VANCOUVER, British Columbia – May 20, 2021 – Silvercorp Metals Inc. (“Silvercorp” or the “Company”) (TSX/NYSE American: SVM) reported its financial and operating results for the fourth quarter and twelve months ended March 31, 2021 (“Fiscal 2021). All amounts are expressed in US Dollars, and figures may not add due to rounding.

FISCAL YEAR 2021 HIGHLIGHTS

Mined 964,925 tonnes of ore and milled 967,581 tonnes of ore, up 9% and 8%, respectively, compared to the prior year, with silver and lead production meeting the production guidance and zinc production beating the production guidance;
Sold approximately 6.3 million ounces of silver, 4,700 ounces of gold, 67.1 million pounds of lead, and 27.9 million pounds of zinc, up 1%, 42%, 3%, and 10%, respectively, compared to the prior year;
Revenue of $192.1 million, up 21% or $33.3 million compared to $158.8 million in the prior year;
Net income attributable to equity shareholders of $46.4 million, or $0.27 per share, up 35% compared to $34.3 million, or $0.20 per share in the prior year;
Cash cost per ounce of silver, net of by-product credits, of negative $1.80 compared to negative $1.91 in the prior year;
All-in sustaining cost per ounce of silver, net of by-product credits, of $7.49, compared to $6.86 in the prior year;
Cash flow from operations of $85.9 million, up 11% or $8.7 million compared to $77.2 million in the prior year;
Received $6.5 million (CAD$9.0 million) break fee from Guyana Goldfields Inc. (“Guyana Goldfields”) and realized a gain of $15.4 million on disposal of the shares of Guyana Goldfields;
Paid $4.4 million of dividends to the Company’s shareholders;
Invested $5.8 million in a private placement of New Pacific Metals Corp. (“NUAG”) to maintain the Company’s ownership interest;
Acquired a 26.99% interest in Whitehorse Gold Corp. (“WHG”), having a fair market value of $15.1 million as at March 31, 2021, as a result of (a) receiving 5,740,285 WHG common shares under a spin-out transaction completed by NUAG, and (b) subscribing for 5,774,000 WHG common shares at total cost of $1.3 million under a private placement;
Won an online auction to acquire the exploration rights to the Zhonghe Silver Project from the Henan provincial government of China, with the mineral rights transfer contract pending the national security clearance by the related authorities;
Acquired a 43.8% interest in the La Yesca Silver Project in Mexico through a new corporate structure, New Infini Silver Inc. for approximately $9.1 million; and
Strong balance sheet with $199.1 million in cash and cash equivalents and short-term investments, an increase of $56.6 million or 40% compared to $142.5 million as at March 31, 2020. This does not include $212.1 million in total market value of investments in associates and equity investments in other companies as at March 31, 2021.
HIGHLIGHTS FOR Q4 FISCAL 2021

Mined 163,072 tonnes of ore and milled 180,674 tonnes of ore, up 53% and 76%, respectively, compared to the prior year quarter;
Sold approximately 1.1 million ounces of silver, 700 ounces of gold, 10.9 million pounds of lead, and 4.6 million pounds of zinc, up 32%, 40%, 13%, and 50% respectively, compared to approximately 0.8 million ounces of silver, 500 ounces of gold, 9.7 million pounds of lead, and 3.1 million pounds of zinc in the prior year quarter;
Revenue of $35.7 million, up 89% or $16.8 million compared to $18.9 million in the prior year quarter;
Net income attributable to equity shareholders of $7.0 million, or $0.04 per share, compared to $3.2 million or $0.02 per share, in the prior year quarter;
Cash cost per ounce of silver, net of by-product credits, of negative $0.39 compared to negative $0.85 in the prior year quarter;
All-in sustaining cost per ounce of silver, net of by-product credits, of $12.55, compared to $15.17 in the prior year quarter; and
Cash flow from operations of $2.2 million, compared to $6.3 million in the prior year quarter. The decrease was mainly due to $9.4 million use of cash from working capital changes. Before changes in non-cash working capital, cash flows provided by operating activities in the current quarter were $11.9 million, up $2.7 million compared to $9.2 million in Q4 Fiscal 2020.

see Figures on
http://silvercorpmetals.com/news_and_media/news/silvercorp-reports-net-income-of-464-million-027-per-share-and-cash-flow-from-operations-of-859-million-for-fiscal-2021-

1. Fiscal 2021 Financial Results

Net income attributable to equity shareholders of the Company in Fiscal 2021 was $46.4 million or $0.27 per share, up 35% or $12.1 million, compared to $34.3 million or $0.20 per share in Fiscal 2020.

In Fiscal 2021, the Company’s consolidated financial results were mainly impacted by i) an increase of 1%, 42%, 3%, and 10%, respectively, in silver, gold, lead and zinc sold; ii) an increase of 30%, 21%, and 26%, respectively, in the realized selling prices for silver, gold and zinc; iii) a $7.7 million gain on equity investment; offset by iv) a decrease of 6% in the realized selling price for lead, and v) a $7.7 million foreign exchange loss.

Revenue in Fiscal 2021 was $192.1 million, up 21% or $33.3 million compared to $158.8 million in Fiscal 2020. The increase was mainly due to i) an increase of $5.9 million arising from the increase in the quantities of metal sold; ii) an increase of $30.2 million arising from the increase in the realized selling price for silver, gold, and zinc; offset by iii) a decrease of $2.8 million arising from the decrease in the realized selling price for lead. Revenues from silver, gold, and base metals were $111.2 million, 6.7 million, and $74.2 million, respectively, up 31%, 72%, and 6%, respectively, compared to $84.9 million, $3.9 million, and $70.0 million in Fiscal 2020. Revenue from the Ying Mining District was $157.3 million, up 20% compared to $131.4 million in Fiscal 2020. Revenue from the GC Mine was $33.3 million, up 21% compared to $27.4 million in Fiscal 2020.

Income from mine operations in Fiscal 2021 was $84.2 million, up 42% compared to $59.4 million in Fiscal 2020. Income from mine operations at the Ying Mining District was $74.2 million, up 37% compared to $54.1 million in Fiscal 2020. Income from mine operations at the GC Mine was $9.8 million, up 72% compared to $5.7 million in Fiscal 2020.

Cash flow provided by operating activities in Fiscal 2021 was $85.9 million, up 11% compared to $77.2 million in Fiscal 2020.

The Company ended the fiscal year with $199.1 million in cash, cash equivalents and short-term investments, up 40% or $56.6 million, compared to $142.5 million as at March 31, 2020.

Working capital as at March 31, 2021 was $184.0 million, up 41% or $53.6 million, compared to $130.4 million as at March 31, 2020.

2. Q4 Fiscal 2021 Financial Results

Net income attributable to equity shareholders of the Company in Q4 Fiscal 2021 was $7.0 million, or $0.04 per share, up 122% or $3.9 million, compared to $3.2 million, or $0.02 per share in the three months ended March 31, 2020 (“Q4 Fiscal 2020”).

Compared to the prior year quarter, the Company’s consolidated financial results in Q4 Fiscal 2021 were mainly impacted by the following: i) an increase of 32%, 40%, 13%, and 50%, respectively, in silver, gold, lead and zinc sold; ii) an increase of 64%, 15%, 21%, and 92%, respectively, in the realized selling prices for silver, gold, lead, and zinc; offset by iii) a $0.8 million foreign exchange loss, and iv) a $1.1 million loss on equity investments.

Revenue in Q4 Fiscal 2021 was $35.7 million, up 89% or $16.8 million, compared to $18.9 million in Q4 Fiscal 2020. The increase was mainly due to i) an increase of $7.7 million arising from the increase in the quantities of metal sold; and ii) an increase of $9.1 million arising from the increase in the realized selling prices. Revenue from silver, gold, and base metals was $21.2 million, 1.0 million, and $13.5 million, respectively, up 116%, 61%, and 61%, respectively, compared to $9.8 million, $0.6 million, and $8.4 million in Q4 Fiscal 2020. Revenue from the Ying Mining District was $29.5 million, up 88% compared to $15.7 million in Q4 Fiscal 2020. Revenue from the GC Mine was $6.3 million, up 97% compared to $3.2 million in Fiscal 2020.

Income from mine operations in Q4 Fiscal 2021 was $13.4 million, up 319% compared to $3.2 million in Q4 Fiscal 2020. Income from mine operations at the Ying Mining District was $11.8 million, compared to $3.0 million in Q4 Fiscal 2020. Income from mine operations at the GC Mine was $1.6 million, compared to $0.2 million in Q4 Fiscal 2020.

Cash flows provided by operating activities in Q4 Fiscal 2021 were $2.2 million, compared to $6.3 million in Q4 Fiscal 2020. The decrease was mainly due to $9.4 million use of cash from working capital changes. Before changes in non-cash working capital, cash flows provided by operating activities in the current quarter were $11.9 million, up $2.7 million compared to $9.2 million in Q4 Fiscal 2020.

see Fugrues on
http://silvercorpmetals.com/news_and_media/news/silvercorp-reports-net-income-of-464-million-027-per-share-and-cash-flow-from-operations-of-859-million-for-fiscal-2021-

1. Fiscal 2021 Operational Results

In Fiscal 2021, on a consolidated basis, the Company mined 964,925 tonnes of ore, up 9% or 79,095 tonnes, compared to 885,830 tonnes in Fiscal 2020. Ore milled in Fiscal 2021 was 967,581 tonnes, up 8% or 75,367 tonnes, compared to 892,215 tonnes in Fiscal 2020.

The Company produced approximately 6.3 million ounces of silver, 3,500 ounces of gold, 68.4 million pounds of lead, and 28.0 million pounds of zinc, up 1%, 6%, 2%, and 10%, respectively, compared to 6.3 million ounces of silver, 3,300 ounces of gold, 67.4 million pounds of lead, and 25.6 million pounds of zinc in Fiscal 2020.

In Fiscal 2021, the consolidated cash production cost per tonne of ore processed in Fiscal 2021 was $72.71, up 6% compared to $68.91 in Fiscal 2020, in line with the Company’s annual guidance. The consolidated all-in sustaining production cost per tonne of ore processed was $128.20, an increase of 2% compared to $125.29 in Fiscal 2020, also in line with the Company’s annual guidance.

The consolidated cash cost per ounce of silver, net of by-product credits, was negative $1.80, compared to negative $1.91 in the prior year. The increase was mainly due to an increase of 6% in cash production cost per tonne of ore processed, offset by an increase of $0.99 in by-product credits per ounce of silver. Sales from lead and zinc in Fiscal 2021 amounted to $72.3 million, up 7% or $4.6 million, compared to $67.7 million in Fiscal 2020.

The consolidated all-in sustaining cost per ounce of silver, net of by-product credits, was $7.49, compared to $6.86 in Fiscal 2020. The increase was mainly due to an increase of 2% in all-in sustaining production cost per tonne of ore processed, offset by an increase of $0.99 in by-product credits per ounce of silver.

In Fiscal 2021, on a consolidated basis, a total of 254,900 metres or $8.7 million worth of diamond drilling were completed (Fiscal 2020 – 108,156 metres or $3.5 million), of which approximately 196,320 metres or $5.0 million worth of underground drilling were expensed as part of mining costs (Fiscal 2020 – 108,156 metres or $3.5 million) and approximately 58,580 metres or $3.7 million worth of surface drilling were capitalized (Fiscal 2020 – nil). Mining preparation tunnelling of 34,637 metres that costed $8.9 million was completed and expensed as part of mining costs (Fiscal 2020 – 38,403 m or $10.3 million), and 85,221 metres or $31.5 million worth of tunnels, raises, ramps and declines (Fiscal 2020 – 73,567 metres or $26.3 million) were completed and capitalized.

2. Q4 Fiscal 2021 Operational Results

In Q4 Fiscal 2021, the Company mined 163,072 tonnes of ore, up 53% or 56,477 tonnes, compared to 106,595 tonnes in Q4 Fiscal 2020. Ore milled in Q4 Fiscal 2021 was 180,674 tonnes, up 76% or 78,243 tonnes, compared to 102,431 tonnes in Q4 Fiscal 2020. The increase was mainly due to an extra month’s operational shutdown due to COVID-19 in Q4 Fiscal 2020.

The Company produced approximately 1.2 million ounces of silver, 300 ounces of gold, 12.2 million pounds of lead, and 4.7 million pounds of zinc, up 72%, 50%, 56%, and 43%, respectively, compared to approximately 0.7 million ounces of silver, 200 ounces of gold, 7.8 million pounds of lead, and 3.3 million pounds of zinc in Q4 Fiscal 2020.

In Q4 Fiscal 2021, the consolidated cash production cost per tonne of ore processed was $85.70, up 24% compared to $68.93 in Q4 Fiscal 2020. The increase was mainly due to certain fixed overhead costs related to mining operations expensed directly as mine general and administrative expense during the extra month operational shut-down in Q4 Fiscal 2020. The consolidated all-in sustaining production cost per tonne was $156.36, down 17% compared to $188.57 in Q4 Fiscal 2020.The decrease was mainly due to higher production resulting in lower per tonne fixed costs allocation.

In Q4 Fiscal 2021, the consolidated cash cost per ounce of silver, net of by-product credits, was negative $0.39, compared to negative $0.85 in Q4 Fiscal 2020. The increase was mainly due to the increase in per tonne cash production cost as discussed above, offset by an increase of $2.44 in by-product credits per ounce of silver.

In Q4 Fiscal 2021, the consolidated all-in sustaining cost per ounce of silver, net of by-product credits, was $12.55, compared to $15.17 in Q4 Fiscal 2020. The decrease was mainly due to the decrease in per tonne all-in sustaining production cost as discussed above and an increase of $0.18 in all-in sustaining costs per ounce of silver.

In Q4 Fiscal 2021, on a consolidated basis, a total of 49,459 metres or $1.6 million worth of diamond drilling were completed (Q4 Fiscal 2020 – 14,612 metres or $0.5 million), of which approximately 41,572 metres or $0.8 million worth of underground drilling were expensed as part of mining costs (Q4 Fiscal 2020 – 14,612 metres or $0.5 million), and approximately 7,887 metres or $0.8 million worth of surface drilling) were capitalized (Q4 Fiscal 2020 – nil. Mining preparation tunnelling of 7,015 metres that costed $1.5 million was completed and expensed as part of mining costs (Q4 Fiscal 2020 – 2,163 metres or $0.7 million), and 10,803 metres or $4.7 million worth of tunnels, raises, ramps and declines were completed and capitalized (Q4 Fiscal 2020 – 9,830 metres or $4.3 million).

see Fugrues on
http://silvercorpmetals.com/news_and_media/news/silvercorp-reports-net-income-of-464-million-027-per-share-and-cash-flow-from-operations-of-859-million-for-fiscal-2021-

In Fiscal 2021, a total of 208,904 metres or $6.9 million worth of diamond drilling (Fiscal 2020 – 85,643 metres or $2.5 million) were completed at the Ying Mining District, of which a total of 150,324 metres or $3.2 million worth of underground diamond drilling (Fiscal 2020 – 85,643 or $2.5 million) were expensed as part of mining costs and a total of 58,580 metres or $3.7 million worth of surface drilling (Fiscal 2020 – nil) were capitalized. In addition, mining preparation tunnelling of 22,918 metres that costed $6.7 million were completed and expensed as mining preparation costs (Fiscal 2020 – 19,088 metres or $5.7 million), and approximately 73,350 metres or $27.4 million worth of horizontal tunnels, raises, ramps and declines were completed and capitalized (Fiscal 2020 – 70,240 metres or $23.9 million).

see Fugrues on
http://silvercorpmetals.com/news_and_media/news/silvercorp-reports-net-income-of-464-million-027-per-share-and-cash-flow-from-operations-of-859-million-for-fiscal-2021-

Fiscal 2021, approximately 45,996 metres or $1.8 million worth of underground diamond drilling (Fiscal 2020 – 22,513 metres or $1.0 million) and 11,719 metres or $2.2 million worth of tunnelling (Fiscal 2020 – 19,315 metres or $4.6 million) were completed and expensed as mining preparation costs at the GC Mine. In addition, approximately 11,871 metres or $3.9 million of horizontal tunnels, raises, ramps, and declines (Fiscal 2020 – 3,327 metres or $2.4 million) were completed and capitalized.

UPDATE ON MINING CONTRACTS RENEWAL AT THE YING MINING DISCTRICT

The Company updates that the Company has successfully negotiated and renewed contracts with all mining contractors at the Ying Mining District, except one that worked at the LME mine. The renewed contracts with terms of two to three years represent an overall 14.5% increase compared to previous contracts, reflecting i) increased social welfare contribution for the contractors’ workers; ii) increased insurance coverage for contractors’ workers; and iii) increases in the prices per tonne ore mined and per meter of tunneling developed by contractors. Based on the renewed contracts and assuming the same work done in Fiscal 2021, the total annual increase is estimated at $5.0 million; however, this is expected to be offset by reduced tunneling going forward as recent drilling activities in previously mining areas has defined resources that require minimal development.

The previous mining contractor at the LME mine was terminated as no agreement was able to reach. The Company has hired most of the previous workers to work at the mine as internal contractors.