SVM.TO · 2021-07-06 12:00:00

Silvercorp Intersects Vein S16W With 2.21 Metres True Width Grading 25 Grams per Tonne Gold at the SGX Mine, Ying Mining District, China Trading Symbol

Drill Results

Silvercorp Intersects Vein S16W With 2.21 Metres True Width Grading 25

Grams per Tonne Gold at the SGX Mine, Ying Mining District, China

Trading Symbol

TSX: SVM

NYSE American: SVM

VANCOUVER, British Columbia

July 6, 2021

/CNW/ - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX: SVM) (NYSE American: SVM) is pleased to

report results from its 2021 exploration programs at the SGX mine. Extensive exploration drilling and tunneling are ongoing at the SGX mine, and all other mines at

the Ying Mining District,

Henan Province

China

From

October 1, 2020

June 30, 2021

, 48,867 metres ("m") from a total of 298 diamond drill holes, including 242 underground holes and 56 surface holes, were

completed at the SGX mine. Assay results for 254 holes have been received, with 166 holes intercepting mineralization.

The diamond drilling program at the SGX mine targeted: (1) blocks of known silver-lead-zinc veins; (2) blocks of silver-lead-zinc veins with gold grades but low

silver-lead-zinc grades; (3) gold veins in and above the existing production areas; and (4) newly-discovered gold veins outside the production areas. Currently, 20

rigs are drilling at the SGX mine.

Drilling Intersected High-Grade Veins In and Above the Production Areas

Detailed drilling of blocks of known silver-lead-zinc and gold veins in and above the SGX mine production areas intersected high-grade veins. These mineralized

occurrences were previously missed due to limited drilling and tunneling, changes in the strikes and dips, and/or pinch-swelling of the pay-zones in the veins. The

Company expects that these discoveries can be converted quickly into reserves and mined with existing underground workings.

The high-grade intercepts for this period are associated with parallel silver-lead-zinc veins S7, S7_1, S7_2, S7E2, S7W1, S14, S14_1, S14_2, S14W, S16W,

S16W1, S16E, S16E2, S16E8, S21, S21W1, and gold veins S16W, H18E. Other veins include S1W2, S8W2, S19, S29, S31E, S33, and S33E.

Highlights of high-grade intercepts at the SGX mine production area:

Hole ZK74S16W07

intersected a

2.50 m

interval (

2.21 m

true width) of vein S16W grading 20 grams per tonne ("g/t") silver ("Ag"), 0.46% lead ("Pb"), 1.07%

zinc ("Zn"), 25.02 g/t gold ("Au"), and 0.03% copper ("Cu") at the

200 m

elevation. S16W is a major production vein at the SGX mine and the blocks with gold

grades but lower Ag-Pb-Zn grades were left over from previous mining;

Hole

ZK64S16W005

intersected a

1.25 m

interval (

1.25 m

true width) of vein S16W grading 141 g/t Ag, 1.86% Pb, 0.63% Zn, 24.28 g/t Au and 0.02% Cu at

the

321 m

elevation;

Hole

ZK16S7407

intersected a

0.92 m

interval (

0.75 m

true width) of vein S16W grading 1,376 g/t Ag, 13.43% Pb, 1.07% Zn, 0.37 g/t Au, and 0.21% Cu at

the

444 m

elevation;

Hole

ZK53S2910

intersected a

2.05 m

interval (

2.05 m

true width) of vein S29 grading 423 g/t Ag, 18.19% Pb, 8.29% Zn, 0.01 g/t Au, and 0.03% Cu at the

392 m

elevation, which includes a

0.84 m

interval (

0.84 m

true width) grading 962 g/t Ag, 43.55% Pb, 19.39% Zn, 0.01 g/t Au, and 0.05% Cu at the

392 m

elevation;

Hole

ZK60S16W002

intersected a

2.19 m

interval (

1.54 m

true width) of vein S21W1 grading 963 g/t Ag, 2.84% Pb, 0.34% Zn, 0.25 g/t Au, and 0.18% Cu at

the

324 m

elevation, which includes a

1.08 m

interval (

0.76 m

true width) grading 1,841 g/t Ag, 5.63% Pb, 0.60% Zn, 0.46 g/t Au, and 0.34% Cu at the

324 m

elevation;

Hole

ZK51S16W102

intersected a

2.02 m

interval (

2.00 m

true width) of vein S16W1 grading 461 g/t Ag, 4.79% Pb, 1.76% Zn, 0.02 g/t Au, and 0.06% Cu at

the

560 m

elevation, which includes a

0.77 m

interval (

0.76 m

true width) grading 1,031 g/t Ag, 12.53% Pb, 4.56% Zn, 0.05 g/t Au, and 0.15% Cu at the

560

elevation;

Hole

ZK02AS7_208

intersected a

1.25 m

interval (

0.74 m

true width) of vein S7_2 grading 916 g/t Ag, 23.18% Pb, 0.54% Zn, 0.11 g/t Au, and 0.13% Cu at

the

199 m

elevation; and

Hole

ZK01BS7-1004

intersected a

1.19 m

interval (

1.01 m

true width) of vein S7_1 grading 591 g/t Ag, 24.12% Pb, 1.79% Zn, 0.11 g/t Au, and 0.08% Cu at

the

285 m

elevation.

Surface and Underground Drilling Intersects Newly-Discovered Gold Veins in the North and Northeast Sides of the Resource Area

Exploratory surface drilling and underground drilling in the north and northeast sides of the resource area at the SGX mine discovered gold veins S16W, S18E,

S7-2E, S7_2, S74, S74a, and S75. Gold mineralization in Ag-Pb-Zn veins, such as S16W, seems to be an earlier phase of mineralization which has been

overprinted by Ag-Pb-Zn mineralization. Depending on the degree of overprint, gold grades in the Ag-Pb-Zn veins may vary substantially.

Surface hole ZKDB72S16W02

intersected a

0.48 m

interval from

186.22 m

186.7 m

(

0.32 m

true width) of vein S74 grading 1,048 g/t Ag, 0.50% Pb,

1.67% Zn, 24.45 g/t Au, and 0.02% Cu at the

534 m

elevation;

Underground hole ZK74S16W1004

intersected a

0.62 m

interval (

0.41 m

true width) of vein S74, grading 21 g/t Ag, 5.88% Pb, 6.05% Zn, 5.06 g/t Au, and

0.15% Cu at the

244 m

elevation; and

Sur

face hole

ZKDB34AS8001

intersected a

1.10 m

interval from

107.51 m

108.61 m

(

0.69 m

true width) of vein S75 grading 8 g/t Ag, 0.22% Pb, 0.33%

Zn, 4.97 g/t Au, and 0.01% Cu at the

699 m

elevation.

Table 1: Selected intercepts from the 2021 exploration programs at the SGX mine

Hole ID

From

(m)

Elevation

(m)

Interval

(m)

True

Width

(m)

(g/t)

(%)

(g/t)

(%)

Vein

Ore

Type

ZK00S7_2001

136.44

137.30

230

0.86

0.65

3.53

1.83

0.09

0.02

S7_1E

Ag-Pb-Zn

ZK00S7_2001

152.84

153.67

221

0.83

0.63

1.96

0.32

0.07

0.01

S7_1

Ag-Pb-Zn

ZK01BS7_1001

34.83

35.16

300

0.33

0.29

379

9.09

0.89

0.14

0.36

S16W

Ag-Pb-Zn

ZK01BS7_1001

121.66

122.14

283

0.48

0.44

812

0.60

0.13

0.10

0.75

S7_1

Ag-Pb-Zn

ZK01BS7_1002

135.85

137.27

255

1.42

1.20

0.53

3.77

0.01

0.05

S7_1

Ag-Pb-Zn

ZK01BS7_1007

122.44

123.25

291

0.81

0.73

3.54

2.57

0.01

0.05

S7_1

Ag-Pb-Zn

ZK01BS7_1010

101.30

101.96

282

0.66

0.59

164

0.10

5.54

0.03

0.02

S7_1E

Ag-Pb-Zn

ZK01BS7_1010

120.50

121.28

278

0.78

0.75

905

6.92

0.57

0.07

0.17

S7_1

Ag-Pb-Zn

ZK01BS7_1014

47.88

49.01

298

1.13

1.01

1.11

2.47

0.05

0.04

S16W

Ag-Pb-Zn

ZK01BS7-1004

122.01

123.20

285

1.19

1.01

591

24.12

1.79

0.11

0.08

S7_1

Ag-Pb-Zn

ZK01BS8E001

95.80

96.56

260

0.76

0.68

143

0.06

0.09

0.03

0.06

S8E1

Ag-Pb-Zn

ZK01S18002

114.04

114.57

563

0.53

0.47

282

10.57

0.88

0.01

0.06

S33

Ag-Pb-Zn

ZK01S7_1002

133.61

135.22

283

1.61

1.23

2.30

0.54

0.01

S7_1

Ag-Pb-Zn

ZK01S7_1005

24.75

26.09

302

1.34

1.32

202

1.00

0.42

0.00

0.07

S16E

Ag-Pb-Zn

ZK02AS16W03

63.38

65.08

238

1.70

1.22

471

5.36

0.10

0.13

0.05

S16W

Ag-Pb-Zn

ZK02AS7_201

43.61

45.67

472

2.06

1.15

290

0.12

2.17

0.05

0.03

S7_2

Ag-Pb-Zn

ZK02AS7_208

78.17

79.42

199

1.25

0.74

916

23.18

0.54

0.11

0.13

S7_2

Ag-Pb-Zn

ZK04AS7_202

89.92

91.68

428

1.76

1.70

2.03

1.49

0.04

0.03

S7_2

Ag-Pb-Zn

ZK04AS7_203

106.44

107.45

414

1.01

0.95

1.66

0.26

0.03

0.02

S7W

Ag-Pb-Zn

ZK06AS14_203

7.10

7.95

260

0.85

0.84

189

0.85

0.47

0.29

0.09

S31E

Ag-Pb-Zn

ZK06AS14_204

50.57

51.39

251

0.82

0.31

573

12.78

3.74

0.18

0.08

S14_2

Ag-Pb-Zn

ZK06AS14_206

49.20

49.88

236

0.68

0.29

420

15.73

2.84

0.05

0.06

S14_2

Ag-Pb-Zn

ZK06AS7001

92.00

92.33

256

0.33

0.13

416

11.94

0.20

0.04

0.44

Ag-Pb-Zn

ZK06AS7003

101.33

102.58

189

1.25

0.28

551

7.19

0.50

0.04

0.45

S7E2

Ag-Pb-Zn

ZK06S1402

8.56

9.12

262

0.56

0.55

939

6.48

2.54

2.40

0.05

S14_1

Ag-Pb-Zn

ZK06S1402

41.63

42.73

252

1.10

1.01

119

0.36

0.23

0.10

0.28

S14

Ag-Pb-Zn

ZK06S1403

10.59

11.13

262

0.54

0.52

210

1.85

1.44

0.22

0.03

S14_1

Ag-Pb-Zn

ZK06S1403

43.75

44.49

254

0.74

0.55

481

0.83

0.06

0.23

0.25

S14

Ag-Pb-Zn

ZK06S18E005

314.97

315.53

282

0.56

0.50

142

0.31

0.40

3.75

0.02

S18E

ZK06S18E009

4.46

5.05

452

0.59

0.57

154

0.31

0.61

0.13

0.02

S14E1

Ag-Pb-Zn

ZK06S18E009

127.62

128.28

406

0.66

0.62

320

0.14

0.18

1.73

0.01

S35

Ag-Pb-Zn

ZK06S18E009

243.91

245.21

362

1.30

1.22

0.01

2.09

0.01

S18

ZK06S8005

100.74

102.50

187

1.76

1.26

258

14.88

1.52

0.10

0.03

S8W2

Ag-Pb-Zn

ZK06S8005

160.00

161.08

142

1.08

0.76

1.22

2.84

0.11

0.08

Ag-Pb-Zn

ZK06S8011

132.20

132.88

167

0.68

0.61

5.10

0.75

0.01

0.02

Ag-Pb-Zn

ZK06S8W201

142.84

143.17

157

0.33

0.22

6.06

6.70

0.01

0.09

S8W

Ag-Pb-Zn

ZK06S8W201

148.77

149.80

152

1.03

0.68

112

3.47

0.44

0.07

0.18

Ag-Pb-Zn

ZK08AS31001

39.64

40.57

256

0.93

0.84

234

2.74

2.83

0.08

0.05

S31E

Ag-Pb-Zn

ZK08AS31002

7.29

7.55

261

0.26

0.21

369

7.78

0.43

0.29

1.92

S14

Ag-Pb-Zn

ZK08AS31002

12.92

13.27

260

0.35

0.28

404

7.29

0.37

0.24

0.23

S14W

Ag-Pb-Zn

ZK08AS31003

6.01

6.66

261

0.65

0.63

118

2.57

0.15

0.02

0.12

S14

Ag-Pb-Zn

ZK08AS31003

43.46

44.06

244

0.60

463

2.21

6.91

0.29

0.06

S31E

Ag-Pb-Zn

ZK08AS31004

8.84

10.10

259

1.26

1.06

210

11.39

0.30

0.05

0.08

S14

Ag-Pb-Zn

ZK08AS31005

70.20

71.09

242

0.89

0.63

164

0.18

0.42

0.09

0.01

S31

Ag-Pb-Zn

ZK08AS31006

40.08

41.35

243

1.27

0.34

132

2.43

6.24

0.12

0.05

S31E

Ag-Pb-Zn

ZK08AS31006

56.94

57.83

235

0.89

0.81

679

6.99

1.13

0.48

0.01

S14_2

Ag-Pb-Zn

ZK08AS31007

10.60

11.65

259

1.05

0.71

904

20.38

0.77

0.10

0.24

S14

Ag-Pb-Zn

ZK08AS31007

33.48

34.59

250

1.11

0.85

111

0.62

2.30

0.13

0.09

S14_2

Ag-Pb-Zn

ZK08AS31008

13.63

15.95

260

2.32

0.99

141

3.22

0.86

0.01

0.11

S14

Ag-Pb-Zn

ZK08AS31009

18.18

21.01

253

2.83

2.19

2.22

0.57

0.05

0.06

S14

Ag-Pb-Zn

ZK08AS31009

123.43

124.01

193

0.58

0.45

603

23.83

2.69

0.05

0.06

S31E

Ag-Pb-Zn

ZK08AS31010

17.25

17.79

260

0.54

0.46

154

4.19

0.43

0.24

0.07

S14_1

Ag-Pb-Zn

ZK08AS31011

11.62

12.81

255

1.19

0.94

146

5.09

0.30

0.12

0.29

S14

Ag-Pb-Zn

ZK08AS31011

15.26

15.94

253

0.68

0.54

853

22.40

0.43

0.26

0.07

S14W

Ag-Pb-Zn

ZK08AS31012

9.74

10.29

258

0.55

0.49

211

7.35

0.26

0.11

0.33

S14

Ag-Pb-Zn

ZK08AS31012

83.30

84.30

220

1.00

0.89

107

1.54

0.11

0.01

S31

Ag-Pb-Zn

ZK08AS31012

95.80

96.84

213

1.04

0.93

1.38

1.21

0.12

0.02

S6E1

Ag-Pb-Zn

ZK08AS31014

40.05

40.84

235

0.79

0.60

1.52

12.42

0.11

0.02

S31E

Ag-Pb-Zn

ZK08S18E10

70.70

71.67

379

0.97

0.88

0.12

0.28

2.78

0.01

S18E

ZK08S18E11

81.41

82.19

342

0.78

0.63

0.01

0.02

2.88

0.00

S18Ea

ZK08S18E11

93.84

94.88

333

1.04

0.83

0.02

1.80

0.00

S18E

ZK10AS7W001

121.27

122.40

321

1.13

0.74

1,049

1.24

0.87

0.11

S7W1

Ag-Pb-Zn

ZK10AS7W001

149.51

150.52

313

1.01

0.67

256

2.86

0.43

0.00

0.02

S7W

Ag-Pb-Zn

ZK10S3103

2.48

3.43

262

0.95

0.78

244

1.87

0.38

0.21

0.10

S14

Ag-Pb-Zn

ZK10S3103

90.61

91.12

213

0.51

0.37

431

2.08

3.80

1.60

0.06

S31E

Ag-Pb-Zn

ZK10S3104

6.36

6.92

263

0.56

0.53

259

0.10

0.14

0.00

0.10

S14

Ag-Pb-Zn

ZK10S3105

4.75

5.48

263

0.73

0.54

436

1.19

0.64

0.00

0.37

S14

Ag-Pb-Zn

ZK10S3105

18.61

19.25

259

0.64

0.47

609

19.64

0.36

0.27

0.06

S14W

Ag-Pb-Zn

ZK11AS8008

238.87

241.71

137

2.84

1.16

100

11.80

0.30

0.01

0.05

Ag-Pb-Zn

ZK11AS8009

303.01

303.75

0.74

0.57

337

2.23

0.49

0.32

0.03

Ag-Pb-Zn

ZK12S21001

45.12

46.11

326

0.99

0.83

196

0.62

0.56

0.21

0.03

S21

Ag-Pb-Zn

ZK12S21002

48.68

49.60

321

0.92

0.39

534

12.58

0.94

0.50

0.12

S21

Ag-Pb-Zn

ZK13AS1901

118.37

122.31

599

3.94

3.45

0.67

3.02

0.45

0.03

S19W

Ag-Pb-Zn

ZK15S1905

107.45

108.07

598

0.62

0.56

324

14.80

1.52

0.03

S19

Ag-Pb-Zn

ZK16S1W301

15.74

16.83

139

1.09

0.79

113

1.74

0.36

0.17

0.06

S2W2

Ag-Pb-Zn

ZK16S1W301

86.71

87.64

121

0.93

0.72

528

0.74

6.85

0.70

0.13

S1W2

Ag-Pb-Zn

ZK16S1W301

156.02

156.91

103

0.89

0.70

239

1.29

0.60

0.23

0.13

S1W3

Ag-Pb-Zn

ZK16S7_201

59.90

62.06

437

2.16

1.23

257

0.49

13.13

0.79

0.11

S16W

Ag-Pb-Zn

ZK16S7_202

16.46

17.58

478

1.12

0.91

4.54

1.08

0.04

0.01

S16E

Ag-Pb-Zn

ZK16S7_204

86.41

87.66

414

1.25

0.47

288

1.85

1.87

0.34

0.03

S16E

Ag-Pb-Zn

ZK16S7407

51.22

52.14

444

0.92

0.75

1,376

13.43

1.07

0.37

0.21

S16W

Ag-Pb-Zn

ZK16S7408

101.53

104.46

485

2.93

1.03

0.48

0.76

1.22

0.00

S16W

ZK18AS2W205

5.33

6.50

300

1.17

0.84

2.08

2.81

0.01

0.02

S1W3

Ag-Pb-Zn

ZK18S7407

173.26

174.04

279

0.78

0.75

148

3.29

6.12

0.33

0.18

S16W

Ag-Pb-Zn

ZK18S7408

164.52

165.78

247

1.26

4.89

0.44

0.03

S16W

Ag-Pb-Zn

ZK4AS18E01

199.09

199.45

135

0.36

0.30

0.66

0.49

1.39

0.01

S18E

ZK4AS7001

27.38

28.50

447

1.12

1.07

362

12.33

0.76

0.10

0.07

Ag-Pb-Zn

ZK4AS7002

24.30

24.91

442

0.61

742

11.12

1.62

0.10

0.04

Ag-Pb-Zn

ZK4AS7004

30.56

31.85

445

1.29

1.22

121

3.41

0.33

0.06

0.01

Ag-Pb-Zn

ZK50S2904

136.14

137.55

436

1.41

1.30

1.76

0.10

0.01

S14

Ag-Pb-Zn

ZK50S2904

195.15

197.83

428

2.68

2.48

309

1.19

3.14

0.01

0.04

S29

Ag-Pb-Zn

ZK51BS16W103

68.78

70.69

559

1.91

1.61

0.26

6.09

0.03

S16W1

Ag-Pb-Zn

ZK51S16W06

49.66

50.51

258

0.85

0.83

702

11.02

0.33

0.30

0.99

S7E2

Ag-Pb-Zn

ZK51S16W06

53.52

54.20

258

0.68

0.66

334

1.80

0.12

0.06

0.02

S7E2a

Ag-Pb-Zn

ZK51S16W06

55.63

56.32

258

0.69

0.67

115

1.18

0.36

0.02

0.06

Ag-Pb-Zn

ZK51S16W06

83.42

84.51

254

1.09

1.05

112

4.92

0.14

0.03

0.04

S7_2

Ag-Pb-Zn

ZK51S16W102

54.84

56.86

560

2.02

2.00

461

4.79

1.76

0.02

0.06

S16W1

Ag-Pb-Zn

incl.

56.09

56.86

560

0.77

0.76

1,031

12.53

4.56

0.05

0.15

S16W1

Ag-Pb-Zn

ZK51S2907

192.14

193.31

292

1.17

1.03

223

1.05

0.23

0.01

0.07

S29

Ag-Pb-Zn

ZK51S2910

85.25

86.02

415

0.77

0.61

163

0.27

1.22

0.05

0.02

S30W

Ag-Pb-Zn

ZK53S16W04

56.98

58.80

257

1.82

1.49

329

7.06

0.36

0.03

0.29

S7E2

Ag-Pb-Zn

ZK53S16W04

78.42

79.40

254

0.98

0.79

178

5.20

0.72

0.16

0.12

S7a

Ag-Pb-Zn

ZK53S16W101

60.50

61.02

550

0.52

0.46

225

2.40

5.04

0.05

0.02

S16W1

Ag-Pb-Zn

ZK53S16W102

59.92

63.00

561

3.08

2.51

119

2.95

10.01

0.03

0.04

S16W1

Ag-Pb-Zn

incl.

60.69

61.45

560

0.76

0.62

228

9.52

19.04

0.03

0.09

S16W1

Ag-Pb-Zn

ZK53S2910

151.20

153.25

392

2.05

423

18.19

8.29

0.01

0.03

S29

Ag-Pb-Zn

incl.

151.90

152.74

392

0.84

962

43.55

19.39

0.01

0.05

S29

Ag-Pb-Zn

ZK53S2911

154.26

155.13

387

0.87

0.83

0.06

5.46

0.05

0.02

S29

Ag-Pb-Zn

ZK53S2912

153.81

155.35

387

1.54

261

2.73

8.97

0.01

0.07

S29

Ag-Pb-Zn

ZK53S2913

158.44

159.40

370

0.96

0.60

168

0.13

1.88

0.03

S29

Ag-Pb-Zn

ZK55S16W01

85.07

87.42

250

2.35

1.57

151

2.06

0.32

0.02

0.05

S7E2

Ag-Pb-Zn

ZK55S16W01

112.36

114.73

245

2.37

2.10

260

6.09

0.32

0.04

0.17

S7_2

Ag-Pb-Zn

ZK55S2903

73.38

74.23

479

0.85

0.35

4.31

0.85

0.01

S37

Ag-Pb-Zn

ZK562901

85.99

86.78

338

0.79

0.75

3.01

1.49

0.05

0.02

S29

Ag-Pb-Zn

ZK562903

18.27

18.94

350

0.67

0.52

0.13

6.07

0.05

0.01

S14_1

Ag-Pb-Zn

ZK562905

109.16

110.71

324

1.55

1.44

254

4.79

7.95

0.03

0.08

S29

Ag-Pb-Zn

incl.

109.16

109.90

316

0.74

0.69

469

9.73

15.33

0.03

0.15

S29

Ag-Pb-Zn

ZK57S37W02

168.49

169.00

483

0.51

0.29

0.01

3.09

0.02

S30

ZK60AS16W001

96.35

97.14

323

0.79

0.59

145

0.35

0.38

0.09

0.14

S16E

Ag-Pb-Zn

ZK60AS16W001

100.09

100.65

322

0.56

0.42

3.38

5.15

0.03

S21W1

Ag-Pb-Zn

ZK60AS16W001

110.99

112.84

318

1.85

1.77

0.40

2.59

0.66

0.02

S16W

Ag-Pb-Zn

ZK60S16W002

108.10

110.29

324

2.19

1.54

963

2.84

0.34

0.25

0.18

S21W1

Ag-Pb-Zn

incl.

108.10

109.18

324

1.08

0.76

1,841

5.63

0.60

0.46

0.34

S21W1

Ag-Pb-Zn

ZK62S16W001

105.20

107.21

340

2.01

1.96

155

0.21

0.17

5.12

0.09

S16W

ZK62S16W002

104.90

106.70

322

1.80

1.78

106

0.88

1.47

0.72

0.03

S16W

Ag-Pb-Zn

ZK62S16W003

105.57

107.66

338

2.09

2.07

183

2.72

7.12

0.98

0.04

S16W

Ag-Pb-Zn

ZK62S16W004

104.72

108.83

318

4.11

4.05

157

1.15

2.26

0.64

0.07

S16W

Ag-Pb-Zn

ZK64AS16W003

1.81

2.41

353

0.60

0.46

301

18.27

1.06

0.11

0.05

S16E

Ag-Pb-Zn

ZK64S16W005

100.32

101.57

321

1.25

141

1.86

0.63

24.28

0.02

S16W

ZK64S16W008

21.20

21.88

349

0.68

0.42

438

0.73

2.77

0.23

0.13

S21Wa2

Ag-Pb-Zn

ZK64S16W008

106.87

108.63

328

1.76

1.09

4.63

2.27

0.14

0.01

S16W

Ag-Pb-Zn

ZK64S16W009

104.52

105.44

329

0.92

0.87

2.68

0.06

0.31

0.02

S16W

Ag-Pb-Zn

ZK64S16W010

101.19

102.24

331

1.05

1.02

392

2.69

1.24

0.20

0.15

S21W1

Ag-Pb-Zn

ZK66AS16W001

1.68

3.41

353

1.73

0.99

214

11.53

0.60

0.05

0.03

S16E

Ag-Pb-Zn

ZK66AS16W001

65.25

69.09

331

3.84

3.66

103

0.46

0.96

0.20

0.09

S16W

Ag-Pb-Zn

ZK66AS16W003

2.57

3.26

352

0.69

0.64

259

11.34

1.11

0.12

0.05

S16E

Ag-Pb-Zn

ZK66S16W001

58.48

59.70

342

1.22

1.15

237

0.06

0.19

0.06

0.30

S16W

Ag-Pb-Zn

ZK66S16W004

3.00

4.30

352

1.30

1.21

0.66

0.10

0.66

0.02

S16E

Ag-Pb-Zn

ZK66S16W004

65.71

66.64

318

0.93

0.90

0.08

0.05

1.77

0.00

S16W

ZK68S16W001

3.75

4.27

353

0.52

0.35

395

15.72

2.15

0.09

S16E

Ag-Pb-Zn

ZK68S16W001

72.74

77.03

334

4.29

3.46

0.69

0.37

0.96

0.03

S16W

ZK68S16W002

2.02

4.67

352

2.65

1.78

187

4.93

0.42

0.02

0.04

S16E

Ag-Pb-Zn

incl.

4.13

4.67

352

0.54

0.36

602

23.74

1.39

0.05

0.10

S16E

Ag-Pb-Zn

ZK68S16W002

72.00

74.47

321

2.47

2.22

4.47

0.18

0.20

0.03

S16W

Ag-Pb-Zn

ZK6AS14_1003

24.61

25.43

248

0.82

0.56

267

0.13

2.07

0.71

0.04

S14_1

Ag-Pb-Zn

ZK6AS14_2001

10.79

11.99

256

1.20

0.24

278

4.33

2.59

0.12

0.04

S14_2

Ag-Pb-Zn

ZK6AS18E01

144.35

144.64

150

0.29

0.19

0.01

0.02

3.26

0.01

S18

ZK70S16W201

161.83

163.40

364

1.57

1.22

0.28

0.09

0.58

0.01

S16Ea2

Ag-Pb-Zn

ZK72S16E805

31.00

31.85

475

0.85

0.56

5.78

0.43

0.01

S16E8

Ag-Pb-Zn

ZK73S32002

112.61

113.11

504

0.50

0.46

0.26

4.94

0.05

0.06

S32

Ag-Pb-Zn

ZK74S16W1004

79.75

81.39

276

1.64

1.62

0.17

0.46

3.18

0.01

S16E2

ZK74S16W1004

173.10

173.72

244

0.62

0.41

5.88

6.05

5.06

0.15

S74

ZK74S16W07

177.53

180.03

200

2.50

2.21

0.46

1.07

25.02

0.03

S16W

Au/Ag-Pb-Zn

incl.

177.53

178.40

200

0.87

0.77

1.02

2.62

70.80

0.04

S16W

Au/Ag-Pb-Zn

ZK75S32001

118.87

120.64

503

1.77

1.73

0.18

8.20

0.03

0.17

S32

Ag-Pb-Zn

ZK75S32002

113.04

113.77

504

0.73

0.66

4.14

0.47

0.05

0.01

S32

Ag-Pb-Zn

ZK8AS18E01

98.38

99.04

186

0.66

0.36

205

1.05

0.96

4.66

0.01

S33E

ZK93S28004

286.22

288.09

206

1.87

1.10

121

0.91

0.40

0.01

0.03

S28

Ag-Pb-Zn

ZK9AS8007

204.16

205.50

141

1.34

0.88

1.05

0.16

0.01

1.32

Ag-Pb-Zn

ZKDB100S16W01

274.82

275.50

331

0.68

0.63

0.01

0.02

1.84

0.01

S16W6

ZKDB101S3202

82.19

83.43

749

1.24

1.05

1.09

0.04

0.11

0.37

S26W

Ag-Pb-Zn

ZKDB13AS1901

241.31

243.60

623

2.29

2.23

0.13

7.07

0.01

0.02

S7_3

Ag-Pb-Zn

ZKDB16S21W01

153.01

155.94

646

2.93

2.52

268

0.28

0.68

0.17

0.02

S21

Ag-Pb-Zn

ZKDB16S21W01

189.27

190.69

645

1.42

1.16

108

0.36

5.17

0.05

S21W

Ag-Pb-Zn

ZKDB16S21W02

134.04

136.76

673

2.72

2.49

267

0.68

1.33

0.09

0.02

S21

Ag-Pb-Zn

ZKDB16S21W02

164.20

164.96

650

0.76

0.71

201

0.33

1.90

0.05

0.06

S21W

Ag-Pb-Zn

ZKDB16S21W04

158.48

159.00

676

0.52

0.48

277

0.79

0.35

0.03

0.04

S21W

Ag-Pb-Zn

ZKDB16S21W06

187.92

188.85

618

0.93

0.73

3.45

2.27

0.03

0.02

S21W

Ag-Pb-Zn

ZKDB18S21W02

124.44

125.34

650

0.90

0.69

0.19

3.23

0.13

0.03

S21Wa

Ag-Pb-Zn

ZKDB18S21W03

67.34

68.54

709

1.20

1.15

116

0.16

0.42

0.34

0.01

S21

Ag-Pb-Zn

ZKDB23S7_101

173.85

175.80

640

1.95

0.78

3.70

2.19

0.01

S19

Ag-Pb-Zn

ZKDB26AS1102

15.43

16.70

844

1.27

1.17

147

0.14

0.10

0.04

0.03

S10

Ag-Pb-Zn

ZKDB26AS11E001

64.73

65.88

801

1.15

0.77

2.45

0.26

3.87

0.07

S10

ZKDB26AS11E001

383.80

386.02

535

2.22

0.73

0.37

0.13

2.25

0.01

S11E1

ZKDB28S11002

155.26

156.02

732

0.76

0.61

227

0.07

0.27

0.03

0.04

S10E

Ag-Pb-Zn

ZKDB28S11002

158.95

160.31

730

1.36

1.09

107

0.16

0.04

0.64

0.01

S10E1

Ag-Pb-Zn

ZKDB28S11002

247.17

247.88

667

0.71

0.41

0.24

0.08

6.16

0.01

S11W

ZKDB28S11E004

247.67

248.79

643

1.12

0.52

0.18

0.04

2.06

0.01

S11

ZKDB32S16W601

16.23

17.28

551

1.05

0.79

0.02

0.05

1.77

0.00

S14Ea

ZKDB34AS7_2E01

140.18

141.33

676

1.15

0.72

1.15

2.96

1.42

0.03

S74a

ZKDB34AS7_2E01

247.45

248.73

588

1.28

1.11

0.51

0.59

4.12

0.01

S7_2E

ZKDB34AS8001

107.51

108.61

699

1.10

0.69

0.22

0.33

4.97

0.01

S75

ZKDB34AS8001

199.05

200.66

618

1.61

1.02

0.33

0.24

2.55

0.01

S74

ZKDB34AS8001_1

113.03

113.58

692

0.55

0.33

0.05

0.07

2.24

0.01

S75

ZKDB34AS8002

122.68

122.99

711

0.31

0.26

0.04

0.05

3.52

0.00

S7_2b

ZKDB34AS8002

167.14

168.54

681

1.40

1.18

0.06

0.11

2.41

0.00

S74

ZKDB34AS8004

228.14

229.73

612

1.59

1.24

0.24

0.26

2.25

0.00

S7_2E

ZKDB34S7_201

206.10

206.86

638

0.76

0.58

0.14

0.08

1.93

0.01

S74

ZKDB34S7_202

108.51

110.00

702

1.49

0.92

0.12

1.27

1.25

0.01

S75

ZKDB34S7_202

229.90

230.87

602

0.97

0.68

0.46

0.43

2.89

0.01

S7_2E

ZKDB36AS7_2001

369.84

371.57

438

1.73

0.59

0.30

0.47

1.52

0.01

S74

ZKDB36AS8001

161.25

163.08

677

1.83

1.39

0.07

0.08

3.44

0.00

S74

ZKDB36S8_101

98.96

99.32

723

0.36

0.29

0.27

0.16

4.91

0.01

S75

ZKDB72S16W01

291.40

292.69

442

1.29

0.79

11.57

0.40

0.01

S16E8

Ag-Pb-Zn

ZKDB72S16W01

301.76

303.01

433

1.25

0.77

5.13

1.02

0.10

0.03

S16W

Ag-Pb-Zn

ZKDB72S16W02

186.22

186.70

534

0.48

0.32

1,048

0.50

1.67

24.45

0.02

S74

ZKDB72S16W02

282.25

283.06

441

0.81

0.51

112

0.74

1.97

0.13

0.03

S16E

Ag-Pb-Zn

ZKDB79S3203

66.75

69.89

774

3.14

1.71

113

0.85

0.79

0.01

0.06

S32

Ag-Pb-Zn

ZKDB8AS2102

158.49

160.57

678

2.08

1.40

169

1.18

0.39

0.04

0.02

S21

Ag-Pb-Zn

ZKDB8AS2102

261.93

264.61

587

2.68

1.61

770

2.13

0.49

0.13

0.03

S16E2

Ag-Pb-Zn

incl.

261.93

263.50

587

1.57

0.94

1,249

3.60

0.80

0.20

0.05

S16E2

Ag-Pb-Zn

ZKDB8S2103

97.08

98.72

750

1.64

1.29

1.79

1.68

0.07

0.02

S21

Ag-Pb-Zn

ZKDB8S2104

126.31

127.32

715

1.01

0.70

178

0.89

7.65

0.04

0.07

S21

Ag-Pb-Zn

ZKDB97S3201

105.80

106.20

727

0.40

0.31

120

4.01

7.60

0.01

S32

Ag-Pb-Zn

ZKDBS233A01

260.66

261.79

642

1.13

1.10

273

1.39

0.31

0.05

S23

Ag-Pb-Zn

Tunneling Programs at the SGX Mine

In addition to the drilling program,

11,958 m

of exploration drift tunneling were developed at the SGX mine during this period. The exploration tunneling, comprised

of drifting, cross-cutting and raising, was driven along and across major mineralized vein structures to upgrade the drill defined mineral resources and test for new

parallel and splay structures. The results of the exploration tunneling are summarized in the following table.

Major Target Veins

Elevation

(m)

Total

Tunneling

(m)

Channel

Samples

Collected

Drift

Included

(m)

Total Mineralization Exposed by Drifts

[1]

Length

(m)

True

Width

(m)

(g/t)

(%)

S1W2, S1W3, S1W5, S2, S2W, S2W2, S6,

S7, S7_1, S7_2, S8, S8E, S14, S14_1,

S14_2, S18E, S19, S32, S33, S37W

100-640

23,574

8,577

11,958

4,139

0.61

400

5.83

3.01

[1] Mineralization is defined by silver equivalent value (AgEq) greater than or equal to 145 g/t at the SGX mine.

(Formula used for AgEq calculation: AgEq = Ag g/t + 35.63 * (Pb% + Cu%) + 22.45 * Zn% + 79.63 * Au g/t)

Highlights of selected mineralized zones exposed in the drift tunnels:

Drift Tunnel

XPD-S37W-520-3ASYM

exposed mineralization

30 m

long and

1.02 m

wide (true width) grading 961 g/t Ag, 19.71% Pb and 5.13% Zn within vein

S37W at the

520 m

level;

Drift Tunnel

CM105-S2SJ-S2-140-16CL

exposed mineralization

55 m

long and

0.82 m

wide (true width) grading 1,271 g/t Ag, 10.54% Pb and 1.19% Zn

within vein S2 at the

140 m

level;

Drift Tunnel

CM105-S2SJ-S2W2-100-12ANYM

exposed mineralization

45 m

long and

0.99 m

wide (true width) grading 732 g/t Ag, 11.63% Pb and 3.03% Zn

within vein S2W2 at the

100 m

level;

Drift Tunnel

CM105-S2SJ-S1W5-220-12ANYM

exposed mineralization

25 m

long and

0.79 m

wide (true width) grading 1,290 g/t Ag, 3.85% Pb and 10.53%

Zn within vein S1W5 at the

220 m

level;

Drift Tunnel

CM105-S2SJ-S1W5-180-12ANYM

exposed mineralization

25 m

long and

0.75 m

wide (true width) grading 1,147 g/t Ag, 7.43% Pb and 9.96%

Zn within vein S1W5 at the

180 m

level; and

Drift Tunnel

PD16-S6-110-4ANYM

exposed mineralization

100 m

long and

0.89 m

wide (true width) grading 673 g/t Ag, 8.20% Pb and 2.12% Zn within vein

S6 at the

110 m

level.

Table 2: Selected mineralized zones exposed by drift tunneling at the SGX mine

Tunnel ID

Vein

Elevation

(m)

Ore Length

(m)

True Width

(m)

(g/t)

(%)

(g/t)

(%)

CM105-S2SJ-S1W2-220-12ANYM

S1W2

220

0.39

382

6.67

1.11

0.05

0.01

CM105-S2SJ-S1W2-220-12ASYM

S1W3

220

0.36

191

3.65

3.74

0.00

CM105-S2SJ-S1W2-180-12ANYM

S1W3

180

0.41

2.08

3.41

0.00

CM105-S2SJ-S1W2-180-12ASYM

S1W3

180

0.28

298

8.67

7.01

0.00

CM105-S2SJ-S1W3-140-12SYM

S1W3

140

0.38

286

9.15

6.45

0.00

CM105-S2SJ-S1W3-140-12NYM

S1W3

140

0.36

1,634

18.79

7.74

0.00

CM105-S2SJ-S1W5-260-12ANYM

S1W5

260

0.50

950

4.46

10.29

0.00

CM105-S2SJ-S1W5-220-12ANYM

S1W5

220

0.79

1,290

3.85

10.53

0.02

0.25

CM105-S2SJ-S1W5-220-12ASYM

S1W5

220

0.71

631

2.65

6.30

0.02

0.11

CM105-S2SJ-S1W5-180-12ASYM

S1W5

180

0.67

1,049

3.09

4.26

0.00

CM105-S2SJ-S1W5-180-12ANYM

S1W5

180

0.75

1,147

7.43

9.96

0.00

CM105-S2SJ-S2W-140-12ASYM

140

1.11

160

3.53

0.60

0.00

CM105-S2SJ-S2-140-16CL

140

0.82

1,271

10.54

1.19

0.00

CM105-S2SJ-S2-100-12ASYM

100

0.65

143

2.59

0.64

0.00

CM105-S2SJ-S2W-100-12ANYM

100

0.82

368

4.81

1.27

0.00

0.01

CM105-S2SJ-S2W-260-S2CL

S2W

260

0.82

488

8.96

2.26

0.00

CM105-S2SJ-S2W-140-12ASYM

S2W

140

100

0.71

973

4.77

3.58

0.00

CM105-S2SJ-S2W-100-12ANYM

S2W

100

0.47

209

2.43

2.15

0.02

0.05

CM105-S2SJ-S2W-100-12ASYM

S2W

100

0.44

553

6.86

4.32

0.01

0.02

CM105-S2SJ-S2W2-100-12ANYM

S2W2

100

0.99

732

11.63

3.03

0.02

0.23

CM105-S2SJ-S2W2-100-12ASYM

S2W2

100

0.85

562

10.59

0.72

0.05

0.45

PD16-S6-110-4ANYM

110

100

0.89

673

8.20

2.12

0.04

0.11

PD16-S6-110-4ASYM

110

0.66

430

8.83

2.31

0.00

PD16-S6E1-350-6SYM

S6E1

350

115

0.50

683

4.62

4.80

0.00

PD16-S6E1-110-4ANYM

S6E1

110

0.27

556

10.22

10.52

0.00

CM105-S7-350-14CL

360

0.48

303

6.17

0.59

0.00

CM105-S7-210-12CL

210

1.25

192

7.38

1.06

0.00

XPD-S7-1-300-S3CL

S7_1

320

122

0.74

295

8.32

9.31

0.00

XPD-S7_1-110-5NYM

S7_1

110

0.84

1.83

5.21

0.00

XPD-S7_1-300-13ASYM

S7_1E

300

0.31

246

16.36

0.70

0.00

CM105-S7W-400-12SYM

S7_2

400

0.70

376

5.33

0.48

0.00

CM101-S7_2-160-2ASYM

S7_2

160

0.78

244

5.20

9.45

0.00

0.06

CM101-S7_2-110-2ANYM

S7_2

110

0.49

1,088

18.95

0.13

0.00

CM101-S7_2-110-2ANYM

S7_2

110

0.48

210

5.87

0.48

0.00

CM101-S7_2-110-2ASYM

S7_2

110

0.53

248

7.17

0.65

0.00

XPD-S7_3-300-15ANYM

S7_3a

300

0.46

158

0.51

1.89

0.00

CM105-S7a-400-54SYM

S7a

400

0.49

341

1.83

0.65

0.00

PD700-S8-640-19ASYM

640

0.49

5.31

1.19

0.00

XPD-S8E-160-13ANYM

160

0.70

599

8.22

0.36

0.00

PD700-S8E-610-19ASYM

S8E

610

0.47

269

13.58

0.67

0.00

XPD-S8E-260-7ASYM

S8E

260

0.59

360

2.87

2.06

0.00

XPD-S8E-210-15NYM

S8E

210

0.48

732

4.92

0.44

0.00

XPD-S8E-210-15SYM

S8E

210

0.69

375

5.16

0.61

0.00

0.02

XPD-S8E-160-13ANYM

S8E

160

0.49

269

4.94

0.36

0.00

CM101-S8W1-160-4ANYM

S8W

160

0.68

462

3.79

1.69

0.00

PD16-S14-210-2ANCL

S14

240

0.39

256

2.82

2.60

0.00

PD16-S14-210-2ASCL

S14

240

0.45

1,517

12.50

1.76

0.00

PD16-S14-110-8NCL

S14

140

0.67

538

11.95

1.87

0.00

PD16-S14-110-8SCL

S14

140

0.75

474

11.17

2.37

0.00

PD16-S14-110-4ANYM

S14

110

0.85

250

2.99

2.72

0.00

PD16-S14-110-4ASYM

S14

110

0.25

237

2.52

6.60

0.00

0.08

PD16-S14_1-260-8SYM

S14_1

260

0.56

315

6.76

2.05

0.00

PD16-S14_2-350-6NYM

S14_2

350

0.53

314

7.09

6.16

0.00

PD16-S14W-160-NYM

S14W

160

0.53

155

7.25

2.27

0.00

PD16-S14W-110-10NYM

S14W

110

0.42

153

1.09

2.16

0.00

YPD01-S16E-585-52SYM

S16E

585

0.44

496

8.17

3.18

0.00

CM101-S16E-450-60NYM

S16E

450

0.56

782

10.99

0.91

0.00

CM101-S16E2-450-60NYM

S16E

450

0.39

448

3.48

0.64

0.00

CM105-S16E2-300-14SYM

S16E

300

0.39

246

6.95

0.17

0.00

CM105-S16W-350-SYM

S16W

350

1.07

0.34

0.26

4.37

0.01

CM105-S16W-325-3CL

S16W

325

0.55

285

1.52

4.41

0.00

CM105-S16W-300-62CL

S16W

310

1.28

306

0.89

0.99

5.52

0.03

CM105-S16W-260-64NYM

S16W

260

0.72

106

1.29

3.09

0.16

0.08

CM105-S16W-210-70NYM

S16W

210

1.46

2.94

1.55

0.00

CM105-S18E-400-6ASYM

S18E

400

0.42

0.11

0.12

3.16

0.00

CM105-S18E-400-8ASYM

S18E

400

0.45

109

0.12

0.11

5.05

0.09

PD700-S19-610-13ASYM

S19

610

0.65

284

7.00

3.91

0.00

PD700-S19-570-13TJCL

S19

580

0.77

0.39

9.04

0.00

PD700-S19-400-13ASYM

S19

400

0.50

116

5.00

4.09

0.00

PD700-S19-400-15SYM

S19

400

115

0.63

431

5.04

6.16

0.00

CM101-S19-350-9ASYM

S19

350

0.63

291

5.65

2.56

0.00

CM101-S19-350-5NYM

S19

350

0.77

125

3.15

2.34

0.00

XPD-S19-300-9ASYM

S19

300

0.37

239

12.04

0.38

0.00

XPD-S19-300-S3CL

S19

300

0.64

182

7.92

5.23

0.00

XPD-S19-210-13ANYM

S19

210

0.87

137

4.74

0.79

0.00

CM105-S19-160-10SYM

S19

160

170

0.70

124

8.83

0.23

0.00

XPD-S19-160-13ASYM

S19

160

0.66

2.35

2.37

0.00

XPD-S19-110-5NYM

S19

110

0.43

2.77

4.67

0.00

XPD-S19-110-5SYM

S19

110

0.72

193

2.12

2.54

0.00

0.30

PD700-S19a-610-15ASYM

S19a

610

0.63

186

6.20

1.66

0.00

CM105-S21-490-16NYM

S21

490

0.68

230

5.47

1.14

0.00

CM105-S21-160-16NYM

S21

160

0.72

0.22

0.17

2.60

0.00

CM105-S21-490-14NYM

S21W

490

0.57

405

12.16

4.11

0.00

CM105-S21W1-330-2LK

S21W1

330

0.73

780

15.27

1.19

0.00

PD16-S31-160-4ASYM

S31

160

0.65

869

3.88

5.30

0.00

PD16-S31E-210-66NYM

S31E

210

0.69

497

5.82

4.33

0.00

PD16-S31E-110-68NYM

S31E

110

0.72

832

13.77

1.90

0.00

CM101-S32-640-75SYM

S32

640

0.71

659

2.26

3.95

0.03

0.68

CM102-S32-480-69TJLK

S32

495

0.92

1.97

8.08

0.00

CM101-S32-300-59SYM

S32

300

0.46

0.78

7.38

0.00

PD16-S35E-350-8NYM

S35E

350

0.29

368

2.55

1.25

0.97

0.03

PD16-S37-260-58NMW

S37

260

0.32

149

3.83

6.30

0.00

XPD-S37W-520-3ANYM

S37W

520

0.45

237

5.63

3.04

0.00

XPD-S37W-520-3ASYM

S37W

520

1.02

961

19.71

5.13

0.00

CM105-S2SJ-S39-300-8ANYM

S39

300

0.23

248

2.56

4.28

0.00

CM105-S2SJ-S1W5-260-12ASYM

S39

260

0.39

504

8.60

7.63

0.00

CM105-S2SJ-S39-260-12SYM

S39a

260

0.30

277

5.91

2.15

0.00

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

, 226 km northeast of

Beijing

, the Zhengzhou

Nonferrous Exploration Institute Lab in

Zhengzhou

Henan Province

China

, and SGS in

Tianjin, China

. All the three labs are ISO9000 certified analytical labs. For

analysis, the

sample is dried and crushed to minus 1 mm and then split to a 200-300 g 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

5 m

along strike. Both the mineralized vein and the altered wall rocks are cut by continuous chisel chipping. Sample length ranges from

0.2 m

to more than

1 m

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 services. The channel samples are dried, crushed and pulverized. A 200 g sample of minus 160

mesh is prepared for assay. A duplicate sample of minus 1 mm 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/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 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 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

CAUTIONARY DISCLAIMER - FORWARD LOOKING STATEMENTS

Certain of the statements and information in this press 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 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

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 access to and availability of funding 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 differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: social and economic

impacts of COVID-19; fluctuating commodity prices; calculation of resources, reserves and mineralization 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 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 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 for the year ended

March 31, 2021

under the heading "Risk Factors". Although the

Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to 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 based on the assumptions, beliefs, expectations and opinions of management as of the date of

this press 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, 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

The disclosure in this news release and referred to herein was prepared in accordance with NI 43-101 which differs significantly from the requirements of the

U.S. Securities and Exchange Commission (the "SEC"). The terms "proven mineral reserve", "probable mineral reserve" and "mineral reserves" used in this

news release are in reference to the mining terms defined in the Canadian Institute of Mining, Metallurgy and Petroleum Standards (the "CIM Definition

Standards"), which definitions have been adopted by NI 43-101. Accordingly, information contained in this news release providing descriptions of our mineral

deposits in accordance with NI 43-101 may not be comparable to similar information made public by other U.S. companies subject to

the United States

federal

securities laws and the rules and regulations thereunder.

Investors are cautioned not to assume that any part or all of mineral resources will ever be converted into reserves. Pursuant to CIM Definition Standards,

"Inferred mineral resources" are that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence

and sampling. Such geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An inferred mineral resource has a

lower level of confidence than that applying to an indicated mineral resource and must not be converted to a mineral reserve. However, it is reasonably

expected that the majority of inferred mineral resources could be upgraded to indicated mineral resources with continued exploration. Under Canadian rules,

estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to

assume that all or any part of an inferred mineral resource is economically or legally mineable. Disclosure of "contained ounces" in a resource is permitted

disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute "reserves" by SEC

standards as in place tonnage and grade without reference to unit measures.

Canadian standards, including the CIM Definition Standards and NI 43-101, differ significantly from standards in the SEC Industry Guide 7. Effective

February

25, 2019

, the SEC adopted new mining disclosure rules under subpart 1300 of Regulation S-K of the United States Securities Act of 1933, as amended

(the "SEC Modernization Rules"), with compliance required for the first fiscal year beginning on or after January 1, 2021. The SEC Modernization Rules

replace the historical property disclosure requirements included in SEC Industry Guide 7. As a result of the adoption of the SEC Modernization Rules, the SEC

now recognizes estimates of "Measured Mineral Resources", "Indicated Mineral Resources" and "Inferred Mineral Resources". In addition, the SEC has

amended its definitions of "Proven Mineral Reserves" and "Probable Mineral Reserves" to be substantially similar to corresponding definitions under the CIM

Definition Standards. During the period leading up to the compliance date of the SEC Modernization Rules, information regarding mineral resources or

reserves contained or referenced in this news release may not be comparable to similar information made public by companies that report according to U.S.

standards. While the SEC Modernization Rules are purported to be "substantially similar" to the CIM Definition Standards, readers are cautioned that there are

differences between the SEC Modernization Rules and the CIM Definitions Standards. Accordingly, there is no assurance any mineral reserves or mineral

resources that the Company may report as "proven mineral reserves", "probable mineral reserves", "measured mineral resources", "indicated mineral

resources" and "inferred mineral resources" under NI 43-101 would be the same had the Company prepared the reserve or resource estimates under the

standards adopted under the SEC Modernization Rules.

View original content to download multimedia:

https://www.prnewswire.com/news-releases/silvercorp-intersects-vein-s16w-with-2-21-metres-true-width-grading-25-grams-per-tonne-gold-at-the-sgx-mine-ying-mining-district-china-301325752.html

SOURCE

Silvercorp Metals Inc

View original content to download multimedia:

http://www.newswire.ca/en/releases/archive/July2021/06/c9442.html

%SEDAR: 00006210E

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.silvercorpmetals.com

CO: Silvercorp Metals Inc

CNW 06:55e 06-JUL-21

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