Mr. Lon Shaver of Silvercorp reports

SILVERCORP REPORTS ON EL DOMO PROJECT DEVELOPMENT PROGRESS AND AWARDING THE FIRST CONSTRUCTION CONTRACT

Silvercorp Metals Inc., its Ecuadorean subsidiary Curimining SA and Salazar Resources Ltd. have provided a progress report on the El Domo project. The companies are still targeting to bring the project into production in the second half of 2026 and have recently awarded the earthworks contract to a large international mining contractor with over 10 years of experience working in Ecuador (see below).

Progress report

Since Silvercorp completed its acquisition of Adventus Mining Corp. by way of a plan of arrangement on July 31, 2024, the companies have made substantial progress in advancing the project. Highlights include:

• Streamlined the Ecuadorean operations: optimized the organization chart by moving the management team and personnel to the El Domo and Condor project sites from the Quito office, and by initiating the winding down or transfer of most of the non-core regional projects;
• Continued community engagement: maintained open lines of communication with local communities and government representatives, keeping them informed of changes in the project ownership and leadership, as well as on construction plans;
• Advanced detailed engineering:
  • Reviewed the previous technical work, including interviewing all consulting firms to confirm all previous studies and detailed engineering designs for optimization;
  • Optimized design with Klohn Crippen Berger (KCB) for the tailing storage facilities (TSF), starter dam and impound area, saprolite waste dump (SWD), and non-contact water channels;
  • Selected a new site for the process plant so that its preparation will provide the required non-acid-generating rocks for the construction of the starter dam of the TSF, while minimizing trucking distances;
  • Optimized open-pit mine design for mining, stripping and scheduling, and co-ordinated the mining schedule with continuing tailings dam raises using stripped waste rock;
  • Commenced metallurgical test work on selective flotation -- potentially leading to higher recoveries and improved payabilities (see Silvercorp's Aug. 21, 2024, press release);
  • Started detailed engineering design (EP) for the process plant, including engaging a consulting engineer, equipment selection, purchasing and detailed engineering drawings;
• Advanced project infrastructure:
  • Optimized designs for a new public bypass road and internal operational haul roads;
  • Executed a power line contract with the Ecuadorean state-owned power company (CNEL EP). The construction contractor will be selected once the updated engineering design is completed;
  • Commenced permitting for standby diesel power generation for the dry season, as climate change has impacted the power supply situation in Ecuador;
• Produced project materials balance, including total cubic metres of cutting, filling, cement and amount of high-density polyethylene material, and bill of quantities for the major construction projects of the mine and process plant, which are divided into three bidding packages:
  • Bid package 1: construction of temporary camp, TSF to starter dam phase, SWD, non-contact water channels, internal haul roads, and preparation of the process plant site and permanent camp site;
  • Bid package 2: mining, stripping and continuing tailings dam raises using stripped waste rocks;
  • Bid package 3: construction of the process plant, tailings discharge and back water systems, water treatment plants, permanent camp, and other site infrastructure;
• Adopted unit cost criteria (as compared with open book) for potential contractors to bid on the three construction packages outlined above. For example, unit cost for blasting or cutting one cubic metre of rock or saprolite, then loaded and trucked to within two kilometres, shall include all personnel and management cost, plus any profit contractor intends to have for the work. Monthly total payments will be based on measured cubic metres of cutting.

Award of commercial contract for bid package 1

The companies invited three mining contractors with operations at Ecuadorean mining or construction sites, and the fourth contractor which Curimining had engaged previously, and the companies received a total of four bids based on the unit cost criteria.

After interviews, visiting their current operating sites in Ecuador and considering the total bid price, the companies have awarded bid package 1 to CRCC 14 Bureau Group Co. Ltd., a company with regional headquarters in Quito and over 10 years of operating experience in Ecuador, building infrastructure in open-pit mines and in the heavy civil construction sectors.

The companies plan to award bid packages 2 and 3 in first quarter 2025 to ensure the project stays on schedule to start production in the second half of 2026.

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 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 and 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 m by 400 m. Three well-maintained gravel roads provide direct site access to El Domo.

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