SVM.TO · 2020-11-16 12:00:00

Silvercorp Intersects 1.89 Metres Grading 37.08 Grams PER Tonne GOLD IN New GOLD Zones at the Lmw MINE

Drill Results

NEWS RELEASE

Trading Symbol: TSX / NYSE American: SVM

SILVERCORP INTERSECTS 1.89 METRES GRADING 37.08 GRAMS PER TONNE GOLD IN NEW

GOLD ZONES AT THE LMW MINE, YING MINING DISTRICT, CHINA

VANCOUVER, British Columbia – November 16, 2020 – Silvercorp Metals Inc. ("Silvercorp " or

the “Company”) (TSX/NYSE American: SVM) is pleased to report the discovery of new gold zones

and high grade intercepts from its 2020 exploration program at the LMW m ine, Ying Mining

District, Henan Province, China. Extensive exploration drilling and tunnelling are ongoing at the

LMW mine, and all other mines at the Ying Mining District.

The 2020 exploration program from July 1, 2019 to October 30, 2020 at the LMW mine has used

in-fill drilling to target areas of known sub -vertical silver- lead-zinc vein s that were previously

believed to be un economic. Since June 2020, drill ing has also targeted the shallowly-dipping

zones believed to host gold mineralization, as reported in the May 28, 2020 news release. These

gold zone s were previously undiscovered and appear to have been over -printed by the s ub-

vertical silver-lead-zinc veins which are the focus of current mining operations. Currently, ten

rigs are drilling at the LM W mine and a total of 132 diamond drill holes, including 108

underground holes and 24 surface holes totaling 37,869 met res (“m”) have been completed.

Assay results for 125 holes have been received with 72 holes intercepting many zones of higher-

grade silver- lead mineralization, including veins LM7, LM 7W1, LM8, LM8_1, LM12_1, LM13,

LM14, LM16, LM22, LM25W, LM41E, LM41E1 , and LM41E2. Most of these higher-grade silver-

lead discoveries can be mined through existing tunnels which is expected to substantially reduce

tunnel development costs at the LMW mine going forward.

Drilling to test the gold- bearing sub -horizontal shear zone LM22 has intersected high gold

grades, including 37.08 g/t Au over 1.89m. In addition, at least three new gently-dipping (to the

west at less than 15°), stacked gold mineralization zones, namely LM50, LM51 and LM53, have

been discovered in this drill campaign. The gold mineralization is associated with k-feldspar-

ankerite-quartz-pyrite-galena veinlets and stockwork alteration. The most-drilled LM50 vein has

been defined by drilling and underground tunne lling over 450m along strike to the north east

and 350m do wn-dip in a 25m to 50m grid pattern and true thicknesses ranging from 0.5m to

over 5.4m. Three rigs are drilling LM50 which is open in all directions.

Figure 1: Cross section 07 (looking northeast) showing higher gold grade intercepts of LM50

Highlights of selected drill hole intersections:

• Hole ZKX0535 intersected a 1.89m interval ( 1.66m true width) of vein LM 22 grading

37.08 grams per tonne (“g/t”) gold (“Au”) , 4 g/t silver (“Ag”), and 0.53% copper (“Cu”),

which includes a 1.25m interval (1.10m true width) grading 55.80 g/t Au , 5 g/t Ag, and

0.56% Cu.

• Hole ZKX0723 intersected a 6.13m interval (4.89m true width) of vein LM50 grading

5.23 g/t Au, 30 g/t Ag, 0.21% lead (“Pb”), and 0.12% zinc (“Zn”), which includes a 1.58m

interval (1.34m true width) grading 12.70 g/t Au, 19 g/t Ag, 0.10% Pb, and 0.12% Zn.

• Hole ZKX0527intersected a 2.34m interval (2.22m true width) of vein LM50 grading 8.51

g/t Au, and 16 g/t Ag, including a 1.22m interval (1.16m true width) grading 13.30 g/t Au,

and 15 g/t Ag.

• Hole ZKX0725 intercepted a 2. 45m interval grading 4.33 g/t Au of an unknown vein,

approximately 50m above the LM50 zone.

• Hole ZKX0940 intersected a 1.63m interval (1.46m true width) of vein LM8_1 grading

1,984 g/t Ag, 3.86% Pb, 0.60% Zn, 0.07 g/t Au , and 0.49% Cu, which includes a 1.08m

interval (0.97m true width) grading 2,985 g/t Ag, 5.26 % Pb, 0.87% Zn, 0.10 g/t Au , and

0.73% Cu.

• Hole ZKX0934 intersected a 4.43m interval (2.5 0m true width) of vein LM12_1 grading

343 g/t Ag, 6.21% Pb, 1.16% Zn, and 0.17 g/t Au, which includes two intersections:

o A 1.24m interval (0.70m true width) grading 339 g/t Ag, 7.72% Pb, 0.28% Zn , and

0.17 g/t Au; and

o A 0.89m interval (0.50m true width) grading 1,185 g/t Ag, 17.46% Pb, 4.84% Zn , and

0.50 g/t Au.

• Hole ZKX0118 intersected a 1.81m interval (1.29m true width) of vein LM25W grading

1,715 g/t Ag, 1.53% Pb, 0.44% Zn, 0.44 g/t Au, and 0.30% Cu.

In addition, a total of 8 ,684m of exploration tunnel s have been developed at the LMW mine

during the period. These exploration tunnels (including 4,750m of drifts) were driven along and

across major mineralized vein structures to upgrade the drill defined mineral resources and test

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

Major Target Veins

Total

Tunnelling

(m)

Channel

Samples

Collected

Drift

Included

(m)

Total Mineralization Exposed by Drifts [1]

Length

(m)

Average

True Width

（m)

(g/t)

(%)

(g/t)

(%)

LM19W2, T27E, LM14,

LM16_1, LM16,LM17W,

LM12_1, LM12E, LM22,

LM8_4a, LM32, LM8, LM41E,

LM17

8,684 3,320 4,750 775 0.53 397 4.34 0.42 0.09 0.18

[1] Mineralization is defined by silver equivalent value (AgEq) greater than or equal to 155 g/t at the LMW mine

(Formula used for AgEq calculation: AgEq = Ag g/t + 35.06 * (Pb% + Cu%) + 79.57 * Au g/t).

Highlights of selected mineralized zones exposed in the drift tunnels:

• Drift Tunnel XPDS-LM17-575-26SYM2 exposed mineralization 25m long and 1.54m wide

(true width) grading 894 g/t Ag, 9.35% Pb, 0.53% Zn, 0.17 g/t Au , and 1.16% Cu within

vein structure LM17;

• Drift Tunnel XPDS-LM16-675-115SYM exposed mineralization 10m long and 0.59m wide

(true width) grading 1,740 g/t Ag, 0.96% Pb and 0.36% Zn within vein structure LM16;

• Drift Tunnel PD1080-LM41E-1080-11NYM exposed mineralization 15m long and 0.74 m

wide (true width) grading 1,079 g/t Ag, 2.12% Pb, 0.15% Zn, 0.02 g/t Au , and 0.55% Cu

within vein structure LM41E; and

• Drift Tunnel PD918-W6-880-128NYM exposed mineralization 35m long and 0.68m wide

(true width) grading 603 g/t Ag, 4.91% Pb, 2.12% Zn, 0.02 g/t Au , and 0.13% Cu within

vein structure W6.

Table 1: Selected results from the 2020 drill programs at the LMW mine

Hole ID From

(m)

Interval

(m)

True Width

(m)

(g/t)

(%)

(g/t)

(%) Vein Ore

Type

ZKX0015 307.53 308.73 1.20 1.07 331 1.10 2.78 0.05 0.14 LM10W Ag-Pb

ZKX0015 349.68 350.51 0.83 0.78 3 0.01 0.01 1.03 0.29 LM51 [1] Au

ZKX0016 131.45 133.12 1.67 0.94 522 0.43 0.03 0.05 0.07 LM13 Ag-Pb

ZKX0017 278.50 280.97 2.47 1.34 273 0.25 0.03 0.16 0.26 LM26 [1] Au

ZKX0026 192.99 193.79 0.80 0.75 13 0.02 0.02 4.75 2.18 LM26 Au

ZKX0118 30.48 32.29 1.81 1.29 1,715 1.53 0.44 0.44 0.30 LM25W Ag-Pb

ZKX0118 146.71 148.17 1.46 1.27 3 0.01 0.01 3.52 0.33 LM22 [1] Au

ZKX0319 270.45 271.16 0.71 0.57 5 0.01 0.01 3.19 0.69 LM51 Au

ZKX0334 84.70 86.08 1.38 1.30 1 0.00 0.00 5.43 0.09 LM22 Au

ZKX0517 46.70 47.23 0.53 0.50 6 0.01 0.02 2.49 0.00 LM22a [1] Au

ZKX0527 162.82 165.16 2.34 2.22 16 0.64 0.07 8.51 0.01 LM50 [1] Au

Including 163.94 165.16 1.22 1.16 15 0.86 0.07 13.30 0.01 LM50 Au

ZKX0528 154.89 159.55 4.66 3.15 5 0.01 0.02 2.58 0.00 LM50 Au

Including 159.15 159.55 0.40 0.26 47 0.04 0.04 26.70 0.01 LM50 Au

ZKX0529 113.56 114.16 0.60 0.36 780 1.23 0.33 0.04 0.46 LM7W1 Ag-Pb

ZKX0529 168.28 176.06 7.78 4.68 256 0.76 0.07 0.01 0.08 LM7 Ag-Pb

Including 168.28 169.97 1.69 1.02 587 0.25 0.02 0.01 0.03 LM7 Ag-Pb

and 174.68 176.06 1.38 0.83 609 2.93 0.24 0.01 0.39 LM7 Ag-Pb

ZKX0531 105.26 105.97 0.71 0.61 5 0.02 0.01 21.10 1.14 LM22 Au

ZKX0535 92.91 94.80 1.89 1.66 4 0.00 0.01 37.08 0.53 LM22 Au

Including 92.91 94.16 1.25 1.10 5 0.00 0.01 55.80 0.56 LM22 Au

ZKX0723 184.27 190.40 6.13 4.89 30 0.21 0.12 5.23 0.00 LM50 Au

Including 184.27 185.85 1.58 1.34 19 0.10 0.12 12.70 0.01 LM50 Au

ZKX0725 126.41 128.86 2.45 2.06 2 0.01 0.01 4.33 0.01 ? [1], [2]? Au

Including 126.41 127.36 0.95 0.80 3 0.02 0.01 10.03 0.01 ? Au

ZKX0725 166.07 167.37 1.30 1.18 1 0.02 0.06 1.87 0.01 LM50 Au

ZKX0726 165.59 166.44 0.85 0.65 15 0.59 0.33 9.74 0.01 LM50 Au

ZKX0726 207.06 208.56 1.50 0.92 370 0.59 0.08 0.01 0.04 LM8a Ag-Pb

ZKX0934 135.46 136.56 1.10 0.98 39 0.09 0.46 3.25 0.01 LM13 Ag-Pb

ZKX0934 323.27 327.70 4.43 2.50 343 6.21 1.16 0.17 0.04 LM12_1 Ag-Pb

Including 323.27 324.51 1.24 0.70 339 7.72 0.28 0.17 0.05 LM12_1 Ag-Pb

and 326.81 327.70 0.89 0.50 1,185 17.64 4.84 0.50 0.08 LM12_1 Ag-Pb

ZKX0940 249.22 250.85 1.63 1.46 1,984 3.86 0.60 0.07 0.49 LM8_1 Ag-Pb

Including 249.77 250.85 1.08 0.97 2,985 5.26 0.87 0.10 0.73 LM8_1 Ag-Pb

ZKX1103 56.48 57.34 0.86 0.72 156 0.91 0.05 0.03 0.01 LM7W1 Ag-Pb

ZKX1103 116.00 116.29 0.29 0.27 618 0.08 0.03 0.03 0.04 LM7W Ag-Pb

ZKX1104 157.45 157.70 0.25 0.23 2,133 1.99 0.14 0.05 0.18 LM41E Ag-Pb

ZKX1105 130.58 131.30 0.72 0.62 644 3.02 0.79 0.05 0.33 LM41E2 Ag-Pb

Including 130.58 130.82 0.24 0.21 1,842 8.37 2.25 0.05 0.94 LM41E2 Ag-Pb

ZKX1105 133.32 133.69 0.37 0.32 582 3.69 1.07 0.05 0.22 LM41E1 Ag-Pb

ZKX1108 130.04 131.52 1.48 0.85 330 0.63 0.02 0.01 0.02 LM12E Ag-Pb

ZKX1109 157.87 158.85 0.98 0.51 12 0.04 0.03 8.35 0.00 LM50 Au

ZKX1501 270.21 273.89 3.68 2.83 135 0.35 0.04 0.01 0.02 T22 Ag-Pb

Including 270.21 270.46 0.25 0.16 1,579 3.70 0.40 0.03 0.20 T22 Ag-Pb

ZKX4007 284.81 287.36 2.55 1.81 423 0.26 0.22 0.01 0.07 LM17 Ag-Pb

ZKX4008 296.43 297.54 1.11 0.80 29 13.52 0.04 0.01 0.00 LM17 Ag-Pb

Including 297.21 297.54 0.33 0.24 81 43.66 0.03 0.02 0.01 LM17 Ag-Pb

ZKX6801 121.67 122.94 1.27 1.22 2 0.25 0.02 1.99 0.02 LM53 [1] Au

Including 122.68 122.94 0.26 0.25 6 0.91 0.03 5.91 0.04 LM53 Au

ZKX6803 182.76 184.49 1.73 0.89 454 1.37 0.18 0.01 0.28 ? Ag-Pb

ZKX10105 336.91 337.16 0.25 0.20 20 9.13 1.00 0.03 0 LM8W Ag-Pb

ZKX10509 254.09 254.52 0.43 0.40 743 0.32 0.30 0.31 0.05 LM8W3 Ag-Pb

ZKX10509 282.06 282.41 0.35 0.27 723 1.57 0.14 0.33 0.01 LM8W2 Ag-Pb

ZKX10509 385.00 385.51 0.51 0.39 168 11.57 1.77 0.22 0.03 LM8 Ag-Pb

ZKX10708 247.43 249.99 2.56 2.15 394 2.96 0.22 0.03 0.07 LM8 Ag-Pb

ZKX10814 232.25 233.17 0.92 0.65 9 0.02 0.01 2.21 0.00 LM51 Au

ZKX10915 8.72 9.19 0.47 0.36 639 3.04 0.36 0.12 0.02 LM20 Ag-Pb

ZKX11402 259.04 259.84 0.80 0.54 527 2.21 0.43 0.07 0.12 LM8 Ag-Pb

ZKX11507 229.68 231.39 1.71 0.93 82 7.53 0.13 0.01 0.04 LM17W Ag-Pb

ZKX12503 174.73 175.88 1.15 0.99 475 1.68 0.13 0.05 0.02 LM14 Ag-Pb

ZKT4402 174.17 174.95 0.78 0.66 18 0.17 0.01 8.60 0.29 ? Au

ZKT4802 318.39 319.08 0.69 0.64 366 7.85 0.42 0.05 0.02 T11 Ag-Pb

Including 318.39 318.62 0.23 0.21 329 22.97 1.15 0.05 0.03 T11 Ag-Pb

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

[2] New veins with no name assigned.

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

Tunnel ID Vein

Ore

Length

(m)

True

Width

(m)

(g/t)

(%)

(g/t)

(%)

XPDN-LM8-600-111NYM LM8 25 0.33 229 2.57 0.29 0.04 0.07

XPDN-LM8_4a-500-143NYM LM8_4a 35 0.42 301 1.07 1.39 0.00 0.00

PD969Shaft-LM12_1-600-12SYM LM12_1 45 0.77 344 3.37 0.19 0.00 0.00

PD924-LM12E-924-11NYM LM12E 35 0.46 201 1.33 0.15 0.00 0.00

XPDS-LM14-625-109SYM LM14 20 0.24 440 3.34 0.06 0.00 0.00

XPDS-LM14-575-113NYM1 LM14 15 0.47 135 3.58 0.19 0.00 0.00

XPDS-LM14-575-113NYM2 LM14 15 0.30 304 2.96 0.25 0.00 0.00

XPDS-LM16-675-115SYM LM16 10 0.59 1,740 0.96 0.36 0.00 0.00

XPDS-LM16_1-725-111NYM LM16_1 20 0.29 616 1.64 0.25 0.00 0.00

XPDS-LM17-575-26SYM1 LM17 40 0.70 96 4.02 0.35 0.00 0.00

XPDS-LM17-575-26SYM2 LM17 25 1.54 894 9.35 0.53 0.17 1.16

XPDS-LM17W-600-0NYM1 LM17W 20 0.40 377 4.37 0.66 0.00 0.00

XPDS-LM17W-600-0NYM2 LM17W 40 0.72 249 2.98 1.16 0.00 0.00

XPDN-LM17W-800-9ECM LM17W1 15 0.27 719 5.07 0.59 0.00 0.00

XPDN-LM19W2-700-122SYM LM19W2 70 0.63 499 2.72 0.45 0.00 0.00

PD969Shaft-LM19W2-600-114SYM LM19W2 12 0.52 195 1.22 0.18 0.00 0.00

PD969Shaft-LM19W2-600-114NYM LM19W2 15 0.56 381 1.63 0.15 0.00 0.00

SJ969-LM19W2-550-110NYM LM19W2 15 0.97 26 8.58 0.26 0.00 0.00

PD924-LM22-834-3NYM LM22 40 0.18 11 0.04 0.01 2.72 1.55

PD969Shaft-LM30-550-114SYM LM30 30 0.41 136 4.40 0.31 0.00 0.00

PD969Shaft-LM12_2-500-14SYM LM32 25 0.28 303 4.87 0.85 0.33 0.11

PD1080-LM41E-1080-11NYM LM41E 15 0.74 1,079 2.12 0.15 0.02 0.55

PD924-T27E-900-110SYM T27E 20 0.89 114 14.33 0.17 0.00 0.00

PD918-W6-880-128NYM W6 [1] 35 0.68 603 4.91 2.12 0.02 0.13

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

Quality Control

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

shear/alteration contacts, were split into halves by saw cutting. The half cores are stored in the

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 Minerals Test and

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

Zhengzhou Nonferrous Exploration Institute Lab in Zhen gzhou, Henan Province, China, and SGS -

CSTC Standards Technical Services (Tianjin) Co., Ltd., Tianjin, China. All the three labs are

ISO9000 certified analytical lab s. 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 typically 5m along strike.

Both the mineralized v ein 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 with AAS at

Silvercorp’s mine 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 service s. The channel samples

are dried, crushed and pulverized. A 200g sample of minus 160 mesh is prepared for assay. A

duplicate sample of minus 1mm is made and kept in the laboratory archives. Gold is analysed by

fire assay with AAS finish, and silver, le ad, zinc and copper are assayed by two -acid digestion

with AAS finish.

A routine quality assurance/quality control (QA/QC) procedure is 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 attached to the assay

certificates for each batch of samples.

The Company maintains its own comprehensive QA/QC program to ensure best practice s 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 higher

level labs to check for lab bias. Data from both the Company's and the labs' QA/QC programs

are reviewed on a timely basis by project geologists.

Guoliang Ma, P. Geo., Manager of Exploration and Resource of the 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 silver, lead and zinc metals in

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

to shareholders through efficient management, organic growth and the acquisition of profitable

projects. Silvercorp balances profitability, social and environmental relationships, employees’

wellbeing, and sustainable development. For more information, please visit our website at

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 words or phrases such as “expects”, “is expected”,

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

“forecasts”, “objectives”, “budgets”, “schedules”, “potential” or variations the reof 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 expressions) are not statements of historical 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 operations; estimates of the Company’s revenues and

capital expenditures; estimated production from the Company’s mines 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

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