Silvercorp Metals Inc. (TSX:SVM)(NYSE:SVM) is pleased to report the results of its underground tunneling exploration program for 2012 and diamond drilling program for the second half of 2012 at the SGX mine, Ying Mining District, Henan Province, China.
 

The purpose of the underground exploration program was to expand and upgrade existing drill-defined resource blocks by step-out and infill drilling and crosscut and drift tunneling near current mining infrastructure and to test for mineralization in the unexplored portions of major vein structures by exploration drilling. The results demonstrate good downdip and strike consistency of mineralization in relation to existing production veins. The results from the program also added and extended high-grade mineralized zones within vein structures S2, S2W, S6, S8, S7-1, S7-3, S7-4, S14-1, S16W and S28 between the 610 metre and the 260m elevations. These new results will be incorporated into the next resources and reserves update for the Ying Mining District.
 

Highlights of selected mineralized zones exposed in underground tunnels:

--  Drift PD16-S14-1-350-SYM at the 350m level along vein S14-1 revealed a

    zone of 65m in length, 1.25m true width grading 709 grams per tonne

    ("g/t") silver ("Ag"), 9.86% lead ("Pb") and 4.54% zinc ("Zn");

--  Drift CM105-S2-340-SYM at the 340m level along vein S2 revealed a zone

    of 45m in length, 1.13m true width grading 988g/t Ag, 13.04% Pb and

    3.26% Zn; and

--  Drift CM105-S2-300-SYM at the 300m level along vein S2 revealed a zone

    of 59m in length, 1.01m true width grading 734g/t Ag, 11.92% Pb and

    2.46% Zn.

Highlights of selected intersections of drill holes:

--  Hole ZK15S7-104 intercepted a 3.03m interval, 2.82m true width of vein

    S7-4 grading 451g/t Ag, 0.20% Pb and 0.50% Zn at the 626m elevation;

--  Hole ZK1S7-102 intercepted an 1.40m interval, 0.88m true width of vein

    S16E grading 639g/t Ag, 0.30% Pb and 0.90% Zn at the 558m elevation; and

--  Hole ZK0S7-102 intercepted an 1.11m interval, 1.06m true width of vein

    S7-1 grading 1,274g/t Ag, 15.40% Pb and 3.00% Zn at the 589m elevation.

A total of 11,473m of underground tunneling was completed along and across major production vein structures S2, S4, S6, S7, S7-1, S7-2, S8, S14, S14-1, S16E, S16W, S21 and S29 between the 675m and the 260m elevations. Drift and crosscut tunnels have been developed at 30m to 50m intervals to delineate higher-category resources. High grade mineralized zones have been exposed in tunnels on most levels at the SGX mine.
 

The 2012 diamond drilling program comprised 51,915m of underground drilling in 208 holes using 12 underground drill rigs. A total of 1,804m of surface drilling in 7 holes was also completed using two surface drill rigs. Results from 47 holes drilled in the first half of 2012 were reported by the Company via news release on August 1, 2012 and selected drilling results from vein S7-1 were released by the Company via news release on November 26, 2012. Drill results in this news release are from the remaining un-reported holes completed in 2012.
 

Tables 1 and 2 below list the assay results of some selected mineralized zones exposed in tunnels and intersections in drill holes.
 

In 2013, the Company continues to focus its exploration program at the SGX mine on upgrading and expanding resource blocks along major mineralized vein structures S2, S6, S7-1, S7, S8, S14, S16W and S21 using infill and step-out drilling. Over 68,000m of underground drilling is planned using 12 underground drill rigs and over 12,000m of underground tunneling is also planned for 2013. Underground tunneling will be conducted on veins S2, S2W, S4, S6, S7, S7-1, S8, S14, S16E, S16W, S19 and S21 to delineate higher-category resources between the 490m and the 60m elevations via current access tunnels and shafts.
Table 1: Selected tunneling results from the SGX Mine in 2012

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                                  Length of    True    Weighted Average

                  Level         Mineralized   Width -----------------------

Tunnel ID           (m)    Vein    Zone (m)     (m)  Ag g/t    Pb %    Zn %

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PD700-S7-1-610-

 NYM2               610    S7-1         210    1.03     236    4.67    8.82

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PD700-S7-1-570-

 NYM                570    S7-1          45    1.42     374   11.63    3.70

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CM102-S6-518-

 SYN-WCM-SYM        518      S6          25    0.34     251    3.43    5.78

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PD700-S7-1-490-

 NYM                490    S7-1          85    0.91     370   11.42    3.91

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CM101-S7-1-450-

 SYM1               450    S7-1          55    1.04     317    9.40    3.45

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CM101-S7-3-450-

 SYM                450    S7-3          35    0.49     218    3.98    8.66

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CM105-S2-

 branch-420-

 NYM-TJ26-LD-

 SYM                430     S2W          48    0.63     587   14.62    4.43

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CM105-1#-S16E-

 400-SYM            400    S16E          48    0.54     501    5.39    2.59

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CM101-S21-400-

 NYM                400     S21          40    0.77     603   10.70    0.59

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CM105-S2W-380-

 WCM-NYM            380     S2W          30    1.49     178    5.71    2.26

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CM105-S1-380-

 WCM-SYM            380      S1          15    1.11     444    8.44    2.90

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PD16-S14-1-350-

 SYM                350   S14-1          65    1.25     709    9.86    4.54

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CM101-S21-350-

 SYM                350     S21          40    1.02     348    8.72    1.90

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CM105-S2-340-

 SYM                340      S2          45    1.13     988   13.04    3.26

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CM105-2#J-S2W-

 340-NYM-35m-

 QGX-SYM            340      S2          35    0.51     212    1.67    1.82

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CM105-S2W-340-

 SYM                340     S2W          41    1.04     319    8.00    2.87

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CM105-S2-300-

 SYM                300      S2          59    1.01     734   11.92    2.46

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CM105-S2-300-

 SYM                300      S2          22    0.83     121    6.12    1.11

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CM105-1#-S14-

 260-NYM            260     S14         100    0.48     176    5.74    1.77

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CM105-1#-S14-1-

 260-SYM            260   S14-1          30    0.23     292    6.34    8.36

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CM105-1#-S21-

 260-SYM            260     S21          35    0.73     198    3.11    2.70

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CM105-1#-S14-1-

 260-SYM            260   S14-1          30    0.77     247    6.39    1.39

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Table 2: Selected drilling results from the SGX Mine for the second half of 2012

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                       Eleva-  Inte-  True

          From     To   tion   rval  Width     Ag               Mineralized

Hole ID    (m)    (m)    (m)    (m)    (m)  (g/t) Pb (%) Zn (%)        Vein

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ZK9901   46.58  48.80    614   2.22   1.12     57   0.30   0.50        S28E

        149.50 150.13    546   0.63   0.32    177   0.50   0.60         S28

        158.41 159.78    540   1.37   0.70     87   0.60   0.30  S28-branch

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ZK18A14 354.24 354.75     35   0.51   0.31     77   6.30   3.80          S7

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ZK04A50 193.21 194.32    151   1.10   0.97    127   0.50   0.40         S29

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ZK9S7-

 103    136.37 137.09    552   0.72   0.66     12   0.10   4.20        S7-4

        167.45 167.80    531   0.35   0.32     91   0.60   2.40        S7-3

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ZK9S7-

 123      7.23   9.10    491   1.87   1.66    111   2.90   3.90        S7-3

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ZK9S7-

 152      8.16   8.96    493   0.81   0.74    539   9.70  11.30        S7-4

         33.65  34.84    485   1.19   1.09    634   2.70   3.60        S7-3

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ZK07AS7

 -103   183.96 184.74    490   0.78   0.54     35   1.40   4.70        S7-4

        187.75 188.37    487   0.62   0.43     66   2.40   3.70        S7-3

                                                                      S7-1E

        218.14 220.39    461   2.25   1.55    193   0.10   1.60      branch

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ZK9S7-

 153     31.87  39.87    472   8.00   5.89    105   1.83   2.57     S7-1(i)

                                                                     S7-1E-

         50.65  51.18    460   0.54   0.39    527   0.50   2.00      branch

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ZK05S7-

 102     92.16  93.67    592   1.51   0.94    193   0.10   0.10        S16W

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ZK9S7-

 151     37.13  40.39    504   3.66   3.22    140   0.50   0.50        S7-3

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ZK9S7-

 154      3.37   4.56    453   1.19   0.94     51   3.70   0.50        S7-4

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ZKY2622 259.38 260.16    202   0.78   0.40    204   6.40   1.20         S21

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ZK9S7-

 155      6.25   7.18    450   0.93   0.59     75   0.40   4.60        S7-3

         53.31  57.83    420   4.50   2.84     33   0.20   2.10        S7-1

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ZK9S7-

 107     23.73  28.43    479   3.42   2.51     71   1.80   2.60        S7-3

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ZK7AS7-                                                              S7-1E-

 150     45.90  47.40    486   1.50   1.19     52   1.10   1.60      Branch

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ZK50102 153.01 154.04    445   1.03   0.92     42   0.20   4.20        S16E

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ZK15S7-

 104      7.30   7.91    641   0.61   0.57     94   0.00   0.10       S7-4W

         50.20  53.24    626   3.03   2.82    451   0.20   0.50        S7-4

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ZK01S7-

 103    126.35 128.62    383   2.27   1.70    102   9.90   6.80        S7-4

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ZK9S7-

 108      7.32   8.83    452   1.51   1.43     72   1.00   1.00        S7-3

         30.11  31.37    444   1.26   1.19     31   0.40   2.40        S7-2

         38.77  40.06    441   1.29   1.22     92   2.30  10.20        S7-1

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ZK1S7-

 102    171.61 173.02    558   1.40   0.88    639   0.30   0.90        S16E

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ZK9S7-

 110     34.71  39.68    489   4.97   4.92    326   1.10   4.00        S7-1

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ZKY26A1

 2      401.37 402.48    143   1.11   0.82    101   1.40   0.00         S10

        538.16 539.28     57   1.13   0.85     60   4.60   0.30         S11

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ZKY2802 317.17 318.98    202   1.81   1.35     59   0.60   0.50         S10

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ZK51101 136.60 137.70    463   1.09   0.95     30   0.20   6.30        S16E

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ZK01S7-

 104    326.54  330.6    188   2.76   1.99    142   1.40   0.30        S7-1

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ZKOS7-

 102    133.65 134.76    589   1.11   1.06  1,274  15.40   3.00        S7-1

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ZKY3625

 -2      92.51  93.34    490   0.83   0.44    122   0.20   0.30        S8-1

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ZK9S7-

 109     19.35  22.68    437   3.33   2.22     98   3.90   2.30        S7-3

         28.82  41.38    429  12.54   8.33     39   0.70   4.30        S7-2

         46.64  50.38    414   3.64   2.42     61   2.70   1.90        S7-1

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ZK3AS7-

 103    206.96 210.04    568   3.08   2.46    427   0.70   1.10        S7-1

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ZK9AS7-

 151     58.44  60.95    466   2.51   1.38    196   3.20   0.70        S7-1

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Quality Control
 

Drill cores are NQ size. Drill core samples, limited by apparent mineralization contact or shear/alteration contact, were split into halves by saw cutting. The half cores are stored in the Company’s core shacks for future reference and checking, and the other half core samples are shipped in security sealed bags to the Chengde Huakan 514 Geology and Minerals Testing and Research Institute in Chengde, China, 226 km northeast of Beijing, an ISO9000 certified analytical lab. 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 AAS, and the other is digested with two-acids for analysis of silver, lead, zinc and copper.
 

Chip 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 with 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.
 

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

The Company maintains its own comprehensive quality assurance and quality control program to ensure best practice in sample preparation and analysis of the drill core samples. Project geologists regularly insert CRM, field duplicates and blanks to each batch of 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 about 3% 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.
 

Rujin Jiang, P. Geo., is the Qualified Person on the project as defined under National Instrument 43-101. He has verified the information and has reviewed and approved the contents of this news release.
 

About Silvercorp

Silvercorp is a low-cost silver-producing Canadian mining company with multiple mines in China which has paid a cash dividend since 2007. The Company is currently developing the GC project in southern China which it expects will become its next operating mine in 2013. 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.