Silvercorp Metals Inc. (TSX: SVM) (NYSE American: SVM) is pleased to report results from its 2021 exploration programs at the TLP mine, Ying Mining District, Henan Province, China. Extensive exploration drilling and tunneling are ongoing at the TLP mine, and all other mines at the Ying Mining District.

From October 1, 2020 to May 31, 2021, 34,546 metres from a total of 196 diamond drill holes, including 161 underground holes and 35 surface holes, were completed at the TLP mine. Assay results for 193 holes have been received, with 108 holes intercepting mineralization. Currently, 13 rigs are drilling at the TLP mine.

Drilling Intersected High-Grade Veins in the Production Areas

The diamond drilling programs at the TLP mine targeted resource blocks of known silver-lead-zinc veins in the production areas that were missed by limited prior drilling and drifting tunnels, as a result of changes in the dip and pinch-swelling of the pay-zones in the veins. Since access tunnels are already in place, any discovered high-grade blocks can quickly be converted to reserves and mined.

The high-grade intercepts for this period are associated with parallel veins T15W, T15W1, T15W2, and T15W3. Other veins include T16E, T2, T2W, T3, T16E, T11, T1, T1a, T22, T23, T24, T33 and T35E1. Highlight of high-grade intercepts in the TLP production area:

• Hole ZKG6AT15W304 intersected a 2.49 m interval (1.74 m true width) of vein T15W2 grading 3,911 grams per tonne silver, 6.22% lead, 2.11% zinc, 0.08 g/t gold and 0.55% copper at the 808 m elevation, which includes a 0.97 m interval (0.68 m true width) grading 9,901 g/t Ag, 15.30% Pb, 5.27% Zn, 0.19 g/t Au, and 1.39% Cu;
• Hole ZKG6AT15W305 intersected a 1.62 m interval (1.11 m true width) of vein T15W3 grading 1,556 g/t Ag, 15.27% Pb, 0.24% Zn, 0.10 g/t Au, and 0.23% Cu at the 813 m elevation;
• Hole ZKT3AT1W101 intersected a 4.00 m interval (2.56 m true width) of vein T23 grading 771 g/t Ag, 11.68% Pb, 0.23% Zn, 0.08 g/t Au, and 0.11% Cu at the 854 m elevation;
• Hole ZKT7T3E02 intersected an 8.44 m interval (5.04 m true width) of vein T3E grading 523 g/t Ag, 5.10% Pb, 0.36% Zn, 0.11 g/t Au, and 0.13% Cu at the 1,086 m elevation, which includes a 4.20 m interval (2.51 m true width) grading 1,036 g/t Ag, 9.96% Pb, 0.67% Zn, 0.18 g/t Au, and 0.24% Cu at the 1,087 m elevation;
• Hole ZKT23J001 intersected a 0.89 m interval (0.74 m true width) of vein T2 grading 1,283 g/t Ag, 8.60% Pb, 2.30% Zn, 4.22 g/t Au, and 1.30% Cu at the 676 m elevation;
• Hole ZKTDB39T103 intersected a 2.90 m interval (2.03 m true width) of vein T3 grading 1,115 g/t Ag, 1.20% Pb, 0.09% Zn, 0.08 g/t Au, and 0.11% Cu at the 818 m elevation;
• Hole ZKTDB05Y03_1 intersected a 0.52 m interval (0.51 m true width) of vein T35E1 grading 2,086 g/t Ag, 5.79% Pb, 0.62% Zn, 0.05 g/t Au, and 0.35% Cu at the 914 m elevation; and
• Hole ZKTDB43T302 intersected a 1.04 m interval (0.72 m true width) of vein T3E grading 520 g/t Ag, 1.25% Pb, 0.05% Zn, 4.36 g/t Au, and 0.11% Cu at the 730 m elevation.

Surface and Underground Drilling Outside the TLP Mine’s Resource Area

Exploratory surface drilling in the east and south sides of the resource area in the TLP mine discovered high-grade silver-lead-zinc mineralization at higher elevations. These intercepts of veins T39E2, T17 and T38 are expected to expand the resources in these areas.

• Hole ZKG4T15W113 intersected a 3.96 m interval (3.62 m true width) of vein T15W1 grading 1,086 g/t Ag, 0.93% Pb, 0.19% Zn, 0.19 g/t Au, and 0.15% Cu at the 672 m elevation;
• Hole ZKTDB20T1701 intersected a 3.48 m interval from 170.40 m to 173.88 m (2.54 m true width) of vein T17, grading 675 g/t Ag, 0.92% Pb, 0.43% Zn, 0.01 g/t Au, and 0.15% Cu at the 893 m elevation, which includes a 0.78 m interval from 171.26 m to 172.04 m (0.57 m true width) grading 2,206 g/t Ag, 1.44% Pb, 0.71% Zn, 0.02 g/t Au, and 0.40% Cu at the 892 m elevation;
• Hole ZKTDB27AT39E201 intersected a 0.81 m interval from 99.41 m to 100.22 m (0.56 m true width) of vein T39E2 grading 1,705 g/t Ag, 1.3% Pb, 0.35% Zn, 0.02% Au, and 0.06% Cu at the 803 m elevation; and
• Hole ZKTDB25AT39E201 intersected a 1.71 m interval from 169.08 m to 170.79 m (0.46 m true width) of vein T39E2 grading 456 g/t Ag, 16.16% Pb, 2.55% Zn, 0.01% Au, and 0.11% Cu at the 785 m elevation.

Table 1: Selected intercepts from the 2021 drill programs at the TLP Mine

Tunneling Program at the TLP Mine

In addition to the drilling program, 4,526 m of exploration drift tunneling were developed at the TLP mine during this period. The exploration tunneling, comprised of drifting, cross-cutting and raising, was driven along and across major mineralized vein structures to upgrade the drill defined mineral resources and test for new parallel and splay structures, and are summarized in the following table.

Highlights of selected mineralized zones exposed in the drift tunnels:

• Drift Tunnel PD890-T16E-890-2NYM exposed mineralization 85 m long and 0.64 m wide (true width) grading 721 g/t Ag, 2.62% Pb and 0.72% Zn within vein T16E on the 893 m level;
• Drift Tunnel PD820-T22E-700-16NYM exposed mineralization 30 m long and 0.81 m wide (true width) grading 692 g/t Ag, 3.43% Pb and 1.05% Zn within vein T22E on the 704 m level;
• Drift Tunnel PD960-T33-990-13NYM exposed mineralization 20m long and 0.44 m wide (true width) grading 1,841 g/t Ag, 1.81% Pb and 1.31% Zn within vein T33 on the 960m level; and
• Drift Tunnel PD846-T11E-846-10SYM exposed mineralization 110m long and 0.68 m wide (true width) grading 427 g/t Ag, 2.26% Pb and 0.44% Zn within vein T11E on the 858 m level.

Table 2: Selected mineralized zones exposed by drift tunneling at the TLP mine

Quality Control

Drill cores are NQ size. Drill core samples, limited by apparent mineralization contacts or shear/alteration contacts, were split into halves by saw cutting. The half cores are stored in the Company’s core shacks for future reference and checks, and the other half core samples are shipped in securely sealed bags to the Chengde Huakan 514 Geology and Minerals Test and Research Institute in Chengde, Hebei Province, China, 226 km northeast of Beijing, the Zhengzhou Nonferrous Exploration Institute Lab in Zhengzhou, Henan Province, China, and the Analytical Lab of the Inner Mongolia Geological Exploration Bureau in Hohhot, Inner Mongolia, China. All the three labs are ISO9000 certified analytical labs. For analysis, the sample is dried and crushed to minus 1mm and then split to a 200-300g subsample which is further pulverized to minus 200 mesh. Two subsamples are prepared from the pulverized sample. One is digested with aqua regia for gold analysis with atomic absorption spectroscopy (AAS), and the other is digested with two-acids for analysis of silver, lead, zinc and copper with AAS.

Channel samples are collected along sample lines perpendicular to the mineralized vein structure in exploration tunnels. Spacing between sampling lines is typically 5m along strike. Both the mineralized vein and the altered wall rocks are cut by continuous chisel chipping. Sample length ranges from 0.2m to more than 1m, depending on the width of the mineralized vein and the mineralization type. Channel samples are prepared and assayed with AAS at Silvercorp’s mine laboratory (Ying Lab) located at the mill complex in Luoning County, Henan Province, China. The Ying lab is officially accredited by the Quality and Technology Monitoring Bureau of Henan Province and is qualified to provide analytical services. The channel samples are dried, crushed and pulverized. A 200g sample of minus 160 mesh is prepared for assay. A duplicate sample of minus 1mm is made and kept in the laboratory archives. Gold is analysed by fire assay with AAS finish, and silver, lead, zinc and copper are assayed by two-acid digestion with AAS finish.

A routine quality assurance/quality control procedure is adopted to monitor the analytical quality at each lab. Certified reference materials pulp duplicates and blanks are inserted into each batch of lab samples. QA/QC data at the lab are attached to the assay certificates for each batch of samples.

The Company maintains its own comprehensive QA/QC program to ensure best practices in sample preparation and analysis of the exploration samples. Project geologists regularly insert CRM, field duplicates and blanks to each batch of 30 core samples to monitor the sample preparation and analysis procedures at the labs. The analytical quality of the labs is further evaluated with external checks by sending approximately 3-5% of the pulp samples to higher level labs to check for lab bias. Data from both the Company’s and the labs’ QA/QC programs are reviewed on a timely basis by project geologists.

Guoliang Ma, P. Geo., Manager of Exploration and Resource of the Company, 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.

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.