NYSE American:SVM $2.44 +0.03 TSX:SVM $3.11 +0.05

News & Media

2014

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

February 13, 2014

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 13, 2014) - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX:SVM)(NYSE:SVM) reported its financial and operating results for the third quarter ended December 31, 2013 ("Q3 Fiscal 2014").

THIRD QUARTER HIGHLIGHTS



--  Silver production of 0.9 million ounces and gold production of 1,985
    ounces;
--  Lead production of 9.0 million pounds and zinc production of 1.7 million
    pounds;
--  Sales of $24.0 million;
--  Gross margin of 44%;
--  Cash flow from operations of $9.9 million, or $0.06 per share;
--  Net income of $2.2 million, or $0.01 per share; and
--  Cash cost per ounce of silver, net of by-product credits, of $2.00.

FINANCIALS

In Q3 Fiscal 2014, net income attributable to equity holders of the Company was $2.2 million or $0.01 per share compared to $5.2 million, or $0.03 per share for the three months ended December 31, 2012 ("Q3 Fiscal 2013").

In Q3 Fiscal 2014, the Company realized sales of $24.0 million, a decrease of 59% from $58.7 million in Q3 Fiscal 2013. The Company's financial results were mainly impacted by the following: (i) lower metal production as silver, lead and zinc production decreased 42%, 45%, and 58% respectively, compared to Q3 Fiscal 2013; and (ii) a significantly lower net realized silver price of $16.20 per ounce in this quarter, down $8.70 per ounce or 35% from $24.90 per ounce in Q3 Fiscal 2013.

Cost of sales in Q3 Fiscal 2014 was $13.5 million compared to $21.2 million in Q3 Fiscal 2013 and included cash costs of $10.9 million compared to $17.1 million in Q3 Fiscal 2013. The decrease of cost of sales was due to the reduction in ore production in this quarter.

The gross profit margin in Q3 Fiscal 2014 was 44%, compared to 64% in Q3 Fiscal 2013.

Cash flow from operations in Q3 Fiscal 2014 was $9.9 million or $0.06 per share, compared to $27.8 million, or $0.16 per share, in Q3 Fiscal 2013.

For the nine months ended December 31, 2013, net loss, attributable to the equity holders of the Company, was $36.5 million or $0.21 per share, which included impairment charges of $42.8 million, net of tax. The impairment reduced the carrying value of the BYP mine, as well as the XBG and Silvertip projects, both of which are sold. Adjusted net income was $6.5 million or $0.04 per share, compared to net income of $20.9 million or $0.12 per share, in the same prior year period. During the same comparative period, sales were $92.3 million compared to $148.5 million, cost of sales was $50.8 million compared to $57.0 million, which resulted in a gross profit margin of 45% compared to 62%.

Cash flow from operations was $33.1 million compared to $71.0 million in the same comparative period. As of December 31, 2013, the Company has $98.0 million in cash and short-term investments.

OPERATIONS

In Q3 Fiscal 2014, on a consolidated basis, the Company produced 0.9 million ounces of silver, 1,985 ounces of gold, 9.0 million pounds of lead, and 1.7 million pounds of zinc, compared to 1.5 million ounces of silver, 5,676 ounces of gold, 16.4 million pounds of lead, and 4.0 million pounds of zinc, respectively, in Q3 Fiscal 2013.

For the nine months ended December 31, 2013, the Company produced 3.3 million ounces of silver, 8,774 ounces of gold, 32.0 million pounds of lead, and 7.6 million pounds of zinc, compared to 4.0 million ounces of silver, 10,810 ounces of gold, 44.1 million pounds of lead and 10.5 million pounds of zinc, in the same prior year period.

1. Ying Mining DistrictHenan ProvinceChina

In Q3 Fiscal 2014, the Ying Mining District mined 148,850 tonnes of ore, producing 0.9 million ounces of silver, 911 ounces of gold, 8.8 million pounds of lead, and 1.6 million pounds of zinc, compared to 236,694 tonnes of ore in Q3 Fiscal 2013, producing 1.5 million ounces of silver, 1,285 ounces of gold, 15.6 million pounds of lead, and 3.2 million pounds of zinc, respectively.

In Q3 Fiscal 2014, head grades at the Ying Mining District were 202 grams per tonne ("g/t") for silver, 2.9% for lead, and 0.7% for zinc, compared to 222 g/t for silver, 3.2% for lead, and 1.0% for zinc, respectively, in Q3 Fiscal 2013.

In the quarter, mine production and head grades were adversely impacted by a number of factors. Firstly, underground safety standardization work was undertaken in the main production portal of PD924 at the LM West mine and the CM105-S2 Shaft at the SGX mine to comply with new safety regulations. The required safety work included rebuilding the refuge stations, enlarging main access tunnels, and replacing sections of the PVC compress air lines with steel ones, suspending production for approximately one month.

Second, as explained in the prior quarter, the Company identified that dilutive practices of certain mining contractors resulted in head grade declines and took remedial action by modifying the method of calculating the amount of ore mined for the purpose of compensating the contractors and miners. This change in compensation method resulted in miner shortages as some miners felt uncertain about their pay and left the mine sites. Unfortunately, our contractors have experienced difficulty in replacing the departed miners, particularly prior to the Chinese New Year. For this reason, mining in the PD16 Shaft, one of the main portals at the SGX mine, was suspended for approximately two months in this quarter.

Finally, the change in mining strategy, which began approximately a year ago, has yielded mixed results in its initial year of application. The change in mining strategy focused on reducing the use of re-suing method and increasing the use of shrinkage method. The key requirement of this strategy is the ability to control dilution. Certain mines, such as the LM mine, yielded good results, where dilution was low and cash mining cost were reduced. However, in other mines, such as SGX mine, dilution control was inadequate which negatively impacted head grades.

The Company has performed a comprehensive review of its operation at the Ying Mining District. From the review, a series of improvements covering all aspects of operations, including mine planning and strategy, contractor compensation methods, quality control, and a performance-based (linked to tonnage and grade) compensation package for mine management, were enacted. In the next quarter, the Company will monitor the effects of the new improvements and expect to be in a position to provide normalized production guidance for the Ying Mining District when we release our quarterly results in May.

In Q3 Fiscal 2014, total and cash mining costs per tonne were $60.89 and $50.59 compared to $64.47 and $54.92 in Q3 Fiscal 2013, respectively. The decrease in cash mining cost was mainly due to the reduction of contractor fees in this quarter.

For the nine months ended December 31, 2013, the Ying Mining District mined 535,210 tonnes of ore, producing 3.3 million ounces of silver, 3,066 ounces of gold, 31.4 million pounds of lead, and 6.7 million pounds of zinc, compared to 623,523 tonnes of ore producing 4.0 million ounces of silver, 3,352 ounces of gold, 42.8 million pounds of lead, and 9.6 million pounds of zinc in the same prior year period, respectively. During the same comparative period, head grades were 206 g/t for silver, 2.8% for lead, and 0.9% for zinc, compared to 224 g/t for silver, 3.4% for lead and 1.1% for zinc, respectively.

In Q3 Fiscal 2014, total ore milled was 149,755 tonnes, a decrease of 34% compared to 226,764 tonnes in Q3 Fiscal 2013. Cash milling costs per tonne were $16.00 compared to $12.61 in Q3 Fiscal 2013. The increase in unit cost is mainly due to the reduced tonnage milled. For the nine months ended December 31, 2013, total ore milled was 543,221 tonnes compared to 616,389 tonnes in the same prior year period. During the same time period, cash milling costs per tonne were $13.98 compared to $12.92.

In Q3 Fiscal 2014, the consolidated total production cost and cash cost per ounce of silver, net of by-product credits, were $4.39 and $2.00 compared to $1.52 and negative $0.17, respectively, in Q3 Fiscal 2013. For the nine months ended December 31, 2013, the consolidated total production cost and cash cost per ounce of silver, net of by-product credits, were $4.47 and $2.04 compared to $1.66 and negative $0.26, respectively, in the same prior year period.

The overall increase in cash cost per ounce of silver, net of by-product credits, is mainly due to decreases in by-product credits. Compared to the nine months ended December 31, 2012, lead and zinc production in the current fiscal year decreased 27% and 30%, respectively, along with decreases in realized selling price for lead and zinc of 6% and 2%, 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
----------------------------------------------------------------------------
                             Q3 2014   Q2 2014   Q1 2014   Q4 2013   Q3 2013
                           31-Dec-13 30-Sep-13 30-Jun-13 31-Mar-13 31-Dec-12
----------------------------------------------------------------------------
Ore Mined (tonne)
 Direct Smelting Ore
  (tonne)                        715       503       963     1,309     2,334
 Stockpiled Ore (tonne)      148,135   152,599   232,294   152,014   234,360
                          --------------------------------------------------
                             148,850   153,102   233,257   153,323   236,694
----------------------------------------------------------------------------
Run of Mine Ore (tonne)
 Direct Smelting Ore
  (tonne)                        715       503       963     1,309     2,334
 Ore Milled (tonne)          149,040   156,790   235,210   156,836   224,430
                          --------------------------------------------------
                             149,755   157,293   236,173   158,145   226,764
----------------------------------------------------------------------------
Metal Sales
 Silver (in thousands of
  ounces)                        883     1,021     1,364       933     1,508
 Gold (in thousands of
  ounces)                        0.9       0.9       1.3       0.8       1.3
 Lead (in thousands of
  pounds)                      8,814     9,519    13,063     9,462    15,642
 Zinc (in thousands of
  pounds)                      1,572     2,199     2,926     1,554     3,231
----------------------------------------------------------------------------
Head Grade of Run of Mine
 Ore
 Silver (gram/tonne)             202       217       200       205       222
 Lead (%)                        2.9       2.9       2.7       2.9       3.2
 Zinc (%)                        0.7       1.0       0.8       0.7       1.0
----------------------------------------------------------------------------
Recovery Rate of Run of
 Mine Ore
 Silver (%)                     93.1      92.7      92.3      93.5      93.3
 Lead (%)                       95.7      94.8      94.6      94.5      95.1
 Zinc (%)                       64.2      68.5      68.4      60.3      70.4
----------------------------------------------------------------------------
Cash Mining Cost ($ per
 tonne)                        50.59     45.22     54.95     61.67     54.92
Total Mining Costs($ per
 tonne)                        60.89     56.08     65.09     72.56     64.47
Cash Milling Cost ($ per
 tonne)                        16.00     14.89     12.06     16.05     12.61
Total Milling Cost ($ per
 tonne)                        18.60     17.29     13.62     18.61     14.20
----------------------------------------------------------------------------
Cash Cost per Ounce of
 Silver ($)                     2.00      0.49      3.23      3.65    (0.17)

Total Production Cost per
 Ounce of Silver ($)            4.39      3.41      5.33      5.82      1.52
----------------------------------------------------------------------------

2. BYP MineHunan ProvinceChina

In Q3 Fiscal 2014, the BYP mine processed 19,574 tonnes of ore compared to 32,699 tonnes in Q3 Fiscal 2013. During the same comparative periods, the Company sold 1,050 ounces of gold at a cash cost per ounce of gold of $502 compared to 4,309 ounces of gold at a cash cost per ounce of gold of $266, respectively. Gold head grade for Q3 Fiscal 2014 was 2.7 g/t compared to 3.7 g/t in Q3 Fiscal 2013. In Q3 Fiscal 2014, total and cash mining costs per tonne were $53.22 and $22.81 compared to $70.48 and $24.72 in Q3 Fiscal 2013, respectively.

DEVELOPMENT AND EXPLORATION

1. Ying Mining DistrictHenan ProvinceChina

As at the end of Q3 Fiscal 2014, approximately 2,500 metres ("m") of the development work for the 4,800m access ramp at the LM Mine West are complete.

During the quarter, the Company also completed approximately 18,000m of horizontal tunnels, raises and declines. During the quarter the Company decided to suspend the construction of Shaft 969 at LM Mine West and certain other surface facilities within the Ying Mining District to better allocate resources during the current market.

In Q3 Fiscal 2014, exploration and development expenditures for the Ying Mining District were $8.5 million compared to $9.1 million in Q3 Fiscal 2013. For the nine months ended December 31, 2013, exploration and development expenditures for the Ying Mining District were $26.7 million compared to $28.1 million in the same prior year period.

2. GC ProjectGuangdong ProvinceChina

The required surface environmental protection facilities together with water and soil conservation engineering work are complete and have undergone test operations. During the quarter, the concrete rooms for the pumping station and underground main power station at the -50m elevation was completed and the pumps and pipes were installed, which represented the key component prior to the safety inspection, in accordance with safety requirements in the Mine Design.

A temporary Safety Production Permit, valid until the end of June 2014, has been issued to the Company, which allows the Company to conduct trial mine production. A final Safety Production Permit is expected to be issued around the end of June 2014. Before obtaining the Safety Production Permit and commencing significant mining, in the next few quarters, the Company will focus on trial mining and stope preparation work.

As the Company has completed the first phase of mine development and moves to trial mine production, the existing mine contractor, which was originally contracted to carry out mine development, was terminated and is being replaced with a mining contractor specializing in longhole and shrinkage stope mining. Transitioning to the new contractor will take some time and may cause some delays to the start-up of the trial mining.

The Company continued to use development ore to test mill equipment and to fine tune the mill circuits to achieve the desired metallurgical recoveries for silver, lead, zinc, tin, and sulphur. The testing process has identified numerous issues and many improvements were made in the mill circuits. While the floatation test results are approaching the designed recovery rates for silver (60%), lead (85%), zinc (86%), and sulphur, the gravity circuit only recovers approximately 5% tin, significantly lower than the 40% recovery rate in the metallurgic tests. The Company will focus on improving the tin recovery in the next several months.

The tailing dewatering facility for dry stacking has also been improved with modifications to equipment achieving desired results. The construction of the tailing dry stacking dam and reservoir facility has been completed and has passed government inspection.

During Q3 Fiscal 2014, approximately 4,800m of tunnels, including 700m of development tunnels, 2,000m of exploration tunnels and 2,100m of mining preparation tunnels, were completed.

In Q3 Fiscal 2014, $4.6 million (Q3 Fiscal 2013 - $4.7 million) of exploration and development expenditures were incurred at the GC mine. For the nine months ended December 31, 2013$13.9 million (nine months ended December 31, 2012 - $10.9 million) of exploration and development expenditures were incurred at the GC mine.

3. BYP MineHunan ProvinceChina

In Q3 Fiscal 2014, the construction of the head frame continued. Once completed, the newly completed 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 is complete and trial runs are ongoing. Exploration and development expenditures at the BYP mine were $1.3 million in the current fiscal year compared to $4.6 million in the prior year.

4. X Mines, Henan ProvinceChina

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

During the nine months ended December 31, 2013, the Company entered into a share transfer agreement with an arm's length private Chinese company. Pursuant to the agreement, the Company's subsidiary, Henan Found Mining Co. Ltd., sold its 90% equity interest in Zhongxing Mining Co. Ltd. (XBG project) for $12.5 million (RMB 76 million). This transaction was completed in this quarter.

Since the end of the first quarter, the Company has suspended major activities at the XHP project as part of its cost saving measures.

QUARTERLY DIVIDEND

To maintain the Company's strong balance sheet and liquidity during the current lower metal price environment, on February 12, 2014, the Board of Directors decided to reduce the quarterly dividend from CAD$0.025 to CAD$0.005 per share per quarter. This measure will save the Company approximately $12 million over the next full year, and ensure that the Company remains in a strong position to act on opportunities that develop in the current downturn. The declaration and payment of future dividends is at the discretion of the Board of Directors and any future decision to increase, or eliminate dividend payments will be based on a number of factors including commodity prices, market conditions, financial results, cash requirements and other relevant factors.

Myles Gao , P.Geo., President & CEO, 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. The Company is currently developing the GC project in southern China which it expects will become its next operating mine. 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; 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)

                                          December 31, 2013   March 31, 2013
----------------------------------------------------------------------------
ASSETS
Current Assets
 Cash and cash equivalents                 $        79,561  $        72,283
 Short-term investments                             18,428           45,623
 Trade and other receivables                         6,019            1,442
 Inventories                                         6,073            7,522
 Due from related parties                               23              123
 Prepaids and deposits                               5,446            5,118
----------------------------------------------------------------------------
                                                   115,550          132,111

Non-current Assets
 Long-term prepaids and deposits                     2,053            1,877
 Investment in an associate                          6,080            6,523
 Other investments                                  11,417           15,516
 Plant and equipment                               104,922          103,517
 Mineral rights and properties                     268,107          316,678
----------------------------------------------------------------------------
TOTAL ASSETS                               $       508,129  $       576,222
----------------------------------------------------------------------------
----------------------------------------------------------------------------

LIABILITIES AND EQUITY
Current Liabilities
 Accounts payable and accrued liabilities  $        32,143  $        29,285
 Deposits received                                   8,961           11,497
 Dividends payable                                   4,017            4,204
 Income tax payable                                  1,224            1,349
 Due to related parties                              1,640            1,207
----------------------------------------------------------------------------
                                                    47,985           47,542

Non-current Liabilities
 Deferred income tax liabilities                    15,755           24,603
 Environmental rehabilitation                        6,108            5,974
----------------------------------------------------------------------------
Total Liabilities                                   69,848           78,119
----------------------------------------------------------------------------

Equity
 Share capital                                     233,503          233,082
 Share option reserve                               10,051            8,314
 Reserves                                           25,409           24,717
 Accumulated other comprehensive loss                 (927)          (1,495)
 Retained earnings                                 106,307          155,817
----------------------------------------------------------------------------
Total equity attributable to the equity
 holders of the Company                            374,343          420,435

Non-controlling interests                           63,938           77,668
----------------------------------------------------------------------------
Total Equity                                       438,281          498,103
----------------------------------------------------------------------------

TOTAL LIABILITIES AND EQUITY               $       508,129  $       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           Nine Months Ended
                            December 31,                 December 31,
                    --------------------------------------------------------
                              2013          2012          2013          2012
----------------------------------------------------------------------------

Sales                $     23,970  $     58,717  $     92,265  $    148,475
Cost of sales              13,501        21,241        50,806        57,029
----------------------------------------------------------------------------
Gross profit               10,469        37,476        41,459        91,446

General and
 administrative             6,338         6,445        20,893        19,482
General exploration
 and property
 investigation                654         1,345         2,466         3,198
Other taxes                   408           854         1,575         2,502
Foreign exchange
 gain                      (1,667)         (697)       (2,750)         (332)
Loss on disposal of
 plant and equipment           21            60           144            85
Loss on disposal of
 mineral rights and
 properties                   181             -           181             -
Share of loss in
 associate                      -            42           153           231
Impairment on
 associate                      -         9,640             -         9,640
Impairment of
 mineral rights and
 properties                     -             -        66,573             -
Loss on investments            65            78           608           671
Other income                   39          (214)         (117)         (382)
----------------------------------------------------------------------------
Income (loss) from
 operations                 4,430        19,923       (48,267)       56,351

Finance income              1,047           999         2,953         2,841
Finance costs                 (33)          (24)          (99)          (69)
----------------------------------------------------------------------------
Income (loss) before
 income taxes               5,444        20,898       (45,413)       59,123

Income tax expense
 (recovery)                 2,300        10,267        (1,734)       25,471
----------------------------------------------------------------------------
Net income (loss)    $      3,144  $     10,631  $    (43,679) $     33,652
----------------------------------------------------------------------------

Attributable to:
 Equity holders of
  the Company        $      2,163  $      5,236  $    (36,476) $     20,850
 Non-controlling
  interests                   981         5,395        (7,203)       12,802
----------------------------------------------------------------------------
                     $      3,144  $     10,631  $    (43,679) $     33,652
----------------------------------------------------------------------------

Earnings (loss) per
 share attributable
 to the equity
 holders of the
 Company
Basic earnings
 (loss) per share    $       0.01  $       0.03  $      (0.21) $       0.12
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Diluted earnings
 (loss) per share    $       0.01  $       0.03  $      (0.21) $       0.12
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Weighted Average
 Number of Shares
 Outstanding - Basic  170,878,775   170,748,449   170,813,858   170,720,668
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Weighted Average
 Number of Shares
 Outstanding -
 Diluted              170,925,150   171,072,001   170,813,858   171,072,034
----------------------------------------------------------------------------
----------------------------------------------------------------------------

SILVERCORP METALS INC.
Condensed Consolidated Interim Statements of Cash Flow
----------------------------------------------------------------------------
(Unaudited) (Expressed in thousands of U.S. dollars)

                               Three Months Ended       Nine Months Ended
                                  December 31,             December 31,
                            ------------------------ -----------------------
                                    2013        2012        2013        2012
----------------------------------------------------------------------------
Cash provided by
Operating activities
 Net income (loss)           $    3,144  $   10,631  $  (43,679) $   33,652
 Add (deduct) items not
  affecting cash:
  Unwinding of discount of
   environmental
   rehabilitation                    33          24          99          69
  Depreciation, amortization
   and depletion                  2,936       4,463      11,418      11,653
  Share of loss in associate          -          42         153         231
  Impairment on associate             -       9,640           -       9,640
  Impairment of mineral
   rights and properties              -           -      66,573           -
  Write down of inventories           -           -           -         348
  Income tax expense
   (recovery)                     2,300      10,267      (1,734)     25,471
  Loss on investments                65          78         608         671
  Loss on disposal of plant
   and equipment                     21          60         144          85
  Loss on disposal of
   mineral rights and
   properties                       181           -         181           -
  Share-based compensation          561         546       1,878       2,154
 Income tax paid                 (2,111)     (7,948)     (5,461)    (22,323)
 Changes in non-cash
  operating working capital       2,743          20       2,948       9,341
----------------------------------------------------------------------------
Net cash provided by
 operating activities             9,873      27,823      33,128      70,992
----------------------------------------------------------------------------

Investing activities
 Mineral rights and
  properties
  Capital expenditures          (15,922)    (15,442)    (42,527)    (41,855)
  Proceeds on disposals          13,349           -      13,349           -
 Plant and equipment
  Additions                      (1,604)     (7,138)    (13,031)    (24,723)
  Proceeds on disposals           1,418           -       1,418           -
 Other investments
  Acquisition                         -           -           -        (595)
 Net redemptions (purchases)
  of short-term investments       4,257     (13,884)     26,894     (16,239)
 Proceeds on sale of a
  subsidiary (net of cash
  disposed, $4)                   3,274           -       8,160           -
----------------------------------------------------------------------------
Net cash provided by (used
 in) investing activities         4,772     (36,464)     (5,737)    (83,412)
----------------------------------------------------------------------------

Financing activities
 Related parties
  Payments made                    (320)        (16)     (1,642)       (365)
  Repayments received               102         313         317         972
 Non-controlling interests
  Distribution                   (5,168)     (7,224)     (5,168)    (14,612)
 Cash dividends distributed      (4,148)     (4,295)    (12,438)    (12,820)
 Proceeds from issuance of
  common shares                     192         126         280         239
----------------------------------------------------------------------------
Net cash used in financing
 activities                      (9,342)    (11,096)    (18,651)    (26,586)
----------------------------------------------------------------------------

Effect of exchange rate
 changes on cash and cash
 equivalents                     (1,821)      1,239      (1,462)       (118)
----------------------------------------------------------------------------

Increase (decrease) in cash
 and cash equivalents             3,482     (18,498)      7,278     (39,124)

Cash and cash equivalents,
 beginning of the period         76,079      89,334      72,283     109,960
Cash and cash equivalents
 included in assets held for
 sale                                 -      (1,818)          -      (1,818)
----------------------------------------------------------------------------

Cash and cash equivalents,
 end of the period           $   79,561  $   69,018  $   79,561  $   69,018
----------------------------------------------------------------------------
----------------------------------------------------------------------------

SILVERCORP METALS INC.
Mining Data
----------------------------------------------------------------------------
(Expressed in thousands of U.S. dollars, except for mining data figures)

----------------------------------------------------------------------------
                                           Three months ended December 31,
                                                         2013
                                         -----------------------------------
                                             Ying
                                           Mining
                                         District
                                              (1) X Mines(2)     BYP   Total
----------------------------------------------------------------------------

Production Data
 Mine Data
  Ore Mined (tonne)
  Direct Smelting Ore (tonne)                 715       -          -     715
  Stockpiled Ore (tonne)                  148,135       -     20,690 168,825
                                         -----------------------------------
                                          148,850       -     20,690 169,540
                                         -----------------------------------
 Run of Mine Ore (tonne)
  Direct Smelting Ore (tonne)                 715       -          -     715
  Ore Milled (tonne)                      149,040   3,496(i)  19,574 172,110
                                         -----------------------------------
                                          149,755   3,496     19,574 172,825
                                         -----------------------------------

 Mining cost per tonne of ore mined ($)     60.89       -      53.22   59.95
  Cash mining cost per tonne of ore mined
   ($)                                      50.59       -      22.81   47.20
  Non cash mining cost per tonne of ore
   mined ($)                                10.30       -      30.41   12.75

 Unit shipping costs ($)                     4.06       -          -    3.57

 Milling cost per tonne of ore milled ($)   18.60       -      15.31   18.22
  Cash milling cost per tonne of ore
   milled ($)                               16.00       -      13.76   15.74
  Non cash milling cost per tonne of ore
   milled ($)                                2.60       -       1.55    2.48

 Average Production Cost
  Silver ($ per ounce)                       8.83       -          -    9.12
  Gold ($ per ounce)                          483       -        959     532
  Lead ($ per pound)                         0.42       -          -    0.44
  Zinc ($ per pound)                         0.34       -          -    0.35

 Total production cost per ounce of
  Silver ($)                                 4.39       -               4.39
 Total cash cost per ounce of Silver ($)     2.00       -               2.00

 Total production cost per ounce of Gold
  ($)                                                            959     959
 Total cash cost per ounce of Gold ($)                           502     502

 Total Recovery of the Run of Mine Ore
  Silver (%)                                 93.1       -               93.1
  Gold (%)                                                      92.7    92.7
  Lead (%)                                   95.7       -               95.7
  Zinc (%)                                   64.2       -               64.2

 Head Grades of Run of Mine Ore
  Silver (gram/tonne)                         202       -                202
  Gold (gram/tonne)                                              2.7     2.7
  Lead (%)                                    2.9       -                2.9
  Zinc (%)                                    0.7       -                0.7

Sales Data
 Metal Sales
  Silver (in thousands of ounces)             883       2(i)       -     885
  Gold (in thousands of ounces)               0.9       -        1.1     2.0
  Lead (in thousands of pounds)             8,814     186(i)       -   9,000
  Zinc (in thousands of pounds)             1,572     100(i)       -   1,672

 Metal Sales
  Silver (in thousands of $)               14,304       -          -  14,304
  Gold (in thousands of $)                    808       -      1,045   1,853
  Lead (in thousands of $)                  6,824       -          -   6,824
  Zinc (in thousands of $)                    989       -          -     989
                                         -----------------------------------
                                           22,925       -      1,045  23,970
                                         -----------------------------------
 Average Selling Price, Net of Value
  Added Tax and Smelter Charges
  Silver ($ per ounce)                      16.20       -          -   16.20
  Gold ($ per ounce)                          887       -        995     945
  Lead ($ per pound)                         0.77       -          -    0.77
  Zinc ($ per pound)                         0.63       -          -    0.63

(1) Ying Mining District includes mines: SGX, TLP, HPG&LM.
(2) X Mines includes the 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 December 31,
                                                         2012
                                         -----------------------------------
                                             Ying
                                           Mining
                                         District
                                              (1) X Mines(2)     BYP   Total
----------------------------------------------------------------------------

Production Data
 Mine Data
  Ore Mined (tonne)
  Direct Smelting Ore (tonne)               2,334       -          -   2,334
  Stockpiled Ore (tonne)                  234,360   8,932(i)  35,558 278,850
                                         -----------------------------------
                                          236,694   8,932     35,558 281,184
                                         -----------------------------------
 Run of Mine Ore (tonne)
  Direct Smelting Ore (tonne)               2,334       -          -   2,334
  Ore Milled (tonne)                      224,430  27,265(i)  32,699 284,394
                                         -----------------------------------
                                          226,764  27,265     32,699 286,728
                                         -----------------------------------

 Mining cost per tonne of ore mined ($)     64.47       -      70.48   65.26
  Cash mining cost per tonne of ore mined
   ($)                                      54.92       -      24.72   50.98
  Non cash mining cost per tonne of ore
   mined ($)                                 9.55       -      45.76   14.28

 Unit shipping costs ($)                     3.62       -          -    3.15

 Milling cost per tonne of ore milled ($)   14.21       -      14.38   14.23
  Cash milling cost per tonne of ore
   milled ($)                               12.61       -      13.49   12.72
  Non cash milling cost per tonne of ore
   milled ($)                                1.60       -       0.89    1.51

 Average Production Cost
  Silver ($ per ounce)                       8.53       -          -    9.01
  Gold ($ per ounce)                          409       -        646     418
  Lead ($ per pound)                         0.27       -          -    0.29
  Zinc ($ per pound)                         0.22       -          -    0.23

 Total production cost per ounce of
  Silver ($)                                 1.52       -               1.52
 Total cash cost per ounce of Silver ($)   (0.17)       -             (0.17)

 Total production cost per ounce of Gold
  ($)                                                            630     630
 Total cash cost per ounce of Gold ($)                           266     266

 Total Recovery of the Run of Mine Ore
  Silver (%)                                 93.3       -               93.3
  Gold (%)                                                      92.7    92.7
  Lead (%)                                   95.1       -               95.1
  Zinc (%)                                   70.4       -               70.4

 Head Grades of Run of Mine Ore
  Silver (gram/tonne)                         222       -                222
  Gold (gram/tonne)                                              3.7     3.7
  Lead (%)                                    3.2       -                3.2
  Zinc (%)                                    1.0       -                1.0

Sales Data
 Metal Sales
  Silver (in thousands of ounces)           1,508      11(i)       -   1,519
  Gold (in thousands of ounces)               1.3     0.1(i)     4.3     5.7
  Lead (in thousands of pounds)            15,642     788(i)       -  16,430
  Zinc (in thousands of pounds)             3,231     463(i)     283   3,977

 Metal Sales
  Silver (in thousands of $)               37,551       -          -  37,551
  Gold (in thousands of $)                  1,533       -      4,934   6,467
  Lead (in thousands of $)                 12,480       -          -  12,480
  Zinc (in thousands of $)                  2,061       -        158   2,219
                                         -----------------------------------
                                           53,625       -      5,092  58,717
                                         -----------------------------------
 Average Selling Price, Net of Value
  Added Tax and Smelter Charges
  Silver ($ per ounce)                      24.90       -          -   24.90
  Gold ($ per ounce)                        1,193       -      1,145   1,155
  Lead ($ per pound)                         0.80       -          -    0.80
  Zinc ($ per pound)                         0.64       -       0.56    0.63

(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)

----------------------------------------------------------------------------
                                         Nine months ended December 31, 2013
                                         -----------------------------------
                                             Ying
                                           Mining
                                         District
                                              (1) X Mines(2)     BYP   Total
----------------------------------------------------------------------------

Production Data
 Mine Data
  Ore Mined (tonne)
  Direct Smelting Ore (tonne)               2,181       -          -   2,181
  Stockpiled Ore (tonne)                  533,029       -     67,418 600,447
                                         -----------------------------------
                                          535,210       -     67,418 602,628
                                         -----------------------------------
 Run of Mine Ore (tonne)
  Direct Smelting Ore (tonne)               2,181       -          -   2,181
  Ore Milled (tonne)                      541,040  10,425(i)  69,621 621,086
                                         -----------------------------------
                                          543,221  10,425     69,621 623,267
                                         -----------------------------------

 Mining cost per tonne of ore mined ($)     61.42       -      54.35   60.63
  Cash mining cost per tonne of ore mined
   ($)                                      51.02       -      23.48   47.94
  Non cash mining cost per tonne of ore
   mined ($)                                10.40       -      30.87   12.69

 Unit shipping costs ($)                     4.33       -          -    3.85

 Milling cost per tonne of ore milled ($)   16.07       -      15.35   15.99
  Cash milling cost per tonne of ore
   milled ($)                               13.98       -      14.05   13.99
  Non cash milling cost per tonne of ore
   milled ($)                                2.09       -       1.30    2.00

 Average Production Cost
  Silver ($ per ounce)                       8.94       -          -    9.28
  Gold ($ per ounce)                          503       -        903     570
  Lead ($ per pound)                         0.41       -          -    0.42
  Zinc ($ per pound)                         0.33       -       0.45    0.34

 Total production cost per ounce of
  Silver ($)                                 4.47       -               4.47
 Total cash cost per ounce of Silver ($)     2.04       -               2.04

 Total production cost per ounce of Gold
  ($)                                                            899     899
 Total cash cost per ounce of Gold ($)                           473     473

 Total Recovery of the Run of Mine Ore
  Silver (%)                                 92.6       -               92.6
  Gold (%)                                                      92.6    92.6
  Lead (%)                                   95.0       -               95.0
  Zinc (%)                                   67.4       -               67.4

 Head Grades of Run of Mine Ore
  Silver (gram/tonne)                         206       -                206
  Gold (gram/tonne)                                              2.9     2.9
  Lead (%)                                    2.8       -                2.8
  Zinc (%)                                    0.9       -                0.9

Sales Data
 Metal Sales
  Silver (in thousands of ounces)           3,269      12(i)       -   3,281
  Gold (in thousands of ounces)               3.1     0.2(i)     5.5     8.8
  Lead (in thousands of pounds)            31,397     590(i)       -  31,987
  Zinc (in thousands of pounds)             6,697     584(i)     282   7,563

 Metal Sales
  Silver (in thousands of $)               55,064       -          -  55,064
  Gold (in thousands of $)                  2,909       -      5,991   8,900
  Lead (in thousands of $)                 24,006       -          -  24,006
  Zinc (in thousands of $)                  4,141       -        154   4,295
                                         -----------------------------------
                                           86,120       -      6,145  92,265
                                         -----------------------------------
 Average Selling Price, Net of Value
  Added Tax and Smelter Charges
  Silver ($ per ounce)                      16.85       -          -   16.85
  Gold ($ per ounce)                          949       -      1,084   1,036
  Lead ($ per pound)                         0.76       -          -    0.76
  Zinc ($ per pound)                         0.62       -       0.55    0.62

(1) Ying Mining District includes mines: SGX, TLP, HPG&LM.
(2) X Mines includes the 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)

----------------------------------------------------------------------------
                                         Nine months ended December 31, 2012
                                         -----------------------------------
                                             Ying
                                           Mining
                                         District
                                              (1) X Mines(2)     BYP   Total
----------------------------------------------------------------------------

Production Data
 Mine Data
  Ore Mined (tonne)
  Direct Smelting Ore (tonne)               7,027       -          -   7,027
  Stockpiled Ore (tonne)                  616,496  19,309(i)  89,759 725,564
                                         -----------------------------------
                                          623,523  19,309     89,759 732,591
                                         -----------------------------------
 Run of Mine Ore (tonne)
  Direct Smelting Ore (tonne)               7,027       -          -   7,027
  Ore Milled (tonne)                      609,362  58,349(i)  77,862 745,573
                                         -----------------------------------
                                          616,389  58,349     77,862 752,600
                                         -----------------------------------

 Mining cost per tonne of ore mined ($)     65.15       -      60.75   64.60
  Cash mining cost per tonne of ore mined
   ($)                                      54.53       -      23.86   50.67
  Non cash mining cost per tonne of ore
   mined ($)                                10.62       -      36.89   13.93

 Unit shipping costs ($)                     3.72       -          -    3.25

 Milling cost per tonne of ore milled ($)   14.64       -      15.10   14.69
  Cash milling cost per tonne of ore
   milled ($)                               12.92       -      14.00   13.04
  Non cash milling cost per tonne of ore
   milled ($)                                1.72       -       1.10    1.65

 Average Production Cost
  Silver ($ per ounce)                       8.69       -          -    9.07
  Gold ($ per ounce)                          425       -        760     452
  Lead ($ per pound)                         0.29       -          -    0.31
  Zinc ($ per pound)                         0.23       -          -    0.24

 Total production cost per ounce of
  Silver ($)                                 1.66       -               1.66
 Total cash cost per ounce of Silver ($)   (0.26)       -             (0.26)

 Total production cost per ounce of Gold
  ($)                                                            752     752
 Total cash cost per ounce of Gold ($)                           356     356

 Total Recovery of the Run of Mine Ore
  Silver (%)                                 92.6       -               92.6
  Gold (%)                                                      92.5    92.5
  Lead (%)                                   94.5       -               94.5
  Zinc(%)                                    67.8       -               67.8

 Head Grades of Run of Mine Ore
  Silver (gram/tonne)                         224       -                224
  Gold (gram/tonne)                                              3.1     3.1
  Lead (%)                                    3.4       -                3.4
  Zinc (%)                                    1.1       -                1.1

Sales Data
 Metal Sales
  Silver (in thousands of ounces)           4,009      21(i)       -   4,030
  Gold (in thousands of ounces)               3.4     0.2(i)     7.2    10.8
  Lead (in thousands of pounds)            42,757   1,313(i)       -  44,070
  Zinc (in thousands of pounds)             9,617     574(i)     283  10,474

 Metal Sales
  Silver (in thousands of $)               95,241       -          -  95,241
  Gold (in thousands of $)                  3,894       -      8,667  12,561
  Lead (in thousands of $)                 34,412       -          -  34,412
  Zinc (in thousands of $)                  6,103       -        158   6,261
                                         -----------------------------------
                                          139,650       -      8,825 148,475
                                         -----------------------------------
 Average Selling Price, Net of Value
  Added Tax and Smelter Charges
  Silver ($ per ounce)                      23.76       -          -   23.76
  Gold ($ per ounce)                        1,162       -      1,196   1,185
  Lead ($ per pound)                         0.80       -          -    0.80
  Zinc ($ per pound)                         0.63       -       0.56    0.63

(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.
Lorne Waldman
Senior Vice President
(604) 669-9397 or Toll Free: 1 (888) 224-1881
investor@silvercorp.ca
www.silvercorp.ca

Email Signup