Mr. Lon Shaver reports

SILVERCORP REPORTS OPERATIONAL RESULTS AND FINANCIAL RESULTS RELEASE DATE FOR FISCAL 2024, AND ISSUES FISCAL 2025 PRODUCTION, CASH COSTS, AND CAPITAL EXPENDITURE GUIDANCE

Silvercorp Metals Inc. has released its production and sales figures for the fourth quarter (Q4 fiscal 2024) and fiscal year ended March 31, 2024 (fiscal 2024), and the production and cost guidance for the 2025 fiscal year ending March 31, 2025 (fiscal 2025). The company expects to release its fiscal 2024 audited financial results on Thursday, May 23, 2024, after market close.

Q4 fiscal 2024 operational results:

• Gold production of 1,916 ounces, up 92 per cent over the same quarter last year (Q4 fiscal 2023);
• Silver equivalent (AgEq) (only silver and gold) production of approximately 1.3 million ounces, up 11 per cent over Q4 fiscal 2023;
• Lead production of approximately 12.5 million pounds, up 15 per cent over Q4 fiscal 2023;
• Zinc production of approximately 4.56 million pounds, up 27 per cent over Q4 fiscal 2023.

In Q4 fiscal 2024, a total of 147,122 tonnes of ore were mined at the Ying mining district, up 11 per cent over Q4 fiscal 2023, and 180,267 tonnes of ore were milled, up 38 per cent over Q4 fiscal 2023. Approximately 1.1 million ounces of silver, 1,916 ounces of gold (or 1.2 million ounces of silver equivalent), 11.3 million pounds of lead and 1.8 million pounds of zinc were produced, representing production increases of 92 per cent, 7 per cent, 14 per cent, 17 per cent and 50 per cent, respectively, in silver, gold, silver equivalent, lead and zinc over Q4 fiscal 2023.

At the GC mine, 48,038 tonnes of ore were mined, down 3 per cent over Q4 fiscal 2023, and 57,226 tonnes of ore were milled, up 18 per cent over Q4 fiscal 2023. Approximately 87,000 ounces of silver, 1.2 million pounds of lead and 2.8 million pounds of zinc were produced, representing an increase of 16 per cent in zinc, and decreases of 20 per cent and 3 per cent, respectively, in silver and lead over Q4 fiscal 2023.

Fiscal 2024 operational results:

• Gold production of 7,268 ounces, an increase of 65 per cent over fiscal 2023;
• Silver equivalent (only silver and gold) production of approximately 6.8 million ounces, a decrease of 2 per cent over fiscal 2023;
• Lead production of approximately 63.2 million pounds, a decrease of 7 per cent over fiscal 2023;
• Zinc production of approximately 23.4 million pounds, a decrease of 1 per cent over fiscal 2023.

At the Ying mining district, 827,112 tonnes of ore were mined, up 8 per cent over fiscal 2023, and 816,145 tonnes of ore were milled, up 6 per cent over fiscal 2023. Approximately 5.7 million ounces of silver, 7,268 ounces of gold (or 6.3 million ounces of silver equivalent), 56.3 million pounds of lead and 8.2 million pounds of zinc were produced, representing increases of 65 per cent and 15 per cent, respectively, in gold and zinc, and decreases of 6 per cent, 1 per cent and 7 per cent, respectively, in silver, silver equivalent and lead over fiscal 2023.

The decrease in silver and lead production was mainly due to: (i) lower head grades achieved due to mining sequences; and (ii) 58,262 tonnes of gold ores were mined and processed with grades of 1.8 grams per tonne (g/t) gold, 77 g/t silver, 1.1 per cent lead and 0.2 per cent zinc to produce gravity gold concentrates, silver-gold-lead-(copper) concentrate and zinc concentrate in fiscal 2024. The gold recovery rate for gold ores processed was 92 per cent.

At the GC mine, 290,006 tonnes of ore were mined, down 3 per cent over fiscal 2023, and 290,050 tonnes of ore were milled, down 3 per cent over fiscal 2023. Approximately 527,000 ounces of silver, 6.9 million pounds of lead and 15.2 million pounds of zinc were produced, representing decreases of 11 per cent, 12 per cent and 7 per cent, respectively, in silver, lead and zinc over fiscal 2023. The decrease in metal production was mainly due to lower head grades achieved due to mining sequences.

Fiscal 2025 production, cash costs and capital expenditure guidance

Fiscal 2025 production and cash cost guidance

In fiscal 2025, the company expects to mine and process 1,151,000 to 1,256,000 tonnes of ore, yielding approximately 7,900 ounces to 9,000 ounces of gold, 6.8 million ounces to 7.2 million ounces of silver, 64.2 million pounds to 69.3 million pounds of lead and 27.1 million pounds to 30.1 million pounds of zinc. Fiscal 2025 production guidance represents production increases of approximately 4 per cent to 14 per cent in ores, 8 per cent to 23 per cent in gold, 9 per cent to 17 per cent in silver, 2 per cent to 10 per cent in lead and 16 per cent to 29 per cent in zinc, compared with the production results in fiscal 2024.

The Ying mining district plans to mine and process 860,000 to 955,000 tonnes of ore, including 63,000 tonnes to 70,000 tonnes of gold ore with an expected head grade of 2.4 g/t gold, to produce approximately 7,900 ounces to 9,000 ounces of gold, 6.2 million ounces to 6.7 million ounces of silver, 57.2 million pounds to 61.9 million pounds of lead and 8.9 million pounds to 11 million pounds of zinc for fiscal 2025. This production guidance represents production increases of approximately 5 per cent to 17 per cent in ore, 8 per cent to 23 per cent in gold, 9 per cent to 18 per cent in silver, 2 per cent to 10 per cent in lead and 8 per cent to 34 per cent in zinc, compared with the actual production in fiscal 2024.

The cash production cost is expected to be $83.7 to $88.1 per tonne of ore, and the all-in sustaining production cost is estimated at $142.4 to $153.3 per tonne of ore processed, comparable with the actual costs in fiscal 2024.

The GC mine plans to mine and process 291,000 tonnes to 301,000 tonnes of ore to produce 540,000 ounces to 550,000 ounces of silver, 7.1 million pounds to 7.5 million pounds of lead, and 18.2 million pounds to 19.1 million pounds of zinc. Fiscal 2025 production guidance at the GC mine represents production increases of approximately 0 per cent to 4 per cent in ore, 2 per cent to 4 per cent in silver, 2 per cent to 8 per cent in lead and 20 per cent to 26 per cent in zinc production, compared with the production results in fiscal 2024.

The cash production cost is expected to be $54.4 to $55.5 per tonne of ore, and the all-in sustaining production cost is estimated at $99.3 to $99.7 per tonne of ore processed.

Fiscal 2025 capital expenditure guidance

In fiscal 2025, the company expects to incur a total $90.8-million of capital expenditures, as summarized in the associated table.

The total capital expenditures for mine optimization and facilities improvement at the Ying mining district are estimated at $78.7-million. For mine optimization, the company plans to spend a total $48.1-million, composed of the following capital expenditures:

1. Develop 45,100 metres of ramps and tunnels for transportation and access at estimated capitalized expenditures of $27.3-million (average $605/metre). The main goal of these mine optimization programs is to have ramps and a trackless system replace current shafts, and to have more mechanized mining, such as using the shrinkage mining method to gradually replace the more labour intensive resuing mining;
2. Develop 45,800 metres of exploration tunnels at estimated capitalized costs of $17.4-million ($380/m);
3. Drill 137,700 metres of exploration diamond drill holes for future production at an estimated capitalized cost of $3.4-million.

For the tailing storage facilities (TSF), and mill expansion and equipment, the company plans to spend $30.6-million:

1. Complete the TSF by the third quarter of 2024 with remaining expenditures of $15.9-million;
2. Add a 1,500-tonne-per-day flotation production line to the No. 2 mill by the fourth quarter of 2024 at a cost of $7.2-million per signed EPCM (engineering, procurement and construction management) contract, and add two XRT ore sorting systems for $1.7-million. The XRT ore sorting system will help to sort out waste rock resulting from the increased dilution rate as the company shifts to more shrinkage mining method from the resuing mining method.

In addition to the capitalized tunnelling and drilling work, the Ying mining district also plans to complete and expense 37,800 metres of mining preparation tunnels and 117,300 metres of diamond drilling.

For the GC mine, the company plans to: (i) complete and capitalize 8,000 metres of transportation ramps and mining development tunnels at estimated costs of $4.5-million ($562/m); (ii) complete and capitalize 9,700 metres of exploration tunnels at estimated costs of $5-million ($515/m); (iii) complete and capitalize 51,500 metres of diamond drilling at an estimated cost of $1.3-million; and (iv) spend $300,000 on equipment and facilities. The total capital expenditures at the GC mine are budgeted at $11.1-million in fiscal 2025.

In addition to the capitalized tunneling and drilling work, the company also plans to complete and expense 7,100 metres of mining preparation tunnels and 18,700 metres of diamond drilling at the GC mine.

The Kuanping project is expected to receive all permits and licences in the third quarter of 2024, and $1-million of capital expenditures are budgeted for the start-up of mine construction.

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 and governance).

We seek Safe Harbor.