An anonymous director reports

SILVERCORP REPORTS INCREASED RESERVES AND RESOURCES AT THE GC MINE

Silvercorp Metals Inc. has released the results of an updated National Instrument 43-101 technical report entitled "NI 43-101 Technical Report Update on the Gaocheng Ag-Zn-Pb Project in Guangdong Province, People's Republic of China" with an effective date of March 31, 2021 (mineral resources and mineral reserves effective Dec. 31, 2020), prepared by AMC Mining Consultants (Canada) Ltd.

Five of the six authors of the GC NI 43-101 technical report qualify as independent qualified persons, two of whom visited the GC mine in January, 2018, and examined all aspects of the project, including drill core, underground workings, processing plant and surface infrastructure. The non-independent author, who is a Silvercorp employee, has visited the site on numerous occasions, with the last two visits from Oct. 25 to 30, 2019, and from May 13 to 28, 2021. The GC NI 43-101 technical report will be made available for review on the company's SEDAR profile and website.

Highlights of the GC NI 43-101 technical report

From the start of operations at the GC mine in 2014 through to Dec. 31, 2020, 1,853,662 tonnes have been mined at average head grades of 94 grams per tonne silver, 1.6 per cent lead and 2.9 per cent zinc.

Despite this mine production depletion, there has been an 8-per-cent increase in tonnes of combined proven and probable reserves (39-per-cent increase in proven reserves and 21-per-cent decrease in probable reserves) compared with the mineral reserve estimate in the previous technical report on the GC mine with an effective date of June 30, 2019.

Based on only proven and probable reserves, the GC mine has a projected life of mine (LOM) of 13 years through to 2034, at an average annual production rate of approximately 310,000 tonnes, and with average silver equivalent grades of approximately 309 grams per tonne. The GC mine has the potential to extend the LOM beyond 2034, via the conversion of existing mineral resources to mineral reserves, and further exploration and development.

Compared with the mineral resources estimate in the 2019 technical report, the measured tonnes have increased by 57 per cent due to the discovery of new veins, new vein interpretations and the conversion of indicated tonnes (which decreased by 17 per cent) to the measured resource classification. Inferred tonnes have also increased by 17 per cent.

The results of the underground drilling program at the GC mine show that vein structures are still open at depth.

2021 mineral reserve and mineral resource update

Silvercorp completed its first phase of diamond drilling at the GC mine in 2008 and has continued through to the present. The 2019 technical report mineral resource and mineral reserve estimates on the GC mine were as of Dec. 31, 2018. All Silvercorp drilling has been completed with NQ-sized core. Drill hole collars were surveyed using a total station and downhole surveys were completed every 50 metres downhole. Core recoveries varied between 35.66 per cent and 100 per cent, averaging 99.36 per cent.

Mineral reserves

The assumption has been made that current stoping practices will continue to be employed at the GC mine, namely predominantly shrinkage stoping (69 per cent of projected LOM), combined with some cut and fill resuing (31 per cent of projected LOM), using hand-held drills and hand-mucking within stopes, and loading to mine cars by rocker-shovel or by hand. Minimum mining widths of one metre for shrinkage and 0.5 metre for resuing are assumed.

Average dilution has been estimated at 19.8 per cent for shrinkage and 12.4 per cent for resuing, with an average of 17.4 per cent. Assumed mining recovery factors are 92 per cent for shrinkage stopes and 95 per cent for resuing stopes.

The GC NI 43-101 technical report defines mineral reserves of 4,131,000 tonnes in the combined proven and probable categories, grading 94 grams per tonne Ag, 1.5 per cent Pb and 3.2 per cent Zn, containing approximately 12.5 million ounces of silver, 135 million pounds of lead, and 293 million lb of zinc. Mineral reserve tonnes are noted to be approximately 41 per cent of mineral resource (measured plus indicated) tonnes. Silver, lead and zinc mineral reserve grades are 115 per cent, 124 per cent and 115 per cent, respectively, of the corresponding measured plus indicated mineral resource grades. Metal content conversions for silver, lead and zinc from measured plus indicated mineral resources to proven plus probable mineral reserves are 47 per cent, 51 per cent and 47 per cent, respectively.

Resources were estimated using a block modelling approach, with Micromine software. Interpolation was carried out using inverse distance squared (ID2) for all the veins. Estimates were made for a total of 156 mineralized vein structures for the GC mine.

The mineral resources are reported above a cut-off of 105 grams per tonne AgEq. The cut-off value was based on estimated costs for mining, maintenance/admin, internal ore transport and processing. The cut-off value calculation was generated by AMC with input from Silvercorp.

Mineral resources at Dec. 31, 2020, totalled 10 million tonnes (inclusive of mineral reserves) in the combined measured and indicated categories, grading 82 grams per tonne Ag, 1.2 per cent Pb and 2.8 per cent Zn, containing approximately 26.4 million oz of silver, 265 million lb of lead and 619 million lb of zinc.

The mineral reserve and mineral resource estimates have been estimated and compiled in accordance with definitions and guidelines set out in the CIM Definition Standards (2014).

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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