NYSE MKT:SVM $2.85 +0.02 TSX:SVM $3.54 +0.07

News & Media

2012

Silvercorp Received RMB 269 Million Cash Dividend From Its Chinese Subsidiary

January 10, 2012

VANCOUVER, British Columbia – January 10, 2012 – Silvercorp Metals Inc. (“Silvercorp” or the “Company”) is pleased to announce that it has received RMB 269 million cash dividend payment (equivalent to USD $43 million) from its 77.5% owned Chinese subsidiary, Henan Found Mining Co. Ltd. (“Henan Found”), in Henan Province, China. The cash dividend has been deposited at a bank in Canada.

The cash dividend represents Henan Found’s 2010 calendar year  profit distribution.  According to its audited statutory financial statements Henan Found had a net profit of RMB 514.8 million in the 2010 calendar year.  The board of directors of Henan Found declared 75% of net profit, ( RMB 386.1 million), as cash dividends to its two shareholders.  RMB 299 million, representing 77.5% total dividends declared was paid to the Company.  After deducting Chinese dividend withholding tax of RMB 29.9 million, the Company received a net cash dividend payment of RMB 269 million. 

About Silvercorp Metals Inc.

Silvercorp Metals Inc. is engaged in the acquisition, exploration, development and mining of high-grade silver-related mineral properties in China and Canada. Silvercorp is the largest primary silver producer in China through the operation of the four silver-lead-zinc mines at the Ying Mining District in the Henan Province of China. Silvercorp recently acquired the XBG and XHP silver-gold-lead-zinc mines nearby the Ying Mining District in Henan Province, further consolidating the region. Silvercorp has commenced production at its second production foothold in China, the BYP gold-lead-zinc project in Hunan Province, and is currently constructing the mill and related facilities in preparation for mining at the GC silver-lead-zinc project in Guangdong Province. In Canada, Silvercorp is preparing an application for a Small Mine Permit for the Silvertip high grade silver-lead-zinc mine project in northern British Columbia to provide a further platform for growth and geographic diversification. The Company’s shares are traded on the New York Stock Exchange (symbol: SVM) and Toronto Stock Exchange (symbol: SVM) and are included as a component of the S&P/TSX Composite and the S&P/TSX Global Mining Indexes.

For further information: SILVERCORP METALS INC., Rui Feng, Chairman & CEO and Lorne Waldman, Corporate Secretary, Phone: (604) 669-9397, Fax: (604) 669-9387, Toll Free 1(888) 224-1881, Email: info@silvercorp.ca, Website: www.silvercorp.ca.

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