Mr. Lon Shaver reports

SILVERCORP REPORTS ADJUSTED NET INCOME OF $11.5 MILLION, $0.06 PER SHARE, AND CASH FLOW FROM OPERATIONS OF $23.6 MILLION FOR Q3 FISCAL 2024

Silvercorp Metals Inc. has released its financial and operating results for the three months ended Dec. 31, 2023 (Q3 fiscal 2024). All amounts are expressed in U.S. dollars and figures may not add due to rounding.

Highlights for Q3 fiscal 2024:

• Mined 345,273 tonnes of ore, milled 312,500 tonnes of ore, and produced approximately 1,342 ounces of gold and 1.7 million ounces of silver, or approximately 1.8 million ounces of silver equivalent, plus 16.8 million pounds of lead and 7.4 million pounds of zinc;
• Sold approximately 1,342 ounces of gold, 1.7 million ounces of silver, 16.2 million pounds of lead and 7.3 million pounds of zinc, for revenue of $58.5-million;
• Reported net income attributable to equity shareholders of $10.5-million, or six cents per share;
• Realized adjusted earnings attributable to equity shareholders of $11.5-million, or six cents per share;
• Generated cash flow from operating activities of $23.6-million;
• Cash costs per ounce of silver, net of byproduct credits, of negative 96 cents;
• All-in sustaining costs per ounce of silver, net of byproduct credits, of $11.33;
• Spent and capitalized $1.6-million on exploration drilling, $14.1-million on underground development, and $3.9-million on equipment and facilities, including $1.3-million on construction of the new tailings storage facility;
• Entered into a bid implementation deed (BID) with OreCorp Ltd. to launch an off-market takeover to acquire all OreCorp shares not already owned by Silvercorp for 19 Australian cents in cash plus 0.0967 common share of Silvercorp per OreCorp share;
• Strong balance sheet with $198.3-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 $139.5-million as at Dec. 31, 2023.

Revenue in Q3 fiscal 2024 was $58.5-million, a slight decrease compared with $58.7-million in Q3 fiscal 2023. The decrease is mainly due to the decrease in silver and lead sold and a lower zinc price, offset by the increase in the net realized selling prices for gold, silver and lead.

Income from mine operations in Q3 fiscal 2024 was $23.3-million, up 7 per cent compared with $21.7-million in Q3 fiscal 2023. Income from mine operations at the Ying mining district was $21.5-million, compared with $19.0-million in Q3 fiscal 2023. Income from mine operations at the GC mine was $1.9-million, compared with income of $2.9-million in Q3 fiscal 2023.

Net income attributable to equity shareholders of the company in Q3 fiscal 2024 was $10.5-million or six cents per share, compared with a net income of $11.9-million or seven cents per share in Q3 fiscal 2023.

Compared with Q3 fiscal 2023, the company's consolidated financial results in the current quarter were mainly impacted by: (i) increases of 11 per cent, 17 per cent and 2 per cent, respectively, in the realized selling prices for gold, silver and lead, and a decrease of 15 per cent in the realized selling price for zinc; (ii) increases of 22 per cent and 3 per cent, respectively, in gold and zinc sold and decreases of 8 per cent and 16 per cent, respectively, in silver and lead sold; (iii) a decrease of 4 per cent in per-tonne production costs; (iv) an improvement of $4.4-million in mark-to-market investments; and (v) an increase of $5.0-million in the share of loss in associates.

Cash flow provided by operating activities in Q3 fiscal 2024 was $23.6-million, down $2.1-million compared with $25.7-million in Q3 fiscal 2023. The company ended the quarter with $198.3-million in cash, cash equivalents and short-term investments, up 5 per cent compared with $189.1-million as at Sept. 30, 2023.

Working capital as at Dec. 31, 2023, was $159.6-million, up 3 per cent compared with $154.3-million as at Sept. 30, 2023.

In Q3 fiscal 2024, the company mined 345,273 tonnes of ore, up 17 per cent compared with 296,050 tonnes in Q3 fiscal 2023. Ore milled in Q3 fiscal 2024 was 312,500 tonnes, up 3 per cent compared with 303,442 tonnes in Q3 fiscal 2023. A total of 60,095 tonnes of ores were stockpiled at the Ying mining district and will be processed in the fourth quarter during the Chinese New Year holiday.

In Q3 fiscal 2024, the company produced approximately 1,342 ounces of gold and 1.7 million ounces of silver, or approximately 1.8 million ounces of silver equivalent, plus 16.8 million pounds of lead and 7.4 million pounds of zinc, representing increases of 22 per cent and 6 per cent, respectively, in gold and zinc production, and decreases of 9 per cent and 16 per cent, respectively, in silver and lead production over Q3 fiscal 2023. The decreases in silver and lead production were mainly due to: (i) lower head grades achieved due to mining sequences; (ii) more ores stockpiled to be processed in the fourth quarter during the Chinese New Year holiday; and (iii) 12,700 tonnes of gold ore with grades of 1.9 grams per tonne (g/t) gold, 74 g/t silver, 1.0 per cent lead and 0.1 per cent zinc mined and processed at the Ying mining district.

In Q3 fiscal 2024, the consolidated mining costs were $59.43 per tonne, down 5 per cent compared with $62.69 per tonne in Q3 fiscal 2023. The consolidated milling costs were $12.44 per tonne, down 1 per cent compared with $12.56 per tonne in Q3 fiscal 2023. Correspondingly, the consolidated production costs per tonne of ore processed were $74.26, down 4 per cent compared with $77.73 in Q3 fiscal 2023. The all-in sustaining production costs per tonne of ore processed in Q3 fiscal 2024 were $136.89, a slight decrease compared with $136.90 in Q3 fiscal 2023. The decrease was mainly attributed to higher ore production resulting in lower unit fixed costs allocation and an approximately 4-per-cent depreciation of the Chinese yuan against the U.S. dollar over the same prior-year period.

In Q3 fiscal 2024, the consolidated cash costs per ounce of silver, net of byproduct credits, were negative 96 cents, compared with negative $1.15 in the prior-year quarter. The consolidated all-in sustaining costs per ounce of silver, net of byproduct credits, were $11.33, compared with $9.28 in Q3 fiscal 2023. The increase was mainly due to: (i) a decrease of $2.5-million in byproduct credits, offset by a decrease of $500,000 in all-in sustaining costs; and (ii) less silver sold resulting in higher unit costs per ounces of silver.

Total capital expenditures in Q3 fiscal 2024 were $19.6-million, up 26 per cent compared with $15.6-million in Q3 fiscal 2023. The increase is mainly due to more tunnelling development and exploration activities conducted in Q3 fiscal 2024.

In Q3 fiscal 2024, on a consolidated basis, a total of 87,017 metres or $2.4-million worth of diamond drilling were completed (Q3 fiscal 2023 -- 70,228 metres or $2.5-million), of which approximately 37,020 metres or $700,000 worth of underground drilling were expensed as part of mining costs (Q3 fiscal 2023 -- 37,740 metres or $1.1-million) and approximately 49,997 metres or $1.6-million worth of drilling were capitalized (Q3 fiscal 2023 -- 32,448 metres or $1.4-million). In addition, approximately 12,155 metres or $4.5-million worth of preparation tunnelling were completed and expensed as part of mining costs (Q3 fiscal 2023 -- 9,719 metres or $3.8-million), and approximately 31,648 metres or $14.1-million worth of tunnels, raises, ramps and declines were completed and capitalized (Q3 fiscal 2023 -- 20,945 metres or $9.0-million).

Individual mine operating performance

An attached table summarizes the operating results at the Ying mining district for the past five quarters and for the nine months ended Dec. 31, 2023, and Dec. 31, 2022.

An attached table summarizes the operating results at the GC mine for the past five quarters and for the nine months ended Dec. 31, 2023, and Dec. 31, 2022.

Operating outlook

The company is currently refining the mine plan and expects to provide fiscal 2025 guidance along with the release of fiscal 2024 production results in April, 2024.

In the fourth quarter of fiscal 2024, the company expects to process 215,000 to 240,000 tonnes of ore to produce approximately 1,200 to 1,300 ounces of gold, 1.1 million to 1.3 million ounces of silver, 11.5 million to 13.5 million pounds of lead and 4.5 million to 5.0 million pounds of zinc, representing production increases of 11 per cent to 30 per cent in ore, 20 per cent to 30 per cent in gold, 0 per cent to 17 per cent in silver, 5 per cent to 20 per cent in lead and 26 per cent to 40 per cent in zinc compared with the production results in the same quarter last year.

Conference call details

A conference call to discuss these results will be held tomorrow, Friday, Feb. 9, at 9 a.m. PDT (12 p.m. EDT). To participate in the conference call, please dial the numbers below.

Canada/United States toll-free:  888-664-6383

International/local toll:  416-764-8650

Conference ID No.:  84281283

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: (i) focusing on generating free cash flow from long-life mines; (ii) organic growth through extensive drilling for discovery; (iii) continuing merger and acquisition efforts to unlock value; and (iv) long-term commitment to responsible mining and sound environmental, social and governance (ESG) practices.

We seek Safe Harbor.