2006

New Tunnel Intersects 1.1 Metre Width Containing 6,124 Grams Or 197 Ounces Per Tonne Silver and 50% Lead & Zinc On The S8 vein, Ying Silver Mine, Henan, China

VANCOUVER, BRITISH COLUMBIA –May 17, 2006 - Silvercorp Metals Inc. ("Silvercorp") is pleased to provide an update on exploration tunnel results on S7-1, S8, S16, S16E, S16W, and S16W1 veins for the period from February 1 st to April 30 th 2006 . In addition to extensive mine development and preparation for production after its receiving the mining permit in late March, Silvercorp is also continuing to carry out intensive exploration tunneling and drilling. A total of 2,366 metres (m) of exploration tunnels have been completed, including 1,934m of tunnels on the above six veins. The assay results from the new tunnels are listed in the Table below.

The significant results from the new tunnels are:

> 1.1m true width grading 6,124 grams per tonne (g/t) or 196.89 ounces per tonne (oz/t) silver (Ag), 43.31 % lead (Pb), 7.01% zinc (Zn) and 0.94% copper (Cu) at 640m elevation on the S8 vein.

> 2.25m true width grading 1,839 g/t (59.11 oz/t) Ag, 23.14% Pb, and 14.27% Zn at 534m elevation and 2.3m true width grading 1,565 g/t (50.33 oz/t) Ag, 22.20% Pb, and 6.33% Zn at 606m elevation on the S16W vein.

> 0.30m true width containing 1,949 g/t (62.66 oz/t) Ag, 25.32% Pb, and 21.03% Zn at 640m elevation on the S7-1 vein.

> 0.30m true width grading 4,675 g/t (150.31 oz/t) Ag, 41.55% Pb, and 4.11% Zn at 480m elevation on the S14 vein.

> 0.50m true width carrying 2,153 g/t (69.22 oz/t) Ag, 16.54% Pb, and 12.06% Zn at 534m elevation on the S16E vein.

> 0.40m true width grading 3,849 g/t (123.75 oz/t) Ag, 25.30% Pb, and 2.65% Zn at 640m elevation on the S16W1 vein.

S7-1 Vein
During the period, 93.5m of drifting on the S7-1 vein was completed on 560m elevation through access tunnel CM103, of which 83.5m exposed massive galena sheets. Ongoing exploration continues to drift to both north and south directions along the vein from CM103.

S8 Vein
The tunneling program on the S8 vein during the period was carried out on five levels and a total of 937 m drifting were completed with detail below:

> at 640m elevation, 55m drift in tunnel PD700 and 249m in main access tunnel CM101 in which over 30m drift exposed massive galena sheets;
> at 600m elevation, 185m drift in tunnel PD66 at the YLG camp (1.5 kilometers north of the SGX camp);
> at 570m elevation, 200m drift through main access tunnel CM102 of which over 25m contains massive galena sheets;
> at 550m elevation, 55m drift in tunnel YM01 at the YLG camp;
> at 510m elevation, 193m drift in tunnel YPD01 at the YLG camp.

S14 Vein
On the S14 vein, 66m of drifting and three raises totaling 104m were completed from the 480m elevation through main access tunnel CM102. The drift was developed immediatly south of an ancient stope and exposed 0.15 to 0.45m true width of massive galena sheets. Three raises on S14 vein all show complete massive galena sheets. Surface and underground drilling has also intercepted massive galena sheets on several elevations with assay results pending.

S16E Vein
A total of 323m of drifting along the S16E vein were completed at the three levels. These included 93m at 640m elevation from CM101, 48m at 610m elevation and 183m at 534m elevation through CM102.

S16W Vein
The S16W vein was explored through three levels and 401m of drifts were completed along the vein. In adit PD680, 127m of drifting was done at 680m elevation and has just exposed massive galena sheets with assays pending. Other drifting includes 102m at 650m elevation in PD650, 152m at 610m elevation and 21m at 534m elevation in CM102. At 610m elevation, a continuous massive galena sheet of over 85m in length is exposed.

S16W1 Vein
The vein has been encountered by both tunneling and drilling over a length of 750m along the strike and 250m in down dip. All of the 43m of drifting at 640m elevation in CM101 and 34m of tunnel at 570m elevation in CM102 completed during the period exposed massive galena sheets.

Table: Assay Results


* S ilver 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. Copper grade is not included in the calculation.

Tunnel plan and longitudinal maps of the veins are available on the Company's website: www.silvercorp.ca.

Mine Development and Mill Construction
Major mining development at the Ying mine is progressing well and on schedule. Ten shrinkage stopes are currently being mined at the Ying site and it is anticipated that an additional 12 to 15 stopes will be mined in six months to reach a phase one mining capacity of 600 tonne per day (tpd). As a minimum of five portal s access to 13 mineralized veins in which high-grade ore shoots have been delineated, the C ompany expects that in time it can reach its production goal, without incurring substantial capital cost.

Construction of the 600 tonne per day mill for the Ying mine commenced on May 1 st and the mill access road is almost finished. The mill is expected to start-up in February 2007.

A total of 430m of shaft sinking have been completed, including 123m, 127m, and 180m for No. 1, 2 and 3 shafts, respectively. These three shafts will be commissioned by the end of 2006. The production for the first three years is planned to come mainly through horizontal portals and thereafter, shafts will be used.

Exploration and mining at the Ying mine is being carried out through Silvercorp's 77.5% subsidiary, Henan Found Mining Co. Ltd., a Sino-foreign joint venture company which holds 100% of the Ying Project and operates under a 30-year business license. Myles Gao, P.Geo, is the Company's Qualified Person on the project under NI 43-101.

Quality Control
The Company's Quality Control/Quality Assurance Program is disclosed in the January 4, 2006 Press Release.


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 statement.