the mining contract renewal negotiations as discussed above.

GC mine

In Q1 fiscal 2022, ore mined at the GC mine was 88,328 tonnes, an increase of 10 per cent compared with 80,379 tonnes in Q1 fiscal 2021. Ore milled was 87,670 tonnes, with average head grades of 80 g/t for silver, 1.5 per cent for lead and 3.3 per cent for zinc, compared with 84,637 tonnes of ore milled with average head grades of 93 g/t for silver, 1.9 per cent for lead and 3.4 per cent for zinc in Q1 fiscal 2021. Metal production was approximately 190,000 ounces of silver, 2.6 million pounds of lead and 5.7 million pounds of zinc, compared with approximately 209,000 ounces of silver, 3.1 million pounds of lead and 5.6 million pounds of zinc in Q1 fiscal 2021.

About Silvercorp Metals Inc.

Silvercorp is a profitable Canadian mining company producing silver, lead and zinc metals in concentrates from mines in China. The company's goal is to continuously create healthy returns to shareholders through efficient management, organic growth and the acquisition of profitable projects. Silvercorp balances profitability, social and environmental relationships, employees' well-being, and sustainable development.

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