SVM.TO · 2020-10-14 12:00:00

Silvercorp Intersects 2.28 Metres Grading 1,125 G/T Silver, 4.43% Lead, 0.40% Zinc, 0.06 G/T GOLD, and 0.23% Copper IN the 2020 Exploration Program at the Tlp MINE

Drill Results

Silvercorp Metals Inc.

Suite 1750 – 1066 West Hastings St.

Vancouver, BC, Canada V6E 3X1

Tel: 604-669-9397

Fax: 604-669-9387

NEWS RELEASE

Trading Symbol: TSX / NYSE American: SVM

SILVERCORP INTERSECTS 2.28 METRES GRADING 1,125 G/T SILVER, 4.43% LEAD,

0.40% ZINC, 0.06 G/T GOLD, AND 0.23% COPPER IN THE 2020 EXPLORATION PROGRAM

AT THE TLP MINE, YING MINING DISTRICT, CHINA

VANCOUVER, British Columbia – October 14, 2020 – Silvercorp Metals Inc. ("Silvercorp” or the

“Company”) (TSX/NYSE American: SVM) is pleased to report results of its exploration program at

the TLP mine, Ying Mining District, Henan Province, China . Extensive exploration drilling and

tunneling are ongoing at the TLP mine, and all other mines at the Ying Mining District.

From October 1, 2019 to September 30, 2020, the drilling program at the TLP mine has targeted

the down/up dip and along -strike extensions of known mineralized vein structures in the

production areas. So far, 26,355 metres (“m”) from a total of 110 diamond drill holes, including

106 underground holes and four surface holes, have been completed. Assay results for 71 holes

have been received with 48 holes intercepting mineralization.

Most of the underground drills were focused on high -grade drill intercepts from previous drill

programs where mining access tunnels were developed but the mineralization was not mined.

This drilling program intersected many higher grade silver -lead ore zones, including veins T11,

T2E, T33W5 and the newly -discovered T15W3 vein. Most of the higher grade silver -lead zones

can be mined using existing access and development tunnels, which is expected to substantially

reduce tunnel development costs at the TLP mine going forward. Ten rigs have been drilling at

the TLP mine since July 2020 to continue identifying these types of easily accessible zones.

Additionally, the Company continues to test for new vein structures in previously less explored

areas. The s tep-out drilling in the northwest part of the TLP mine discovered new veins,

including CJ9W, CJW1, CJ11, CJ12, CJ12E, and CJ20.

Highlights of selected drill hole intersections:

 Hole ZKG08S01_1 intersected two major veins:

o A 2.28m interval (2.10m true width) of vein T15W3 grading 1,125 grams per tonne

(“g/t”) silver (“Ag”), 4.43% lead (“Pb”), 0.40% zinc (“Zn”), 0.06 g/t gold (“Au”), and

0.23% copper (“Cu”) at 797m elevation, which includes a 0.53 interval (0.49m true

width) grading 4,742 g/t Ag, 17.68% Pb, 1.50%Zn, 0.11 g/t Au, and 0.96% Cu; and

o A 0.80m interval from 50.60m to 51.40m (0.74m true width) of vein T11 grading

1,334 g/t Ag, 17,99% Pb, 0.56% Zn, and 0.50% Cu at 778m elevation.

 Hole ZKG08S01_3 intersected two major veins:

o A 2.07m interval from 0.40m to 2.47m (2.02m true width) of vein T15W3 grading

1,027 g/t Ag, 10.25% Pb, 1.20% Zn, and 0.13% Cu at 798m elevation, which

includes a 1.04m interval (1.02m true width) grading 2,041 g/t Ag, 20.20% Pb, 2.33%

Zn, and 0.25% Cu; and

o A 1.10m interval from 66.37m to 67.47m (1.08m true width) of vein T11E2 grading

614 g/t Ag, 1.74% Pb, 0.25% Zn, 0.11 g/t Au , and 0.12% Cu at 77 6m elevation,

which includes a 0.60m interval (0.60m true width) grading 1,114 g/t Ag, 2.86% Pb,

0.42% Zn, 0.05 g/t Au, and 0.20% Cu.

 Hole ZKG08S01_6 intersected two major veins:

o A 2.05m interval from 0.00m to 2.05m (1.99m true width) of vein T15W3 grading

811 g/t A g, 7.68% Pb, 0.51% Zn, 0.05 g/t Au , and 0.21% Cu at 797m elevation,

which includes a 1.05 m interval from 1.00m to 2.05m (1.05m true width) grading

1,564 g/t Ag, 14.24% Pb, 0.85% Zn, 0.05 g/t Au, and 0.39% Cu; and

o A 0.94m interval from 94.88m to 95.82m (0.90m true width) of an unnamed vein,

grading 691 g/t Ag, 2.60% Pb, 0.56% Zn, 0.09 g/t Au, and 0.11% Cu.

 Hole ZKG08S01_2 intersected a 1.77m interval from 0.00m to 1.77m (1.74m true width)

of vein T15W3 grading 539 g/t Ag, 2.29% Pb, 0.58% Zn , and 0.20% Cu at 797m

elevation, which includes a 0.79 m interval from 0.98m to 1.77m ( 0.78m true width )

grading 1,175 g/t Ag, 4.66% Pb, 1.19% Zn, and 0.43% Cu.

In addition to drilling, a total of 38,995m of exploration tunnels between 510m and 1,070m

elevation have been developed during the period. Exploration tunnelling at the TLP mine

(comprising drifting, crosscutting and r aising) was 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

Target

Levels

(m)

Total

Tunneling

(m)

Channel

Samples

Collected

Drift

Included

(m)

Total Mineralization Exposed by Drift [1]

Length

(m)

Average True

Width (m)

(g/t)

(%)

T5E1, T11, T14, T14E,

T15W, T15W, T16,

T16E, T16W, T17, T17E,

T17W, T21, T23 T26,

T26E, T31W3, T33E,

T35E, T39E

510-1070 38,995 16,544 23,846 8,239 0.67 240 3.17 0.38

[1] Mineralization is defined by silver equivalent value (AgEq) greater than or equal to 130 g/t at the TLP mine.

(Formula used for AgEq calculation: TLP = 34.19 * Pb% + Ag g/t)

Highlights of selected mineralized zones exposed in the drift tunnels:

 Drift Tunnel PD846-T16W-846-12SYM exposed mineralization 105m long and 0.42m

wide (true width) grading 972 g/t Ag, 1.25% Pb, and 0.72% Zn within vein structure

T16W at 846m elevation;

 Drift Tunnel PD890-T5E1a-890-31NYM exposed mineralization 15m long and 0.44m

wide (true width) grading 1,784 g/t Ag, 9.55% Pb, and 0.81% Zn within vein structure

T31W3 at 890m elevation;

 Drift Tunnel PD960-T23-990-1NYM exposed mineralization 25m long and 0.75m wide

(true width) grading 1,879 g/t Ag, 1.31% Pb, and 0.12% Zn within vein structure T23 at

990m elevation;

 Drift Tunnel PD1050-T26-1050-A4NYM exposed mineralization 25m long and 1.11m

wide (true width) grading 716 g/t Ag, 9.05% Pb, and 0.13% Zn within vein structure T26

at 990m elevation; and

 Drift Tunnel PD820-T16-600-1SYM exposed mineralization 80m long and 1.04m wide

(true width) grading 719 g/t Ag, 5.19% Pb and 0. 92% Zn within vein structure T16 at

600m elevation.

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

Hole ID From

(m)

Elevation

(m)

Width

(m)

True

Width

(m)

(g/t)

(%)

(g/t)

(%) Vein

ZKCJ0801 262.49 262.84 703 0.35 0.34 233 6.26 1.55 0.25 0.06 CJ12

ZKCJ0801 280.29 280.70 695 0.41 0.40 8 3.57 0.18 0.05 0.04 CJ12E

ZKG0123 263.97 264.60 547 0.67 0.58 73 25.13 0.48 <0.050 0.02 T15W

ZKG0123 286.28 287.08 539 0.81 0.74 76 29.71 0.30 0.14 0.04 T11

ZKG0636 391.07 391.59 229 0.52 0.40 93 27.69 4.38 0.10 0.06 T11

ZKG08S01_1 0.00 2.28 797 2.28 2.10 1,125 4.43 0.40 0.06 0.23 T15W3 [1]

including 1.01 1.54 797 0.53 0.49 4,742 17.68 1.50 0.11 0.96 T15W3

ZKG08S01_1 50.60 51.40 778 0.80 0.74 1,334 17.99 0.56 0.07 0.50 T11

ZKG08S01_2 0.00 1.77 797 1.77 1.74 539 2.29 0.58 0.05 0.20 T15W3

ZKG08S01_3 0.40 2.47 798 2.07 2.02 1,027 10.25 1.20 0.05 0.13 T15W3

ZKG08S01_3 16.82 17.32 792 0.50 0.48 226 1.07 0.06 0.05 0.03 T15W

ZKG08S01_3 57.90 58.49 779 0.59 0.59 81 1.69 0.12 0.05 0.06 T11

ZKG08S01_3 66.37 67.47 776 1.10 1.08 614 1.74 0.25 0.11 0.12 T11E2

ZKG08S01_5 3.09 4.68 796 1.59 0.68 449 3.88 0.38 0.05 0.12 T15W3

ZKG08S01_5 70.12 76.28 778 6.16 2.53 216 2.81 0.10 0.06 0.03 T11

including 74.20 76.28 779 2.08 0.85 522 1.33 0.18 0.07 0.06 T11

ZKG08S01_6 0.00 2.05 797 2.05 1.99 811 7.68 0.51 0.05 0.21 T15W3

ZKG08S01_6 14.53 16.13 790 1.60 1.56 190 0.98 0.06 0.18 0.01 T15W

ZKG08S01_6 19.57 20.49 787 0.92 0.90 317 1.84 0.33 1.68 0.16 T15W5

ZKG08S01_6 94.88 95.82 750 0.94 0.90 691 2.60 0.56 0.09 0.11 Alt [2]

ZKG08S01_6 130.85 131.92 731 1.07 1.03 2 4.36 9.83 0.10 0.38 T12

ZKG08S01_9 0.00 1.75 798 1.75 1.59 370 2.51 0.38 0.55 0.09 T15W3

ZKG08S01_9 21.06 21.58 795 0.52 0.47 480 2.43 0.17 0.05 0.04 T15W

ZKG08S01_9 113.90 114.64 784 0.74 0.70 325 0.29 0.10 0.05 0.02 T12

ZKT05S35_1 104.29 105.51 809 1.22 0.85 72 5.07 0.47 0.07 0.01 T33E1

ZKT05S35_1 184.28 186.94 742 1.35 1.08 45 2.17 0.13 0.10 0.30 T1W1

ZKT0707_1 99.53 101.30 809 1.76 1.42 548 1.97 0.51 0.16 0.30 T33E1

ZKT07J04 50.64 53.33 790 2.69 0.95 205 1.82 0.16 0.05 0.06 T2W

ZKT07S37_5 7.00 7.66 761 0.66 0.52 383 1.97 0.04 0.05 0.05 T1W1

ZKT07S37_6 8.27 10.50 760 1.15 0.84 168 7.87 0.45 0.16 0.31 T1W1

ZKT09Y20 77.12 78.47 837 1.35 1.07 826 0.72 0.42 0.10 0.04 T33W5

ZKT09Y20 95.21 96.25 823 1.04 0.83 109 0.99 0.06 0.10 0.15 T33

ZKT11Y01 79.41 81.50 852 2.09 0.85 338 1.03 0.11 0.11 0.06 T21

ZKT11Y08 29.70 31.58 939 1.88 1.73 164 1.18 0.19 0.11 0.02 T5

ZKT11Y30 82.58 82.87 744 0.29 0.25 424 6.72 0.62 0.19 0.03 T33E

ZKT23Y09 227.89 228.38 658 0.49 0.44 38 8.44 1.40 0.01 0.10 T14E

ZKT31S1_2 93.67 94.68 762 1.01 0.42 155 41.20 2.15 0.21 0.21 T2E

ZKX11473 265.68 266.72 900 1.04 1.01 161 3.08 0.08 0.05 0.03 LM8

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

[2] No vein id assigned

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

Tunnel ID Target

Veins

Level

(m)

Length

(m)

True Width

(m)

(g/t)

(%)

PD960-T1W-990-4NYM T1W 990 35.00 0.60 837 2.62 0.48

PD1050-T5-1050-5NYM T5 1050 107.50 1.45 197 4.90 0.15

PD960-T5-990-11NYM T5 990 32.00 1.10 145 8.03 0.10

PD930-T5E1-930-31SYM T5E1 930 23.00 0.70 619 2.29 0.78

PD840-T5E1-840-29NYM T5E1 840 60.00 0.52 395 2.45 0.55

PD840-T5E1-840-29SYM T5E1 840 25.00 0.77 481 2.80 0.51

PD820-T11-700-4NYM T11 700 120.00 0.78 317 5.09 0.57

PD820-T11-650-4SYM T11 650 60.00 0.64 320 1.70 0.26

PD820-T11-600-1SYM T11 600 90.00 1.25 236 7.70 0.76

PD820XPD-T11-550-4SYM T11 550 40.00 0.65 552 3.37 0.44

PD820XPD-T14-650-3SYM T14 650 70.00 0.87 73 6.69 0.16

PD890-T14E-890-21SYM T14E 890 125.00 0.83 444 3.31 0.40

PD820XPD-T14E-700-21SYM T14E 700 285.00 0.81 56 5.41 0.34

PD820-T15W-600-1SYM T15W 600 81.00 0.79 108 7.01 0.43

PD820-T15W1-700-4NYM T15W1 700 50.00 0.42 293 6.26 0.37

PD846-T16E-846-7NYM T16 846 35.00 1.10 695 1.23 0.37

PD820-T16-700-12SYM T16 700 45.00 0.58 679 3.84 1.03

PD820-T16-600-1SYM T16 600 80.00 1.04 719 5.19 0.92

PD930-T16E-930-1SYM T16E 930 35.00 0.87 570 0.86 1.22

PD846-T16W-846-12SYM T16W 846 105.00 0.42 972 1.25 0.72

PD820-T17W-700-14SYM T16W 700 41.00 0.77 279 4.12 0.37

PD846-T17-846-16NYM T17 846 125.00 0.49 353 3.17 0.47

PD846-T17-846-16SYM T17 846 117.50 0.81 321 3.40 0.83

PD820-T17E-700-12NYM T17 700 40.00 0.43 456 4.26 0.46

PD846-T17E-846-16NYM T17E 846 55.00 0.52 412 5.19 0.46

PD820-T17-650-4SYM T17W 650 70.00 0.66 608 1.90 0.93

PD820-T17W-600-1NYM T17W 600 15.00 0.46 976 4.49 0.37

PD930-T21-930-31SYM T21 930 82.00 0.87 233 2.26 0.18

PD960-T23-990-1NYM T23 990 25.00 0.75 1879 1.31 0.12

PD1050-T26-1050-A4NYM T26 1050 25.00 1.11 716 9.05 0.13

PD960-T26-990-A6NYM T26 990 35.00 1.25 312 2.97 0.05

PD890-T5E1a-890-31NYM T31W3 890 15.00 0.44 1784 9.55 0.81

PD730-T31W-730-A25NYM T31W3 730 45.00 0.45 209 8.61 0.34

PD730-T33E-560-23NYM T33E 560 90.00 0.55 361 2.18 0.59

PD730-T35-665-43NYM T35 665 65.00 0.88 75 7.08 0.51

PD960-T35E-960-5NYM T35E 960 40.00 0.40 712 2.64 0.79

PD800-T39E-800-19SYM T39E 800 30.00 0.66 440 2.85 0.46

PD820XPD-T39E-700-15SYM T39E 700 29.00 0.56 478 4.12 0.68

PD820XPD-T39E2-755-27SYM T39E2 755 110.00 0.52 340 5.09 2.02

Quality Control

Drill cores are NQ size. Drill core samples, limited by apparent mineralization contact s 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 Zhengzhou, Henan Province, China , and t he

Analytical Lab of the Inner Mongolia Geological Exploration Bureau in Hohhot, Inner Mongolia ,

China. All the three labs 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 typically 5m along strike.

Both the 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 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 Technolog y 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, lead, zinc and copper are assayed by two-acid di gestion

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 (CRM s), 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 review ed 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, be liefs, plans, projections, objectives, assumptions or

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

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events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of a ny 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 accur acy 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 fro m 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

access to and availability of funding for future construction, use of p roceeds 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 differ 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 mineralization and precious an d 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 conditions; 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 reporting as per the requirements 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 statements about the future and are inherently uncertain,

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

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

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

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

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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 -looking statements and information if circumstances

or management’s assumptions, be liefs, 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.

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