Three Exploration Permits And Negotiation Of Mining Contracts Renewal At Ying Mining District

VANCOUVER - Silvercorp Metals Inc. reported that it has been granted three exploration permits of 48.8 square kilometers in area, covering depth extensions of three mining permits, SGX, HPG, and TLP-LME-LMW, at the Ying Mining District.  Previously, the exploration activities underneath the mining permits were covered by a joint venture agreement between the Company and the Department of Natural Resources of Henan Province.

Previous drilling in the new exploration permits has intercepted extensive mineralization, such as drill hole ZK-H17-0012 from the HPG mine which intercepted a 1.42 meter (m) interval from 784.85 m to 786.27 m downhole grading 263 grams per tonne (g/t) gold (Au) and 335 g/t silver (Ag) at approximately minus 82 m elevation, and a 1.24 m interval grading 9.65 g/t Au, 286 g/t Ag, 4.30% lead (Pb), and 2.19% zinc (Zn) at minus 34 m elevation.  Recent re-logging and re-sampling surrounding the 1.42 m interval yielded a 5.02 m interval grading 75.9 g/t Au and 98 g/t Ag, approximately 400 m below the HPG Mining Permit.  These new exploration permits have no depth limitation.

The Company's two-year mining contracts with the eight mining contractors at the Ying Mining District expired on March 31, 2021 and the parties have reached a temporary two-month extension to renew the contracts for another two years.  In case an agreement cannot be reached with certain contractors, the Company may replace them with new ones, which may cause temporary mining delays.