Ying Mining District

Introduction

The flagship Ying operations consist of seven underground mines (SGX, HZG, HPG, TLP, LME, LMW and DCG) and two processing plants (combined 2,500 tpd capacity)
Produces gold doré and high-quality silver-lead and zinc concentrates sold to smelters within the province
Located approximately 240 km west-southwest of Zhengzhou, the capital city of Henan Province, China, and 145 km southwest of Luoyang, the nearest major city
The 68.6 km²Property is covered by four contiguous mining licenses:
- Yuelianggou Mining License: SGX & HZG mines (19.8 km²)
- Haopinggou Mining License: HPG mine (6.2 km²)
- Tieluping-Longmen Mining License: TLP, LME and LMW mines (22.8 km²)
- Dongcaogau Mining License: DCG Mine (19.8 km²)

Exploration is an integral part of Silvercorp’s organic growth strategy at Ying. The Company completed ~1,000,000 m of drilling at and around the various mines over 2020-2022, which led to the discovery of new mineralization zones within the existing mining infrastructure. Land consolidation continued in 2021 with the successful acquisition of the neighboring Kuanping Project (KP), located 33 km north of Ying—further expanding the Company’s footprint within the prospective Qinling orogenic belt.

Multiple mine optimization and production expansion programs are currently underway to enhance operational efficiency and boost productivity. These low-capital-intensity, high-impact investments will further increase the Company's capacity, enabling it to continue growing its existing hub-and-spoke operations at Ying.

Operation Snapshot

Mine Life¹

15 Years

Silver Production

FY2021A: 5,615 koz
FY2022A: 5,509 koz
FY2023A: 6,024 koz

FY2024E: 6.2-6.5 Moz

AISC ²

FY2021A: US$132.54/t
FY2022A: US$147.52/t
FY2023A: US$146.59/t

FY2024E: US$143.8-$148.8/t

¹ Ying Mining District Reserves and Resources update effective December 31, 2021.

² AISC refers to all-in sustaining costs per tonne of ore processed.

Mines

SGX / HZG Mine
HPG Mine
TLP Mine
LME Mine
LMW Mine
DCG Mine
KP Project

The flagship Ying operations consist of seven underground mines (SGX, HZG, HPG, TLP, LME, LMW and DCG) and two processing plants (combined 2,500 tpd capacity)
Produces gold doré and high-quality silver-lead and zinc concentrates sold to smelters within the province
Located approximately 240 km west-southwest of Zhengzhou, the capital city of Henan Province, China, and 145 km southwest of Luoyang, the nearest major city
The 68.6 km²Property is covered by four contiguous mining licenses:
- Yuelianggou Mining License: SGX & HZG mines (19.8 km²)
- Haopinggou Mining License: HPG mine (6.2 km²)
- Tieluping-Longmen Mining License: TLP, LME and LMW mines (22.8 km²)
- Dongcaogau Mining License: DCG Mine (19.8 km²)

Operation Snapshot

Mine Life¹

15 Years

Silver Production

FY2021A: 5,615 koz
FY2022A: 5,509 koz
FY2023A: 6,024 koz

FY2024E: 6.2-6.5 Moz

AISC ²

FY2021A: US$132.54/t
FY2022A: US$147.52/t
FY2023A: US$146.59/t

FY2024E: US$143.8-$148.8/t

¹ Ying Mining District Reserves and Resources update effective December 31, 2021.

² AISC refers to all-in sustaining costs per tonne of ore processed.

Mineral Processing

Silvercorp currently operates two sulphide flotation plants at Ying with a total design capacity of 2,500 tpd.

Mill No. 1 (Xiayu) has a design capacity of 700 tpd and has been in operation since March 2007
Mill No. 2 (Zhuangtou) has a design capacity of 1,800 tpd (expanded from 900 tpd in October 2011) and has been in operation since December 2009

Silvercorp is considering adding a new production line with a 1,500 tpd capacity at the No. 2 Mill, which will increase the processing capacity at the Ying Mining District to 4,000 tpd. The Company will provide additional details when available.

Construction of a new 19.1 million cubic meters tailings storage facility is on track for completion in 2024.

Exploration and Geology

Exploration Overview

All mines in the Ying Mining District have defined resources and reserves to support profitable operations for a decade or more
None of the mine areas have been fully explored or delimited
Each mine area hosts a plethora of known veins with mineralization open for expansion
Exploration drilling over the past two years also discovered new gold and gold-copper structures and broad gold-silver mineralization in a new rhyolitic breccia dyke
Further afield, several outlying target areas remain prospective for more discoveries
Essentially, there is no shortage of exploration targets in the district—and by leveraging existing mining infrastructure, these “low-hanging fruit” can be fast-tracked into development / production
In fiscal year 2024, Silvercorp plans to complete ~220,000 m of exploration drilling (capitalized and expensed) at Ying. The current drill program is complemented by ~83,000 m of exploration and development tunnels (capitalized and expensed)

Exploration strategy at Ying:
- Drilling veins at shallower depths (closer to surface) where exploration remains limited
- Drilling the newly discovered, low-angle gold and gold-copper structures at LMW and other areas
- Step-out drilling from the resource area for new discoveries

Ying Property - Mineral Resources and metal content for silver, lead, zinc, and gold as of 31 December, 2021 (Inclusive of Mineral Reserves)

MINE	RESOURCE CATEGORY	TONNES (Mt)	Au GRADE (g/t)	Ag GRADE (g/t)	Pb GRADE (%)	Zn GRADE (%)	Au (koz)	Ag (Moz)	Pb (kt)	Zn (kt)
SGX	Measured	3.51	0.05	290	5.56	2.75	5.48	32.81	195.38	96.62
SGX	Indicated	3.13	0.01	247	4.67	2.17	0.57	24.86	146.14	68.04
SGX	Measured + Indicated	6.64	0.03	270	5.14	2.48	6.05	57.66	341.52	164.66
SGX	Inferred	3.98	0.01	232	4.63	1.93	0.70	29.75	184.30	76.79
HZG	Measured	0.51	-	372	1.20	‐	‐	6.15	6.18	-
HZG	Indicated	0.51	-	358	0.91	-	-	5.91	4.68	-
HZG	Measured + Indicated	1.03	-	365	1.06	‐	‐	12.06	10.86	-
HZG	Inferred	0.55	‐	326	0.83	‐	‐	5.75	4.55	-
HPG	Measured	0.77	1.37	94	3.87	1.40	33.91	2.31	29.73	10.72
HPG	Indicated	0.92	1.60	68	3.17	1.22	47.36	2.01	29.22	11.26
HPG	Measured + Indicated	1.69	1.50	80	3.49	1.30	81.27	4.32	58.95	21.98
HPG	Inferred	1.45	2.61	91	3.43	1.20	121.87	4.26	49.78	17.43
TLP	Measured	2.45	‐	221	3.43	-	-	17.41	83.93	-
TLP	Indicated	2.01	‐	189	3.08	‐	‐	12.16	61.84	-
TLP	Measured + Indicated	4.46	-	206	3.27	-	-	29.58	145.77	-
TLP	Inferred	3.76	-	180	2.86	-	-	21.78	107.46	-
LME	Measured	0.45	0.10	357	1.73	0.35	1.45	5.11	7.71	1.54
LME	Indicated	1.02	0.22	315	1.67	0.42	7.17	10.35	17.06	4.30
LME	Measured + Indicated	1.47	0.18	327	1.69	0.40	8.62	15.46	24.77	5.85
LME	Inferred	1.49	0.65	221	1.45	0.41	30.86	10.55	21.58	6.03
LMW	Measured	0.94	0.21	325	2.63	-	6.45	9.78	24.65	-
LMW	Indicated	2.16	0.36	232	2.04	‐	24.84	16.12	43.91	-
LMW	Measured + Indicated	3.09	0.31	260	2.22	‐	31.28	25.90	68.56	-
LMW	Inferred	1.51	0.07	235	2.36	-	3.63	11.39	35.52	-
DCG	Measured	0.15	2.57	75	1.19	0.30	12.67	0.37	1.82	0.46
DCG	Indicated	0.20	3.33	101	2.26	0.20	21.50	0.65	4.54	0.39
DCG	Measured + Indicated	0.35	3.00	90	1.80	0.24	34.17	1.02	6.36	0.85
DCG	Inferred	0.32	1.44	98	2.70	0.21	14.77	1.00	8.58	0.67
ALL MINES	Measured	8.78	0.21	262	3.98	1.25	59.96	73.94	349.40	109.34
ALL MINES	Indicated	9.95	0.32	225	3.09	0.84	101.44	72.06	307.39	83.99
ALL MINES	*Measured + Indicated*	*18.73*	*0.27*	*242*	*3.51*	*1.03*	*161.40*	*146.01*	*656.79*	*193.34*
ALL MINES	Inferred	13.05	0.41	201	3.15	0.77	171.83	84.46	411.77	100.92

Notes:

Measured and Indicated Mineral Resources are inclusive of Mineral Resources from which Mineral Reserves are estimated.
Metal prices: gold US$1,450/troy oz, silver US$18.60/troy oz, lead US$0.95/lb, zinc US$1.10/lb.
Exchange rate: RMB 6.50 : US$1.00.
Mineral Resource reported 5 m below surface.
Veins factored to minimum extraction width of 0.4 m after estimation.
Cut-off grades: SGX 170 g/t AgEq; HZG 170 g/t AgEq; HPG 180 g/t AgEq; LME 180 g/t AgEq; LMW 160 g/t AgEq; TLP 155 g/t AgEq; DCG 155 g/t AgEq.
AgEq formulas by mine:
- SGX=37.79*Pb%+20.76*Zn%+Ag g/t
- HZG=36.31*Pb%+Ag g/t
- HPG=36.84*Pb%+24.73*Zn%+69.41*Au g/t+Ag g/t
- LME=35.84*Pb%+10.44*Zn%+Ag g/t
- TLP=36.65*Pb%+Ag g/t
- LMW=36.88*Pb%+Ag g/t
- DCG=36.84*Pb%+24.73*Zn%+Ag g/t:

AgEq formulas used for significant gold bearing veins:
SGX (Veins S16W_Au, S18E and S74)=66.25*Au g/t+37.79*Pb%+20.76*Zn%+Ag g/t
LME (Vein LM4E2)=66.70*Au g/t+35.84*Pb%+10.44*Zn%+Ag g/t
LMW (Veins LM22, LM26, LM50 and LM51)=65.78*Au g/t+36.88*Pb%+Ag g/t
DCG (Veins C9, C76)=69.41*Au g/t+36.84*Pb%+24.73*Zn%+Ag g/t
Exclusive of mine production to 31 December 2021.
Rounding of some figures may lead to minor discrepancies in totals.

Ying Property - Mineral Reserves and metal content for silver, lead, zinc, and gold as of 31 December, 2021

							METAL CONTAINED IN MINERAL RESERVES
MINE	CATEGORY	Mt	Au (g/t)	Ag (g/t)	Pb (%)	Zn (%)	Au (koz)	Ag (Moz)	Pb (kt)	Zn (kt)
SGX	Proven	2.62	0.05	267	5.12	2.46	4	22.53	134.1	64.5
	Probable	2.61	0	230	4.41	1.9	0.3	19.33	115.2	49.7
TOTAL PROVEN & PROBABLE		5.23	0.03	249	4.76	2.18	4.2	41.86	249.3	114.2
HZG	Proven	0.37		350	1.08			4.17	4
	Probable	0.36		347	0.77			4.06	2.8
TOTAL PROVEN & PROBABLE		0.73		348	0.93			8.23	6.8
HPG	Proven	0.35	1.41	89	3.38	1.39	15.8	1	11.7	4.8
	Probable	0.44	1.8	59	2.76	1.04	25.7	0.85	12.2	4.6
TOTAL PROVEN & PROBABLE		0.79	1.63	73	3.03	1.19	41.5	1.85	24	9.4
TLP	Proven	1.55		219	3.15			10.94	49
	Probable	1.02		204	2.91			6.7	29.7
TOTAL PROVEN & PROBABLE		2.58		213	3.05			17.64	78.7
LME	Proven	0.23	0.16	349	1.59	0.32	1.2	2.62	3.7	0.7
	Probable	0.68	0.3	316	1.62	0.4	6.6	6.91	11	2.7
TOTAL PROVEN & PROBABLE		0.91	0.27	325	1.61	0.38	7.9	9.53	14.7	3.4
LMW	Proven	0.57	0.33	321	2.27		6	5.86	12.9
	Probable	1.29	0.55	242	1.87		23	10.06	24.1
TOTAL PROVEN & PROBABLE		1.86	0.48	266	1.99		28.9	15.92	37
DCG	Proven	0.09	2.41	73	1.38	0.28	6.8	0.2	1.2	0.2
	Probable	0.13	3.84	104	1.87	0.15	15.4	0.42	2.3	0.2
TOTAL PROVEN & PROBABLE		0.21	3.25	91	1.67	0.2	22.2	0.62	3.5	0.4
YING MINES	PROVEN	5.78	0.18	255	3.75	1.22	33.8	47.32	216.6	70.3
	PROBABLE	6.54	0.34	230	3.02	0.87	70.9	48.32	197.5	57.2
TOTAL PROVEN & PROBABLE		12.32	0.26	241	3.36	1.03	104.7	95.65	414.1	127.5

Notes:

Cut-off grades (AgEq g/t): SGX – 235 Resuing, 195 Shrinkage; HZG – 245 Resuing, 195 Shrinkage; HPG – 260 Resuing, 200 Shrinkage; LME – 265 Resuing, 225 Shrinkage; TLP – 225 Resuing, 190 Shrinkage; LMW – 245 Resuing, 200 Shrinkage; DCG – 225 Resuing, 190 Shrinkage.
Stope Marginal cut-off grades (AgEq g/t): SGX – 210 Resuing, 170 Shrinkage; HZG – 210 Resuing, 160 Shrinkage; HPG – 235 Resuing, 175 Shrinkage; LME – 210 Resuing, 170 Shrinkage; TLP – 205 Resuing, 170 Shrinkage; LMW - 205 Resuing, 160 Shrinkage; DCG - 205 Resuing, 170 Shrinkage.
Development Ore cut-off grades (AgEq g/t): SGX – 130; HZG – 125; HPG – 150; LME – 125; TLP – 125; LMW – 125; DCG – 125.
Unplanned dilution (zero grade) assumed as 0.05m on each wall of a resuing stope and 0.10m on each wall of a shrinkage stope.
Unplanned dilution (zero grade) assumed as 0.05m on each wall of a resuing stope and 0.10m on each wall of a shrinkage stope.
Mining recovery factors assumed as 95% for resuing and 92% for shrinkage.
Metal prices: gold US$1,450/troy oz, silver US$18.60/troy oz, lead US$0.95/lb, zinc US$1.10/lb.
Processing recovery factors: SGX – 91.5% Au, 95.9% Ag, 97.6% Pb, 60.0% Zn; HZG – 96.8% Ag, 94.7% Pb; HPG – 91.5% Au, 91.5% Ag, 90.8% Pb, 68.3% Zn; LME – 91.5% Au, 95.2% Ag, 92.0% Pb, 30.0% Zn; TLP – 92.9% Ag, 91.7% Pb; LMW – 91.5% Au, 96.5% Ag, 95.9% Pb; DCG – 91.5% Au, 91.5% Ag, 90.8% Pb, 68.3% Zn.
Payables: Au – 81%; Ag – 91.0%; Pb – 96.4%; Zn – 74.4%.
Exclusive of mine production to 31 December 2021.
Exchange rate assumed is RMB 6.50 : US$1.00.
Rounding of some figures may lead to minor discrepancies in totals.

Geological Background

The Ying Property is located within the 300 km long west-northwest trending Qinling orogenic belt, a major structural corridor formed by the collision of two large continental tectonic plates in the Paleozoic. Rocks along the orogenic belt are heavily folded and faulted, offering optimal structural conditions for the emplacement of mineral deposits. Several operating silver-lead-zinc mines, including those on the Ying Property, occur along this belt. Dominant regional structures are west-northwest trending folds and faults. The faults consist of numerous thrusts that have a component of oblique movement with sets of conjugate shear structures trending either northwest or northeast. These conjugate shear zones are associated with known mineralization in the district.

Structurally, mesothermal vein systems throughout the district are all somewhat similar in that they occur as sets of quartz-carbonate veins of generally similar orientation enclosed by steeply dipping fault-fissure zones, which trend most commonly northeast-southwest, less commonly north-south, and rarely northwest-southeast. The structures extend for hundreds to a few thousand metres along strike. The vein systems consist of narrow, tabular or splayed veins, often occurring as sets of parallel and offset veins. The veins thin and thicken abruptly along the structures in classic “pinch-and-swell” fashion, with widths varying from a few centimetres to a few metres. “Swells” in structural dilatant zones along the veins often form mineralized “shoots”. To date, significant mineralization has been defined or developed in over 300 discrete vein structures, and many other smaller veins have been found but remain unexplored.

The vein systems of the various mines in the district also share similar mineralogy, with slight documented differences between some of the separate mine areas and between the different vein systems within each area, attributed to district-scale mineral zonation at different levels of exposure. This subtle zonation is thought to be analogous to the broad-scale zonation patterns observed in the Coeur d’Alene District (USA) and characteristic of many other significant mesothermal silver-lead-zinc camps in the world.