Mr. Lon Shaver reports

SILVERCORP REPORTS ADJUSTED NET INCOME OF $12.4 MILLION, $0.07 PER SHARE, AND CASH FLOW FROM OPERATION OF $28.9 MILLION FOR Q1 FISCAL 2024

Silvercorp Metals Inc. has released its financial and operating results for the three months ended June 30, 2023. All amounts are expressed in U.S. dollars, and figures may not add due to rounding.

HIGHLIGHTS FOR Q1 FISCAL 2024

• Mined 303,220 tonnes of ore, milled 295,095 tonnes of ore, and produced approximately 1.8 million ounces of silver, 1,552 ounces of gold, or approximately 1.9 million ounces of silver equivalent, plus 17.8 million pounds of lead, and 6.8 million pounds of zinc;
• Sold approximately 1.8 million ounces of silver, 1,495 ounces of gold, 17.3 million pounds of lead, and 6.9 million pounds of zinc, for revenue of $60.0 million;
• Reported net income attributable to equity shareholders of $9.2 million, or $0.05 per share;
• Realized adjusted earnings attributable to equity shareholders of $12.4 million, or $0.07 per share;
• Generated cash flow from operating activities of $28.9 million;
• Cash cost per ounce of silver, net of by-product credits, of negative $0.31;
• All-in sustaining cost per ounce of silver, net of by-product credits, of $9.46;
• Paid $2.2 million of dividends to the Company's shareholders;
• Spent and capitalized $1.7 million on exploration drilling, $10.8 million on underground development, and $3.5 million on equipment and facilities, including $2.4 million on construction of the new tailings storage facility; and
• Strong balance sheet with $200.6 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 $121.5 million as at June 30, 2023.

Net income attributable to equity shareholders of the Company in Q1 Fiscal 2024 was $9.2 million or $0.05 per share, compared to $10.2 million or $0.06 per share in the three months ended June 30, 2022 ("Q1 Fiscal 2023").

In Q1 Fiscal 2024, the Company's consolidated financial results were mainly impacted by i) an increase of 36% in gold sold; ii) increases of 6% and 8%, respectively, in the realized selling prices for gold and silver; iii) a gain of $1.1 million on investments; iv) a decrease of 5% in per tonne production costs; offset by v) decreases of 5% and 9%, respectively, in silver and lead sold; vi) decreases of 6% and 33%, respectively, in the realized selling prices for lead and zinc; and vi) a foreign exchange loss of $2.2 million arising from the depreciation of the US dollar against the Canadian dollar.

Revenue in Q1 Fiscal 2024 was $60.0 million, down 6% compared to $63.6 million in Q1 Fiscal 2023. The decrease is mainly due to i) a decrease of $3.4 million arising from less silver and lead sold; ii) a decrease of $3.9 million arising from the decrease in the net realized selling prices for lead and zinc, offset by iii) an increase of $0.7 million arising from more gold sold; and iv) an increase of $2.6 million arising from the increase in the net realized selling price for silver.

Income from mine operations in Q1 Fiscal 2024 was $23.3 million, down 6% compared to $24.9 million in Q1 Fiscal 2023. Income from mine operations at the Ying Mining District was $21.7 million, up 1% compared to $21.4 million in Q1 Fiscal 2023. Income from mine operations at the GC Mine was $1.7 million, down 53% compared to $3.6 million in Q1 Fiscal 2023.

Cash flow provided by operating activities in Q1 Fiscal 2024 was $28.9 million, down $28%, compared to $40.2 million in Q1 Fiscal 2023.

The Company ended the quarter with $200.6 million in cash, cash equivalents and short-term investments, down 1% compared to $203.3 million as at March 31, 2023. The decrease was mainly due to a negative translation impact on cash and cash equivalents arising from the depreciation of the Chinese yuan against the US dollar.

Working capital as at June 30, 2023 was $169.5 million, down 5% compared to $177.8 million as at March 31, 2023.

In Q1 Fiscal 2024, the Company mined 303,220 tonnes of ore, up 1% compared to 300,104 tonnes in Q1 Fiscal 2023. Ore milled in Q1 Fiscal 2024 was 295,095 tonnes, down 1% compared to 298,176 tonnes in Q1 Fiscal 2023.

In Q1 Fiscal 2024, the Company produced approximately 1.8 million ounces of silver, 1,552 ounces of gold, 17.8 million pounds of lead, and 6.8 million pounds of zinc, representing an increase of 41% in gold production, and decreases of 4%, 7% and 2%, respectively, in silver, lead and zinc production over Q1 Fiscal 2023. The lower silver and lead production is primarily due to a decrease in head grades at the Ying Mining District in line with the mining sequence and Mineral Reserves.

The consolidated production costs and all-in sustaining production costs per tonne of ore processed in Q1 Fiscal 2024 were $78.63 and $134.08, down 5% and 9%, respectively, compared to $82.99 and $147.29 in Q1 Fiscal 2023. The decrease was due to a decrease of $2.7 million in sustaining capital expenditures and a translation impact arising from the depreciation of the Chinese yuan against the US dollar.

The consolidated cash cost per ounce of silver, net of by-product credits, was negative $0.31, compared to negative $1.57 in the prior year quarter. The increase was mainly due to a decrease of $4.3 million in by-product credits, offset by a decrease of $1.8 million in expensed production costs.

The consolidated all-in sustaining cost per ounce of silver, net of by-product credits, was $9.46 compared to $9.25 in Q1 Fiscal 2023. The increase was mainly due to the increase in cash cost per ounce of silver offset by a decrease of $2.7 million in sustaining capital expenditures.

EXPLORATION AND DEVELOPMENT

Total capital expenditures in Q1 Fiscal 2024 were $15.9 million, up 2% compared to $15.5 million in Q1 Fiscal 2023. Capital expenditures incurred to construct the new tailing storage facility ("TSF") in Q1 Fiscal 2024 were $2.4 million (Q1 Fiscal 2023 - $1.2 million). As of June 30, 2023, total expenditures incurred on the construction of the TSF and the new mill were $7.2 million, and the construction is in line with the planned schedule and budget.

In Q1 Fiscal 2024, on a consolidated basis, a total of 84,599 metres or $2.7 million worth of diamond drilling were completed (Q1 Fiscal 2023 - 122,930 metres or $4.9 million), of which approximately 43,834 metres or $1.0 million worth of underground drilling were expensed as part of mining costs (Q1 Fiscal 2023 - 66,999 metres or $1.8 million) and approximately 40,765 metres or $1.7 million worth of drilling were capitalized (Q1 Fiscal 2023 - 55,931 metres or $3.1 million). In addition, approximately 11,498 metres or $4.0 million worth of preparation tunnelling were completed and expensed as part of mining costs (Q1 Fiscal 2023 - 11,682 metres or $4.1 million), and approximately 26,269 metres or $10.8 million worth of tunnels, raises, ramps and declines were completed and capitalized (Q1 Fiscal 2023 - 24,958 metres or $9.7 million).

CONFERENCE CALL DETAILS

A conference call to discuss these results will be held tomorrow, Friday, August 11, at 9:00 am PDT (12:00 pm EDT). To participate in the conference call, please dial the numbers below.

• Canada/USA TF: 888-664-6383
• International/Local Toll: 416-764-8650
• Conference ID: 73348006

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

Mr. Guoliang Ma, P.Geo., 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 ("NI 43-101") and has reviewed and given consent to the technical information contained in this news release.

About Silvercorp

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 cashflow from long life mines; 2) organic growth through extensive drilling for discovery; 3) ongoing merger and acquisition efforts to unlock value; and 4) long term commitment to responsible mining and ESG.

We seek Safe Harbor.