SVM.TO · 2020-11-03 12:00:00

News release

Corporate Updates

NEWS

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existing acce

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July 2020 to c

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October 1, 201

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G/T SILVER, 1

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which is dippin

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in length an d

ted intervals o

3 g/t, 4.94 g/t

ver‐lead veins

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located appr

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Silvercorp M

Suite 1750 – 1

Vancouver, B

Tel: 604‐669‐

Fax: 604‐669

10 G/T GOLD

CHINA

tals Inc. ("Silv

m its explorat

ive exploratio

Mining District.

t the LME min

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Highlights of selected drill hole intersections:

 Hole ZKL53S04_4 intersected two major veins:

o A 2.46m interval (2.02m true width) of vein LM6 grading 1,328 g rams per tonne (“g/t”)

silver (“Ag”), 0.76% lead (“Pb”), 0.64% zinc (“Zn”), 0.12 g/t gold (“Au”), and 0.11%

copper (“Cu”), which includes a 0.45m interval (0.37m true width) grading 7,131 g/t

Ag, 3.35% Pb, 3.23% Zn, 0.42 g/t Au, and 0.55% Cu; and

o A 0.75m interval (0.71m true width) of vein LM5E1 grading 495 g /t Ag, 3.88% Pb, 0.48%

Zn, 0.19 g/t Au and 0.10% Cu.

 Hole ZKL5202SC intersected a 0.92m interval (0.91m true width) of vein LM5 gr ading 6,455

g/t Ag, 5.28% Pb, 1.19% Zn, 10.00 g/t Au and 0.29% Cu.

 Hole ZKL51A21_1 inters ect ed a 2.3 0m in terval (2.04 m true width) o f vein LM5E 1 grading

535 g/t Ag, 2.76% Pb, 0.55% Zn and 0.32% Cu, which includes a 1 .05m interval (0.93m true

width) grading 1,004 g/t Ag, 5.75% Pb, 1.08% Zn and 0.65% Cu.

 Hole ZKL53S04_1 intersected two major intersections:

o A 0.56m interval (0.53m true width) of vein LM6E grading 692 g/ t Ag, 0.11% Pb and

0.09% Zn; and

o A 6.08m interval (5.72m true width) of vein LM4E2 grading 375 g /t Ag, 1.61% Pb, 0.55%

Zn and 0.09 g/t Au, which includes a 1.22m interval (1.15m true width) grading 1,019

g/t Ag, 1.01% Pb, 0.82% Zn, and 0.26 g/t Au.

 Hole ZKL53S04_2 intersected a 0.87m interval (0.85m true width) of vein LM4E grading

1,643 g/t Ag, 3,19% Pb, 0.25% Zn, and 0.52% Cu.

In addition to drilling, a total of 4,180m of exploration tunne ls have been developed at the LME mine

during the period. This exploration tunnelling (comprising drifting, cross‐cutting and raising) was

driven along and across major mineralized vein structures to up grade the drill‐defined mineral

resources and test for new parallel and splay structures, and are summarized in the following table:

Major Target Veins

Total

Tunneling

(m)

Channel

Samples

Collected

Drift

Included

(m)

Total Mineralization [1] Exposed by Drifts

Length

(m)

Average True

Width (m)

(g/t)

(%)

(g/t)

(%)

LM2, LM4, LM4W, LM5, LM5E,

LM5E1, LM5W, LM6, LM6W,

LM18, LM18E1, LM60

4,180 2,020 1,923 844 0.68 392 1.85 0.50 0.12 0.04

[1] Mineralization is defined by silver equivalent value (AgEq) greater than or equal to 120 g/t at the LME mine.

(Formula used for AgEq calculation: AgEq = Ag g/t + 34.17 * (Pb% + Cu%) + 11.92 * Zn% + 79.31 * Au g/t)

Highlights of selected mineralized zones exposed in the drift tunnels:

 Drift Tunnel PD900‐LM5E‐500‐2_Stope_Ext exposed mineralization 30m long and 0.98m

w i d e ( t r u e w i d t h ) g r a d i n g 8 6 7 g / t A g , 2 . 6 9 % P b , 1 . 0 7 % Z n a n d 0 .2 6 % C u w i t h i n v e i n

structure LM5E;

 Drift Tunnel PD900‐LM6E2‐500‐56NYM exposed mineralization 40m long and 0.45m wide

(true width) grading 949 g/t Ag, 1.74% Pb, 0.82% Zn, 0.18 g/t A u and 0.18% Cu within vein

structure LM6E;

 Drift Tunnel PD900‐LM5‐510‐54Nlink exposed mineralization 23m long and 0.83m wide

(true width) grading 761 g/t Ag, 3.72% Pb, and 0.83% Zn within vein structure LM5;

 Drift Tunnel PD900‐LM5‐450‐51SYM exposed mineralization 25m long and 0.77m wide

(true width) grading 700 g/t Ag, 1.89% Pb, and 0.81% Zn within vein structure LM5.

Table 1: Selected results from the drill programs at the LME mine

Hole ID From

(m)

Width

(m)

True

Width

(m)

(g/t)

(%)

(g/t)

(%) Veins

ZKL5001SC 14.39 15.03 0.64 0.62 616 2.26 0.39 0.05 0.16 LM5W

ZKL5001SC 22.27 23.18 0.91 0.88 801 3.41 0.38 0.28 0.18 LM5

ZKL5001SC 76.96 78.31 1.35 1.30 150 0.30 0.09 0.10 0.04 LM5E2

including 76.96 77.39 0.43 0.42 396 0.84 0.15 0.20 0.08 LM5E2

ZKL5103_8 16.33 18.21 1.88 1.14 157 0.36 0.13 0.06 0.03 LM5

including 17.89 18.21 0.32 0.19 770 1.28 0.17 0.03 0.09 LM5

ZKL5103_8 77.88 82.28 4.40 2.65 248 0.39 0.40 0.07 0.06 LM5E

including 80.30 82.28 1.98 1.19 527 0.43 0.45 0.09 0.11 LM5E

ZKL5103_9 56.78 58.13 1.35 1.16 225 7.96 0.99 0.32 0.01 LM5E1

including 57.79 58.13 0.34 0.29 808 31.16 3.39 1.11 0.03 LM5E1

ZKL5103_9 65.18 65.63 0.45 0.39 336 2.32 0.18 0.14 0.02 LM5Ea [1]

ZKL5103_10 55.63 56.44 0.81 0.70 264 0.47 0.41 0.02 0.02 LM5E1

ZKL5103_10 63.71 64.20 0.49 0.42 129 1.66 0.67 0.24 0.03 LM5Ea1 [1]

ZKL51A21_1 20.08 22.54 2.46 2.19 279 0.43 0.29 0.12 0.08 LM5

including 20.08 21.35 1.27 1.13 423 0.50 0.38 0.16 0.13 LM5

ZKL51A21_1 39.90 42.20 2.30 2.04 535 2.76 0.55 0.05 0.32 LM5E1

including 41.15 42.20 1.05 0.93 1,004 5.75 1.08 0.05 0.65 LM5E1

ZKL5202SC 21.50 22.42 0.92 0.91 6,455 5.28 1.19 10.00 0.29 LM5

ZKL5202SC 52.83 55.55 2.72 2.68 216 0.45 0.05 0.02 0.05 LM5E

ZKL5202SC 63.30 64.24 0.94 0.92 345 1.30 0.10 0.05 0.04 LM5Ea

ZKL5305_1 139.11 140.30 1.19 0.84 239 1.26 0.42 0.03 0.03 LM6

ZKL5305_1 147.73 148.83 1.10 0.78 84 1.83 0.84 3.31 0.02 LM4E2

ZKL5305_1 205.23 207.57 2.34 1.52 362 4.67 1.08 0.08 0.04 LM5

including 205.23 206.14 0.91 0.59 884 11.83 2.70 0.18 0.11 LM5

ZKL53S04_1 104.44 105.00 0.56 0.53 692 0.11 0.09 0.05 0.02 LM6E

ZKL53S04_1 167.23 173.31 6.08 5.72 375 1.61 0.55 0.09 0.02 LM4E2

including 172.09 173.31 1.22 1.15 1,019 1.01 0.82 0.26 0.03 LM4E2

ZKL53S04_2 75.22 76.09 0.87 0.85 1,643 3.19 0.25 0.03 0.52 LM4E

ZKL53S04_4 111.00 113.46 2.46 2.02 1,328 0.76 0.64 0.12 0.11 LM6

including 111.00 111.45 0.45 0.37 7,131 3.35 3.23 0.42 0.55 LM6

ZKL53S04_4 235.92 236.67 0.75 0.71 495 3.88 0.48 0.19 0.10 LM5E1

ZKL58T1703 231.09 232.32 0.81 0.79 198 4.90 0.85 0.19 0.02 T17E

ZKL58T1703 363.71 364.70 0.99 0.64 43 0.50 0.71 4.94 0.01 LM4E2

ZKL6713 347.95 352.16 4.21 3.11 1 0.01 0.01 4.53 0.07 LM66W [1]

including 349.33 350.78 1.45 1.07 1 0.01 0.01 9.80 0.09 LM66W

ZKL7114 612.06 615.28 3.22 2.71 84 1.27 0.52 0.05 0.01 LM66E [1]

including 614.87 615.28 0.41 0.35 416 2.91 1.49 0.05 0.02 LM66E

ZKLDB2101 158.70 162.01 3.31 2.99 30 1.15 0.02 4.57 0.01 LM4E2

including 160.32 162.01 1.69 1.53 14 0.03 0.02 8.40 0.01 LM4E2

[1] Veins discovered between October 1, 2019 and September 30, 2020

Table 2: Selected mineralized zones exposed by drift tunnelling at the LME mine

Tunnel ID Target

Veins

Ore Length

(m)

True Width

(m)

(g/t)

(%)

(g/t)

(%)

PD838-LM2-730-3NYM LM2 30.00 0.35 237 3.47 0.63 0.00 0.00

PD838-LM2-730-3SYM LM2 10.00 0.47 237 4.07 0.76 0.00 0.00

PD900-LM4-500-61SYM LM4 30.00 0.36 81 0.97 0.23 0.02 0.02

PD900-LM5-450-51SYM LM5 25.00 0.77 700 1.89 0.81 0.00 0.00

PD900-LM5-450-51NYM LM5 100.00 0.63 511 1.17 0.40 1.33 0.03

PD900-LM5-510-54Slink LM5 12.00 0.51 88 1.09 0.19 0.00 0.00

PD900-LM5-510-54Nlink LM5 23.00 0.83 761 3.72 0.83 0.00 0.02

PD900-LM5-650-70NYM LM5 20.00 0.72 139 2.03 0.95 0.00 0.00

PD900-LM5E-450-51NYM LM5E 45.00 0.78 234 3.11 0.95 0.00 0.00

PD900-LM5E-500-2_Stope_Ext LM5E 30.00 0.98 867 2.69 1.07 0.06 0.26

PD900-LM5E-600-68_Stope_Ext LM5E 10.00 0.74 458 1.90 1.21 0.02 0.10

PD900-LM5E1-450-51NYM LM5E1 25.00 0.49 168 3.01 0.20 0.00 0.00

PD900-LM5E1-450-51SYM LM5E1 30.00 0.35 108 3.79 0.39 0.00 0.00

PD900-LM5W-550-68NYM LM5W 35.00 0.37 266 1.22 0.35 0.00 0.00

PD900-LM5W-650-67SYM LM5W 90.00 0. 66 454 1.04 0.29 0.00 0.00

PD900-LM6-600-69NYM LM6 10.00 0.99 164 0.47 0.29 1.15 0.05

PD900-LM6-650-69NYM LM6 20.00 1.21 460 1.41 0.32 0.02 0.07

PD900-LM6-650-69SYM LM6 50.00 1.03 325 0.98 0.22 0.02 0.04

PD900-LM6-700-68NYM LM6 40.00 1.09 352 1.04 0.17 0.00 0.00

PD900-LM6W-600-70NYM LM6 10.00 0.98 405 1.61 0.27 0.02 0.05

PD900-LM6E2-500-56NYM LM6E 40.00 0.45 949 1.74 0.82 0.18 0.18

PD900-LM18-930-56NYM LM18 10.00 0.58 707 2.29 0.23 0.02 0.10

PD900-LM18-930-56SYM LM18 25.00 0.58 264 3.87 0.60 0.02 0.04

PD900-LM18E1-915-52NYM LM18E1 65.00 0.40 366 1.46 0.90 0.00 0.00

PD900-LM18E1-915-56SYM LM18E1 25.00 1.14 240 0.42 0.06 0.00 0.00

PD838-LM18E1-845-54SYM LM18E1 15.00 0.33 64 2.05 0.16 0.00 0.00

PD838-LM18E1-845-54NYM LM18E1 19.00 0.47 377 1.34 0.42 0.01 0.04

Quality Control

Drill cores are NQ size. Drill core samples, limited by appare nt mineralization contacts or

shear/alteration contacts, were split into halves by saw cutting . T h e h a l f c o r e s a r e s t o r e d i n t h e

Company's core shacks for future reference and checks, and the other half core samples are shipped

in securely sealed bags to the Chengde Huakan 514 Geology and M inerals Test and Research

Institute in Chengde, Hebei Province, China, 226km northeast of Beijing, the Zhengzhou Nonferrous

Exploration Institute Lab in Zhengzhou, Henan Province, China, and SGS‐CSTC Standards Technical

Services (Tianjin) Co., Ltd., Tianjin, China. All the three la bs are ISO9000 certified analytical labs. For

analysis, the sample is dried and crushed to minus 1mm and then split to a 200‐300g subsample

which is further pulverized to minus 200 mesh. Two subsamples are prepared from the pulverized

sample. One is digested with aqua regia for gold analysis with atomic absorption spectroscopy (AAS),

and the other is digested with two‐acids for analysis of silver, lead, zinc and copper with AAS.

Channel samples are collected along sample lines perpendicular to the mineralized vein structure in

exploration tunnels. Spacing between sampling lines is typical l y 5 m a l o n g s t r i k e . B o t h t h e

mineralized vein and the altered wall rocks are cut by continuous chisel chipping. Sample length

ranges from 0.2m to more than 1.0m, depending on the width of the mineralized vein and the

mineralization type. Channel samples are prepared and assayed w i t h A A S a t S i l v e r c o r p ’ s m i n e

laboratory (Ying Lab) located at the mill complex in Luoning County, Henan Province, China. The Ying

lab is officially accredited by the Quality and Technology Monitoring Bureau of Henan Province and is

qualified to provide analytical services. The channel samples are dried, crushed and pulverized. A

200g sample of minus 160 mesh is prepared for assay. A duplica te sample of minus 1mm is made

and kept in the laboratory archives. Gold is analysed by fire assay with AAS finish, and silver, lead,

zinc and copper are assayed by two‐acid digestion with AAS finish.

A routine quality assurance/qualit y control (QA/QC) procedure i s adopted to monitor the analytical

quality at each lab. Certified reference materials (CRMs), pulp duplicates and blanks are inserted

into each batch of lab samples. QA/QC data at the lab are atta ched to the assay certificates for each

batch of samples.

The Company maintains its own comprehensive QA/QC program to en sure best practices in sample

preparation and analysis of the exploration samples. Project geologists regularly insert CRM, field

duplicates and blanks to each batch of 30 core samples to monitor the sample preparation and

analysis procedures at the labs. The analytical quality of the labs is further evaluated with external

checks by sending approximately 3‐5% of the pulp samples to hig her level labs to check for lab bias.

Data from both the Company's and the labs' QA/QC programs are re v i e w e d o n a t i m e l y b a s i s b y

project geologists.

Guoliang Ma, P. Geo., Manager of Exploration and Resource of th e Company, is the Qualified Person

for Silvercorp under NI 43‐101 and has reviewed and given consent to the technical information

contained in this news release.

About Silvercorp

Silvercorp is a profitable Canadian mining company producing si lver, lead and zinc metals in

concentrates from mines in China. The Company’s goal is to con tinuously create healthy returns to

shareholders through efficient management, organic growth and t he acquisition of profitable

projects. Silvercorp balances profitability, social and enviro nmental relationships, employees’

wellbeing, and sustainable development. For more information, p l e a s e v i s i t o u r w e b s i t e a t

www.silvercorp.ca.

For further information

Lon Shaver

Vice President

Silvercorp Metals Inc.

Phone: (604) 669‐9397

Toll Free: 1 (888) 224‐1881

Email: [email protected]

Website: www.silvercorp.ca

CAUTIONARY DISCLAIMER ‐ FORWARD LOOKING STATEMENTS

Certain of the statements and information in this news release constitute “forward‐looking statements” within the

meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward‐looking information”

within the meaning of applicable Canadian provincial securities laws. Any statements or information that express or

involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or

future events or performance (often, but not always, using word s or phrases such as “expects”, “is expected”,

“anticipates”, “believes”, “plans ”, “projects”, “estimates”, “a ssumes”, “intends”, “strategies”, “targets”, “goals”,

“forecasts”, “objectives”, “budgets”, “schedules”, “potential” or variations thereof or stating that certain actions,

events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of

these terms and similar expression s) are not statements of hist orical fact and may be forward‐looking statements or

information. Forward‐looking statements or information relate to, among other things: the price of silver and other

metals; the accuracy of mineral resource and mineral reserve estimates at the Company’s material properties; the

sufficiency of the Company’s capital to finance the Company’s o perations; estimates of the Company’s revenues and

capital expenditures; estimated production from the Company’s m ines in the Ying Mining District; timing of receipt of

permits and regulatory approvals; availability of funds from production to finance the Company’s operations; and

access to and availability of fund ing for future construction, use of proceeds from any financing and development of

the Company’s properties.

Forward‐looking statements or information are subject to a variety of known and unknown risks, uncertainties and

other factors that could cause actual events or results to diff er from those reflected in the forward‐looking statements

or information, including, without limitation, social and economic impacts of COVID‐19; risks relating to: fluctuating

commodity prices; calculation of resources, reserves and minera lization and precious and base metal recovery;

interpretations and assumptions of mineral resource and mineral reserve estimates; exploration and development

programs; feasibility and engineering reports; permits and licenses; title to properties; property interests; joint venture

partners; acquisition of commercially mineable mineral rights; financing; recent market events and conditions;

economic factors affecting the Company; timing, estimated amount, capital and operating expenditures and economic

returns of future production; integration of future acquisitions into the Company’s existing operations; competition;

operations and political conditi ons; regulatory environment in China and Canada; environmental risks; foreign

exchange rate fluctuations; insurance; risks and hazards of mining operations; key personnel; conflicts of interest;

dependence on management; internal control over financial repor ting as per the requireme nts of the Sarbanes‐Oxley

Act; and bringing actions and enforcing judgments under U.S. securities laws.

This list is not exhaustive of the factors that may affect any of the Company’s forward‐looking statements or

information. Forward‐looking statements or information are stat ements about the future and are inherently uncertain,

and actual achievements of the Company or other future events or conditions may differ materially from those

reflected in the forward‐looking statements or information due to a variety of risks, uncertainties and other factors,

including, without limitation, those referred to in the Company’s Annual Information Form under the heading “Risk

Factors”. Although the Company has attempted to identify impor tant factors that could cause actual results to differ

materially, there may be other factors that cause results not t o be as anticipated, estimated, described or intended.

Accordingly, readers should not place undue reliance on forward‐looking statements or information.

The Company’s forward‐looking statements and information are ba sed on the assumptions, be liefs, expectations and

opinions of management as of the date of this news release, and other than as required by applicable securities laws,

the Company does not assume any obligation to update forward‐lo oking statements and information if circumstances

or management’s assumptions, beliefs, expectations or opinions should change, or changes in any other events

affecting such statements or information. For the reasons set forth above, investors should not place undue reliance

on forward‐looking statements and information.

CAUTIONARY NOTE TO US INVESTORS

This news release has been prepar ed in accordance with the requ irements of NI 43‐101 and the Canadian Institute of

Mining, Metallurgy and Petroleum Definition Standards, which differ from the requirements of U.S. Securities laws. NI

43‐101 is a rule developed by t he Canadian Securities Administr ators that establishes standards for all public

disclosure an issuer makes of scientific and technical information concerning mineral projects.

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