Mr. Lon Shaver reports

SILVERCORP ANNOUNCES THE CONSTRUCTION PLAN AND SCHEDULE FOR THE DEVELOPMENT OF THE CHAARAT ZAAV PROJECT

Silvercorp Metals Inc. has set a budget of $196.3-million (U.S.) for Chaarat ZAAV CJSC, which includes the development of Tulkubash (phase 1) and initial expenditures to advance Kyzyltash (phase 2). The forecast spending for 2026 is $57-million (U.S.) and the forecast spending for 2027 is $139-million (U.S.).

ZAAV is a joint venture company, with Silvercorp holding a 70-per-cent interest and being the operator and Kyrgyzaltyn holding a 30-per-cent free-carried interest. ZAAV holds a 100-per-cent interest in the mining licence (approximately seven square kilometres) hosting the fully permitted Tulkubash/Kyzyltash gold projects as well as surrounding exploration licences (27.42 square kilometres) hosting the Karator and Ishakuld gold zones in the Tien Shan area of the Kyrgyz Republic. The board of directors of ZAAV has approved the budget outlined in the table below.

Phase 1 development of Tulkubash

Silvercorp is committed to finance and advance the construction of Tulkubash as an open-pit mine/heap-leach operation for four million tonnes of oxidized ore per year. The Tulkubash project design is based on the bankable feasibility studies completed by Tetra Tech (Joint Ore Reserves Committee (JORC) Code standard) in 2018, expertized and localized for Kyrgyzstan by Ken Too (Bishkek) in 2020, and further improved (JORC Code standard) in 2021 by LogiProc, a South African firm, with support from Ausenco's Canadian branch. Silvercorp also expects to publish an updated feasibility study, currently in progress by LogiProc and expected to be completed by July, 2026.

The phase 1 operation process flow sheet is a standard heap-leach flow sheet and consists of: (1) ore mined from the open pit is sent to the crushing plant, lower-grade ore is sent to the LG ore stockpile and waste rock is sent to the waste rock storage; (2) ore is crushed to a target size of P80 of 12.5 millimetres; (3) crushed ore is trucked and stacked on the heap-leach pad; (4) heap leaching comprises a barren solution dripping and a pregnant solution collection system; and (5) carbon absorption, desorption and recovery (ADR plant) and gold refinery building will produce gold dore bars.

Open-pit mining, stripping and waste storage

The construction contract for the open-pit mining and waste storage work will be based on fixed-unit-cost criteria for each cubic metre of rock removed. To date, five mining contractors, four of them with operations in Kyrgyzstan, have visited the site and have provided initial quotes for the open-pit mining, stripping and waste handling. From these quotes, an estimated bill of quantity (BoQ) was prepared, along with a budget of $51.5-million based on the quote provided by one of the most experienced contractors.

Mine auxiliary facilities

The company plans to set up a temporary camp, a powder magazine and carry out road upgrades in 2026, with an estimated cost of $2.1-million (U.S.). In 2027, construction of a mine-truck maintenance workshop, detonators storage, temporary ore stockpile and other facilities is scheduled, with an estimated cost of $5.9-million (U.S.).

Heap-leach system

The heap-leach facility involves the construction of a crusher, a heap-leach pad and an ADR plant at a total capital cost of $75.6-million (U.S.). The cost estimates for earthworks are based on the initial, non-binding bidding quotes from mining contractors; material cost is based on recent market enquiries in China. Major equipment costs for the crusher are based on vendor quotes. The ADR plant cost estimate is based on the 2021 LogiProc study. Currently, BGRIMM of Beijing has been awarded a contract to redesign the crusher and the ADR plant to the Kyrgyzstan standard, therefore the final budget may be subject to adjustment under the new design. The design work is expected to be completed in stages, with final completion in March, 2027.

Phase 2 development of Kyzyltash (2028 to 2031)

Silvercorp and ZAAV will invest in the development of the Kyzyltash sulphide deposit as a three-million-to-four-million-tonne-per-year open-pit/underground mine, plus flotation, bacterial oxidization (BIOX) and carbon in leach (CIL). To advance development of Kyzyltash, ZAAV will carry out infill drilling to convert inferred resources into higher categories and complete a series of studies, including a preliminary economic assessment (PEA), a feasibility study and detailed engineering design.

During 2026, ZAAV plans to conduct a 50,000-to-60,000-metre drilling program, including both infill and stepout drilling, to convert inferred resource into measured and indicated categories and make discoveries to expand the resource base. Currently, three contractors with 12 drill rigs are drilling at the Kyzyltash sulphide zone, including the Contact zone (CZ) and the Main zone (MZ). Drilling is generally conducted on spacing grids ranging from 80 metres by 40 metres to 40 metres by 40 metres.

In addition to geological drilling, geotechnical and hydrological, metallurgical and environmental studies will also be carried out, with a total budget of $15-million in 2026. The budget is based on actual quotes from drilling contracts.

In 2027, ZAAV plans to complete a PEA and undertake a further 60,000 metres of drilling to support a prefeasibility study (PFS), with the objective of submitting the study to the government for review and permitting. The total budget for the year is $15-million.

In 2028, ZAAV plans to complete a feasibility study and detailed engineering design for construction and to commence 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).

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