Silvercorp Reports Financial and Operating Results for the Second Quarter of Fiscal Year 2014

Silvercorp Reports Financial and Operating Results for the Second Quarter of 
Fiscal Year 2014 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 11/14/13 --
Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX:SVM)
(NYSE:SVM) reported its financial and operating results for the
second quarter ended September 30, 2013 ("Q2 Fiscal 2014"). 
SECOND QUARTER HIGHLIGHTS 


 
--  Silver production of 1.0 million ounces and gold production of 3,012
    ounces; 
--  Lead production of 9.5 million pounds and zinc production of 2.2 million
    pounds; 
--  Sales of $28.5 million; 
--  Gross margin of 48%; 
--  Cash flow from operations of $5.6 million, or $0.03 per share; 
--  Adjusted net loss of $0.4 million, or $0.00 per share; 
--  Cash cost per ounce of silver, net of by-product credits, of $0.49; and 
--  Quarterly dividend payment of $4.1 million, or CAD$0.025 per share. 

 
FINANCIALS 
In Q2 Fiscal 2014, net loss attributable to equity holders of the
Company was $43.2 million or $0.25 per share. Net loss included
impairment charges of $42.8 million, net of tax, attributable to the
equity holders of the Company, which reduced the carrying value of
the BYP mine, as well as the XBG and Silvertip projects, both of
which are being sold. Adjusted net loss(1) for Q2 Fiscal 2014 was
$0.4 million, or $0.00 per share. For the three months ended
September 30, 2012 ("Q2 Fiscal 2013"), net income was $9.5 million,
or $0.06 per share. There were no adjusting items to net income in
the prior year quarter. 
In Q2 Fiscal 2014, the Company realized sales of $28.5 million, a
decrease of 37% from $45.2 million in Q2 Fiscal 2013. The Company's
financial results were mainly impacted by the following: (i) lower
metal production as silver, lead and zinc production decreased 21%,
32%, and 38% respectively, compared to Q2 Fiscal 2013; (ii) a
significantly lower net realized silver price of $16.33 per ounce in
this quarter, down $6.82 per ounce or 29% from $23.15 per ounce in Q2
Fiscal 2013; and (iii) lower base metal prices; net realized lead and
zinc prices were 4% and 3% lower in this quarter as compared to the
prior year quarter. 
Cost of sales in Q2 Fiscal 2014 was $14.8 million compared to $16.8
million in Q2 Fiscal 2013 and included cash costs of $10.7 million 
compared to $13.7 million in Q2 Fiscal 2013. The decrease of cost of
sales was due to the reduction in ore production in this quarter. 
The gross profit margin in Q2 Fiscal 2014 was 48%, compared to 63% in
Q2 Fiscal 2013. 
Cash flow from operations in Q2 Fiscal 2014 was $5.6 million or $0.03
per share, compared to $23.9 million, or $0.14 per share, in Q2
Fiscal 2013. 
For the six months ended September 30, 2013, net loss was $38.6
million or $0.23 per share with adjusted net income(1) of $4.2
million or $0.02 per share, compared to net income of $15.6 million
or $0.09 per share, in the same prior year period. During the same
comparative period, sales were $68.3 million compared to $89.8
million, cost of sales was $37.3 million compared to $35.8 million,
which resulted in a gross profit margin of 45% compared to 60%. Cash
flow from operations was $23.3 million compared to $43.2 million in
the same comparative periods. 
(1) Adjusted net income or loss excludes non-recurring or unusual
non-operational items, such as impairment of the Company's mineral
properties, and acts as a supplemental financial measure that
provides a more complete assessment of the Company's operations for
the period. 
OPERATIONS 
In Q2 Fiscal 2014, on a consolidated basis, the Company produced 1.0
million ounces of silver, 3,012 ounces of gold, 9.5 million pounds of
lead, and 2.2 million pounds of zinc, compared to 1.3 million ounces
of silver, 2,481 ounces of gold, 13.9 million pounds of lead, and 3.5
million pounds of zinc, respectively, in Q2 Fiscal 2013. 
For the six months ended September 30, 2013, the Company produced 2.4
million ounces of silver, 6,789 ounces of gold, 23.0 million pounds
of lead, and 5.9 million pounds of zinc, compared to 2.5 million
ounces of silver, 5,134 ounces of gold, 27.6 million pounds of lead
and 6.5 million pounds of zinc, in the same prior year period. 
1. Ying Mining District, Henan Province, China 
In Q2 Fiscal 2014, the Ying Mining District mined 153,102 tonnes of
ore, producing 1.0 million ounces of silver, 873 ounces of gold, 9.5
million pounds of lead, and 2.2 million pounds of zinc, compared to
205,811 tonnes of ore in Q2 Fiscal 2013, producing 1.3 million ounces
of silver, 1,238 ounces of gold, 13.4 million pounds of lead, and 3.4
million pounds of zinc, respectively. 
During the quarter, the Company reviewed its operations to identify
potential cost saving measures to better adapt to the declining price
environment. One of the review's key findings is that dilutive
practices of mining contractors for ore production at Ying Mining
District have contributed to recent head grade declines. As explained
in the Company's press release of September 12, 2013, the Company has
taken remedial action by modifying the method of calculating the
actual amount of ore mined by contractors (the "New Method"). 
The decrease of mine production was due to the shortage of miners as
the transition to the New Method resulted in some miners leaving the
mine sites and one contractor being dismissed. The Company will
replace the dismissed contractor with the Company's own miners in
late November, which will gradually improve production levels while
maintaining enhanced control over dilution. The Company expects ore
production will gradually return to prior levels during the next two
quarters. 
In Q2 Fiscal 2014, head grades at the Ying Mining District were 217
grams per tonne ("g/t") for silver, 2.9% for lead, and 1.0% for zinc,
compared to 224 g/t for silver, 3.4% for lead, and 1.2% for zinc,
respectively, in Q2 Fiscal 2013. After implementing the New Method in
August, the Company has noted a gradual improvement in head grades.
For the quarter, silver, lead and zinc head grades improved 9%, 7%,
and 25%, respectively, compared to the first quarter of fiscal year
2014. 
In Q2 Fiscal 2014, total and cash mining costs per tonne were $56.08
and $45.22 compared to $62.56 and $53.27 in Q2 Fiscal 2013,
respectively. The decrease in unit cash mining cost was mainly due to
the reduction of ore produced by re-suing method and the reduced
payment to contractors for waste rock dilution in this quarter. 
For the six months ended September 30, 2013, the Ying Mining District
mined 386,359 tonnes of ore, producing 2.4 million ounces of silver,
2,155 ounces of gold, 22.6 million pounds of lead, and 5.1 million
pounds of zinc, compared to 386,829 tonnes of ore producing 2.5
million ounces of silver, 2,067 ounces of gold, 27.1 million pounds
of lead, and 6.4 million pounds of zinc in the same prior year
period, respectively. During the same comparative period, head grades
were 207 g/t for silver, 2.8% for lead, and 0.9% for zinc, compared
to 226 g/t for silver, 3.5% for lead and 1.2% for zinc, respectively. 
In Q2 Fiscal 2014, total ore milled was 157,293 tonnes, a decrease of
23% compared to 203,170 tonnes in Q2 Fiscal 2013. Cash milling costs
per tonne were $14.89 compared to $12.12 in Q2 Fiscal 2013. The
increase in unit cost is mainly due to the reduced tonnage milled.
For the six months ended September 30, 2013, total ore milled was
393,466 tonnes compared to 389,625 tonnes in the same prior year
period. During the same time period, cash milling costs per tonne
were $13.21 compared to $13.10. 
In Q2 Fiscal 2014, the consolidated total production cost and cash
cost per ounce of silver, net of by-product credits, were $3.41 and
$0.49 compared to $1.05 and negative $0.74, respectively, in Q2
Fiscal 2013. For the six months ended September 30, 2013, the
consolidated total production cost and cash cost per ounce of silver,
net of by-product credits, were $4.51 and $2.06 compared to $1.75 and
negative $0.31, respectively, in the same prior year period. 
The overall increase in cash cost per ounce of silver, net of
by-product credits, is mainly due to decreases in by-product credits.
Compared to the six months ended September 30, 2012, lead and zinc
production in the current fiscal year decreased 17% and 20%,
respectively along with decreases in realized selling price for lead
and zinc of 6% and 3%, respectively. 
The consolidated operational results for the past five quarters at
the Ying Mining District are summarized in the table below: 


 
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Quarterly operational results - Ying Mining District                        
                            Q2 2014   Q1 2014   Q4 2013   Q3 2013   Q2 2013 
                          30-Sep-13 30-Jun-13 31-Mar-13 31-Dec-12 30-Sep-12 
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Ore Mined (tonne)                                                           
  Direct Smelting Ore                                                       
   (tonne)                      503       963     1,309     2,334     2,442 
  Stockpiled Ore (tonne)    152,599   232,294   152,014   234,360   203,369 
                          --------------------------------------------------
                          --------------------------------------------------
                            153,102   233,257   153,323   236,694   205,811 
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Run of Mine Ore (tonne)                                                     
  Direct Smelting Ore                                                       
   (tonne)                      503       963     1,309     2,334     2,442 
  Ore Milled (tonne)        156,790   235,210   156,836   224,430   200,728 
                          --------------------------------------------------
                          --------------------------------------------------
                            157,293   236,173   158,145   226,764   203,170 
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Metal Sales                                                                 
  Silver (in thousands of                                                   
   ounces)                    1,021     1,364       933     1,508     1,277 
  Gold (in thousands of                                                     
   ounces)                      0.9       1.3       0.8       1.3       1.3 
  Lead (in thousands of                                                     
   pounds)                    9,519    13,063     9,462    15,642    13,403 
  Zinc (in thousands of                                                     
   pounds)                    2,199     2,926     1,554     3,231     3,412 
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Head Grade of Run of Mine                                                   
 Ore                                                                        
  Silver (gram/tonne)           217       200       205       222       224 
  Lead (%)                      2.9       2.7       2.9       3.2       3.4 
  Zinc (%)                      1.0       0.8       0.7       1.0       1.2 
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Recovery Rate of Run of                                                     
 Mine Ore                                                                   
  Silver (%)                   92.7      92.3      93.5      93.3      92.7 
  Lead (%)                     94.8      94.6      94.5      95.1      94.3 
  Zinc (%)                     68.5      68.4      60.3      70.4      69.6 
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Cash Mining Cost ($ per                                                     
 tonne)                       45.22     54.95     61.67     54.92     53.27 
Total Mining Costs ($ per                                                   
 tonne)                       56.08     65.09     72.56     64.47     62.56 
Cash Milling Cost ($ per                                                    
 tonne)                       14.89     12.06     16.05     12.61     12.12 
Total Milling Cost ($ per                                                   
 tonne)                       17.29     13.62     18.61     14.20     13.84 
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Cash Cost per Ounce of                                                      
 Silver ($)                    0.49      3.23      3.65     (0.17)    (0.74)
                                                                            
Total Production Cost per                                                   
 Ounce of Silver ($)           3.41      5.33      5.82      1.52      1.05 
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2. BYP Mine, Hunan Province, China 
In Q2 Fiscal 2014, the BYP mine processed 20,073 tonnes of ore
compared to 18,564 tonnes in Q2 Fiscal 2013. During the same
comparative periods, the Company sold 2,140 ounces of gold at a cash
cost per ounce of gold of $486 compared to 1,213 ounces of gold at a
cash cost per ounce of gold of $361, respectively. Gold head grade
for Q2 Fiscal 2014 was 2.8 g/t compared to 3.3 g/t in Q2 Fiscal 2013.
In Q2 Fiscal 2014, total and cash mining costs per tonne were $60.72
and $28.21 compared to $61.24 and $25.71 in Q2 Fiscal 2013,
respectively. 
DEVELOPMENT AND EXPLORATION 
1. Ying Mining District, Henan Province, China 
As at the end of Q2 Fiscal 2014, the Company completed approximately
2,400 metres ("m") of the development work for the 4,800m access ramp
at the LM Mine West. 
During the quarter, the Company also completed approximately 17,500m
of horizontal tunnels, raises and declines. In addition, construction
for 20,000 square metres of surface facilities, consisting of offices
and dormitories within the Ying Mining District, continued. 
In Q2 Fiscal 2014, exploration and development expenditures for the
Ying Mining District were $8.5 million compared to $9.4 million in Q2
Fiscal 2013. For the six months ended September 30, 2013, exploration
and development expenditures for the Ying Mining District were $18.2
million compared to $19.0 million in the same prior year period. 
2. GC Project, Guangdong Province, China 
The Company has substantially completed the construction of the GC
mine and it continues to progress the preparations for safety and
environmental regulatory inspections, prior to commercial production. 
The majority of the required surface environmental protection
facilities together with water and soil conservation engineering work
is
 complete and has undergone test operations. The key component
required for passing the safety inspection, in accordance to safety
requirements in the Mine Design, is to complete a water sump and
pumping station at the -50m elevation. During the quarter, the
underground development work for the water sump and pumping station
was completed. The finishing of the concrete rooms for the pumping
station and underground main power station is ongoing. Once it is
complete, the pumps and pipes will be installed prior to the end of
December 2013. Subsequently, it is expected to take three to six
months for the appropriate regulators to complete the inspection and
issue the Safety Production Permit. 
In the meantime, the Company has received a temporary safety
production permit which allows for trial mining. The proposed mining
method for the major production ore body, V2, has been changed from
shrinkage stoping to the more efficient and lower cost longhole
stoping method. The longhole stoping method requires additional
development work to be completed, including raises and sublevels,
before significant mining can commence. 
During Q2 Fiscal 2014, approximately 3,900m of tunnels, including
1,200m of development tunnels, 1,900m of exploration tunnels and 800m
of mining preparation tunnels, were completed. The main access ramp
totalling 2,210m in length was previously completed and has accessed
the V2 vein at the +40m, +20m, and 0m elevations. The exploration
ramp is completed to a length of 1,800m, representing 39% of the
total designed length of 4,600m. To date, the exploration ramp has
accessed the V9, V9-1, V9W-1, and V9W-2 veins at the 100m, 50m, 0m
and -50 m elevations through cross-cuts and has developed
transportation drifts and mining preparation drifts. Once the
exploration ramp is completed, access to all known veins within a
horizontal distance of 250m is possible. The exploration ramp also
connects to the main ramp at the 100m and 0m elevations, and the main
shaft at the +100m, +50m, 0m and -50m elevations to provide
ventilation and a safety exit. 
In Q2 Fiscal 2014, the Company continued to use development tunneling
ore to test mill equipment to fine tune the mill circuit to achieve
the desired metallurgical recovery rates for silver, lead, zinc, tin,
and sulphur in concentrates. The testing process has identified
numerous improvement areas in the mill circuit. While the floatation
test recovery results are approaching the designed levels for silver,
lead, zinc, and pyrite, the gravity recovery results for tin has not
yet reached designed levels. Therefore, work on improving the gravity
circuit through further testing will continue over the next several
months. The tailing dewatering facility for dry stacking has also
been improved with modifications to equipment in order to achieve
desired results. 
In Q2 Fiscal 2014, $3.1 million (Q2 Fiscal 2013 - $3.1 million) of
exploration and development expenditures were incurred at the GC
mine. For the six months ended September 30, 2013, $9.3 million (six
months ended September 30, 2012 - $6.2 million) of exploration and
development expenditures were incurred at the GC mine. 
3. BYP Mine, Hunan Province, China 
In Q2 Fiscal 2014, the Company completed the installation of shaft
equipment for the newly completed 265m shaft. The construction of the
head frame has commenced in this quarter. Once completed, this shaft
will facilitate mining of the #3 gold mineralization body and the #5
zinc and lead ore body. In addition, the construction of a 1,500 t/d
tailings-backfill facility has been completed and has been used in
trial runs. 
In Q2 Fiscal 2014, exploration and development expenditures at the
BYP mine were $0.4 million compared to $1.3 million in Q2 Fiscal
2013. For the six months ended September 30, 2013, exploration and
development expenditures at the BYP mine were $2.0 million compared
to $2.6 million in the same prior year period. 
4. X Mines, Henan Province, China 
The X Mines consist of two mining projects: the XBG project and XHP
project. 
During the six months ended September 30, 2013, the Company entered
into a share transfer agreement with an arm's length private Chinese
company. Pursuant to the agreement, the Company's subsidiary, Henan
Found Mining Co. Ltd., will sell its 90% equity interest in Zhongxing
Mining Co. Ltd. (XBG project) for $12.4 million (RMB 76 million). As
of the date of this news release, the Company received payment of
$8.2 million (RMB 50 million) for the sale. The transaction is
expected to be completed within 12 months. 
Since the end of the prior quarter, the Company has also suspended
activities at the XHP project as part of its cost saving measures. 
5. Silvertip Project, British Columbia, Canada 
During the six months ended September 30, 2013, the Company entered
into a purchase agreement with an arm's length private Canadian
company. Pursuant to the purchase agreement, the Company's
subsidiary, 0875786 B.C. Ltd. will sell its 100% ownership of the
Silvertip property and its related assets for $15.1 million (CAD
$15.5 million) and a 2.5% NSR. The transaction has been completed on
November 13, 2013. 
Myles Gao, P.Geo., President & CEO, 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. 
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 at www.sedar.com and are also available on
the Company's website at www.silvercorp.ca. All figures are in United
States dollars unless otherwise stated. 
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. The
Compan
y'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. For more information, please visit
our website at www.silvercorp.ca. 
CAUTIONARY DISCLAIMER - FORWARD LOOKING STATEMENTS 
Certain of the statements and information in this press 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. 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 or information.
Forward-looking statements or information 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; 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 or information 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 or information, 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; First Nations title claims and rights; 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
as per the requirements of the Sarbanes-Oxley Act; 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 or information. Forward-looking
statements or information 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 or information due to a
variety of risks, uncertainties and other factors, including, without
limitation, those referred to in the Company's Annual Information
Form for the year ended March 31, 2013 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 or information. 
The Company's forward-looking statements and information are based on
the assumptions, beliefs, expectations and opinions of management as
of the date of this press release, and other than as required by
applicable securities laws, the Company does not assume any
obligation to update forward-looking statements and information if
circumstances or management's assumptions, beliefs, expectations or
opinions should change, or changes in any other events affecting such
statements or information. For the reasons set forth above, investors
should not place undue reliance on forward-looking statements and
information. 


 
SILVERCORP METALS INC.                                                      
Condensed Consolidated Interim Balance Sheets                               
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(Unaudited) (Expressed in thousands of U.S. dollars)                        
                                                                            
                                         September 30, 2013  March 31, 2013 
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ASSETS                                                                      
Current Assets                                                              
  Cash and cash equivalents                     $    76,075     $    72,283 
  Short-term investments                             22,962          45,623 
  Trade and other receivables                         1,494           1,442 
  Inventories                                         5,222           7,522 
  Due from related parties                               24             123 
  Prepaids and deposits                               7,063           5,118 
  Assets held for sale                               32,290               - 
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                                                    145,130         132,111 
                                                                            
Non-current Assets                                                          
  Long-term prepaids and deposits                     1,559           1,877 
  Investment in an associate                          6,288           6,523 
  Other investments                                  12,362          15,516 
  Plant and equipment                               106,883         103,517 
  Mineral rights and properties                     254,529         316,678 
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TOTAL ASSETS                                    $   526,751     $   576,222 
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LIABILITIES AND EQUITY                                                      
Current Liabilities                                                         
  Accounts payable and accrued                                              
   liabilities                                  $    34,672     $    29,285 
  Deposits received                                  15,652          11,497 
  Dividends payable                                   4,152           4,204 
  Income tax payable                                  2,651           1,349 
  Due to related parties                                  -           1,207 
 
  Liabilities held for sale                           3,021               - 
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                                                     60,148          47,542 
Non-current Liabilities                                                     
  Deferred income tax liabilities                    13,950          24,603 
  Environmental rehabilitation                        6,002           5,974 
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Total Liabilities                                    80,100          78,119 
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Equity                                                                      
  Share capital                                     233,217         233,082 
  Share option reserve                                9,584           8,314 
  Reserves                                           24,717          24,717 
  Accumulated other comprehensive loss                 (264)         (1,495)
  Retained earnings                                 108,853         155,817 
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Total equity attributable to the equity                                     
 holders of the Company                             376,107         420,435 
Non-controlling interests                            70,544          77,668 
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Total Equity                                        446,651         498,103 
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TOTAL LIABILITIES AND EQUITY                    $   526,751     $   576,222 
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SILVERCORP METALS INC.                                                      
Condensed Consolidated Interim Statements of Income                         
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(Unaudited) (Expressed in thousands of U.S. dollars, except for per share   
figures)                                                                    
                                                                            
                             Three Months Ended            Six Months Ended 
                                  September 30,               September 30, 
                    --------------------------------------------------------
                             2013          2012          2013          2012 
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Sales                $     28,460  $     45,209  $     68,295  $     89,758 
Cost of sales              14,823        16,794        37,305        35,788 
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Gross profit               13,637        28,415        30,990        53,970 
                                                                            
General and                                                                 
 administrative             7,054         6,191        14,555        13,037 
General exploration                                                         
 and property                                                               
 investigation                764           887         1,812         1,853 
Other taxes                   572           842         1,167         1,648 
Foreign exchange                                                            
 loss (gain)                  798         1,142        (1,083)          365 
Loss on disposal of                                                         
 plant and equipment           95             5           123            25 
Share of loss in                                                            
 associate                    139           182           153           189 
Impairment of                                                               
 mineral rights and                                                         
 properties                66,573             -        66,573             - 
(Gain) loss on                                                              
 investments                  (31)         (693)          543           593 
Other income                  (41)          (93)         (156)         (168)
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(Loss) income from                                                          
 operations               (62,286)       19,952       (52,697)       36,428 
                                                                            
Finance income                978           851         1,906         1,842 
Finance costs                 (33)          (23)          (66)          (45)
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(Loss) income before                                                        
 income taxes             (61,341)       20,780       (50,857)       38,225 
                                                                            
Income tax                                                                  
 (recovery) expense        (8,034)        7,277        (4,034)       15,204 
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Net (loss) income    $    (53,307) $     13,503  $    (46,823) $     23,021 
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Attributable to:                                                            
  Equity holders of                                                         
   the Company       $    (43,201) $      9,500  $    (38,639) $     15,614 
  Non-controlling                                                           
   interests              (10,106)        4,003        (8,184)        7,407 
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                     $    (53,307) $     13,503  $    (46,823) $     23,021 
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(Loss) earnings per                                                         
 share attributable                                                         
 to the equity                                                              
 holders of the                                                             
 Company                                                                    
Basic (loss)                                                                
 earnings per share  $      (0.25) $       0.06  $      (0.23) $       0.09 
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Diluted (loss)                                                              
 earnings per share  $      (0.25) $       0.06  $      (0.23) $       0.09 
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Weighted Average                                                            
 
Number of Shares                                                           
 Outstanding - Basic  170,781,384   170,719,933   170,781,222   170,706,702 
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Weighted Average                                                            
 Number of Shares                                                           
 Outstanding -                                                              
 Diluted              170,781,384   171,062,715   170,781,222   171,072,838 
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SILVERCORP METALS INC.                                                      
Condensed Consolidated Interim Statements of Cash Flow                      
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(Unaudited) (Expressed in thousands of U.S. dollars)                        
 
                                     Three Months Ended    Six Months Ended 
                                          September 30,       September 30, 
                                    ----------------------------------------
                                    ----------------------------------------
                                         2013      2012      2013      2012 
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Cash provided by                                                            
Operating activities                                                        
  Net income                         $(53,307) $ 13,503  $(46,823) $ 23,021 
  Add (deduct) items not affecting                                          
   cash:                                                                    
    Unwinding of discount of                                                
     environmental rehabilitation          33        23        66        45 
    Depreciation, amortization and                                          
     depletion                          4,550     3,114     8,482     7,190 
    Share of loss in associate            139       182       153       189 
    Impairment of mineral rights and                                        
     properties                        66,573         -    66,573         - 
    Write down of inventories               -       348         -       348 
    Income tax (recovery) expense      (8,034)    7,277    (4,034)   15,204 
    (Gain) loss on investments            (31)     (693)      543       593 
    Loss on disposal of plant and                                           
     equipment                             95         5       123        25 
    Share-based compensation              602       872     1,317     1,608 
  Income tax paid                          (1)   (5,860)   (3,350)  (14,375)
  Changes in non-cash operating                                             
   working capital                     (4,989)    5,146       205     9,321 
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Net cash provided by operating                                              
 activities                             5,630    23,917    23,255    43,169 
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Investing activities                                                        
  Mineral rights and properties                                             
    Capital expenditures              (12,962)  (14,097)  (26,605)  (26,413)
  Plant and equipment                                                       
    Additions                          (5,874)   (7,957)  (11,427)  (17,585)
  Other investments                                                         
    Acquisition                             -       (80)        -      (595)
  Net (purchases) redemptions of                                            
   short-term investments              (2,354)   12,457    22,637    (2,355)
  Deposit received for sale of                                              
   subsidiaries                         3,256         -     4,886         - 
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Net cash used in investing                                                  
 activities                           (17,934)   (9,677)  (10,509)  (46,948)
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Financing activities                                                        
  Related parties                                                           
    Payments made                         (66)      (72)   (1,476)     (349)
    Repayments received                    99       325       369       659 
  Non-controlling interests                                                 
    Distribution                            -    (7,388)        -    (7,388)
  Cash dividends distributed           (4,130)   (4,220)   (8,290)   (8,525)
  Proceeds from issuance of common                                          
   shares                                  88        19        88       113 
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Net cash used in financing                                                  
 activities                            (4,009)  (11,336)   (9,309)  (15,490)
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Effect of exchange rate changes on                                          
 cash and cash equivalents                759     2,775       359    (1,357)
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Increase (decrease) in cash and cash                                        
 equivalents                          (15,554)    5,679     3,796   (20,626)
Cash and cash equivalents, beginning                                        
 of the period                         91,633    83,655    72,283   109,960 
Cash and cash equivalents included                                          
 in assets held for sale                   (4)        -        (4)        - 
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Cash and cash equivalents, end of                                           
 the period                          $ 76,075  $ 89,334  $ 76,075  $ 89,334 
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SILVERCORP METALS INC.                                                      
Mining Data                                                                 
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(Expressed in thousands of U.S. dollars, except for mining data figures)    
                                                                            
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                                       Three months ended September 30, 2013
                                      --------------------------------------
                                       Ying Mining                          
                                       District(1)          BYP        Total
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Production Data                                                             
  Mine Data                                                                 
    Ore Mined (tonne)                                                       
      Direct Smelting Ore (tonne)              503            -          503
      Stockpiled Ore (tonne)               152,599       17,654      170,253
                                      --------------------------------------
                                           153,102       17,654      170,756
                                      --------------------------------------
    Run of Mine Ore (tonne)                                                 
      Direct Smelting Ore (tonne)              503            -          503
      Ore Milled (tonne)                   156,790       20,073      176,863
                                      --------------------------------------
                                           157,293       20,073      177,366
                                      --------------------------------------
    Mining cost per tonne of ore mined                                      
     ($)   
                                  56.08        60.72        56.56
      Cash mining cost per tonne of                                         
       ore mined ($)                         45.22        28.21        43.46
      Non cash mining cost per tonne                                        
       of ore mined ($)                      10.86        32.51        13.10
    Unit shipping costs ($)                   5.12            -         4.59
    Milling cost per tonne of ore                                           
     milled ($)                              17.29        17.25        17.28
      Cash milling cost per tonne of                                        
       ore milled ($)                        14.89        15.75        14.98
      Non cash milling cost per tonne                                       
       of ore milled ($)                      2.40         1.50         2.30
    Average Production Cost                                                 
      Silver ($ per ounce)                    8.11            -         8.50
      Gold ($ per ounce)                       465          853          535
      Lead ($ per pound)                      0.38            -         0.40
      Zinc ($ per pound)                      0.30            -         0.32
    Total production cost per ounce of                                      
     Silver ($)                               3.41                      3.41
    Total cash cost per ounce of                                            
     Silver ($)                               0.49                      0.49
    Total production cost per ounce of                                      
     Gold ($)                                               853          853
    Total cash cost per ounce of Gold                                       
     ($)                                                    486          486
    Total Recovery of the Run of Mine                                       
     Ore                                                                    
      Silver (%)                              92.7                      92.7
      Gold (%)                                             93.0         93.0
      Lead (%)                                94.8                      94.8
      Zinc (%)                                68.5                      68.5
    Head Grades of Run of Mine Ore                                          
      Silver (gram/tonne)                      217                       217
      Gold (gram/tonne)                                     2.8          2.8
      Lead (%)                                 2.9                       2.9
      Zinc (%)                                 1.0                       1.0
Sales Data                                                                  
  Metal Sales                                                               
    Silver (in thousands of ounces)          1,021            -        1,021
    Gold (in thousands of ounces)              0.9          2.1          3.0
    Lead (in thousands of pounds)            9,519            -        9,519
    Zinc (in thousands of pounds)            2,199            -        2,199
  Metal Sales                                                               
    Silver (in thousands of $)              16,669            -       16,669
    Gold (in thousands of $)                   818        2,277        3,095
    Lead (in thousands of $)                 7,349            -        7,349
    Zinc (in thousands of $)                 1,347            -        1,347
                                      --------------------------------------
                                            26,183        2,277       28,460
                                      --------------------------------------
  Average Selling Price, Net of Value                                       
   Added Tax and Smelter Charges                                            
    Silver ($ per ounce)                     16.33            -        16.33
    Gold ($ per ounce)                         937        1,064        1,027
    Lead ($ per pound)                        0.77            -         0.77
    Zinc ($ per pound)                        0.61            -         0.61
                                                                            
(1) Ying Mining District includes mines: SGX, TLP, HPG&LM.                  
                                                                            
SILVERCORP METALS INC.                                                      
Mining Data                                                                 
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(Expressed in thousands of U.S. dollars, except for mining data figures)    
                                                                            
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                                      Three months ended September 30, 2012 
                              ----------------------------------------------
                              Ying Mining                                   
                              District(1)  X Mines(2)         BYP     Total 
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Production Data                                                             
  Mine Data                                                                 
    Ore Mined (tonne)                                                       
      Direct Smelting Ore                                                   
       (tonne)                      2,442           -           -     2,442 
      Stockpiled Ore (tonne)      203,369       7,995(i)   26,641   238,005 
                              ----------------------------------------------
                                  205,811       7,995      26,641   240,447 
                              ----------------------------------------------
    Run of Mine Ore (tonne)                                                 
      Direct Smelting Ore                                                   
       (tonne)                      2,442           -           -     2,442 
      Ore Milled (tonne)          200,728      27,473(i)   18,564   246,765 
                              ----------------------------------------------
                                  203,170      27,473      18,564   249,207 
                              ----------------------------------------------
    Mining cost per tonne of                                                
     ore mined ($)                  62.56           -       61.24     62.41 
      Cash mining cost per                                                  
       tonne of ore mined ($)       53.27           -       25.71     50.11 
      Non cash mining cost per                                              
       tonne of ore mined ($)        9.29           -       35.54     12.30 
    Unit shipping costs ($)          3.73           -           -      3.30 
    Milling cost per tonne of                                               
     ore milled ($)                 13.84           -       17.03     14.11 
      Cash milling cost per                                                 
       tonne of ore milled ($)      12.12           -       15.50     12.40 
      Non cash milling cost                                                 
       per tonne of ore milled                                              
       ($)                           1.72           -        1.53      1.70 
    Average Production Cost                                                 
      Silver ($ per ounce)           8.21           -           -      8.60 
      Gold ($ per ounce)              366           -       1,056       418 
      Lead ($ per pound)             0.28           -           -      0.28 
      Zinc ($ per pound)             0.22           -           -      0.22 
    Total pro
duction cost per                                               
     ounce of Silver ($)             1.05           -                  1.05 
    Total cash cost per ounce                                               
     of Silver ($)                  (0.74)          -                 (0.74)
    Total production cost per                                               
     ounce of Gold ($)                                      1,056     1,056 
    Total cash cost per ounce                                               
     of Gold ($)                                              361       361 
    Total Recovery of the Run                                               
     of Mine Ore                                                            
      Silver (%)                     92.7           -                  92.7 
      Gold (%)                                               94.1      94.1 
      Lead (%)                       94.3           -                  94.3 
      Zinc (%)                       69.6           -           -      69.6 
    Head Grades of Run of Mine                                              
     Ore                                                                    
      Silver (gram/tonne)             224           -                   224 
      Gold (gram/tonne)                                       3.3       3.3 
      Lead (%)                        3.4           -                   3.4 
      Zinc (%)                        1.2           -           -       1.2 
Sales Data                                                                  
  Metal Sales                                                               
    Silver (in thousands of                                                 
     ounces)                        1,277           9(i)        -     1,286 
    Gold (in thousands of                                                   
     ounces)                          1.3           -(i)      1.2       2.5 
    Lead (in thousands of                                                   
     pounds)                       13,403         494(i)        -    13,897 
    Zinc (in thousands of                                                   
     pounds)                        3,412         111(i)        -     3,523 
  Metal Sales                                                               
    Silver (in thousands of $)     29,561           -           -    29,561 
    Gold (in thousands of $)        1,275           -       1,480     2,755 
    Lead (in thousands of $)       10,749           -           -    10,749 
    Zinc (in thousands of $)        2,144           -           -     2,144 
                              ----------------------------------------------
                                   43,729           -       1,480    45,209 
                              ----------------------------------------------
  Average Selling Price, Net                                                
   of Value Added Tax and                                                   
   Smelter Charges                                                          
    Silver ($ per ounce)            23.15           -           -     23.15 
    Gold ($ per ounce)              1,030           -       1,220     1,111 
    Lead ($ per pound)               0.80           -           -      0.80 
    Zinc ($ per pound)               0.63           -           -      0.63 
                                                                            
(1) Ying Mining District includes mines: SGX, TLP, HPG&LM.                  
(2) X Mines includes the XBG project and XHP project.                       
(i) Represents development tunnelling ore at the X mines.                   
                                                                            
SILVERCORP METALS INC.                                                      
Mining Data                                                                 
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(Expressed in thousands of U.S. dollars, except for mining data figures)    
                                                                            
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                                         Six months ended September 30, 2013
                               ---------------------------------------------
                               Ying Mining                                  
                               District(1)  X Mines(2)         BYP     Total
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Production Data                                                             
  Mine Data                                                                 
    Ore Mined (tonne)                                                       
      Direct Smelting Ore                                                   
       (tonne)                       1,466           -           -     1,466
      Stockpiled Ore (tonne)       384,893           -      46,729   431,622
                               ---------------------------------------------
                                   386,359           -      46,729   433,088
                               ---------------------------------------------
    Run of Mine Ore (tonne)                                                 
      Direct Smelting Ore                                                   
       (tonne)                       1,466           -           -     1,466
      Ore Milled (tonne)           392,000       6,929(i)   50,048   448,977
                               ---------------------------------------------
                                   393,466       6,929      50,048   450,443
                               ---------------------------------------------
    Mining cost per tonne of                                                
     ore mined ($)                   61.62           -       54.86     60.89
      Cash mining cost per                                                  
       tonne of ore mined ($)        51.18           -       23.78     48.23
      Non cash mining cost per                                              
       tonne of ore mined ($)        10.44           -       31.08     12.67
    Unit shipping costs ($)           4.44           -           -      3.96
    Milling cost per tonne of                                               
     ore milled ($)                  15.11           -       15.36     15.14
      Cash milling cost per                                                 
       tonne of ore milled ($)       13.21           -       14.16     13.31
      Non cash milling cost per                                             
       tonne of ore milled ($)        1.90           -        1.20      1.82
    Average Production Cost                                                 
      Silver ($ per ounce)            8.97           -           -      9.33
     
 Gold ($ per ounce)               512           -         891       580
      Lead ($ per pound)              0.40           -           -      0.42
      Zinc ($ per pound)              0.32           -        0.44      0.33
    Total production cost per                                               
     ounce of Silver ($)              4.51           -                  4.51
    Total cash cost per ounce                                               
     of Silver ($)                    2.06           -                  2.06
    Total production cost per                                               
     ounce of Gold ($)                                         884       884
    Total cash cost per ounce                                               
     of Gold ($)                                               466       466
    Total Recovery of the Run                                               
     of Mine Ore                                                            
      Silver (%)                      92.5           -                  92.5
      Gold (%)                                                92.6      92.6
      Lead (%)                        94.7           -                  94.7
      Zinc (%)                        68.4           -                  68.4
    Head Grades of Run of Mine                                              
     Ore                                                                    
      Silver (gram/tonne)              207           -                   207
      Gold (gram/tonne)                                        2.9       2.9
      Lead (%)                         2.8           -                   2.8
      Zinc (%)                         0.9           -                   0.9
Sales Data                                                                  
  Metal Sales                                                               
    Silver (in thousands of                                                 
     ounces)                         2,385          10(i)        -     2,395
    Gold (in thousands of                                                   
     ounces)                           2.2         0.2(i)      4.5       6.9
    Lead (in thousands of                                                   
     pounds)                        22,582         405(i)        -    22,987
    Zinc (in thousands of                                                   
     pounds)                         5,125         484(i)      282     5,891
  Metal Sales                                                               
    Silver (in thousands of $)      40,760           -           -    40,760
    Gold (in thousands of $)         2,101           -       4,946     7,047
    Lead (in thousands of $)        17,182           -           -    17,182
    Zinc (in thousands of $)         3,153           -         153     3,306
                               ---------------------------------------------
                                    63,196           -       5,099    68,295
                               ---------------------------------------------
  Average Selling Price, Net of                                             
   Value Added Tax and Smelter                                              
   Charges                                                                  
    Silver ($ per ounce)             17.09           -           -     17.09
    Gold ($ per ounce)                 975           -       1,105     1,063
    Lead ($ per pound)                0.76           -           -      0.76
    Zinc ($ per pound)                0.62           -        0.54      0.61
(1) Ying Mining District includes mines: SGX, TLP, HPG&LM.                  
(2) X Mines includes the XBG project and XHP project.                       
(i) Represents development tunnelling ore at the X mines.                   
                                                                            
SILVERCORP METALS INC.                                                      
Mining Data                                                                 
----------------------------------------------------------------------------
(Expressed in thousands of U.S. dollars, except for mining data figures)    
                                                                            
----------------------------------------------------------------------------
                                        Six months ended September 30, 2012 
                              ----------------------------------------------
                              Ying Mining                                   
                              District(1)  X Mines(2)         BYP     Total 
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Production Data                                                             
  Mine Data                                                                 
    Ore Mined (tonne)                                                       
      Direct Smelting Ore                                                   
       (tonne)                      4,693           -           -     4,693 
      Stockpiled Ore (tonne)      382,136      10,377(i)   54,201   446,714 
                              ----------------------------------------------
                                  386,829      10,377      54,201   451,407 
                              ----------------------------------------------
    Run of Mine Ore (tonne)                                                 
      Direct Smelting Ore                                                   
       (tonne)                      4,693           -           -     4,693 
      Ore Milled (tonne)          384,932      31,084(i)   45,163   461,179 
                              ----------------------------------------------
                                  389,625      31,084      45,163   465,872 
                              ----------------------------------------------
    Mining cost per tonne of                                                
     ore mined ($)                  65.58           -       54.38     64.20 
      Cash mining cost per                                                  
       tonne of ore mined ($)       54.30           -       23.30     50.49 
      Non cash mining cost per                                              
       tonne of ore mined ($)       11.28           -       31.08     13.71 
    Unit shipping costs ($)          3.79           -           -      3.32 
    Milling cost per tonne of                                               
     ore milled ($)                 14.90           -       15.61     14.97 
      Cash milling cost per                                                 
       tonne of ore milled ($)      13.10           -       14.36     13.23 
      Non cash milling cost                                                 
       per tonne of ore milled                                              
       ($)                           1.79           -        1.25      1.74 
    Average Production Cost                                                 
      Silver ($ per ounce)           8.77           -           -      9.20 
      Gold ($ per ounce)              434           -       1,050       486 
      Lead ($ per pound)             0.31           -           -      0.31 
      Zinc ($ per pound)             0.24           -           -      0.24 
    Total production cost per                                               
     ounce of Silver ($)             1.75           -                  1.75 
    Total cash cost per ounce                                               
     of Silver ($)                  (0.31)          -                 (0.31)
    Total production cost per                                               
     ounce of Gold ($)                                      1,050     1,050 
    Total cash cost per ounce                                               
     of Gold ($)                                              488       488 
    Total Recovery of the Run                                               
     of Mine Ore                                                            
      Silver (%)                     92.2           -                  92.2 
      Gold (%)                          -           -        91.7      91.7 
      Lead (%)                       94.1           -                  94.1 
      Zinc (%)                       66.5           -           -      66.5 
    Head Grades of Run of Mine                                              
     Ore                                                                    
      Silver (gram/tonne)             226           -                   226 
      Gold (gram/tonne)                 -           -         2.8       2.8 
      Lead (%)                        3.5           -                   3.5 
      Zinc (%)                        1.2           -           -       1.2 
Sales Data       
                                                           
  Metal Sales                                                               
    Silver (in thousands of                                                 
     ounces)                        2,500          10(i)        -     2,510 
    Gold (in thousands of                                                   
     ounces)                          2.1         0.1(i)      2.9       5.1 
    Lead (in thousands of                                                   
     pounds)                       27,116         525(i)        -    27,641 
    Zinc (in thousands of                                                   
     pounds)                        6,386         111(i)        -     6,497 
  Metal Sales                                                               
    Silver (in thousands of $)     57,690           -           -    57,690 
    Gold (in thousands of $)        2,362           -       3,732     6,094 
    Lead (in thousands of $)       21,932           -           -    21,932 
    Zinc (in thousands of $)        4,042           -           -     4,042 
                              ----------------------------------------------
                                   86,026           -       3,732    89,758 
                              ----------------------------------------------
  Average Selling Price, Net                                                
   of Value Added Tax and                                                   
   Smelter Charges                                                          
    Silver ($ per ounce)            23.07           -           -     23.07 
    Gold ($ per ounce)              1,142           -       1,271     1,187 
    Lead ($ per pound)               0.81           -           -      0.81 
    Zinc ($ per pound)               0.63           -           -      0.63 
                                                                            
(1) Ying Mining District includes mines: SGX, TLP, HPG&LM.                  
(2) X Mines includes the XBG project and XHP project.                       
(i) Represents development tunnelling ore at the X mines.                   

 
Contacts:
Silvercorp Metals Inc.
Investor Relations
(604) 669-9397
Toll Free: 1 (888) 224-1881
investor@silvercorp.ca
www.silvercorp.ca