2005

Tunneling Intercepts 0.9 metres of 9,278 grams per tonne Silver, 33.50% Lead, and 4.91% Zinc in S16W Vein, Ying Silver Project, Henan Province, China

VANCOUVER, BRITISH COLUMBIA –July 05, 2005 - Silvercorp Metals Inc. ("Silvercorp") is pleased to report that tunnel and underground drill work to extend the S16W and S16E veins along strike and down dip since mid-March, 2005 , has continued to encounter extremely high grade massive galena sheets with some sections of the sheets showing greater widths than any previously encountered. Significant results from the work completed are as follows:

> New tunneling on S16W at 570 metre (m) elevation exposed much wider (1.02m width) massive galena sheets over 77m long (open to north), averaging 2,022 grams per tonne (g/t), or 65.01 ounces per tonne (oz/t) Ag, 29.80% Lead (Pb), and 6.39% Zinc (Zn). Two significant intervals within this wider sheet were 9,278 g/t (298.29 oz/t) Ag, 33.50% Pb, and 4.91% Zn over 0.9m width and 742 g/t (23.86 oz/t) Ag, 14.59% Pb, and 4.06% Zn over 3.65m width.

> Underground Drill Holes ZK5401 and ZK5402, drilled 52m and 108m below the 570m elevation tunnel on S16W, respectively, also intercepted the m assive g alena s heet with ZK5401 intersecting an interval of 5m grading 764 g/t (24.55 oz/t) Ag, 9.09% Pb, and 2.21% Zn, and ZK5402 returning 2,076 g/t (66.75 oz/t) Ag, 5.66% Pb, and 17.93% Zn over a 0.44m interval.

> Tunneling on S16E at 534m elevation exposed a relatively wide (0.71m in width) massive galena sheet over 45m along strike (open at both ends) grading 1 , 145 g/t (36.81 oz/t) Ag, 36.64% Pb, and 9.11% Zn. The zone was previously intersected in tunnels above the 534m elevation completed by a prior operator at 570m and 555m elevations (partly mined out) with the best interval containing 2,070 g/t (66.55 oz/t) Ag, 79.85% Pb, and 1.43% Zn over 1.0m.

> Underground Drill Hole ZK5402 intercepted the S16E vein 61m below the 570m elevation tunnel and returned 1,246 g/t (40.06 oz/t) Ag, 20.57% Pb and 2.79% Zn over a 0.31m interval.

During the period, exploration work on the S16W and S16E veins included: new tunnels on the 640m elevation through newly developed horizontal access tunnels CM101 at the south and PD640 to the north; continuous drifting at 570m elevation through main access tunnels CM102 and CM103; and drifting on the 534m elevation through two declines over 1,200m length of the veins along strike . The entire lengths for both of the veins are mapped out at about 2,000m. Underground drilling was completed from the 570m elevation to deepest depth of 454m elevation. This work is designed to convert the high grade massive galena sheets resource within a 1,200m long by 250m down dip depth area to mineable reserve category and to expand the resource along strike and vertically above the 640m elevation.

Underground Tunneling

To date, a total of 1,269.7m of tunnel drifting has been completed along the S16W on the 570m and 534m elevations. Of this 1,269.7m, about 656m comprises sections of massive galena sheets exceeding a 1,250 g/t Ag-equivalent grade cut-off, yielding a 52% rate of mineralization. On the S16E vein, a total of 643.1m drifting was completed on the two elevations and assaying confirms a 57% rate of mineralization based on a total of 368.86m of massive galena sheets encountered which exceed the cut off grade. Assay results for these new tunnels are listed in the Table below:

Mineralized Veins	Elevation (m)	Distance South of CM103 (m)	Width (m)	Ag (g/t)	Ag (oz/t)	Pb (%)	Zn (%)	Ag Equiv. (g/t)*	Ag Equiv. (oz/t)*
S16E	570	699.0	1.00	3089	99.31	0.45	0.37	3126	100.49
		700.0	1.00	1671	53.72	12.96	12.04	2789	89.68
		704.3	0.90	2225	71.54	6.73	4.87	2740	88.11
		706.2	0.20	2239	71.98	47.01	14.40	4906	157.73
		709.9	1.25	1567	50.39	10.95	7.65	2393	76.92
		720.0	0.90	1890	60.76	21.35	4.91	3024	97.21
		724.2	0.70	656	21.10	2.27	10.26	1239	39.85
		730.0	0.50	1457	46.84	15.81	14.60	2817	90.58
		735.0	0.65	3158	101.53	16.75	16.53	4650	149.49
		740.0	0.80	1525	49.03	12.54	17.64	2892	92.97
		745.0	0.40	339	10.89	10.14	22.50	1835	58.98
		749.6	0.45	1192	38.32	3.28	30.31	2769	89.04
		755.0	0.40	534	17.17	3.34	14.22	1350	43.40
		810.3	0.30	333	10.69	4.66	18.21	1394	44.82
	534	555.0	1.20	444	14.28	19.18	12	1807	58.09
		560.5	0.60	417	13.41	29.33	10	2106	67.71
		565.0	0.20	1168	37.55	65.12	3.62	4088	131.42
		571.0	0.35	502	16.14	14.25	38.59	2935	94.37
		574.0	0.90	1226	39.42	40.88	7.15	3290	105.79
		581.0	1.40	1320	42.44	19.78	4.29	2358	75.82
		597.6	1.60	1005	32.31	26.73	3.64	2306	74.13
		601.0	1.00	2070	66.55	79.85	1.43	5507	177.07
		619.0	0.45	1450	46.62	74.46	2.88	4729	152.03
		565.0	0.20	1168	37.55	65.12	3.62	4088	131.42
		570.5	0.10	1930	62.07	59.07	1.30	4485	144.19
		580.0	0.55	1111	35.72	25.95	18.47	3083	99.12
		585.0	0.70	2119	68.13	57.76	26.20	5800	186.49
		585.5	0.67	424	13.62	11.11	9.45	1341	43.11
		590.0	0.70	1247	40.08	43.75	13.25	3722	119.65
		595.0	0.70	949	30.50	40.95	4.88	2908	93.50
		600.0	0.80	1325	42.61	30.65	8.98	3045	97.90
		609.3	0.45	1029	33.08	43.75	11.04	3399	109.29

		615.0	0.35	1137	36.56	32.65	7.22	2857	91.87
		620.0	0.40	660	21.20	54.05	10.66	3446	110.80
		624.8	0.40	343	11.03	1.03	34.54	2026	65.14
		635.0	0.20	1768	56.83	21.29	0.71	2700	86.81
S16W	570	272.6	0.45	1271	40.85	45.93	4.97	3445	110.76
		282.5	0.80	1258	40.44	45.33	2.77	3302	106.17
		303.2	0.30	596	19.17	25.58	5.83	1953	62.78
		320.0	3.65	742	23.87	14.59	4.06	1551	49.87
		325.0	1.30	1497	48.12	38.67	4.81	3357	107.93
		330.0	0.80	829	26.65	31.30	13.12	2773	89.14
		335.2	1.30	1195	38.43	26.15	14.52	2988	96.07
		340.0	0.30	1268	40.77	8.25	3.32	1774	57.03
		344.6	1.30	2320	74.59	32.87	7.59	4067	130.76
		345.0	0.90	9278	298.29	33.50	4.91	10924	351.23
		350.0	0.90	3928	126.28	45.28	10.98	6359	204.46
		355.0	1.00	1159	37.27	19.90	8.06	2382	76.58
		360.0	1.55	1683	54.11	19.95	5.91	2805	90.20
		780.0	1.40	2532	81.41	56.54	10.29	5406	173.82
		785.0	1.80	2337	75.14	58.92	6.30	5122	164.69
		790.0	0.40	958	30.80	10.40	18.24	2263	72.75
		846.9	0.15	77	2.48	0.65	32.42	1643	52.84
		864.2	0.15	844	27.14	42.34	7.92	3007	96.67
		940.4	0.40	513	16.50	5.61	18.16	1612	51.83
		950.0	0.60	687	22.10	8.23	13.89	1694	54.46
	534	542.5	0.20	498	16.03	1.05	37.69	2332	74.74
		548.0	0.50	1057	33.97	39.71	11.66	3286	105.30
		577.5	0.30	1477	47.50	7.79	4.51	2020	64.74
		584.0	0.10	1142	36.70	43.95	10.95	3516	112.68
		568.0	0.20	184	5.91	5.26	32.39	1943	62.28
		535.5	0.13	113	3.63	0.49	26.48	1391	44.57
		602.5	0.20	116	3.73	0.88	35.19	1824	58.45
		612.1	0.37	617	19.84	17.68	5.60	1629	52.20
		607.5	0.15	747	24.02	1.31	46.48	3009	96.43

* Silver equivalent grade is calculated on the basis of US$6.5/oz Ag, US$0.40/lb for Pb, and US$0.45/lb for Zn.

Underground Drilling

One electric drill rig completed seven holes totaling 923.83m on the S16E and S16W veins from 570m elevation on 40 to 50 m spacing to test the down dip extension of the massive galena sheets in the veins. Assay results are listed in the following table.

Drill Hole No.	Mineralized Veins	From (m)	To (m)	Interval (m)	Distance South of CM103 (m)	Elevation (m)	Ag (g/t)	Ag (oz/t)	Pb (%)	Zn (%)	Ag Equiv. (g/t)*	Ag Equiv. (oz/t)*
ZK1601	S16E	48.65	48.98	0.33	25.0	558.0	35	1.13	0.47	2.11	155	4.98
	S16W	24.64	24.75	0.11	73.0	556.5	196	6.30	6.32	2.32	573	18.42
ZK1404	S16W	75.01	77.76	2.75	178.5	454.4	128	4.11	0.28	1.20	197	6.32
ZK5402	S16E	100.68	100.98	0.31	335.3	508.8	1246	40.06	20.57	2.79	2246	6.01
	S16W	174.49	174.93	0.44	335.3	462.2	2076	66.75	5.66	17.93	3166	40.26
ZK5202	S16E	122.26	122.36	0.10	394.8	473.2	880	28.29	10.56	10.66	1832	58.89
ZK5401	S16E	130.43	131.29	0.86	461.0	526.7	49	1.58	0.05	2.86	187	72.23
	S16W	154.24	160.39	5.00	490.0	518.0	764	24.55	9.09	2.21	1252	101.79
ZK5201	S16W	107.93	108.41	0.48	546.0	518.1	1696	54.53	40.5	5.49	3666	117.85
ZK5001	S16W	99.46	99.69	0.22	596.0	511.0	49	1.58	0.52	5.97	354	11.39

* Silver equivalent grade is calculated on the basis of US$6.5/oz Ag, US$0.40/lb for Pb, and US$0.45/lb for Zn.

Tunnelling and underground drilling programs on other veins are progressing well and mine development, including sinking three shafts, is on schedule. Tunnel maps are available on the Company's website: www.silvercorp.ca.

Quality Control
The Company has implemented a quality control program to ensure best practice in sampling and analysis of the tunnel samples. Rock samples were collected by channel sampling the face of the undercut drifts. The channels were usually cut 10 cm in width and 5 cm in depth producing a sample weighing approximately 2 kg to 10 kg for each 0.10 to 1.00 m intervals depending on the thickness of mineralization. The drill cores are in NQ size and drill core samples were taken from sawn half core limited by apparent massive galena sheet contact. The samples are shipped directly in security sealed bags to the Langfang Institute of Geochemical and Geophysical Exploration (Certification ISO 9001), a well-regarded analytical laboratory in Langfang, Hebei Province, approximately 60 km from Beijing.

The sample preparation consists of drying, crushing, splitting of the sample to 150 grams, then the sample is pulverized to 200 mesh. Ag, Pb and Zn were analyzed by a 3 hour hot aqua regia digestion on 30 gram samples with an AA finish. Check samples including field duplicates and pulps are routinely sent to ALS Chemex Laboratories in Vancouver, Canada.

Myles Gao, P.Geo, President of Silvercorp and General Manager of the Ying Project, is the Qualified Person on the Project.


For further information: SILVERCORP METALS INC., Rui Feng, Chairman & CEO
Phone: (604) 669-9397, Fax: (604) 669-9387, Email: info@silvercorp.ca, Website: www.silvercorp.ca

Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in mineral exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.