2005

Silvercorp Closes $6,400,000 Private Placement

VANCOUVER , BRITISH COLUMBIA , September 16 , 2005 – Silvercorp Metals Inc. ("Silvercorp") has closed the placement announced August 31 and September 1, 2005 , for proceeds of $6,400,000. A total of 2,000,000 Units were placed at $3.20, with each Unit comprised of one common share and one-half share purchase warrant. Each whole warrant entitles the holder to acquire an additional common share up to September 15, 2006 at $4.60 per share. The placement includes Sprott Asset Management Inc. and US Global Investors' Global Resources Fund. The securities issued are subject to a hold period expiring January 16, 2006.

The proceeds of the placement will be added to working capital.


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.