NYSE American:SVM $2.44 +0.03 TSX:SVM $3.11 +0.05

News & Media

2013

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

November 14, 2013

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 14, 2013) - 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 DistrictHenan ProvinceChina

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
----------------------------------------------------------------------------
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
----------------------------------------------------------------------------
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
----------------------------------------------------------------------------
----------------------------------------------------------------------------
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 MineHunan ProvinceChina

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 DistrictHenan ProvinceChina

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 ProjectGuangdong ProvinceChina

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 MineHunan ProvinceChina

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 ProvinceChina

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 ProjectBritish 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 Company'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
----------------------------------------------------------------------------
(Unaudited) (Expressed in thousands of U.S. dollars)

                                         September 30, 2013  March 31, 2013
----------------------------------------------------------------------------
----------------------------------------------------------------------------
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               -
----------------------------------------------------------------------------
                                                    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
----------------------------------------------------------------------------
TOTAL ASSETS                                    $   526,751     $   576,222
----------------------------------------------------------------------------
----------------------------------------------------------------------------

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               -
----------------------------------------------------------------------------
                                                     60,148          47,542
Non-current Liabilities
  Deferred income tax liabilities                    13,950          24,603
  Environmental rehabilitation                        6,002           5,974
----------------------------------------------------------------------------
Total Liabilities                                    80,100          78,119
----------------------------------------------------------------------------
----------------------------------------------------------------------------
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
----------------------------------------------------------------------------
Total equity attributable to the equity
 holders of the Company                             376,107         420,435
Non-controlling interests                            70,544          77,668
----------------------------------------------------------------------------
Total Equity                                        446,651         498,103
----------------------------------------------------------------------------

TOTAL LIABILITIES AND EQUITY                    $   526,751     $   576,222
----------------------------------------------------------------------------
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SILVERCORP METALS INC.
Condensed Consolidated Interim Statements of Income
----------------------------------------------------------------------------
(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
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Sales                $     28,460  $     45,209  $     68,295  $     89,758
Cost of sales              14,823        16,794        37,305        35,788
----------------------------------------------------------------------------
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)
----------------------------------------------------------------------------
(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)
----------------------------------------------------------------------------
(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
----------------------------------------------------------------------------
Net (loss) income    $    (53,307) $     13,503  $    (46,823) $     23,021
----------------------------------------------------------------------------
----------------------------------------------------------------------------

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
----------------------------------------------------------------------------
                     $    (53,307) $     13,503  $    (46,823) $     23,021
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(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
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Diluted (loss)
 earnings per share  $      (0.25) $       0.06  $      (0.23) $       0.09
----------------------------------------------------------------------------
Weighted Average
 Number of Shares
 Outstanding - Basic  170,781,384   170,719,933   170,781,222   170,706,702
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Weighted Average
 Number of Shares
 Outstanding -
 Diluted              170,781,384   171,062,715   170,781,222   171,072,838
----------------------------------------------------------------------------
----------------------------------------------------------------------------

SILVERCORP METALS INC.
Condensed Consolidated Interim Statements of Cash Flow
----------------------------------------------------------------------------
(Unaudited) (Expressed in thousands of U.S. dollars)

                                     Three Months Ended    Six Months Ended
                                          September 30,       September 30,
                                    ----------------------------------------
                                    ----------------------------------------
                                         2013      2012      2013      2012
----------------------------------------------------------------------------
----------------------------------------------------------------------------
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
----------------------------------------------------------------------------
Net cash provided by operating
 activities                             5,630    23,917    23,255    43,169
----------------------------------------------------------------------------

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         -
----------------------------------------------------------------------------
Net cash used in investing
 activities                           (17,934)   (9,677)  (10,509)  (46,948)
----------------------------------------------------------------------------

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
----------------------------------------------------------------------------
Net cash used in financing
 activities                            (4,009)  (11,336)   (9,309)  (15,490)
----------------------------------------------------------------------------
Effect of exchange rate changes on
 cash and cash equivalents                759     2,775       359    (1,357)
----------------------------------------------------------------------------
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)        -
----------------------------------------------------------------------------
Cash and cash equivalents, end of
 the period                          $ 76,075  $ 89,334  $ 76,075  $ 89,334
----------------------------------------------------------------------------
----------------------------------------------------------------------------

SILVERCORP METALS INC.
Mining Data
----------------------------------------------------------------------------
(Expressed in thousands of U.S. dollars, except for mining data figures)

----------------------------------------------------------------------------
                                       Three months ended September 30, 2013
                                      --------------------------------------
                                       Ying Mining
                                       District(1)          BYP        Total
----------------------------------------------------------------------------
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
----------------------------------------------------------------------------
(Expressed in thousands of U.S. dollars, except for mining data figures)

----------------------------------------------------------------------------
                                      Three months ended September 30, 2012
                              ----------------------------------------------
                              Ying Mining
                              District(1)  X Mines(2)         BYP     Total
----------------------------------------------------------------------------
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 production 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
----------------------------------------------------------------------------
(Expressed in thousands of U.S. dollars, except for mining data figures)

----------------------------------------------------------------------------
                                         Six months ended September 30, 2013
                               ---------------------------------------------
                               Ying Mining
                               District(1)  X Mines(2)         BYP     Total
----------------------------------------------------------------------------
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
----------------------------------------------------------------------------
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.




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

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