Mr. Lon Shaver reports

SILVERCORP REPORTS ADJUSTED NET INCOME OF $37.0 MILLION, $0.21 PER SHARE, AND CASH FLOW FROM OPERATION OF $85.6 MILLION FOR FISCAL 2023

Silvercorp Metals Inc. has released its financial and operating results for the three months (Q4 fiscal 2023) and 12 months ended March 31, 2023 (fiscal 2023). All amounts are expressed in United States dollars, and figures may not add due to rounding.

Highlights for fiscal 2023

• Mined 1,068,983 tonnes of ore, milled 1,072,654 tonnes of ore and produced approximately 6.6 million ounces of silver, 4,400 ounces of gold or approximately 7.0 million ounces of silver equivalent, plus 68.1 million pounds of lead and 23.5 million pounds of zinc;
• Sold approximately 6.6 million ounces of silver, 4,400 ounces of gold, 65.7 million pounds of lead and 23.4 million pounds of zinc, for revenue of $208.1-million;
• Reported net income attributable to equity shareholders of $20.6-million, or 12 cents per share;
• Realized adjusted earnings attributable to equity shareholders of $37.0-million, or 21 cents per share. The adjustments were made to remove impacts from non-recurring items, share-based compensation, foreign exchange gain/loss, impairment adjustments and reversals, gain/loss on equity investments, dilution gain/loss, and the share of associates' operating results;
• Generated cash flow from operating activities of $85.6-million;
• Cash cost per ounce of silver, net of byproduct credits, of negative 42 cents;
• All-in sustaining cost per ounce of silver, net of byproduct credits, of $9.73;
• Paid $4.4-million of dividends to the company's shareholders;
• Spent $2.1-million to buy back 838,237 common shares of the company under its normal course issuer bid;
• Spent and capitalized $8.3-million on exploration drilling, $34.0-million on underground development and exploration tunnelling, and $15.6-million on equipment and facilities, including $4.8-million on construction of the new mill and tailings storage facility;
• Strong balance sheet with $203.3-million in cash and cash equivalents and short-term investments. The company holds a further equity investment portfolio in associates and other companies with a total market value of $141.9-million as at March 31, 2023.

Highlights for Q4 fiscal 2023

• Mined 181,848 tonnes of ore, milled 179,393 tonnes of ore and produced approximately 1.1 million ounces of silver, 1,000 ounces of gold, 10.9 million pounds of lead and 3.6 million pounds of zinc;
• Sold approximately 1.1 million ounces of silver, 1,000 ounces of gold or 1.2 million ounces of silver equivalent, 10.0 million pounds of lead and 3.5 million pounds of zinc, for revenue of $34.1-million;
• Reported net income attributable to equity holders of $200,000, or zero cents per share;
• Realized adjusted earnings attributable to equity holders of $5.0-million, or three cents per share;
• Cash costs per ounce of silver, net of byproduct credits, of 92 cents;
• All-in sustaining costs per ounce of silver, net of byproduct credits, of $13.85;
• Generated cash flow from operating activities of $5.7-million; and,
• Spent and capitalized $1.0-million on exploration drilling, $5.9-million on underground development and exploration tunnelling, and $2.5-million on equipment and facilities.

1. Fiscal 2023 financial results

Net income attributable to equity holders of the company in fiscal 2023 was $20.6-million or 12 cents per share, compared with net income of $30.6-million or 17 cents per share for the 12 months ended March 31, 2022.

In fiscal 2023, the company's consolidated financial results were mainly impacted by i) increases of 6 per cent, 29 per cent and 3 per cent, respectively, in silver, gold, and lead sold, and a decrease of 13 per cent in zinc sold; ii) decreases of 12 per cent, 3 per cent and 2 per cent, respectively, in the realized selling prices for silver, lead and zinc, and increases of 1 per cent, in the realized selling prices for gold; iii) a foreign exchange gain of $4.8-million mainly arising from the appreciation of the United States dollar against the Canadian dollar; iv) a loss of $2.3-million on equity investments; v) an impairment charge of $20.2-million against the Las Yesca project, and vi) an impairment charge of $2.9-million against a short-term investment in certain bonds.

Revenue in fiscal 2023 was $208.1-million, down 4 per cent compared with $217.9-million in fiscal 2022. The decrease is mainly due to i) a decrease of $16.6-million arising from the decrease in the net realized selling prices for silver, lead and zinc; ii) a decrease of $3.6-million arising from the decrease in zinc sold, offset by iii) an increase of $9.7-million arising from the increase in silver, gold and lead sold.

Income from mine operations in fiscal 2023 was $70.8-million, down 16 per cent compared with $84.3-million in fiscal 2022. Income from mine operations at the Ying mining district was $62.8-million, compared with $70.0-million in fiscal 2022. Income from mine operations at the GC mine was $8.4-million, compared with $14.8-million in fiscal 2022.

Cash flow provided by operating activities in fiscal 2023 was $85.6-million, down $21.7-million, compared with $107.4-million in fiscal 2022.

The company ended fiscal 2023 with $203.3-million in cash, cash equivalents and short-term investments, down 5 per cent or $9.6-million compared with $212.9-million as at March 31, 2022.

Working capital as at March 31, 2023, was $177.8-million, down 5 per cent or $8.5-million compared with $186.3-million as at March 31, 2022.

2. Q4 fiscal 2023 financial results

Net income attributable to equity holders of the company in Q4 fiscal 2023 was $200,000 or zero cents per share, compared with net income of $4.0-million or two cents per share in the three months ended March 31, 2022 (Q4 fiscal 2022).

In Q4 fiscal 2023, the company's consolidated financial results were mainly impacted by i) decreases of 9 per cent, 18 per cent and 20 per cent, respectively, in silver, lead and zinc sold, and an increase of 100 per cent in gold sold; ii) decreases of 6 per cent, 6 per cent and 27 per cent, respectively, in the realized selling prices for silver, lead and zinc, and an increase of 10 per cent in the net realized selling price for gold; iii) a loss of $1.1-million on equity investments; and iv) an impairment charge of $1.9-million against a short-term investment in certain bonds.

Revenue in Q4 fiscal 2023 was $34.1-million, down 18 per cent compared with $41.6-million in Q4 fiscal 2022. The decrease is mainly due to a decrease of $3.6-million arising from the decrease in the net realized selling prices for silver, lead and zinc, and a decrease of $4.6-million arising from the decrease in silver, lead and zinc sold. The attached table summarizes the metals sold, net realized selling price and revenue achieved for each metal.

Income from mine operations in Q4 fiscal 2023 was $9.8-million, down 29 per cent compared with $13.7-million in Q4 fiscal 2022. Income from mine operations at the Ying mining district was $9.5-million, compared with $11.9-million in Q4 fiscal 2022. Income from mine operations at the GC mine was $400,000, compared with $2.0-million in Q4 fiscal 2022.

Cash flow provided by operating activities in Q4 fiscal 2023 was $5.7-million, down $5.7-million, compared with $11.4-million in Q4 fiscal 2022.

1. Fiscal 2023 operational results

In fiscal 2023, the company mined 1,068,983 tonnes of ore and milled 1,072,654 tonnes of ore, both up 7 per cent compared with 996,280 tonnes of ore mined and 1,002,335 tonnes of ore milled in fiscal 2022.

In fiscal 2023, the company produced approximately 6.6 million ounces of silver, 4,400 ounces of gold, 68.1 million pounds of lead and 23.5 million pounds of zinc, representing increases of 8 per cent, 29 per cent and 6 per cent, respectively, in silver, gold and lead production, and a decrease of 12 per cent in zinc production over fiscal 2022.

In fiscal 2023, the consolidated production costs were $84.03 per tonne, down 1 per cent compared with $84.85 in fiscal 2022, while the all-in sustaining production costs per tonne of ore processed were $142.08, a slight increase compared with $141.54 in fiscal 2022.

In fiscal 2023, the consolidated cash costs per ounce of silver, net of byproduct credits, were negative 42 cents, compared with negative $1.29 in the prior-year quarter. The increase was mainly due to a decrease of $2.1-million in byproduct credits and an increase of $3.2-million in expensed production costs.

The consolidated all-in sustaining costs per ounce of silver, net of byproduct credits, were $9.73 compared with $8.77 in fiscal 2022. The increase was mainly due to i) the increase in the consolidated cash costs per ounce of silver as discussed herein, ii) an increase of $7.7-million in sustaining capital expenditures offset by a decrease of $2.7-million in administrative expenses and mineral resources tax.

2. Q4 fiscal 2023 operational results

In Q4 fiscal 2023, the company mined 181,848 tonnes of ore, up 1 per cent compared with 180,505 tonnes in Q4 fiscal 2022. Ore milled in Q4 fiscal 2023 was 179,393 tonnes, down 2 per cent compared with 182,670 tonnes in Q4 fiscal 2022.

In Q4 fiscal 2023, the company produced approximately 1.1 million ounces of silver, 1,000 ounces of gold, 10.9 million pounds of lead and 3.6 million pounds of zinc, representing an increase of 100 per cent in gold production, and decreases of 3 per cent, 9 per cent and 13 per cent, respectively, in silver, lead and zinc production over Q4 fiscal 2022.

In Q4 fiscal 2023, the consolidated production costs were $92.85 per tonne, relatively the same compared with $92.78 per tonne in Q4 fiscal 2022, and the all-in sustaining production costs per tonne of ore processed were $165.68, down 3 per cent compared with $171.56 in Q4 fiscal 2022.

In Q4 fiscal 2023, the consolidated cash costs per ounce of silver, net of byproduct credits, were 92 cents, compared with negative 54 cents in the prior-year quarter. The increase was mainly due to a decrease of $4.2-million in byproduct credits offset by a decrease of $2.6-million in expensed production costs. The consolidated all-in sustaining costs per ounce of silver, net of byproduct credits, were $13.85 compared with $12.60 in Q4 fiscal 2022. The increase was mainly due to the increase in the consolidated cash costs per ounce of silver in the current quarter as discussed herein.

In fiscal 2023, on a consolidated basis, a total of 323,291 metres or $13.0-million worth of diamond drilling were completed (fiscal 2022 -- 426,128 metres or $20.7-million), of which approximately 168,249 metres or $4.7-million worth of diamond drilling were expensed as part of mining costs (fiscal 2022 -- 276,450 metres or $7.2-million) and approximately 155,042 metres or $8.3-million worth of diamond drilling were capitalized (fiscal 2022 -- 149,678 metres or $13.5-million). In addition, approximately 39,941 metres or $14.6-million worth of mining preparation tunnels were completed and expensed as part of mining costs (fiscal 2022 -- 31,301 metres or $11.6-million), and approximately 81,771 metres or $34.0-million worth of tunnels, raises, ramps and declines were completed and capitalized (fiscal 2022 -- 74,062 metres or $31.0-million).

In December, 2022, the company's Kuanping silver-lead-zinc-gold project received a mining licence from the Department of Natural Resources, Henan province, China. The Kuanping mining licence covers 6.97 square kilometres and is good until March 13, 2029.

In fiscal 2023, a total of 8,485 metres or $900,000 worth of drilling were completed and capitalized at the Kuanping project.

In fiscal 2023, the company spent $4.8-million on the construction of the tailing storage facility (TSF) and the new mill, $35.1-million below the budgeted amount of $39.9-million. As of March 31, 2023, a total of 3,233 metres, or 64 per cent of the designed drainage tunnels were completed and the site preparation for the new mill was also completed. The company has received all governmental approvals to construct the TSF and the new mill. The company still plans to complete the TSF in 2024 and is currently delaying the construction of the new mill by one year.

In addition, the company spent approximately $2.0-million to upgrade most roads to concrete and upgrade certain environmental protection facilities at the Ying mining district as part of the company's continued commitment to building green mines. The company also spent approximately $1.0-million to construct an X-ray transmission ore sorting system (XRT ore sorting system) to optimize the mine plan and improve processing head grades at the GC mine. The XRT ore sorting system is currently in trial run.

Conference call details

A conference call to discuss these results will be held tomorrow, Friday, May 26, at 9 a.m. PT (12 p.m. ET). To participate in the conference call, please dial the numbers herein.

Canada/U.S. toll-free:   888-664-6383

International/local toll:   416-764-8650

Conference ID:  50474162

Participants should dial in 10 to 15 minutes prior to the start time. A replay of the conference call and transcript will be available on the company's website.

Guoliang Ma, PGeo, manager of exploration and resources of the company, is the qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects and has reviewed and given consent to the technical information contained in this news release.

About Silvercorp Metals Inc.

Silvercorp is a Canadian mining company producing silver, gold, lead and zinc with a long history of profitability and growth potential. The company's strategy is to create shareholder value by 1) focusing on generating free cash flow from long life mines; 2) organic growth through extensive drilling for discovery; 3) continuing merger and acquisition efforts to unlock value; and 4) long-term commitment to responsible mining and ESG (environmental, social, governance).

We seek Safe Harbor.