VANCOUVER, British Columbia, Aug. 08, 2019 (GLOBE NEWSWIRE) -- Silvercorp Metals Inc. (“Silvercorp” or the “Company”) (TSX/NYSE American: SVM) reported its financial and operating results for the first quarter ended June 30, 2019 (“Q1 Fiscal 2020”). All amounts are expressed in US Dollars.

Q1 FISCAL YEAR 2020 HIGHLIGHTS

-- Ore production up 9% compared to the prior year quarter; -- Silver produced and sold up 27% to approximately 1.9 million ounces, gold produced and sold up 43% to 1,000 ounces, lead produced and sold up 20% to 17.8 million pounds, and zinc produced and sold up 15% to 7.3 million pounds, compared to the prior year quarter; -- Revenue up 1% to $45.6 million compared to $45.1 million in the prior year quarter, primarily due to the increase in metals sold and offset by 6% decrease in silver, 25% decrease in lead, and 40% decrease in zinc realized selling prices; -- Net income attributable to equity shareholders of $12.6 million, or $0.07 per share, compared to $10.9 million or $0.06 per share in the prior year quarter; -- Cash production cost per tonne of ore processed1 of $68.85, compared to $69.05 in the prior year quarter; -- Cash cost per ounce of silver1, net of by-product credits, of negative $2.17, compared to negative $7.54 in the prior year quarter; -- All-in sustaining cost per ounce of silver1, net of by-product credits, of $5.69, compared to $0.41 in the prior year quarter; -- Cash flow from operations of $19.9 million, compared to $21.1 million in the prior year quarter; -- Paid dividend of $2.1 million, or $0.0125 per share, to equity shareholders; and, -- Strong balance sheet with $121.0 million in cash and cash equivalents and short-term investments, an increase of $5.7 million or 5% compared to March 31, 2019.

1 Non-IFRS measure. Please refer to section 10 of the corresponding MD&A for reconciliation.

FINANCIALS

Net income attributable to equity shareholders of the Company in Q1 Fiscal 2020 was $12.6 million, or $0.07 per share, compared to $10.9 million, or $0.06 per share in the three months ended June 30, 2018 (“Q1 Fiscal 2019”).

In Q1 Fiscal 2020, the Company’s financial results were mainly impacted by the following: i) an increase of 27%, 20%, and 15% in amount of silver, lead, and zinc metals sold, respectively; offset by ii) a decrease of 6%, 25% and 40% in the net realized selling price for silver, lead and zinc.

Sales in Q1 Fiscal 2020 were $45.6 million, up 1% compared to $45.1 million in the prior year quarter. Silver, gold and base metal sales represented $23.6 million, $1.1 million, and $20.9 million, respectively, compared to silver, gold and base metals sales of $19.8 million, $0.7 million, and $24.6 million, respectively, in the prior year quarter. The increase of volume of metals sold resulted in an increase of approximately $8.9 million in revenue, while the decrease of net realized selling prices resulted in a decrease of approximately $8.4 million in revenue in the current quarter.

Cost of sales in Q1 Fiscal 2020 was $25.1 million compared to $20.3 million in Q1 Fiscal 2019. The cost of sales included $18.0 million cash production costs (Q1 Fiscal 2019 - $14.3 million), $1.3 million mineral resources tax (Q1 Fiscal 2019 - $1.2 million), and $5.9 million depreciation and amortization charges (Q1 Fiscal 2019 - $4.7 million). The increases in cash production costs and depreciation and amortization expensed were mainly due to more metals sold. The increase in mineral resources tax was associated with the increase in revenue.

Gross profit margin in Q1 Fiscal 2020 of 45%, compared to 55% in Q1 Fiscal 2019. Ying Mining District’s gross profit margin was 48% compared to 59% in the prior year quarter, while GC Mine’s gross profit margin was 31% compared to 39% in the prior year quarter. The decrease of gross margin was mainly due to the decrease in metal prices.

General and administrative expenses in Q1 Fiscal 2020 were $4.5 million, compared to $4.5 million in Q1 Fiscal 2019.

Income tax recovery in Q1 Fiscal 2020 was $0.5 million compared to an income tax expense of $6.5 million in Q1 Fiscal 2019. In Q1 Fiscal 2020, the Company recorded current income tax expenses of $1.8 million (Q1 Fiscal 2019 – $5.9 million), and a deferred income tax recovery of $2.2 million (Q1 Fiscal 2019 – expense of $0.5 million). The deferred income tax recovery was mainly related to the tax benefit recognized arising from the disposal of the XHP Project.

Cash flows provided by operating activities in Q1 Fiscal 2020 were $19.9 million, slightly lower than the $21.1 million in Q1 Fiscal 2019.

The Company ended the quarter with $121.0 million in cash and cash equivalents and short-term investments, an increase of $5.7 million or 5% compared to $115.3 million as at March 31, 2019.

Working capital as at June 30, 2019 was $110.8 million, an increase of $13.8 million or 14%, compared to $96.9 million working capital as at March 31, 2019.

OPERATIONS AND DEVELOPMENT

In Q1 Fiscal 2020, on a consolidated basis, the Company mined 257,392 tonnes of ore, an increase of 9% compared to 236,697 tonnes in Q1 Fiscal 2019. The increase in ore mined was mainly due to an increase of 13% or 19,854 tonnes of ore mined at the Ying Mining District. Correspondingly, ore milled also increased by 9% to 259,542 tonnes, compared to 237,740 tonnes in Q1 Fiscal 2019.

In Q1 Fiscal 2020, the Company sold 1.9 million ounces of silver, 1,000 ounces of gold, 17.8 million pounds of lead, and 7.3 million pounds of zinc, up 27%, 43%, 20%, and 15%, respectively, compared to 1.5 million ounces of silver, 700 ounces of gold, 14.9 million pounds of lead, and 6.3 million pounds of zinc in Q1 Fiscal 2019. As at June 30, 2019, the Company had inventories of 4,247 tonnes of silver-lead concentrate and 285 tonnes of zinc concentrate, compared to 3,248 tonnes of silver-lead concentrate and 368 tonnes of zinc concentrate as at March 31, 2019.

In Q1 Fiscal 2020, the consolidated total mining and cash mining costs were $77.40 and $55.45 per tonne, up 4% and 2% compared to $74.39 and $54.47 per tonne, respectively in Q1 Fiscal 2019. The increase in cash mining costs was mainly due to i) an overall 3% increase in the mining contractors’ rate when two-year term mining contracts renewed at the Ying Mining District in the current quarter, and ii) more ore mined using resuing mining method at the GC Mine. The consolidated total milling and cash milling costs in Q1 Fiscal 2020 were $12.49 and $10.63 per tonne, down by 12% and 9% compared to $14.16 and $11.73 per tonne, respectively, in Q1 Fiscal 2019.

Correspondingly, the consolidated cash production cost per tonne of ore processed in Q1 Fiscal 2020 was $68.85, a slight decrease compared to $69.05 in the prior year quarter, and below the Company’s Fiscal 2020 annual guidance of $$71.80.

In Q1 Fiscal 2020, the consolidated cash cost per ounce of silver, net of by-product credits, was negative $2.17, compared to negative $7.54, in the prior year quarter. The increase in cash cost per ounce of silver, net of by-product credits, was mainly due to a decrease of $5.42 per ounce of silver in by-product credits resulting from lower by-product metal prices and more volume of silver sold. The consolidated all-in sustaining cost per ounce of silver, net of by-product credits, was $5.69 compared to $0.41 in Q1 Fiscal 2019. The increase was mainly due to i) the increase of cash cost per ounce of silver, net of by-product credits as discussed above, and ii) a $3.0 million increase in sustaining capital expenditures.

In Q1 Fiscal 2020, on a consolidated basis, approximately 31,618 metres or $0.9 million worth of diamond drilling (Q1 Fiscal 2019 – 34,848 metres or $1.0 million) and 12,656 metres or $3.1 million worth of preparation tunnelling (Q1 Fiscal 2019 – 10,782 metres or $3.2 million) were completed and expensed as mining preparation costs. In addition, approximately 21,392 metres or $7.4 million worth of horizontal tunnels, raises, ramps and declines (Q1 Fiscal 2019 – 17,466 metres or $6.5 million) were completed and capitalized.

1. Ying Mining District, Henan Province, China

Ying MiningDistrict Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 June 30, 2018 -------------------- ------------- - -------------- - ----------------- - ------------------ - ------------- - Ore Mined (tonne) 176,584 111,032 174,152 180,662 156,730 Ore Milled (tonne) 177,681 107,039 184,684 172,200 155,929 -------------------- ------------- - -------------- - ----------------- - ------------------ - ------------- - Head Grades Silver (gram/tonne) 330 324 296 308 323 Lead(%) 4.6 4.5 4.1 4.6 4.5 Zinc (%) 0.9 0.9 0.8 0.9 1.1 -------------------- ------------- - -------------- - ----------------- - ------------------ - ------------- - Recoveries Silver(%) 95.8 95.5 95.6 96.1 96.0 Lead(%) 95.9 96.1 95.2 95.6 96.3 Zinc (%) 58.3 63.7 50.2 51.2 54.5 -------------------- ------------- - -------------- - ----------------- - ------------------ - ------------- - Metal Sales Silver (in thousands 1,662 1,141 1,545 1,765 1,313 of ounce) Gold (in thousands 1.0 0.7 1.1 1.0 0.7 of ounce) Lead (in thousands 14,835 10,310 15,156 17,359 13,313 of pound) Zinc (in thousands 2,090 2,464 381 1,648 2,133 of pound) -------------------- ------------- - -------------- - ----------------- - ------------------ - ------------- - Cash mining costs ($ 63.05 65.24 63.04 58.65 63.49 per tonne) Shipping costs ($ 4.04 3.97 4.27 4.26 4.31 per tonne) Cash milling costs 9.15 12.57 10.49 8.54 10.30 ($ per tonne) -------------------- ------------- - -------------- - ----------------- - ------------------ - ------------- - Cash production 76.24 81.78 77.80 71.45 78.10 costs ($ per tonne) All-in sustaining production costs 129.14 141.63 135.47 108.75 121.87 ($/tonne) Cash costs per ounce (1.44 ) (3.02 ) (1.74 ) (2.80 ) (6.25 ) of silver ($) All-in sustaining costs per ounce of 4.82 3.28 5.80 1.52 (0.28 ) silver ($) -------------------- ------------- - -------------- - ----------------- - ------------------ - ------------- -

In Q1 Fiscal 2020, the total ore mined at the Ying Mining District was 176,584 tonnes, up 13% compared to 156,730 tonnes mined in the prior year quarter. Ore milled was 177,681 tonnes, up 14% compared to 155,929 tonnes in Q1 Fiscal 2019.

Head grades were 330 grams per ton (“g/t”) for silver, 4.6% for lead, and 0.9% for zinc, compared to 323 g/t for silver, 4.5% for lead, and 1.1% for zinc in the prior year quarter. The Company continues to achieve improvements in dilution control using its “Enterprise Blog” to assist and manage daily operations.

In Q1 Fiscal 2020, the Ying Mining District sold approximately 1.7 million ounces of silver, 14.8 million pounds of lead, and 2.1 million pounds of zinc, compared to 1.3 million ounces of silver, 13.3 million pounds of lead, and 2.1 million pounds of zinc in the prior year quarter. As at June 30, 2019, Ying Mining District had inventories of 4,208 tonnes of silver-lead concentrate and 200 tonnes of zinc concentrate, compared to 3,150 tonnes of silver-lead concentrate and 250 tonnes of zinc concentrate as at March 31, 2019.

Total and cash mining costs per tonne at the Ying Mining District in Q1 Fiscal 2020 were $91.47 and $63.05 per tonne, respectively, compared to $89.57 and $63.49 per tonne in the prior year quarter. The decrease in the per tonne cash mining cost was mainly due to i) lower per tonne fixed costs allocation resulting from the increase in ore mined, offset by ii) an overall 3% increase in mining contractors’ rate when the two-year term mining contracts were renewed in the current quarter.

Total and cash milling costs per tonne at the Ying Mining District in Q1 Fiscal 2020 were $10.93 and $9.15, compared to $12.60 and $10.30 in Q1 Fiscal 2019. The decrease of per tonne milling costs was mainly due to lower per tonne fixed costs allocation resulting from the increase in ore milled.

Correspondingly, the cash production cost per tonne of ore processed in Q1 Fiscal 2020 at the Ying Mining District was $76.24, compared to $78.10 in the prior year quarter.

Cash cost per ounce of silver, net of by-product credits, in Q1 Fiscal 2020 at the Ying Mining District, was negative $1.44 compared to negative $6.25 in the prior year quarter. The increase was mainly due to a decrease of $4.53 per ounce of silver in by-product credits resulting from the decrease in metal prices and more silver sold. All-in sustaining cost per ounce of silver, net of by-product credits, in Q1 Fiscal 2020 at the Ying Mining District was $4.82 compared to negative $0.28 in the prior year quarter. The increase was mainly due to higher cash cost per ounce of silver, net of by-product credits and an increase of $2.5 million in sustaining capital expenditures.

In Q1 Fiscal 2020, approximately 23,648 metres or $0.6 million worth of diamond drilling (Q1 Fiscal 2019 – 26,849 metres or $0.6 million) and 6,395 metres or $1.7 million worth of preparation tunnelling (Q1 Fiscal 2019 – 5,541 metres or $1.6 million) were completed and expensed as mining preparation costs at the Ying Mining District. In addition, approximately 20,895 metres or $7.1 million worth of horizontal tunnels, raises, ramps and declines (Q1 Fiscal 2019 – 16,928 metres or $6.0 million) were completed and capitalized.

2. GC Mine, Guangdong Province, China

GC Mine Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 June 30, 2018 -------------------- ------------- - -------------- - ----------------- - ------------------ - ------------- - Ore Mined (tonne) 80,808 50,368 86,126 67,757 79,967 Ore Milled (tonne) 81,861 52,865 86,792 67,528 81,811 -------------------- ------------- - -------------- - ----------------- - ------------------ - ------------- - Head Grades Silver (gram/tonne) 95 101 84 78 87 Lead(%) 1.9 1.8 1.6 1.4 1.3 Zinc (%) 3.4 3.3 3.1 2.8 2.9 -------------------- ------------- - -------------- - ----------------- - ------------------ - ------------- - Recovery Rates Silver(%) 76.8 81.3 80.5 76.7 75.3 Lead(%) 88.7 91.5 91.6 91.2 87.1 Zinc (%) 85.7 85.7 85.5 83.3 84.8 -------------------- ------------- - -------------- - ----------------- - ------------------ - ------------- - Metal Sales Silver (in thousands 193 173 167 136 150 of ounce) Lead (in thousands 3,007 2,360 2,644 2,063 1,583 of pound) Zinc (in thousands 5,244 4,874 3,730 3,240 4,244 of pound) -------------------- ------------- - -------------- - ----------------- - ------------------ - ------------- - Cash mining cost ($ 38.83 40.58 34.17 41.25 36.78 per tonne) Cash milling cost ($ 13.85 18.52 14.08 11.45 14.46 per tonne) -------------------- ------------- - -------------- - ----------------- - ------------------ - ------------- - Cash production cost 52.68 59.10 48.25 52.70 51.24 ($ per tonne) All-in sustaining production costs 67.33 72.11 56.88 67.58 61.91 ($/tonne) Cash cost per ounce (8.38 ) (10.23 ) (12.32 ) (10.81 ) (18.81 ) of silver ($) All-in sustaining cost per ounce of (0.96 ) (4.97 ) (6.54 ) (2.03 ) (11.36 ) silver ($) -------------------- ------------- - -------------- - ----------------- - ------------------ - ------------- -

In Q1 Fiscal 2020, the total ore mined at the GC Mine was 80,808 tonnes compared to 79,967 tonnes in the prior year quarter. Ore milled was 81,861 tonnes compared to 81,811 tonnes in the prior year quarter.

Average head grades of ore processed at the GC Mine were 95 g/t for silver, 1.9% for lead, and 3.4% for zinc, compared to 87 g/t for silver, 1.3% for lead, and 2.9% for zinc in the prior year quarter. Recovery rates of ore processed were 76.8% for silver, 88.7% for lead, and 85.7% for zinc, compared to 75.3% for silver, 87.1% for lead, and 84.8% for zinc in Q1 Fiscal 2019.

In Q1 Fiscal 2020, GC Mine sold approximately 193,000 ounces of silver, 3.0 million pounds of lead, and 5.2 million pounds of zinc, compared to 150,000 thousand ounces of silver, 1.6 million pounds of lead, and 4.2 million pounds of zinc in the prior year quarter.

Total and cash mining costs per tonne at the GC Mine in Q1 Fiscal 2020 were $46.64 and $38.83 per tonne, an increase of 5% and 6% respectively, compared to $44.62 and $36.78 per tonne, respectively, in Q1 Fiscal 2019. The increase in the cash mining cost was mainly due to an increase of $2.63 per tonne in mining contractors’ cost resulting from more ore mined using re-suing mining method. Total and cash milling cost per tonne at the GC Mine in Q1 Fiscal 2020 were $15.88 and $13.85, a decrease of 7% and 4%, respectively, compared to $17.14 and $14.46, respectively, in Q1 Fiscal 2019.

Correspondingly, the cash production cost per tonne of ore processed in Q1 Fiscal 2020 at the GC Mine was $52.68, an increase of 3% compared to $51.24 in the prior year quarter.

Cash cost per ounce of silver, net of by-product credits, at the GC Mine, was negative $8.38 compared to negative $18.81 in the prior year quarter. The increase was mainly due to a decrease of $13.61 per ounce of silver in by-product credits resulting from the decrease in metal prices and more silver sold. All-in sustaining cost per ounce of silver, net of by-product credits, in Q1 Fiscal 2020 at the GC Mine was negative $0.96 compared to negative $11.36 in the prior year quarter. The increase was mainly due to the increase in the cash cost per ounce of silver, net of by-product credits, as discussed above.

In Q1 Fiscal 2020, approximately 7,970 metres or $0.3 million worth of underground diamond drilling (Q1 Fiscal 2019 – 7,999 metres or $0.4 million) and 6,261 metres or $1.4 million worth of tunnelling (Q1 Fiscal 2019 – 5,241 metres or $1.6 million) were completed and expensed as mining preparation costs at the GC Mine. In addition, approximately 497 metres or $0.3 million worth of horizontal tunnels, raises, ramps and declines (Q1 Fiscal 2019 – 538 metres or $0.5 million) were completed and capitalized.

3. XHP Project, Henan Province, China

In April 2019, Henan Found, the Company’s 77.5% owned subsidiary, entered into a share transfer agreement (the “Agreement”) with an arm’s-length private Chinese company to dispose of the XHP Project. Pursuant to the Agreement, Henan Found sold its 100% equity interest in SX Gold, the holding company of the XHP Project, for $7.3 million (RMB ¥50 million), and forgave the amount of $1.1 million (RMB ¥7.5 million ) SX Gold owes to Henan Found. The transaction was completed and a gain of $1.5 million was recognized in Q1 Fiscal 2020.

Mr. Guoliang Ma, P.Geo., Manager of Exploration and Resources of the Company, is the Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“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 under the Company’s profile at www.sedar.com and are also available on the Company's website at www.silvercorp.ca.

About Silvercorp

Silvercorp is a profitable Canadian mining company producing silver, lead and zinc metals in concentrates from mines in China. The Company’s goal is to continuously create healthy returns to shareholders through efficient management, organic growth and the acquisition of profitable projects. Silvercorp balances profitability, social and environmental relationships, employees’ wellbeing, and sustainable development. For more information, please visit our website at www.silvercorp.ca.

For further information

Silvercorp Metals Inc.Lon Shaver Vice PresidentPhone: (604) 669-9397Toll Free 1(888) 224-1881Email: investor@silvercorp.ca Website: www.silvercorp.ca

CAUTIONARY DISCLAIMER - FORWARD-LOOKING STATEMENTS

Certain of the statements and information in this news 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 (collectively, “forward-looking statements”). 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. Forward-looking statements 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 and the GC Mine; 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 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, 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; 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. Forward-looking statements 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 due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Company’s Annual Information Form 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.

The Company’s forward-looking statements are based on the assumptions, beliefs, expectations and opinions of management as of the date of this news release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements if circumstances or management’s assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.

SILVERCORP METALS INC. Consolidated Statements of Financial Position --------------------------------------------------------------------------------------- (Unaudited - Expressed in thousands of U.S. dollars) As at As at June 30, March 31, --------- - --------- - 2019 2019 -------------------------------------------------------------- - ------- - - ------- - ASSETS Current Assets Cash and cash equivalents $ 49,323 $ 67,441 Short-term investments 71,712 47,836 Trade and other receivables 3,345 467 Current portion of lease receivable 120 - Inventories 10,409 10,836 Due from a related party 3,022 3,022 Income tax receivable 5,222 1,301 Prepaids and deposits 2,755 3,958 -------------------------------------------------------------- - ------- - - ------- - 145,908 134,861 Non-current Assets Long-term prepaids and deposits 567 769 Long-term portion lease receivable 310 - Reclamation deposits 7,781 7,953 Investment in an associate 42,706 38,703 Other investments 10,720 9,253 Plant and equipment 69,323 68,617 Mineral rights and properties 228,386 238,920 TOTAL ASSETS $ 505,701 $ 499,076 -------------------------------------------------------------- - ------- - - ------- - LIABILITIES AND EQUITY Current Liabilities Accounts payable and accrued liabilities $ 27,293 $ 29,856 Current portion of lease obligation 603 - Bank Loan - 4,475 Deposits received 2,889 3,040 Income tax payable 4,343 502 -------------------------------------------------------------- - ------- - - ------- - 35,128 37,873 Non-current Liabilities Long-term portion of lease obligation 2,048 - Deferred income tax liabilities 31,336 34,334 Environmental rehabilitation 13,189 13,688 -------------------------------------------------------------- - ------- - - ------- - Total Liabilities 81,701 85,895 -------------------------------------------------------------- - ------- - - ------- - Equity Share capital 231,563 231,269 Share option reserve 16,149 15,898 Reserves 25,409 25,409 Accumulated other comprehensive loss (44,542 ) (41,864 ) Retained earnings 126,393 116,734 -------------------------------------------------------------- - ------- - - ------- - Total equity attributable to the equity holders of the Company 354,972 347,446 Non-controlling interests 69,028 65,735 Total Equity 424,000 413,181 -------------------------------------------------------------- - ------- - - ------- - TOTAL LIABILITIES AND EQUITY $ 505,701 $ 499,076 -------------------------------------------------------------- - ------- - - ------- -

SILVERCORP METALS INC. Consolidated Statements of Income --------------------------------------------------------------------------------------- (Unaudited - Expressed in thousands of U.S. dollars, except for per share figures) Three Months Ended June 30, ----------------------------- - 2019 2018 ------------------------------------------------------- - ----------- - - ----------- - Sales $ 45,576 $ 45,125 Cost of sales Production costs 18,000 14,277 Mineral resource taxes 1,251 1,249 Depreciation and amortization 5,869 4,748 25,120 20,274 ------------------------------------------------------- - ----------- - - ----------- - Gross profit 20,456 24,851 General and administrative 4,548 4,472 Government fees and other taxes 594 802 Foreign exchange loss (gain) 854 (788 ) Loss on disposal of plant and equipment 142 10 Gain on disposal of mineral rights and properties (1,477 ) - Share of loss in associate 281 279 Dilution gain on investment in associate (723 ) - Reclassification of other comprehensive loss upon ownership dilution of investment in associate (21 ) - Other expense (income) 199 63 ------------------------------------------------------- - ----------- - - ----------- - Income from operations 16,059 20,013 Finance income 929 796 Finance costs (175 ) (134 ) ------------------------------------------------------- - ----------- - - ----------- - Income before income taxes 16,813 20,675 Income tax expense (488 ) 6,498 ------------------------------------------------------- - ----------- - - ----------- - Net income $ 17,301 $ 14,177 ------------------------------------------------------- - ----------- - - ----------- - Attributable to: Equity holders of the Company $ 12,607 $ 10,921 Non-controlling interests 4,694 3,256 $ 17,301 $ 14,177 ------------------------------------------------------- - ----------- - - ----------- - Earnings per share attributable to the equity holders of the Company Basic earnings per share $ 0.07 $ 0.07 ------------------------------------------------------- - ----------- - - ----------- - Diluted earnings per share $ 0.07 $ 0.06 ------------------------------------------------------- - ----------- - - ----------- - Weighted Average Number of Shares Outstanding - Basic 169,991,268 167,263,945 ------------------------------------------------------- - ----------- - - ----------- - Weighted Average Number of Shares Outstanding - Diluted 170,753,967 170,230,705 ------------------------------------------------------- --------------- ---------------

SILVERCORP METALS INC. Consolidated Statements of Cash Flow ----------------------------------------------------------------------------------- (Unaudited - Expressed in thousands of U.S. dollars) Three Months Ended June 30, -------------------- - 2019 2018 ------------------------------------------------------------ - ------- - - ------ - Cash provided by Operating activities Net income $ 17,301 $ 14,177 Add (deduct) items not affecting cash: Finance costs 175 134 Depreciation, amortization and depletion 6,220 5,053 Share of (income) loss in associate 281 279 Dilution gain on investment in associate (723 ) - Reclassification of other comprehensive loss upon ownership dilution of investment in associate (21 ) - Income tax expense (488 ) 6,498 Finance income (929 ) (796 ) Loss on disposal of plant and equipment 142 10 Gain on disposal of mineral rights and properties (1,477 ) - Share-based compensation 325 456 Reclamation expenditures and deposits (17 ) (4 ) Income taxes paid (1,919 ) (3,088 ) Interest received 929 796 Interest paid (73 ) - Changes in non-cash operating working capital 155 (2,367 ) Net cash provided by operating activities 19,881 21,148 ------------------------------------------------------------ - ------- - - ------ - Investing activities Mineral rights and properties Capital expenditures (6,770 ) (5,729 ) Proceeds on disposals 4,691 - Plant and equipment Additions (2,171 ) (1,221 ) Proceeds on disposals 1 27 Other investments Acquisition - - Investment in associate (3,023 ) - Net redemption (purchases) of short-term investments (24,075 ) 13,262 Principal received on lease receivable 27 - Net cash provided by(used in) investing activities (31,320 ) 6,339 ------------------------------------------------------------ - ------- - - ------ - Financing activities Bank loan Proceeds - 4,527 Repayment (4,369 ) - Principal payments on lease obligation (101 ) - Non-controlling interests Distribution - (3,329 ) Cash dividends distributed (2,125 ) (2,095 ) Proceeds from issuance of common shares 220 502 Net cash used in financing activities (6,375 ) (395 ) ------------------------------------------------------------ - ------- - - ------ - Effect of exchange rate changes on cash and cash equivalents (304 ) (3,422 ) ------------------------------------------------------------ - ------- - - ------ - Increase in cash and cash equivalents (18,118 ) 23,670 Cash and cash equivalents, beginning of the period 67,441 49,199 ------------------------------------------------------------ - ------- - - ------ - Cash and cash equivalents, end of the period $ 49,323 $ 72,869 ------------------------------------------------------------ - ------- - - ------ -

SILVERCORP METALS INC. Mining Data -------------------------------------------------------------------------------------------------- (Expressed in thousands of U.S. dollars, except for mining data figures) Consolidated Three months ended June 30, 2019 2018 Changes Production Data Mine Data Ore Mined (tonne) 257,392 236,697 9 % Ore Milled (tonne) 259,542 237,740 9 % Head Grades Silver (gram/tonne) 254 242 5 % Lead(%) 3.7 3.4 10 % Zinc (%) 1.7 1.7 0 % Recovery Rates Silver (%) 93.5 93.4 0 % Lead(%) 94.8 95.1 0 % Zinc (%) 75.7 72.3 5 % Cost Data + Mining cost per tonne of ore mined ($) 77.40 74.39 4 % Cash mining cost per tonne of ore mined ($) 55.45 54.47 2 % Depreciation and amoritzation charges per tonne of ore mined ($) 21.95 19.92 10 % + Unit shipping costs ($) 2.77 2.85 -3 % + Mining cost per tonne of ore milled ($) 12.49 14.16 -12 % Cash milling cost per tonne of ore milled ($) 10.63 11.73 -9 % Depreciation and amoritzation charges per tonne of ore milled ($) 1.86 2.43 -23 % + Cash production cost per tonne of ore processed ($) 68.85 69.05 0 % + All-in sustaining cost per tonne of ore processed ($) 120.16 112.67 7 % + Cash cost per ounce of Silver, net of by-product credits ($) (2.17 ) (7.54 ) -71 % + All-in sustaining cost per tonne of ore processed ($) 5.69 0.41 1288 % Concentrate inventory Lead concentrate (tonne) 4,247 5,650 -25 % Zinc concentrate (tonne) 285 380 -25 % Sales Data Metal Sales Silver (in thousands of ounces) 1,855 1,463 27 % Gold (in thousands of ounces) 1.0 0.7 43 % Lead (in thousands of pounds) 17,842 14,896 20 % Zinc (in thousands of pounds) 7,334 6,377 15 % Revenue Silver (in thousands of $) 23,558 19,823 19 % Gold (in thousands of $) 1,082 692 56 % Lead (in thousands of $) 15,178 17,051 -11 % Zinc (in thousands of $) 5,152 7,412 -30 % Other (in thousands of $) 606 147 312 % 45,576 45,125 1 % -------- - ------- - ------- - Average Selling Price, Net of Value Added Tax and Smelter Charges Silver ($ per ounce) 12.70 13.55 -6 % Gold ($ per ounce) 1,082.00 989 9 % Lead ($ per pound) 0.85 1.14 -25 % Zinc ($ per pound) 0.70 1.16 -40 %

SILVERCORP METALS INC. Mining Data ------------------------------------------------------------------------------------------------- (Expressed in thousands of U.S. dollars, except for mining data figures) Ying Mining District Three months ended June 30, 2019 2018 Changes Production Data Mine Data Ore Mined (tonne) 176,584 156,730 13 % Ore Milled (tonne) 177,681 155,929 14 % Head Grades Silver (gram/tonne) 330 323 2 % Lead(%) 4.6 4.5 3 % Zinc (%) 0.9 1.1 -16 % Recovery Rates Silver (%) 95.8 96.0 0 % Lead(%) 95.9 96.3 0 % Zinc (%) 58.3 54.5 7 % Cost Data + Mining cost per tonne of ore mined ($) 91.47 89.57 2 % Cash mining cost per tonne of ore mined ($) 63.05 63.49 -1 % Depreciation and amoritzation charges per tonne of ore mined ($) 28.42 26.08 9 % + Unit shipping costs ($) 4.04 4.31 -6 % + Mining cost per tonne of ore milled ($) 10.93 12.60 -13 % Cash milling cost per tonne of ore milled ($) 9.15 10.30 -11 % Depreciation and amoritzation charges per tonne of ore milled ($) 1.78 2.30 -23 % + Cash production cost per tonne of ore processed ($) 76.24 78.10 -2 % + All-in sustaining cost per tonne of ore processed ($) 129.14 121.87 6 % + Cash cost per ounce of Silver, net of by-product credits ($) (1.44 ) (6.25 ) -77 % + All-in sustaining cost per tonne of ore processed ($) 4.82 0.28 -1821 % Concentrate inventory Lead concentrate (tonne) 4,208 5,250 -20 % Zinc concentrate (tonne) 200 200 0 % Sales Data Metal Sales Silver (in thousands of ounces) 1,662 1,313 27 % Gold (in thousands of ounces) 1.0 0.7 43 % Lead (in thousands of pounds) 14,835 13,313 11 % Zinc (in thousands of pounds) 2,090 2,133 -2 % Revenue Silver (in thousands of $) 21,730 18,350 18 % Gold (in thousands of $) 1,082 692 56 % Lead (in thousands of $) 12,693 15,275 -17 % Zinc (in thousands of $) 1,664 2,516 -34 % Other (in thousands of $) 605 134 351 % 37,774 36,967 2 % ------- - ------- - ------- - Average Selling Price, Net of Value Added Tax and Smelter Charges Silver ($ per ounce) 13.07 13.98 -7 % Gold ($ per ounce) 1,082 989 -9 % Lead ($ per pound) 0.86 1.15 -25 % Zinc ($ per pound) 0.80 1.18 -32 %

SILVERCORP METALS INC. Mining Data ----------------------------------------------------------------------------------------------- (Expressed in thousands of U.S. dollars, except for mining data figures) GC Mine Three months ended June 30, 2019 2018 Changes Production Data Mine Data Ore Mined (tonne) 80,808 79,967 1 % Ore Milled (tonne) 81,861 81,811 0 % Head Grades Silver (gram/tonne) 95 87 9 % Lead(%) 1.9 1.3 42 % Zinc (%) 3.4 2.9 16 % Recovery Rates Silver (%) * 76.8 75.3 2 % Lead(%) 88.7 87.1 2 % Zinc (%) 85.7 84.8 1 % Cost Data + Mining cost per tonne of ore mined ($) 46.64 44.62 5 % Cash mining cost per tonne of ore mined ($) 38.83 36.78 6 % Depreciation and amoritzation charges per tonne of ore mined ($) 7.81 7.84 0 % + Mining cost per tonne of ore milled ($) 15.88 17.14 -7 % Cash milling cost per tonne of ore milled ($) 13.85 14.46 -4 % Depreciation and amoritzation charges per tonne of ore milled ($) 2.03 2.68 -24 % + Cash production cost per tonne of ore processed ($) 52.68 51.24 3 % + All-in sustaining cost per tonne of ore processed ($) 67.33 61.91 9 % + Cash cost per ounce of Silver, net of by-product credits ($) (8.38 ) (18.81 ) -55 % + All-in sustaining cost per tonne of ore processed ($) (0.96 ) (11.36 ) -92 % Concentrate inventory Lead concentrate (tonne) 39 400 -90 % Zinc concentrate (tonne) 85 180 -53 % Sales Data Metal Sales Silver (in thousands of ounces) 193 150 29 % Lead (in thousands of pounds) 3,007 1,583 90 % Zinc (in thousands of pounds) 5,244 4,244 24 % Revenue Silver (in thousands of $) 1,828 1,473 24 % Lead (in thousands of $) 2,485 1,776 40 % Zinc (in thousands of $) 3,488 4,896 -29 % Other (in thousands of $) 1 13 -92 % 7,802 8,158 -4 % ------ - ------ - ------- - Average Selling Price, Net of Value Added Tax and Smelter Charges Silver ($ per ounce) ** 9.47 9.82 -4 % Lead ($ per pound) 0.83 1.12 -26 % Zinc ($ per pound) 0.67 1.15 -42 % * Silver recovery rate consists of 54.24% from lead concentrates (Q1 Fiscal 2019 - 49.6%) and 22.58% from zinc concentrates (Q1 Fiscal 2019 - 25.7%). ** GC Silver sold in zinc concentrates is subjected to higher smelter and refining charges which lowers the net silver selling price.

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