Silvercorp Reports on El Domo Project Development Progress and Awarding the First Construction Contract

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NEWS RELEASE

Trading Symbols: SVM (TSX/NYSE American)

SRL (TSXV), SRLZF (OTCQB)

Silvercorp Reports on El Domo Project Development Progress

and Awarding the First Construction Contract

VANCOUVER, British Columbia –January 7, 2025 – Silvercorp Metals Inc. (“Silvercorp” or the “Company”)

(TSX/NYSE American: SVM), its Ecuadorian subsidiary Curimining S.A. (“Curimining”), and Salazar Resources

Limited (“Salazar” , together with Silvercorp and Curimining, the “Companies”), are pleased to provide a

progress report on the El Domo Project (the “Project”). The Companies are still targeting to bring the Project

into production in the second half of 2026 and have recently awarded the earthworks contract to a large

international mining contractor with over 10 years of experience working in Ecuador (see below).

Progress Report

Since Silvercorp completed its acquisition of Adventus Mining Corporation (“Adventus”) by way of a plan of

arrangement on July 31, 2024 , the Companies have made substantial progress in advancing the Project,

highlights include:

a. Streamlined the Ecuadorian Operations: Optimized the organization chart by moving the

management team and personnel to the El Domo and Condor project sites from the Quito office, and

by initiating the winding down or transfer of most of the non-core regional projects.

b. Continued Community Engagement: Maintained open lines of communication with local communities

and government representatives , keeping them informed of changes in the Project ownership and

leadership, as well as on construction plans.

c. Advanced Detailed Engineering:

a) Reviewed the previous technical work, including interviewing all consulting firms to confirm all

previous studies and detailed engineering designs for optimization;

b) Optimized design with Klohn Crippen Berger (KCB) for the Tailing Storage Facilities (TSF), starter

dam and impound area, Saprolite Waste Dump (SWD), and non-contact water channels;

c) Selected a new site for the process plant so that its preparation will provide the required non-

acid generating rocks for the construction of the starter dam of the TSF, while minimizing trucking

distances;

d) Optimized open pit mine design for mining, stripping, and schedul ing, and coordinated the

mining schedule with ongoing tailings dam raises using stripped waste rock;

e) Commenced metallurgical test work on selective flotation – potentially leading to higher

recoveries and improved payabilities (see Silvercorp’s August 21, 2024 press release); and

f) Started Detailed Engineering Design (EP) for the process plant, including engaging a consulting

engineer, equipment selection, purchasing and detailed engineering drawings.

d. Advanced Project Infrastructure:

a) Optimized designs for a new public bypass road and internal operational haul roads;

b) Executed a powerline contract with the Ecuadorian state-owned power company (CNEL EP). The

construction contractor will be selected once the updated engineering design is completed; and

c) Commenced p ermitting for standby diesel power generation for the dry season , as climate

change has impacted the power supply situation in Ecuador.

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e. Produced Project Materials Balance: including total cubic metres of cutting, filling, cement, and

amount of high-density polyethylene material, and bill of quantities for the major construction

projects of the mine and process plant, which are divided into three bidding packages:

a) Bid Package 1: Construction of temporary camp, TSF to starter dam phase, SWD, non-contact

water channels, internal haul roads, and preparation of the process plant site and permanent

camp site;

b) Bid Package 2: Mining, stripping and ongoing tailings dam raises using stripped waste rocks; and

c) Bid Package 3: Construction of the p rocess plant, tailing s discharge and back water system s,

water treatment plants, permanent camp, and other site infrastructure.

f. Adopted “Unit Cost” Criteria (as compared to “Open Book”) for potential contractors to bid on the

three construction packages outlined above. For example, “Unit Cost” for blasting or cutting one cubic

metre of rock or saprolite, then loaded and trucked to, within two kilomet res, shall include all

personnel and management cost, plus any profit contractor intends to have for the work. Monthly

total payments will be based on measured cubic metres of cutting.

Award of Commercial Contract for Bid Package 1

The Companies invited three mining contractors with operations at Ecuadorian mining or construction sites,

and the forth contractor which Curimining had engaged previously, and the Companies received a total of

four bids based on the “Unit Cost” criteria.

After interviews, visiting their current operating sites in Ecuador, and considering the total bid price , the

Companies have awarded Bid Package 1 to CRCC 14 Bureau Group CO., Ltd., a company with a regional

headquarters in Quito and over ten years operating experience in Ecuador building infrastructure in open

pit mines and in the heavy civil construction sectors.

The Companies plan to award Bid Packages 2 and 3 in Q1 2025 to ensure the project stays on schedule to

start production in the second half of 2026.

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 cashflow from long-life mines; 2) organic growth through extensive drilling for discovery; 3)

ongoing merger and acquisition efforts to unlock value; and 4) a long -term commitment to responsible

mining and ESG. For more information, please visit our website at www.silvercorpmetals.com.

About the El Domo Project

El-Domo is a high-grade copper-gold project located in Central Ecuador, approximately 150 km northeast

of the major port city of Guayaquil – about a 3-hour drive. The project concessions span low-lying hills and

plains between 300 to 900 masl. El Domo is a flat -lying tabular sha ped VMS deposit, with mineralization

beginning at 30 metres from surface and dimensions of approximately 800 x 400 metres. Three well -

maintained gravel roads provide direct site access to El Domo.

For further information:

Silvercorp Metals Inc.

Lon Shaver

President

Phone: (604) 669-9397

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Toll Free 1(888) 224-1881

Email: [email protected]

Website: www.silvercorpmetals.com

CAUTIONARY DISCLAIMER - FORWARD-LOOKING STATEMENTS

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 things the discussions regarding strategies for the

development of El Domo; the potential for higher recoveries and improved payabilities based on

metallurgical test work on selective flotation ; the obtaining of approvals and permits for the Project and

the timing thereof; timing of the awarding of Bid Packages 2 and 3; the start of construction and production

at the Project and the timing thereof. By their very nature, forward -looking statements involve known and

unknown risks, uncertainties and other factors that may cause our actual results, performance or

achievements to be materially different from any future results, pe rformance or achievements expressed

or implied by the forward -looking statements. Such factors include, amongst others, risks related to the

exploration, development, production, recoveries and other anticipated or possible future developments

at the Project, including, without limitation, that exploration, development and production activities will

not occur or be as anticipated; failure to obtain key permits and approvals and to start construction; the

outcome of the an Extraordinary Protection Action (the “EPA”) filed with the Constitutional Court of

Ecuador by a group of plaintiffs concerning the environmental consultation process for the Project; and

general economic, business and political conditions. Forward -looking information may in some cases be

identified by words such as “will”, “anticipates”, “expects”, “intends” and similar expressions suggesting

future events or future performance.

We caution that all forward -looking information is inherently subject to change and uncertainty and that

actual results may differ materially from those expressed or implied by the forward -looking information. A

number of risks, uncertainties and other fac tors, including the EPA, impacts of the EPA or subsequent

litigation on the Project ; outcome of other future litigation or regulatory actions; regulatory environment

and political climate in Ecuador; integration and operations of Adventus; environmental ri sks; natural

disasters; dependence on management and key personnel; risks and hazards of mining operations; and the

other risk factors described in the Company’s Annual Information Form and other filings with Canadian and

U.S. regulators on www.sedarplus.ca and www.sec.gov; could cause actual results and events to differ

materially from those expressed or implied in the forward -looking information or could cause our current

objectives, strategies and intentions to change. Accordingly, we warn investors to exercise caution whe n

considering statements containing forward -looking information and that it would be unreasonable to rely

on such statements as creating legal rights regarding our future results or plans. We cannot guarantee that

any forward-looking information will materialize and you are cautioned not to place undue reliance on this

forward-looking information. Any forward -looking information contained in this news release represent

expectations as of the date of this news release and are subject to change after such date. However, we are

under no obligation (and we expressly disclaim any such obligation) to update or alter any statements

containing forward-looking information, the factors or assumptions underlying them, whether as a result

of new information, future even ts or otherwise, except as required by law. All of the forward -looking

information in this news release is qualified by the cautionary statements herein.

A comprehensive discussion of other risks that impact Silvercorp can also be found in their public reports

and filings which are available under its profile at www.sedarplus.ca.