Mr. Lon Shaver reports

TAILINGS STORAGE FACILITY NO. 3 AND NEW 1,500 TONNE PER DAY MILL EXPANSION COMPLETED AND IN OPERATION AT YING MINE, CHINA

Silvercorp Metals Inc.'s construction of tailings storage facility No. 3 and the new 1,500-tonne-per-day flotation production line at the Ying mining district, Henan province, China, were completed in early December, 2024, on time and under budget. Both facilities are fully operating as designed, following a one-month commissioning period. The addition of the new flotation production line will enable the milling capacity at Ying to be increased to over 1.3 million tonnes per year.

Operation of TSF No. 3

Currently, the company is operating three TSFs at Ying, with TSF No. 1 in the process of closing and decommissioning and TSF No. 2. having six years of life remaining. The first phase of TSF No. 3, with storage capacity of approximately 9.92 million cubic metres, will support Ying at the expanded operating rate of 1.3 million tonnes of ore per year over 12 years. The second phase of TSF No. 3 will have approximately 9.29 million cubic metres of capacity. The total storage capacity of TSF No. 3 is 19.21 million cubic metres.

Phase 1 of TSF No. 3 was constructed for approximately $28-million (U.S.), less than the original budget of $38-million (Feb. 24, 2022, news release). The main components of the project included:

1. Land purchasing and compensation;
2. Upstream non-contact water dam and 1,825-metre-long non-contact water discharge tunnel, with a 40-centimetre thick steel reinforced concrete liner;
3. A 3,200-metre-long tailings water discharge tunnel, with a 40-centimetre-thick reinforced concrete liner; 11 decant towers/wells at different elevations connected to the 3,200-metre-long tunnel to discharge resettled water to a recycling pond downstream;
4. A 52-metre-high starter dam;
5. Non-contact water channels and emergency access road surrounding the entire tailings impoundment area;
6. Impoundment area covered by approximately 400,000 square metres of high-density polyethylene liner to prevent tailings water from penetrating into the ground;
7. Tailings discharge and water recycle pumping system;
8. Real-time tailings dam stability monitoring and video surveillance system.

In accordance with Chinese safety regulations, TSF No. 3 will be checked and assessed after a three-month test run for safety and quality by the Department of Emergency Response of Henan Province, and then have a safety production licence issued.

As previously announced (April 23, 2024, news release), the company started to construct a 1,500-tonne-per-day flotation production line at Ying's No. 2 mill with a completion date by fourth quarter 2024 and a cost of $7.2-million pursuant to a signed engineering, procurement and construction management contract. The 1,500-tonne-per-day line was completed on time and on budget, with commissioning taking place in November, 2024.

The relatively low capital expenditures are in part due to taking advantage of existing facilities and infrastructure at the No. 2 mill, including the crushing circuit, concentrate thickener and dewatering system, and the existing tailings discharge system.

The new 1,500-tonne-per-day flotation production line, equipped with a Knelson gravity concentrator, is able to produce silver-lead, zinc and copper concentrates, plus gold gravity concentrate. The robust design of the production line allowed it to achieve 1,700-tonne-per-day capacity after one month in operation, with a final target of 1,800-tonne-per-day capacity.

With the addition of the new production line, the total milling capacity at Ying is expected to reach over 1.3 million tonnes per year, enough to process increased mining capacity at Ying, plus future production from the nearby Kuanping mine.

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 environmental, social and governance.

We seek Safe Harbor.