SVM.TO · 2025-12-22 12:00:00

Silvercorp Delivers Robust PEA for Condor Gold Project in Ecuador

Economic Studies

NEWS RELEASE

Trading Symbol: TSX/NYSE American: SVM

Vancouver, British Columbia – December 22, 2025 – Silvercorp Metals Inc. (TSX: SVM) (“Silvercorp” or the

“Company”) is pleased to report the results of its Preliminary Economic Assessment (“PEA”) for the Condor

gold project (the “Project”) in Ecuador. The PEA is based on the Mineral Resource Estimate (the “MRE”) which

was prepared for the Project in accordance with National Instrument 43‐101 - Standards of Disclosure for

Mineral Projects (“NI 43‐101”).

Highlights from the PEA are as follows (all figures in US Dollars):

 After-tax net present value (“NPV”) (5%) of $522 million and an after-tax internal rate of return (“IRR”)

of 29% at base case metal prices of $2,600/ounce (“oz”) gold, $31.00/oz silver, $1.27/pound (“lb”) zinc,

and $0.91/lb lead;

o After-tax net present value (“NPV”) (5%) of $1,559 million and an after -tax internal rate of

return (“IRR”) of 61% at near spot metal prices of $4, 300/oz gold, $ 60.00/oz silver, $1.27/lb

zinc, and $0.91/lb lead;

 13-year life of mine (“LOM”), producing approximately 1,375 thousand ounces (“koz”) of payable gold,

5,266 koz of payable silver, 95,656 thousand pounds (“klbs”) of payable zinc and 8,448 klbs of payable

lead;

 Initial capital costs of $ 292 million and a post -tax payback of 3 years starting from commercial

production;

 Average LOM all-in sustaining cost (“AISC”) of $1,258/oz net of by-product credits.

The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative

geologically to have the economic considerations applied to them that would enable them to be categorized as

mineral reserves. As such there is no certainty that the PEA will be realized.

Economic Results and Sensitivities

Table 1 shows key assumptions and summarizes the projected production and economic results of the PEA.

Tables 2 and 3 show sensitivities to gold prices and operating and capital costs.

Table 1: Condor Underground Mine – Key Economic Assumptions and Results

Item Unit Value

Gold Price $/oz 2,600

Silver Price $/oz 31

Zinc Price $/lb 1.27

Lead Price $/lb 0.91

Total Mill Feed Mt 21.34

Annual Processing Rate Mtpa 1.8

Average Gold Grade1 g/t 2.15

Average Silver Grade 1 g/t 14.20

Gold Recovery 1 % 93.9

Total Payable Gold koz 1,375

Total Payable Silver koz 5,266

Total Payable Zinc klbs 95,656

Total Payable Lead klbs 8,448

Mine Life2 Yrs 13

Average Annual Payable Equiv. Gold Metal over LOM koz 114

Net Revenue $M 3,623

Net Revenue Contribution from Gold % 93.4%

All-in Sustaining Costs3 $/Oz AuEq 1,359

Government Royalties $/Oz AuEq 128.2

Profit Sharing State $/Oz AuEq 110

Profit Sharing Employee $/Oz AuEq 28

Income Tax $/Oz AuEq 195

Initial Capital Costs $M 292

Sustaining Capital Costs $M 382

Payback Period (after-tax)4 Yrs 3

Cumulative Net Cash Flow (pre-tax) $M 1,156

Cumulative Net Cash Flow (after-tax) $M 865

After-tax NPV (5%) $M 522

After-tax IRR % 29

NPV (5%) to Initial Capex Ratio $:$ 1.8

Notes

1. LOM average.

2. Excludes 2 years pre-production period.

3. Based on World Gold Council June 27,2013 Press Release: “Guidance Note on Non-GAAP Metrics - All-In Sustaining Costs and All-

in Costs”. All-In Sustaining Costs include offsite costs, site operating costs, and sustaining capex costs.

4. The payback period is measured from the beginning of production after construction is completed.

Table 2: Condor Project Economic Sensitivity Analysis for Gold Prices – After-Tax

Gold Price ($/ounce) 1,800* 2,000 2,600

(Base Case)

3,200 3,800* 4,300*

NPV @ 5% ($M) 63 178 522 866 1,210 1,497

IRR 9% 15% 29% 41% 51% 60%

Note: * beyond ±30% of base case gold price, performed by Silvercorp

Table 3: Condor Project Economic Sensitivity Analysis for Costs – After-Tax

Cost Sensitivity

Sensitivity Items

-30% 20% 10% 100%

(Base

Case)

+10% +20% +30%

Site Opex

(NPV-$M (5%)/IRR)

735/36% 664/34% 593/31% 522/29% 452/26% 381/23% 310/20%

Life-of-Mine Capex

(NPV-$M (5%)/IRR)

657/44% 612/38% 567/33% 522/29% 477/25% 432/22% 387/20%

Capital and Operating Costs

The Project contemplates an underground operation, with mining to be carried out by a contract mining

company, supplying mill feed to a carbon-in-pulp (CIP) cyanidation circuit integrated with a gravity concentrator

to preconcentrate coarse nugget gold. Sequential, selective flotation is also included to recover residual silver,

lead and zi nc from the cyanide leach residue , to produce marketable silver -lead and zinc concentrate s,

respectively. The PEA anticipates the Project will have several capital and operating cost advantages:

 The area of mineralization is located roughly at the same elevation as the development portal. This will

allow for development to proceed into the mineralized material without having to ramp down. This

reduces the length and the cost of the main ramp (as shown in Figure 1 below).

 Mineralized material is steeply dipping with reasonably good continuities both vertically and

horizontally, with approximately one-third of ROM material above the main haulage level, providing

efficient access for haulage, ventilation, and services.

 The rock mass conditions are generally Fair to Good and overall saprolite cover in the project area is

thin, 2-5 m on average. The rock mass conditions support high production and low cost longhole open

stope production.

 Underground development and mining will be done by a contractor with current operations in Ecuador,

eliminating the need for the Company to procure a mining fleet and allocate sustaining capital for fleet

replacement.

 Test work shows that the mineralized samples are a menable to a gravity and cyanidation combined

process. The overall gold recovery is expected to be higher than 90%. The cyanide leaching kinetic is

rapid and cyanide consumption is moderate. In addition, mineralization is amenable to metal recovery

by flotation. A combined process of gravity concentration + cyanidation + flotation is proposed for the

mineralization.

 The site is readily accessible to local roads and approximately five km from the national road network.

A summary of operating costs is shown in Table 4.

Table 4: Total Operating Cost Estimate

Item Cost ($/t milled)

Mining 41.01

Processing 18.36

Water Management 0.68

Mining Supervision Fees 0.82

Conservation Fees 0.08

Other Site General and Administration 13.50

Total site operating cost 74.45

Refining and Freight Cost 2.51

Royalties 8.94

Profit Sharing State and employee 9.60

Total operating cost 95.51

A summary of capital costs is shown in Table 5.

Table 5: Total Capital Cost Estimate

Item Cost ($M)

Mine development 71

Processing plant 118

Tailings Storage Facility (“TSF”) 18

Other On and Off-Site infrastructure 74

G&A 10

Total Initial capital 292

Life of mine sustaining capital 382

Note: Contingency is included in each line item based on previous experience and industry standards

Mining

The Condor project is proposed to be a contractor-operated underground mining operation that accesses the

Camp and Los Cuyes deposits through a portal located at approximately 1,100 m elevation. Mining is based on

updated geological block models and net smelter return (NSR) values that incorporate metal prices,

metallurgical recoveries, and operating cost assumptions. The design employs mechanized longhole open

stoping, using a combination of transverse primary –secondary stoping and longitudinal retreat stoping

depending on the geometry and thickness of the mineralized veins. Stope envelopes were established using

NSR mill-feed cut-off values of $95/t for both zones. To support consistent run-of-mine (ROM) production, the

mine plan divides each deposit into five mining blocks or mining fronts, with extraction progressing from the

bottom up within each block and from the top down between blocks. Figure 1 demonstrates the overall

underground mine layout.

Figure 1: Condor Underground Mine Layout Showing Mining Blocks (Looking Northwest)

Source: SRK, 2025

Note: The metals prices used in the initial NSR calculations for stope assessment, mine design, and scheduling

in this PEA are $2,450/oz for gold, $27.25/oz for silver, $0.86/lb for lead, and $1.22/lb for zinc. Gold recoveries

to doré are capped at 98% for Camp and 96% for Los Cuyes, and treatment and refining charges with

appropriate deductions are applied in accordance with benchmark international smelter terms and conditions.

For reporting and economic assessment purposes, a separate set of commodity prices of $2,600/oz for gold,

$31.00/oz for silver, $0.91/lb for lead, and $1.27/lb for zinc was used to generate updated NSR formulae.

Collaring of the portal, marking the start of the underground construction period , is scheduled to begin nine

months after the start of mill construction . The total ROM material mined from Year -1 through Year 1 is

estimated at approximately 1.37 million tonnes (Mt), aligning with the planned mill construction and

commissioning schedule.

The mine is designed to achieve a steady -state production rate of 1.80 million tonnes per year, equivalent to

5,000 tonnes per day. Commercial production is scheduled to commence in Year 1, with full ramp-up reached

in Year 2. The projected life-of-mine (LOM) is approximately 13 years, excluding the 2 year construction period,

and the operating schedule assumes 360 working days per year. The total ROM material over the mine life i s

estimated at 21.33 Mt, with an average NSR of $17 9/t, corresponding to grades of 2.15 g/t Au, 14.20 g/t Ag,

0.06 % Pb, and 0.54 % Zn. The ROM material is a subset of the Mineral Resource Estimate, accounting for

planned mining dilution and recovery. Deve lopment requirements include 136.7 km of lateral development,

consisting of 42.6 km of capital and 94.1 km of operating development, and 4.8 km of vertical development, all

treated as capital. The LOM production profile is shown in Figure 2.

Figure 2: Condor ROM Production Profile

Source: SRK, 2025

A total of 12.34 Mt of backfill will be required over the mine life. This material will consist of approximately

3.70 Mt of development waste supplemented by 8.65 Mt of riverbed gravels. As a result, no waste rock is

expected to remain on the surface upon completion of operations.

Material handling will be achieved using a truck-haulage fleet, with 50-tonne trucks transporting ROM material

directly to the surface for discharge onto the mill ROM pad. Waste rock will be hauled by 30-tonne ejector-type

trucks and either placed into mined-out stopes for backfilling or temporarily stored on the surface until suitable

backfill voids become available. Backfill will be sourced primarily from devel opment waste, supplemented as

necessary with aggregate from nearby river beds.

The mine ventilation system is designed to deliver approximately 675 cubic metres per second of airflow,

including allowances for leakage and operational transitions. Separate fresh air and return air systems will

service each of the Camp and Los Cuyes deposits, constructed using raise-boring methods.

100

120

140

160

180

200

220

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

Yr-1 Yr-2 Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13

NSR($/t)

ROM Mined (t)

Condor PEA LOM Production Profile

Tonnes NSR Average NSR

Mineral Processing

The proposed process plant will treat the mineralized material at a milling rate of 5,000 t/d, or 1.8 Mt/a, with an

average LOM head grade of 2.15 g/t gold and 14.2 g/t silver. A two-stage grinding circuit (a SAG mill with pebble

recycling and a ball mill), integrated with a gravity concentrator, is proposed to grind the cyanide leach feed to

80% passing (P80) approximately 74 µm. The ground mill feed is processed in a carbon-in-pulp (CIP) cyanidation

circuit. The loaded carbon is washed and stripped, and the pregnant solution is treated by an electrowinning unit

to recover the gold and silver, producing gold -silver doré. The overall gold and silver recoveries to doré in the

cyanidation circuit are estimated to be approximately 93% and 46%, respectively. The leach residue is treated to

destroy residual weak acid dissociable (WAD) cyanide. Subsequently, the leach residue is further processed by

sequential selection flotation to produce separate marketable silver-lead and zinc concentrates. Additional silver

recovery reporting to the lead and zinc concentrates is estimated to be 12% and 6% respectively. The lead

recovered into the lead concentrate is expected to be approximately 36% while the zinc recovered to the zinc

concentrate is estimated to be 54%. The flotation tailing s are thickened and pumped to the tailings storage

facility (TSF) for storage.

Mineral Resource Estimate

The Mineral Resource estimate that was previously reported in May 2025, with an effective date of February 28,

2025, has been revised for this report using an updated assessment of the reasonable prospects for eventual

economic extraction. The updated parameters include revised metals price assumptions and mining methods in

accordance with the assumptions used in the PEA study. The underground Mineral Resources at the Los Cuyes

and Camp deposits are reported within stope optimizations that reflect a simplified set of parameters from the

PEA mining study and updated metal prices. The Mineral Resource estimates for the underground and open pit

deposits are shown in Table 6 and Table 7.

Six additional holes have been drilled at Los Cuyes, but the Mineral Resource estimates have not been updated

using this data at present. The qualified person reviewed the additional exploration data and is of the opinion

that the new information generally aligns with the previous interpretation of the mineralized shears, and would

not be expected to have a material impact on the Mineral Resource estimate.

Table 6: Mineral Resource as of November 30, 2025

Tonnes Average Grade Contained Metal

Deposit (Mt) AuEq Au Ag Pb Zn AuEq Au Ag Pb Zn

(g/t) (g/t) (g/t) (%) (%) (koz) (koz) (koz) (lb’000) (lb’000)

Indicated

Camp 5.93 2.46 1.94 15.51 0.06 0.61 469 370 2,956 7,914 79,864

Los Cuyes 4.22 2.07 1.84 11.06 0.05 0.36 280 249 1,500 4,301 33,067

Total 10.15 2.30 1.90 13.66 0.05 0.50 749 620 4,456 12,215 112,931

Inferred

Camp 20.04 2.42 1.87 14.83 0.05 0.68 1,558 1,202 9,558 23,042 298,873

Los Cuyes 10.06 2.63 2.37 13.26 0.07 0.36 849 767 4,287 14,936 80,696

Total 30.10 2.49 2.03 14.31 0.06 0.57 2,407 1,969 13,846 37,978 379,569

Source: compiled by SRK, 2025

Notes:

1. CIM Definition Standards (2014) were used for reporting the Mineral Resources.

2. The qualified person (as defined in NI 43-101) for the purposes of the MRE is Mark Wanless, Pr.Sci.Nat, Principal Geologist with SRK

Consulting.

3. The resource statement does not include mineralization in the Halo domain of the Los Cuyes, and its economic potential remains to be

further investigated in future studies.

4. The stope optimization uses the mining costs listed in Table 4 and the processing recoveries applied to the mining study summarized in

the previous section. The optimization was generated using simplified mining rules, such as no pillars, no Equivalent Linear Overbreak

(ELOS), uniform stope length and maximizing stope width.

5. Optimizations are undertaken using a gold price of USD/oz 3,000, silver price of USD/oz 40, zinc price of USD/lb 1.47 and lead price of

USD/lb 1.05.

6. Drilling results up to February 28, 2025.

7. The numbers may not compute exactly due to rounding.

8. Mineral Resources are reported on a dry in-situ basis.

9. Mineral Resources are not Mineral Reserves and have not demonstrated economic viability.

Next Steps

1. Environmental Permitting

Over the course of 2025, the Company has advanced work on the environmental impact assessment

required for a new environmental permit , which would authorize underground development for

exploitation at a small mining scale . Currently, the environmental impact study (EIS) has been approved

by the ministry of environment (MAE) and the Company is engaged in the Participation Process of

Citizens (PPC) with the directly-impacted communities surrounding the project. It is expected that it will

take 3-4 months to complete the consultation pro cess. The environmental permit for exploitation –

which will allow underground development, will be issued after the successful completion of the PPC.

2. Underground Development

With the environmental permit for exploitation in place, the Company will start developing underground

access tunnels into the Camp and Los Cuyes deposits. These tunnels will enable underground drilling to

upgrade mineral resources and explore the on-strike and down-dip extension of the known mineralized

zones at both deposits, supporting further pre-feasibility and feasibility technical studies.

Qualified Persons

The qualified persons for the PEA are Mr. Mark Wanless , FGSSA, Pr .Sci.Nat, Principal Geologist with SRK

Consulting (Canada) Inc. , Mr. Benny Zhang , M.Eng., P .Eng., Principal Mining Engineer with SRK Consulting

(Canada) Inc., Mr. Sean Kautzman, P.Eng, Principal Mining Engineer with SRK Consulting (Canada) Inc., Dr. Jianhui

Huang, Ph.D., P.Eng , Principal Process Engineer with Tetra Tech Canada Inc ., Dr. Jinxing Ji, P.Eng., Metallurgist

with JJ Metallurgical Services , Mr. Chris Johns, P.Eng , Principal Geotechnical Engineer with Tetra Tech Canada

Inc. and Mr. Mark Liskowich, PGeo, associate Principal Environmental Consultant SRK Consulting (Canada) Inc.

The specific sections for which each qualified person is responsible will be outlined in the NI 43-101 PEA Technical

Report. All such qualified persons have reviewed the technical content relevant to the sections of the PEA for

which they are responsible included in this news release for the deposit at the Project and have approved its

dissemination.

Further details supporting the PEA will be available in an NI 43‐101 Technical Report which will be posted under

the Company’s profile at sedarplus.com within 45 days of this news release.

This news release has been reviewed and approved by Guoliang Ma, P. Geo., Manager of Exploration and

Resource of the Company who is the designated qualified person for the Company.

About Silvercorp

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) ongoing merger and

acquisition efforts to unlock value; and 4) long term commitment to responsible mining and ESG. For more

information, please visit our website at www.silvercorpmetals.com.

For further information

Silvercorp Metals Inc.

Lon Shaver

President

Phone: (604) 669-9397

Toll Free 1(888) 224-1881

Email: [email protected]

Website: www.silvercorpmetals.com

CAUTIONARY NOTE REGARDING RESULTS OF PRELIMINARY ECONOMIC ASSESSMENT

The results of the PEA contained herein were prepared in accordance with NI 43 -101 and prepared by certain

qualified persons associated with SRK and Tetra Tech and are preliminary in nature and are intended to provide

an initial assessment of the Project’s economic potential and development options of the Project. The PEA mine

schedule and economic assessment includes numerous assumptions and is based on both indicated and Inferred

Mineral Resources. Inferred resources are considered too speculative geologically to have the economic

considerations applied to them that would enable them to be categorized as Mineral R eserves, and there is no

certainty that the preliminary economic assessments described herein will be achieved or that the PEA results

will be realized. The estimate of Mineral Resources may be materially affected by geology, environmental,

permitting, leg al, title, socio -political, marketing or other relevant issues. Mineral resources are not Mineral

Reserves and do not have demonstrated economic viability. Additional exploration will be required to potentially

upgrade the classification of the Inferred Mi neral Resources to be considered in future advanced studies. SRK

(mineral resource, infrastructure, tailings, water management, environmental and financial analysis) was

contracted to conduct the PEA in cooperation with JJ Metallurgical Services (Metallurg y). The qualified persons

for the PEA for the purposes of NI 43-101 are Mr. Mark Wanless, FGSSA, Pr.Sci.Nat, Principal Geologist with SRK

Consulting (Canada) Inc., Mr. Benny Zhang, M.Eng., P.Eng., Principal Mining Engineer with SRK Consulting

(Canada) Inc., Mr. Sean Kautzman, P.Eng, Principal Mining Engineer with SRK Consulting (Canada) Inc., Dr. Jianhui

Huang, Ph.D., P.Eng , Principal Process Engineer with Tetra Tech Canada Inc., Dr. Jinxing Ji, P.Eng., Metallurgist

with JJ Metallurgical Services, Mr. Chris Johns, P.Eng, Principal Geotechnical Engineer with Tetra Tech Canada

Inc. and Mr. Mark Liskowich, PGeo, associate Principal Environmental Consultant SRK Consulting (Canada) Inc.

All qualified persons for the PEA have reviewed the disclosure of the PEA herein. The PEA is based on the MRE,

which was reported on May 12, 2025 and updated with this report . The effective date of the updated MRE is

November 30, 2025. Mineral Resources are constrained by an optimized stope shape at a gold price of USD/oz

3,000, silver price of USD/oz 40, zinc price of USD/lb 1.47 and lead price of 1.05 USD/lb, Assumptions made to

derive a cut-off grade included mining costs, processing costs, and recoverie s were obtained from comparable

industry situations.

CAUTIONARY DISCLAIMER - FORWARD-LOOKING STATEMENTS

This news release does not constitute, and is not, an offer or solicitation of an offer of securities.

This news release includes “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

securities laws relating to, among other thi ngs, without limitation, statements regarding the results of the PEA

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