NYSE American:SVM $2.53 -0.04 TSX:SVM $3.19 -0.09

News & Media

2013

Silvercorp Reports Financial and Operating Results for the First Quarter of Fiscal Year 2014

August 8, 2013

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 8, 2013) - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX:SVM)(NYSE:SVM) reported its financial and operating results for the first quarter ended June 30, 2013 ("Q1 Fiscal 2014").


FIRST QUARTER HIGHLIGHTS



--  Silver production of 1.4 million ounces and gold production of 3,777
    ounces;
--  Lead production of 13.5 million pounds and zinc production of 3.7
    million pounds;
--  Sales of $39.8 million;
--  Gross margin of 44% despite significant decline in precious metal
    prices;
--  Net income of $4.6 million or $0.03 per share;
--  Strong cash flow from operations of $17.6 million, or $0.10 per share;
--  Cash cost of $3.23 per ounce of silver at the Ying Mining District;
--  GC Mine continued to undergo trial mining and processing and is
    progressing towards commercial production; and
--  Return of value to our shareholders by the $4.2 million quarterly
    dividend payment of CAD$0.025 per share.

FINANCIALS

In Q1 Fiscal 2014, net income attributable to equity holders of the Company was $4.6 million or $0.03 per share compared to net income of $6.1 million or $0.04 per share in the three months ended June 30, 2012 ("Q1 Fiscal 2013").

Compared to the same prior year quarter, the decrease in net income was mainly due to (i) significantly lower silver price; net realized silver price was $17.66 per ounce this quarter, which was $5.31 or 23% lower compared to $22.97 per ounce in Q1 Fiscal 2013; (ii) lower base metal prices; net realized lead and zinc prices were 7% and 5% lower in this quarter as compared to the same prior year quarter; and (iii) higher overall production costs as more ore were processed.

In Q1 Fiscal 2014, the Company realized sales of $39.8 million compared to $44.5 million in Q1 Fiscal 2013.

Cost of sales in Q1 Fiscal 2014 was $22.5 million compared to $19.0 million in Q1 Fiscal 2013 and included cash costs of $18.9 million compared to $15.3 million in Q4 Fiscal 2012. The increase of cost of sales was due to more ore being mined and processed.

The gross profit margin in Q1 Fiscal 2014 was 44%, compared to 57% in Q1 Fiscal 2013.

Cash flow from operations in Q1 Fiscal 2014 was $17.6 million or $0.10 per share, compared to $19.3 million, or $0.11 per share, in Q1 Fiscal 2013.

OPERATIONS

In Q1 Fiscal 2014, on a consolidated basis, the Company produced 1.4 million ounces of silver, 3,777 ounces of gold, 13.5 million pounds of lead, and 3.7 million pounds of zinc compared to 1.2 million ounces of silver and 2,653 ounces of gold, 13.7 million pounds of lead, and 3.0 million pounds of zinc in Q1 Fiscal 2013.

1. Ying Mining DistrictHenan ProvinceChina

In Q1 Fiscal 2014, the Company mined 233,257 tonnes of ore at the Ying Mining District compared to 181,018 tonnes in Q1 Fiscal 2013. Metal production totalled 1.4 million ounces of silver, 1,282 ounces of gold, 13.1 million pounds of lead and 2.9 million pounds of zinc, compared to 1.2 million ounces of silver, 800 ounces of gold, 13.7 million pounds of lead, and 3.0 million pounds of zinc in Q1 Fiscal 2013.

Head grades were 200 grams per tonne ("g/t") for silver, 2.7% for lead and 0.8% for zinc, compared to 227 g/t for silver, 3.6% for lead and 1.1% for zinc in the same quarter last year.

In Q1 Fiscal 2014, total and cash mining costs per tonne were $65.09 and $54.95, respectively, compared to $69.02 and $55.47 in Q1 Fiscal 2013, respectively.

In Q1 Fiscal 2014, a total of 236,173 tonnes of ore was milled compared to 186,455 tonnes in Q1 Fiscal 2013. The cash milling cost per tonne was $12.06 in Q1 Fiscal 2014 compared to $14.17 in Q1 Fiscal 2013.

Total and cash costs per ounce of silver in Q1 Fiscal 2014 for the Ying Mining District were $5.33 and $3.23 respectively, compared to $2.49 and $0.16, in Q1 Fiscal 2013, respectively.

The consolidated operational results for the past five quarters at the Ying Mining District are summarized in the table below:

Quarterly opertional results - Ying Mining District
                            Q1 2014   Q4 2013   Q3 2013   Q2 2013   Q1 2013
                          30-Jun-13 31-Mar-13 31-Dec-12 30-Sep-12 30-Jun-12
---------------------------------------------------------------------------
Ore Mined (tonne)
  Direct Smelting Ore
   (tonne)                      963     1,309     2,334     2,442     2,250
  Stockpiled Ore (tonne)    232,294   152,014   234,360   203,369   178,768
                         --------------------------------------------------
                            233,257   153,323   236,694   205,811   181,018
---------------------------------------------------------------------------
Run of Mine Ore (tonne)
  Direct Smelting Ore
   (tonne)                      963     1,309     2,334     2,442     2,250
  Ore Milled (tonne)        235,210   156,836   224,430   200,728   184,205
                         --------------------------------------------------
                            236,173   158,145   226,764   203,170   186,455
---------------------------------------------------------------------------
Metal Sales
  Silver (in thousands of
   ounces)                    1,364       933     1,508     1,277     1,223
  Gold (in thousands of
   ounces)                      1.3       0.8       1.3       1.3       0.8
  Lead (in thousands of
   pounds)                   13,063     9,462    15,642    13,403    13,713
  Zinc (in thousands of
   pounds)                    2,926     1,554     3,231     3,412     2,974
---------------------------------------------------------------------------
Head Grade of Run of Mine
 Ore
  Silver (gram/tonne)           200       205       222       224       227
  Lead (%)                      2.7       2.9       3.2       3.4       3.6
  Zinc (%)                      0.8       0.7       1.0       1.2       1.1
---------------------------------------------------------------------------
Recovery Rate of Run of
 Mine Ore
  Silver (%)                   92.3      93.5      93.3      92.7      91.7
  Lead (%)                     94.6      94.5      95.1      94.3      94.0
  Zinc (%)                     68.4      60.3      70.4      69.6      63.0
---------------------------------------------------------------------------
Cash Mining Cost ($ per
 tonne)                       54.95     61.67     54.92     53.27     55.47
Total Mining Costs ($ per
 tonne)                       65.09     72.56     64.47     62.56     69.02
Cash Milling Cost ($ per
 tonne)                       12.06     16.05     12.61     12.12     14.17
Total Milling Cost ($ per
 tonne)                       13.62     18.61     14.20     13.84     16.05
---------------------------------------------------------------------------
Cash Cost per Ounce of
 Silver ($)                    3.23      3.65    (0.17)    (0.74)      0.16
Total Production Cost per
 Ounce of Silver ($)           5.33      5.82      1.52      1.05      2.49
---------------------------------------------------------------------------

2. BYP MineHunan ProvinceChina

In Q1 Fiscal 2014, the Company mined 29,075 tonnes of ore at the BYP mine with a gold head grade of 2.8 g/t compared to 27,560 tonnes and a gold head grade of 2.2 g/t in Q1 Fiscal 2013. During the quarter, 2,338 ounces of gold were produced and sold at a cash cost per ounce of gold of $448 compared to 1,724 ounces of gold produced and sold at cash cost per ounce of gold of $577 in the same period last year. In Q1 Fiscal 2014, total and cash mining costs per tonne were $51.17 and $21.04 respectively compared to $47.74 and $20.98 in Q1 Fiscal 2013, respectively.

DEVELOPMENT AND EXPLORATION

1. Ying Mining DistrictHenan ProvinceChina

As at the end of Q1 Fiscal 2014, the Company completed approximately 2,250 metres ("m") of the 5,200m ramp at the SGX mine and approximately 2,000m of the development work for the 4,800m access ramp at the LM Mine West. During the quarter, the Company also completed approximately 18,000m of horizontal tunnels, raises and declines. In addition, construction for 20,000 square metres of surface facilities, consisting of offices and dormitories within the Ying Mining District, continued.

In Q1 Fiscal 2014, exploration and development expenditures for the Ying Mining District were $9.7 million compared to $9.6 million in Q1 Fiscal 2013.

In light of the significant decline in precious metal prices, the Company is reviewing its short term operating plans to better adapt to the new price environment. As a result, in July 2013, the Company has suspended mining operations at the Portal PD820, PD850 and PD730 within the Ying Mining District as production from these locations was not economical. The impact of the suspension will reduce ore production by 63,000 tonnes for the remainder of the fiscal year, and is expected to reduce approximately 400,000 ounces from expected silver production in the Ying Mining District. Accordingly, the Company has revised its fiscal year 2014 production guidance for the Ying Mining District to 837,000 tonnes of ore, producing 5.5 million ounces of silver, 4,700 ounces of gold and 74.7 million pounds of lead and zinc.

As part of the capital cost savings review, the Company has also identified opportunities to reduce capital expenditures in the current fiscal year at the Ying Ming District. These measures are expected to reduce fiscal year 2014 budgeted capital expenditures by $8 million to $40 million.

2. GC ProjectGuangdong ProvinceChina

The Company has substantially completed the construction of GC mine and is progressing well with the preparations for safety and environmental regulatory inspections, prior to commercial production. The majority of the required surface environmental protection facilities together with water and soil conservation engineering work is completed and has undergone test operation. The key component required for passing the safety inspection, in accordance to safety requirements in the Mine Design, is to complete a water sump and pumping station at the -50m elevation. This component is expected to be completed by the end of September 2013, and as such the Company expects to pass the inspection and obtain its Safety Production Permit in the third quarter of fiscal year 2014.

During Q1 Fiscal 2014, approximately 3,100m of tunnels, including 425m of development tunnels, 2,225m of exploration tunnels and 450m of mining preparation tunnels, were completed.

The main access ramp totalling 2,210m in length was completed and has accessed the V2 vein at the +40m, +20m, and 0m elevations. The exploration ramp is completed to a length of 1,800m, representing 39% of the total designed length of 4,600m. To date, the exploration ramp has accessed the V9, V9-1, V9W-1, and V9W-2 veins at the 100m, 50m, 0m and -50 m elevations through cross-cuts and has developed transportation drifts and mining preparation drifts. Once the exploration ramp is completed, access to all known veins within a horizontal distance of 250m is possible. The exploration ramp has also been connected to the main ramp at the 100m and 0m elevations, as well as the main shaft at the +100m, +50m, 0m and -50m elevations to provide ventilation and a safety exit. During the course of fiscal year 2014, the Company will use the main ramp and the exploration ramp access points for mining.

As at the end of Q1 Fiscal 2014, the construction of the 628m main shaft was substantially completed down to its designed depth at elevation -370m. As part of cost savings review for fiscal year 2014, and to coordinate with the planned production schedule, the Company has decided to defer the installation of the hoist system to fiscal year 2015, reducing capital expenditures in the year by $3 million.

In Q1 Fiscal 2014, the Company continued equipment testing and trial processing to fine tune the mill circuit to achieve the desired metallurgical recovery rates for silver, lead, zinc, tin, and sulphur in concentrates. Testing will be on-going for the next several months.

In Q1 Fiscal 2014, $6.2 million (Q1 Fiscal 2013 - $3.1 million) of exploration and development expenditures were incurred at the GC mine. From the capital cost review for fiscal year 2014, the Company has reduced the budgeted capital expenditures by approximately $8 million to $21 million at the GC mine.

3. BYP MineHunan ProvinceChina

In Q1 Fiscal 2014, the Company completed the installation of shaft equipment for the newly completed 265m shaft. The construction of the head frame is expected to commence in the next quarter. Once completed, this shaft will facilitate mining of the #3 gold mineralization body and the #5 zinc and lead ore body. In addition, the construction of a 1,500 t/d tailings-backfill facility has been substantially completed with expected trial runs to commence in the next quarter.

In Q1 Fiscal 2014, exploration and development expenditures at the BYP mine were $1.6 million compared to $1.3 million in Q1 Fiscal 2013.

4. X Mines, Henan ProvinceChina

The X Mines consist of two mining projects: the XBG project and XHP project.

In Q1 Fiscal 2014, the Company entered into a share transfer agreement ("the Agreement") with an arm's length private Chinese company. Pursuant to the Agreement, the Company's subsidiary, Henan Found Mining Co. Ltd., will sell its 90% equity interest in Zhongxing Mining Co. Ltd. (XBG project) for $13.8 million (RMB 84 million). As of the date of this news release, an initial deposit of $4.9 million (RMB 30 million) has been received. The transaction is expected to be completed within 12 months.

As at the end of this quarter, the Company has also suspended activities at the XHP project as part of its cost saving measures.

Myles Gao , P.Geo., President, 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.

This earnings release should be read in conjunction with the Company's Management Discussion & Analysis, Financial Statements and Notes to Financial Statements for the corresponding period, which have been posted on SEDAR at www.sedar.com and are also available on the Company's website at www.silvercorp.ca. All figures are in United States dollars unless otherwise stated.

About Silvercorp

Silvercorp is a low-cost silver-producing Canadian mining company with multiple mines in China which has paid a cash dividend since 2007. The Company is currently developing the GC project in southern China which it expects will become its next operating mine in 2013. The Company's vision is to deliver shareholder value by focusing on the acquisition of under developed projects with resource potential and the ability to grow organically. 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: 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 licences; title to properties; First Nations title claims and rights; 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, 2013 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.

SILVERCORP METALS INC.

Condensed Consolidated Interim Balance Sheets

(Unaudited) (Expressed in thousands of U.S. dollars)

                                            June 30, 2013    March 31, 2013
---------------------------------------------------------------------------
ASSETS
Current Assets
  Cash and cash equivalents                      $ 91,581          $ 72,283
  Short-term investments                           20,410            45,623
  Trade and other receivables                       1,382             1,442
  Inventories                                       6,252             7,522
  Due from related parties                             57               123
  Prepaids and deposits                             6,249             5,118
  Assets held for sale                             18,718                 -
---------------------------------------------------------------------------
                                                  144,649           132,111

Non-current Assets
  Long-term prepaids and deposits                   2,433             1,877
  Investment in an associate                        6,289             6,523
  Other investments                                11,903            15,516
  Plant and equipment                             103,694           103,517
  Mineral rights and properties                   321,504           316,678
---------------------------------------------------------------------------
TOTAL ASSETS                                    $ 590,472         $ 576,222
---------------------------------------------------------------------------

LIABILITIES AND EQUITY
Current Liabilities
  Accounts payable and accrued
   liabilities                                   $ 40,930          $ 29,285
  Deposits received                                11,161            11,497
  Dividends payable                                 4,062             4,204
  Income tax payable                                   89             1,349
  Due to related parties                                -             1,207
  Liabilities held for sale                         3,185                 -
---------------------------------------------------------------------------
                                                   59,427            47,542

Non-current Liabilities
  Deferred income tax liabilities                  24,523            24,603
  Environmental rehabilitation                      5,949             5,974
---------------------------------------------------------------------------
Total Liabilities                                  89,899            78,119
---------------------------------------------------------------------------

Equity
  Share capital                                   233,082           233,082
  Share option reserve                              9,029             8,314
  Reserves                                         24,717            24,717
  Accumulated other comprehensive loss            (2,969)           (1,495)
  Retained earnings                               156,206           155,817
---------------------------------------------------------------------------
Total equity attributable to the equity
 holders of the Company                           420,065           420,435

Non-controlling interests                          80,508            77,668
---------------------------------------------------------------------------
Total Equity                                      500,573           498,103
---------------------------------------------------------------------------

TOTAL LIABILITIES AND EQUITY                    $ 590,472         $ 576,222
---------------------------------------------------------------------------

SILVERCORP METALS INC.

Condensed Consolidated Interim Statements of Income

(Unaudited) (Expressed in thousands of U.S. dollars, except for per share figures)

                                            Three Months Ended June 30,
                                       ------------------------------------
                                                     2013              2012
---------------------------------------------------------------------------

Sales                                            $ 39,835          $ 44,549
Cost of sales                                      22,482            18,994
---------------------------------------------------------------------------
Gross profit                                       17,353            25,555

General and administrative                          7,501             6,846
General exploration and property
 investigation                                      1,048               966
Other taxes                                           595               806
Foreign exchange gain                             (1,881)             (777)
Loss on disposal of plant and equipment                28                20
Share of loss in associate                             14                 7
Loss on investments                                   574             1,286
Other income                                        (115)              (75)
---------------------------------------------------------------------------
Income from operations                              9,589            16,476

Finance income                                        928               991
Finance costs                                        (33)              (22)
---------------------------------------------------------------------------
Income before income taxes                         10,484            17,445

Income tax expense                                  4,000             7,927
---------------------------------------------------------------------------
Net income                                        $ 6,484           $ 9,518
---------------------------------------------------------------------------

Attributable to:
  Equity holders of the Company                   $ 4,562           $ 6,114
  Non-controlling interests                         1,922             3,404
---------------------------------------------------------------------------
                                                  $ 6,484           $ 9,518
---------------------------------------------------------------------------

Earnings per share attributable to the
 equity holders of the Company
Basic earnings per share                           $ 0.03            $ 0.04
---------------------------------------------------------------------------
Diluted earnings per share                         $ 0.03            $ 0.04
---------------------------------------------------------------------------
Weighted Average Number of Shares
 Outstanding - Basic                          170,781,058       170,693,325
---------------------------------------------------------------------------
Weighted Average Number of Shares
 Outstanding - Diluted                        170,839,083       171,082,201
---------------------------------------------------------------------------

SILVERCORP METALS INC.

Condensed Consolidated Interim Statements of Cash Flow

(Unaudited) (Expressed in thousands of U.S. dollars)

                                            Three Months Ended June 30,
                                       ------------------------------------
                                                     2013              2012
---------------------------------------------------------------------------
Cash provided by
Operating activities
  Net income                                      $ 6,484           $ 9,518
  Add (deduct) items not affecting
   cash:
    Unwinding of discount of
     environmental rehabilitation                      33                22
    Depreciation, amortization and
     depletion                                      3,932             4,076
    Share of loss in associate                         14                 7
    Income tax expense                              4,000             7,927
    Loss on investments                               574             1,286
    Loss on disposal of plant and
     equipment                                         28                20
    Share-based compensation                          715               736
  Income tax paid                                 (3,349)           (8,515)
  Changes in non-cash operating working
   capital                                          5,194             4,175
---------------------------------------------------------------------------
Net cash provided by operating
 activities                                        17,625            19,252
---------------------------------------------------------------------------

Investing activities
  Mineral rights and properties
    Capital expenditures                         (13,643)          (12,316)
  Plant and equipment
    Additions                                     (5,553)           (9,628)
  Other investments
    Acquisition                                         -             (515)
  Net redemptions (purchases) of short-
   term investments                                24,991          (14,812)
  Deposit received for sale of
   subsidiaries                                     1,630                 -
---------------------------------------------------------------------------
Net cash provided by (used in)
 investing activities                               7,425          (37,271)
---------------------------------------------------------------------------

Financing activities
  Related parties
    Payments made                                 (1,410)             (277)
    Repayments received                               270               334
  Cash dividends distributed                      (4,160)           (4,305)
  Proceeds from issuance of common
   shares                                               -                94
---------------------------------------------------------------------------
Net cash used in financing activities             (5,300)           (4,154)
---------------------------------------------------------------------------

Effect of exchange rate changes on cash
 and cash equivalents                               (400)           (4,132)
---------------------------------------------------------------------------

Increase (decrease) in cash and cash
 equivalents                                       19,350          (26,305)

Cash and cash equivalents, beginning of
 the period                                        72,283           109,960
Cash and cash equivalents included in
 held for sale assets                                (52)                 -
---------------------------------------------------------------------------

Cash and cash equivalents, end of the
 period                                          $ 91,581          $ 83,655
---------------------------------------------------------------------------



SILVERCORP METALS INC.

Mining Data

(Expressed in thousands of U.S. dollars, except for mining data figures)

                                        Three months ended June 30, 2013
                                     --------------------------------------
                                         Ying
                                       Mining
                                     District
                                          (1)  X Mines(2)      BYP    Total
---------------------------------------------------------------------------

Production Data
  Mine Data
   Ore Mined (tonne)
     Direct Smelting Ore (tonne)          963        -           -      963
     Stockpiled Ore (tonne)           232,294        -      29,075  261,369
                                     --------------------------------------
                                      233,257        -      29,075  262,332
                                     --------------------------------------
   Run of Mine Ore (tonne)
     Direct Smelting Ore (tonne)          963        -           -      963
     Ore Milled (tonne)               235,210    6,929(i)   29,975  272,114
                                     --------------------------------------
                                      236,173    6,929      29,975  273,077
                                     --------------------------------------

   Mining cost per tonne of ore mined
   ($)                                  65.09        -       51.17    63.55
     Cash mining cost per tonne of
     ore mined ($)                      54.95        -       21.04    51.19
     Non cash mining cost per tonne
     of ore mined ($)                   10.14        -       30.13    12.35

   Unit shipping costs ($)               3.98        -           -     3.54

   Milling cost per tonne of ore
   milled ($)                           13.62        -       14.05    13.67
     Cash milling cost per tonne of
     ore milled ($)                     12.06        -       13.06    12.17
     Non cash milling cost per tonne
     of ore milled ($)                   1.56        -        0.99     1.50

   Average Production Cost
     Silver ($ per ounce)                9.63        -           -     9.96
     Gold ($ per ounce)                   546        -         926      616
     Lead ($ per pound)                  0.41        -           -     0.42
     Zinc ($ per pound)                  0.34        -        0.44     0.34

   Total production cost per ounce of
   Silver ($)                            5.33        -                 5.33
   Total cash cost per ounce of
   Silver ($)                            3.23        -                 3.23

   Total production cost per ounce of
   Gold ($)                                                    913      913
   Total cash cost per ounce of Gold
   ($)                                                         448      448

   Total Recovery of the Run of Mine
   Ore
     Silver (%)                          92.3        -                 92.3
     Gold (%)                                                 92.5     92.5
     Lead (%)                            94.6        -                 94.6
     Zinc (%)                            68.4        -                 68.4

   Head Grades of Run of Mine Ore
     Silver (gram/tonne)                  200        -                  200
     Gold (gram/tonne)                                         2.8      2.8
     Lead (%)                             2.7        -                  2.7
     Zinc (%)                             0.8        -                  0.8

Sales Data
  Metal Sales
    Silver (in thousands of ounces)     1,364       10(i)        -    1,374
    Gold (in thousands of ounces)         1.3      0.2(i)      2.3      3.8
    Lead (in thousands of pounds)      13,063      405(i)        -   13,468
    Zinc (in thousands of pounds)       2,926      484(i)      282    3,692

  Metal Sales
    Silver (in thousands of $)         24,091        -           -   24,091
    Gold (in thousands of $)            1,283        -       2,669    3,952
    Lead (in thousands of $)            9,833        -           -    9,833
    Zinc (in thousands of $)            1,806        -         153    1,959
                                     --------------------------------------
                                       37,013        -       2,822   39,835
                                     --------------------------------------
  Average Selling Price,Net of Value Added
  Tax and Smelter Charges
    Silver ($ per ounce)                17.66        -                17.66
    Gold ($ per ounce)                  1,001        -       1,141    1,092
    Lead ($ per pound)                   0.75        -                 0.75
    Zinc ($ per pound)                   0.62        -        0.54     0.61

(1) Ying Mining District includes mines: SGX, TLP, HPG&LM.
(2) X Mines includes the XBG project and XHP project.
(i) Represents development tunnelling ore at the X mines.



SILVERCORP METALS INC.

Mining Data

(Expressed in thousands of U.S. dollars, except for mining data figures)

                                        Three months ended June 30, 2012
                                     --------------------------------------
                                         Ying
                                       Mining
                                     District
                                          (1)  X Mines(2)      BYP    Total
---------------------------------------------------------------------------

Production Data
  Mine Data
  Ore Mined (tonne)
    Direct Smelting Ore (tonne)         2,250        -           -    2,250
    Stockpiled Ore (tonne)            178,768    2,382(i)   27,560  208,710
                                     --------------------------------------
                                      181,018    2,382      27,560  210,960
                                     --------------------------------------
  Run of Mine Ore (tonne)
    Direct Smelting Ore (tonne)         2,250        -           -    2,250
    Ore Milled (tonne)                184,205    3,611(i)   26,599  214,415
                                     --------------------------------------
                                      186,455    3,611      26,599  216,665
                                     --------------------------------------

  Mining cost per tonne of ore mined
   ($)                                  69.02     8.70(i)    47.74    65.55
    Cash mining cost per tonne of ore
     mined ($)                          55.47     8.70(i)    20.98    50.43
    Non cash mining cost per tonne of
     ore mined ($)                      13.55        -       26.76    15.12

  Unit shipping costs ($)                3.85     8.58(i)        -     3.40

  Milling cost per tonne of ore
   milled ($)                           16.05    44.71(i)    14.63    16.35
    Cash milling cost per tonne of
     ore milled ($)                     14.17    33.24(i)    13.57    14.41
    Non cash milling cost per tonne
     of ore milled ($)                   1.88    11.47(i)     1.06     1.94

  Average Production Cost
    Silver ($ per ounce)                 9.30    17.60(i)              9.80
    Gold ($ per ounce)                    452    1,227(i)    1,046      536
    Lead ($ per pound)                   0.33     0.55(i)              0.35
    Zinc ($ per pound)                   0.26        -                 0.27

  Total production cost per ounce of
   Silver ($)                            2.49  (27.00)(i)              2.47
  Total cash cost per ounce of Silver
   ($)                                   0.16  (27.00)(i)              0.14

  Total production cost per ounce of
   Gold ($)                                                  1,046    1,046
  Total cash cost per ounce of Gold
   ($)                                                         577      577

  Total Recovery of the Run of Mine
   Ore
    Silver (%)                           91.7     49.7                 90.9
    Gold (%)                                                  90.1     90.1
    Lead (%)                             94.0     49.7                 93.2
    Zinc (%)                             63.0     41.9                 62.6

  Head Grades of Run of Mine Ore
    Silver (gram/tonne)                   227       26                  225
    Gold (gram/tonne)                                          2.2      2.2
    Lead (%)                              3.6      1.3                  3.6
    Zinc (%)                              1.1      1.3                  1.1

Sales Data
   Metal Sales
     Silver (in thousands of ounces)    1,223        1(i)        -    1,224
     Gold (in thousands of ounces)        0.8      0.1(i)      1.7      2.6
     Lead (in thousands of pounds)     13,713       31(i)        -   13,744
     Zinc (in thousands of pounds)      2,974        -           -    2,974

   Metal Sales
     Silver (in thousands of $)        28,109       20(i)        -   28,129
     Gold (in thousands of $)             925      161(i)    2,253    3,339
     Lead (in thousands of $)          11,161       22(i)        -   11,183
     Zinc (in thousands of $)           1,898        -           -    1,898
                                     --------------------------------------
                                       42,093      203       2,253   44,549
                                     --------------------------------------
   Average Selling Price,Net of Value Added
  Tax and Smelter Charges
     Silver ($ per ounce)               22.97    22.98                22.97
     Gold ($ per ounce)                 1,116    1,602       1,307    1,258
     Lead ($ per pound)                  0.81     0.72                 0.81
     Zinc ($ per pound)                  0.64        -                 0.64

(1) Ying Mining District includes mines: SGX, TLP, HPG&LM.
(2) X Mines includes the XBG project and XHP project.
(i) Represents development tunnelling ore at the X mines.



FOR FURTHER INFORMATION PLEASE CONTACT:
Silvercorp Metals Inc.
Investor Relations
(604) 669-9397 or Toll Free: 1 (888) 224-1881
investor@silvercorp.ca
www.silvercorp.ca

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