Mr. Lon Shaver of Silvercorp Metals reports

SILVERCORP UPDATES EL DOMO DEVELOPMENT PLANS AND STAFFING

With the successful acquisition of Adventus Mining Corp. on July 31, 2024, and the receipt of the change of phase for the El Domo copper-gold project (see Aug. 6, 2024, news release), Silvercorp Metals Inc., its Ecuadorean subsidiary (Curimining SA) and Salazar Resources Ltd. have initiated the process for construction with a goal to bring the project into production some time in 2026, as previously planned.

Senior mining executives added to the team

Silvercorp has recently hired Jaymes Dircks to be the general manager of Curimining, to lead the construction of the project. Mr. Dircks specializes in mine construction and project management. Previously, he worked at B2Gold Corp., where he was the general manager of B2Gold Nunavut. Prior to that, he was with Sabina Gold & Silver Corp., where he was the construction director of the Backriver project in Nunavut, and Aldridge Minerals Inc., where he was the EPC (engineering, procurement and construction) director for the Yenipazar mine in Turkey. Mr. Dircks has over 30 years of experience in all aspects of mining development, with a focus on on-site construction leadership. Mr. Dircks will spend the preponderance of his time in Ecuador at the project site.

In addition to Mr. Dircks, the company has also hired a senior mining engineer with experience in building and operating large-scale, open-pittable copper mines.

Construction preparation and flow sheet improvement

The company has also identified several priority and parallel projects, such as: (1) further metallurgical test work to improve metal recoveries; (2) advancing the power supply for mine operation as well as optimization and improvement of access infrastructure; (3) completing detailed engineering design, including the improved operational efficiency of the process plant, mining pit optimization and construction planning based on the 2021 feasibility study; and (4) reviewing and selecting suitable vendors, such as experienced mine, process plant and tailings storage facility builders, and processing equipment manufacturers for the mills.

The metallurgical test work may have the most impact on the improvement of the economics of the project. The current flow sheet, as defined in the 2021 feasibility study, floats all sulphide minerals (bulk float) in the rougher circuit, including copper, zinc, lead and pyrite, first and then separates copper, zinc, and lead into three different concentrates, with approximately 36 per cent of the gold and 33 per cent of the silver reporting to the copper concentrate and approximately 15 per cent of the gold and 24 per cent of the silver reporting to the zinc concentrate.

After reviewing the 2019 metallurgical study by Base Met Labs, located in Kamloops, B.C., and Curimining, the company has found that the tests that sequentially floating copper first yielded much higher gold and silver recoveries (see attached table) at the lower concentrate mass pull than the current bulk flotation flow sheet, especially test No. 26, which yielded a rougher copper concentrate with recoveries of 87 per cent copper, 74 per cent gold and 53 per cent silver. For unknown reasons, these sequential selective flotation of copper upfront tests were not continued after 2019.

Based on this analysis, the company plans to drill for metallurgical samples for further testing. Any potential process optimization arising from this test work will still result in the project producing the same three different concentrates through a flotation process. In parallel to the metallurgical drilling, a five-hole geotechnical drilling campaign has also been planned to optimize open-pit slope design and mine planning.

Qualified person

Jinxing Ji, PEng, an independent consultant engaged by Silvercorp, is a qualified person under National Instrument 43-101, Standards of Disclosure for Mineral Projects, and has reviewed and given consent to the scientific and 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) a long-term commitment to responsible mining and ESG (environmental, social and governance).

About Salazar Resources Ltd.

Salazar Resources is focused on creating value and positive change through discovery, exploration and development in Ecuador. The team has an unrivalled understanding of the geology in-country and has played an integral role in the discovery of many of the major projects in Ecuador, including the two newest operating gold and copper mines. Salazar Resources has a wholly owned pipeline of copper-gold exploration projects across Ecuador with a strategy to make another commercial discovery and farm out non-core assets. The company actively engages with Ecuadorean communities, and, together with the Salazar family, it co-founded the Salazar Foundation, an independent non-profit organization dedicated to sustainable progress through economic development. The company already has carried interests in three projects. At its maiden discovery, Curipamba, Salazar Resources has a 25-per-cent stake fully carried through to production. At two copper-gold porphyry projects, Pijili and Santiago, the company has a 20-per-cent stake fully carried through to a construction decision.

About the El Domo project

El-Domo is a high-grade copper-gold project located in central Ecuador, approximately 150 kilometres northeast of the major port city of Guayaquil -- about a three-hour drive. The project concessions span low-lying hills and plains between 300 to 900 metres above sea level. El Domo is a flat-lying, tabular-shaped VMS (volcanogenic massive sulphide) deposit, with mineralization beginning at 30 metres from surface and dimensions of approximately 800 metres by 400 metres. Three well-maintained gravel roads provide direct site access to El Domo.

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