GC/SMT

Introduction Silvercorp acquired the Gaocheng (“GC”) and Shimentou (“SMT”)  silver-lead-zinc exploration permits in April 2008.  Located about 200 kilometres west of Guangzhou City, Guangdong Province, southern China, the permits cover an area of 5.54 km2 and 9.49 km2 respectively.  Since 2001, the permits have been explored for gold, silver, lead, zinc, and sulphur. Ownership The two exploration permits are 100% owned by Anhui Yangtze Mining Co. Ltd., a sino-foreign cooperative JV company owned 95% by Silvercorp (through a wholly owned subsidiary).  The cost to acquire the interest was approximately US$60.27-million and was paid for by 40% in cash ($24-million) and 60% in common shares of Silvercorp (4,532,543 common shares of the company were issued at CAD$8.20 per share). History  Since 1959, extensive systematic geological mapping, airborne magnetic surveys, stream sediment geochemical surveys, local IP surveys and trenching were conducted by provincial geological bureau teams.  From 2001 to 2007, a total of 16,819 metres of diamond drilling in 53 drill holes and 13,630 cubic metres of trenching were completed on the properties and an NI43-101 independent technical report released in April 2008 was completed by SRK Consulting China Ltd.  Subsequently, Silvercorp completed a 22-hole, 10,083-meter drill program in 2008, the results of which were incorporated into an updated technical report completed by AMC Mining Consultants Canada Ltd. and released on June 26, 2009 (see below). Geology The GC and SMT Permits are located at the South China Orogenic Belt, where the NE trend DGS Dome structure is developed with Proterozoic and Sinian metamorphic rocks as core and Carboniferous and Triassic sedimentary as limbs. Click here to view latest 2009 GC Technical Report. GC Permit Mineralized bodies occur as veins within alteration zones in both granite stock and strata which may reach more than a few metres (m) wide along faults and into hanging wall and footwall, and are structurally controlled. The deposits occur as discrete planes of variable grade and variable thickness. SMT Permit The poly-metallic mineralization in the SMT deposit is both strata and structurally controlled and considered to be a sedimentary-hydrothermal type deposit. Based on previous historical work which included 3,218m of drilling (17 holes) and 4,196 cubic meters of trenching, it has been established that mineralized veins occur in a certain layer of strata that is underneath a thick layer of pyrite-rich strata as a layer-like or lenses which may extend up to 4,000 m along strike. Exploration GC Permit  A total of 65 diamond drill holes have been completed on the property since 2001, totaling 23,546 metres.  During 2008, Silvercorp completed a 22-hole, 10,082-meter diamond drill program which resulted in the discovery of an additional 15 mineralized veins, bringing the total number of known veins to 28.  Previously, 13 silver-lead-zinc mineralized veins were identified within an area of 3km long on NW by 1.5km wide on NE.  Five mineralized veins are dominant, accounting for approximately 86% of known mineralization, with one vein accounting for approximately 48% of known mineralization. This vein has been outlined along strike for 1,255 m and at down to 466 m depth with thickness ranging from 0.39 m to 9.69 m grading 7.45 g/t to 968g/t silver, 0.03% to 6.81% lead, 0.01% to 10.61% zinc and up to 0.56% tin.  The company has also applied for a mining permit on the GC Permit using the resource estimate done by the Guangdong Geological Survey Institute (GGSI) in 2007 that has been accepted for filing by the relevant Chinese government authorities. SMT Permit Six  mineralized veins have been defined with strike lengths of between 300 m and1000 m, defined depths of 100 m to 500 m, vertical thicknesses of up to 7.59 m and grades of up to 344 g/t silver, 8.87% lead, 7.45% zinc, 1.44% tin and 1.79 g/t gold.  No NI43-101 resource estimate has yet been established for the SMT Permit area.  Project Status As of February 2010, the Company has made the following progress in applying for a mining permit and advancing the project towards production: The Company is engaged in the environmental permitting process, which is awaiting new environmental regulations being compiled by the authorities in Guangdong Province.  The new regulations, being drafted to address heavy metal discharge concerns in response to several environmental incidents in the country in 2009, are expected to be completed and implemented in the first half of 2010.  A revised Environmental Assessment Report will be submitted by the company thereafter for approval.  Pending receipt of approval from the Environmental Protection Bureau of Guangdong Province on the report, a mining permit application can be submitted to the Ministry of Land and Resources of China in Beijing.  Silvercorp has engaged a Chinese engineering firm with Class A qualifications in mine and mill design to provide a full mine and mill design for the project.  This is equivalent to a feasibility study in Canada. Exploration results from 2008 and recent drill results have been incorporated into an NI43-101 technical update which was release on June 26, 2009 (see below for a summary of updated mineral resources). The Company has budged approximately $4 million in Fiscal 2010 for exploration reports, mine and mill designs, and for permitting.  Resources (For the GC Permit Only)     Grades Contained Metals   Tonnes Ag (g/t) Pb (%) Zn (%) Ag (oz) Pb (t) Zn (t)  Ag Equiv. (oz) Measured 374,000 233 1.83 3.19 2,797,000 6,850 11,920  5,383,300 Indicated 6,034,000 132 1.47 3.35 25,690,400 88,710 202,230  65,779,900 Inferred 7,892,000 121 1.45 2.70 30,774,200 114,570 213,380  75,962,400 * From June 22, 2009 NI 43-101 Technical Report Update on the GC Ag-Zn-Pb Project by AMC Consultants.  Report was prepared by Brian O'Connor, P.Geo. The mineral resources use a 150 g/t recovered Ag Equivalent cut-off.  Ag Eq is calculated using US$12/oz Ag, US$0.75/lb Pb and US$0.75/lb Zn.

2009 Maps