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

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 13, 2014) - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX:SVM)(NYSE:SVM) reported its financial and operating results for the third quarter ended December 31, 2013 ("Q3 Fiscal 2014").

THIRD QUARTER HIGHLIGHTS

• Silver production of 0.9 million ounces and gold production of 1,985 ounces;
• Lead production of 9.0 million pounds and zinc production of 1.7 million pounds;
• Sales of $24.0 million;
• Gross margin of 44%;
• Cash flow from operations of $9.9 million, or $0.06 per share;
• Net income of $2.2 million, or $0.01 per share; and
• Cash cost per ounce of silver, net of by-product credits, of $2.00.

FINANCIALS

In Q3 Fiscal 2014, net income attributable to equity holders of the Company was $2.2 million or $0.01 per share compared to $5.2 million, or $0.03 per share for the three months ended December 31, 2012 ("Q3 Fiscal 2013").

In Q3 Fiscal 2014, the Company realized sales of $24.0 million, a decrease of 59% from $58.7 million in Q3 Fiscal 2013. The Company's financial results were mainly impacted by the following: (i) lower metal production as silver, lead and zinc production decreased 42%, 45%, and 58% respectively, compared to Q3 Fiscal 2013; and (ii) a significantly lower net realized silver price of $16.20 per ounce in this quarter, down $8.70 per ounce or 35% from $24.90 per ounce in Q3 Fiscal 2013.

Cost of sales in Q3 Fiscal 2014 was $13.5 million compared to $21.2 million in Q3 Fiscal 2013 and included cash costs of $10.9 million compared to $17.1 million in Q3 Fiscal 2013. The decrease of cost of sales was due to the reduction in ore production in this quarter.

The gross profit margin in Q3 Fiscal 2014 was 44%, compared to 64% in Q3 Fiscal 2013.

Cash flow from operations in Q3 Fiscal 2014 was $9.9 million or $0.06 per share, compared to $27.8 million, or $0.16 per share, in Q3 Fiscal 2013.

For the nine months ended December 31, 2013, net loss, attributable to the equity holders of the Company, was $36.5 million or $0.21 per share, which included impairment charges of $42.8 million, net of tax. The impairment reduced the carrying value of the BYP mine, as well as the XBG and Silvertip projects, both of which are sold. Adjusted net income was $6.5 million or $0.04 per share, compared to net income of $20.9 million or $0.12 per share, in the same prior year period. During the same comparative period, sales were $92.3 million compared to $148.5 million, cost of sales was $50.8 million compared to $57.0 million, which resulted in a gross profit margin of 45% compared to 62%.

Cash flow from operations was $33.1 million compared to $71.0 million in the same comparative period. As of December 31, 2013, the Company has $98.0 million in cash and short-term investments.

OPERATIONS

In Q3 Fiscal 2014, on a consolidated basis, the Company produced 0.9 million ounces of silver, 1,985 ounces of gold, 9.0 million pounds of lead, and 1.7 million pounds of zinc, compared to 1.5 million ounces of silver, 5,676 ounces of gold, 16.4 million pounds of lead, and 4.0 million pounds of zinc, respectively, in Q3 Fiscal 2013.

For the nine months ended December 31, 2013, the Company produced 3.3 million ounces of silver, 8,774 ounces of gold, 32.0 million pounds of lead, and 7.6 million pounds of zinc, compared to 4.0 million ounces of silver, 10,810 ounces of gold, 44.1 million pounds of lead and 10.5 million pounds of zinc, in the same prior year period.

1. Ying Mining District, Henan Province, China

In Q3 Fiscal 2014, the Ying Mining District mined 148,850 tonnes of ore, producing 0.9 million ounces of silver, 911 ounces of gold, 8.8 million pounds of lead, and 1.6 million pounds of zinc, compared to 236,694 tonnes of ore in Q3 Fiscal 2013, producing 1.5 million ounces of silver, 1,285 ounces of gold, 15.6 million pounds of lead, and 3.2 million pounds of zinc, respectively.

In Q3 Fiscal 2014, head grades at the Ying Mining District were 202 grams per tonne ("g/t") for silver, 2.9% for lead, and 0.7% for zinc, compared to 222 g/t for silver, 3.2% for lead, and 1.0% for zinc, respectively, in Q3 Fiscal 2013.

In the quarter, mine production and head grades were adversely impacted by a number of factors. Firstly, underground safety standardization work was undertaken in the main production portal of PD924 at the LM West mine and the CM105-S2 Shaft at the SGX mine to comply with new safety regulations. The required safety work included rebuilding the refuge stations, enlarging main access tunnels, and replacing sections of the PVC compress air lines with steel ones, suspending production for approximately one month.

Second, as explained in the prior quarter, the Company identified that dilutive practices of certain mining contractors resulted in head grade declines and took remedial action by modifying the method of calculating the amount of ore mined for the purpose of compensating the contractors and miners. This change in compensation method resulted in miner shortages as some miners felt uncertain about their pay and left the mine sites. Unfortunately, our contractors have experienced difficulty in replacing the departed miners, particularly prior to the Chinese New Year. For this reason, mining in the PD16 Shaft, one of the main portals at the SGX mine, was suspended for approximately two months in this quarter.

Finally, the change in mining strategy, which began approximately a year ago, has yielded mixed results in its initial year of application. The change in mining strategy focused on reducing the use of re-suing method and increasing the use of shrinkage method. The key requirement of this strategy is the ability to control dilution. Certain mines, such as the LM mine, yielded good results, where dilution was low and cash mining cost were reduced. However, in other mines, such as SGX mine, dilution control was inadequate which negatively impacted head grades.

The Company has performed a comprehensive review of its operation at the Ying Mining District. From the review, a series of improvements covering all aspects of operations, including mine planning and strategy, contractor compensation methods, quality control, and a performance-based (linked to tonnage and grade) compensation package for mine management, were enacted. In the next quarter, the Company will monitor the effects of the new improvements and expect to be in a position to provide normalized production guidance for the Ying Mining District when we release our quarterly results in May.

In Q3 Fiscal 2014, total and cash mining costs per tonne were $60.89 and $50.59 compared to $64.47 and $54.92 in Q3 Fiscal 2013, respectively. The decrease in cash mining cost was mainly due to the reduction of contractor fees in this quarter.

For the nine months ended December 31, 2013, the Ying Mining District mined 535,210 tonnes of ore, producing 3.3 million ounces of silver, 3,066 ounces of gold, 31.4 million pounds of lead, and 6.7 million pounds of zinc, compared to 623,523 tonnes of ore producing 4.0 million ounces of silver, 3,352 ounces of gold, 42.8 million pounds of lead, and 9.6 million pounds of zinc in the same prior year period, respectively. During the same comparative period, head grades were 206 g/t for silver, 2.8% for lead, and 0.9% for zinc, compared to 224 g/t for silver, 3.4% for lead and 1.1% for zinc, respectively.

In Q3 Fiscal 2014, total ore milled was 149,755 tonnes, a decrease of 34% compared to 226,764 tonnes in Q3 Fiscal 2013. Cash milling costs per tonne were $16.00 compared to $12.61 in Q3 Fiscal 2013. The increase in unit cost is mainly due to the reduced tonnage milled. For the nine months ended December 31, 2013, total ore milled was 543,221 tonnes compared to 616,389 tonnes in the same prior year period. During the same time period, cash milling costs per tonne were $13.98 compared to $12.92.

In Q3 Fiscal 2014, the consolidated total production cost and cash cost per ounce of silver, net of by-product credits, were $4.39 and $2.00 compared to $1.52 and negative $0.17, respectively, in Q3 Fiscal 2013. For the nine months ended December 31, 2013, the consolidated total production cost and cash cost per ounce of silver, net of by-product credits, were $4.47 and $2.04 compared to $1.66 and negative $0.26, 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 nine months ended December 31, 2012, lead and zinc production in the current fiscal year decreased 27% and 30%, respectively, along with decreases in realized selling price for lead and zinc of 6% and 2%, respectively.

The consolidated operational results for the past five quarters at the Ying Mining District are summarized in the table below:

Quarterly opertional results - Ying Mining District
		Q3 2014 31-Dec-13	Q2 2014 30-Sep-13	Q1 2014 30-Jun-13	Q4 2013 31-Mar-13	Q3 2013 31-Dec-12
Ore Mined (tonne)
	Direct Smelting Ore (tonne)	715	503	963	1,309	2,334
	Stockpiled Ore (tonne)	148,135	152,599	232,294	152,014	234,360
		148,850	153,102	233,257	153,323	236,694
Run of Mine Ore (tonne)
	Direct Smelting Ore (tonne)	715	503	963	1,309	2,334
	Ore Milled (tonne)	149,040	156,790	235,210	156,836	224,430
		149,755	157,293	236,173	158,145	226,764
Metal Sales
	Silver (in thousands of ounces)	883	1,021	1,364	933	1,508
	Gold (in thousands of ounces)	0.9	0.9	1.3	0.8	1.3
	Lead (in thousands of pounds)	8,814	9,519	13,063	9,462	15,642
	Zinc (in thousands of pounds)	1,572	2,199	2,926	1,554	3,231
Head Grade of Run of Mine Ore
	Silver (gram/tonne)	202	217	200	205	222
	Lead (%)	2.9	2.9	2.7	2.9	3.2
	Zinc (%)	0.7	1.0	0.8	0.7	1.0
Recovery Rate of Run of Mine Ore
	Silver (%)	93.1	92.7	92.3	93.5	93.3
	Lead (%)	95.7	94.8	94.6	94.5	95.1
	Zinc (%)	64.2	68.5	68.4	60.3	70.4
Cash Mining Cost ($ per tonne)		50.59	45.22	54.95	61.67	54.92
Total Mining Costs($ per tonne)		60.89	56.08	65.09	72.56	64.47
Cash Milling Cost ($ per tonne)		16.00	14.89	12.06	16.05	12.61
Total Milling Cost ($ per tonne)		18.60	17.29	13.62	18.61	14.20
Cash Cost per Ounce of Silver ($)		2.00	0.49	3.23	3.65	(0.17)
Total Production Cost per Ounce of Silver ($)		4.39	3.41	5.33	5.82	1.52

2. BYP Mine, Hunan Province, China

In Q3 Fiscal 2014, the BYP mine processed 19,574 tonnes of ore compared to 32,699 tonnes in Q3 Fiscal 2013. During the same comparative periods, the Company sold 1,050 ounces of gold at a cash cost per ounce of gold of $502 compared to 4,309 ounces of gold at a cash cost per ounce of gold of $266, respectively. Gold head grade for Q3 Fiscal 2014 was 2.7 g/t compared to 3.7 g/t in Q3 Fiscal 2013. In Q3 Fiscal 2014, total and cash mining costs per tonne were $53.22 and $22.81 compared to $70.48 and $24.72 in Q3 Fiscal 2013, respectively.

DEVELOPMENT AND EXPLORATION

1. Ying Mining District, Henan Province, China

As at the end of Q3 Fiscal 2014, approximately 2,500 metres ("m") of the development work for the 4,800m access ramp at the LM Mine West are complete.

During the quarter, the Company also completed approximately 18,000m of horizontal tunnels, raises and declines. During the quarter the Company decided to suspend the construction of Shaft 969 at LM Mine West and certain other surface facilities within the Ying Mining District to better allocate resources during the current market.

In Q3 Fiscal 2014, exploration and development expenditures for the Ying Mining District were $8.5 million compared to $9.1 million in Q3 Fiscal 2013. For the nine months ended December 31, 2013, exploration and development expenditures for the Ying Mining District were $26.7 million compared to $28.1 million in the same prior year period.

2. GC Project, Guangdong Province, China

The required surface environmental protection facilities together with water and soil conservation engineering work are complete and have undergone test operations. During the quarter, the concrete rooms for the pumping station and underground main power station at the -50m elevation was completed and the pumps and pipes were installed, which represented the key component prior to the safety inspection, in accordance with safety requirements in the Mine Design.

A temporary Safety Production Permit, valid until the end of June 2014, has been issued to the Company, which allows the Company to conduct trial mine production. A final Safety Production Permit is expected to be issued around the end of June 2014. Before obtaining the Safety Production Permit and commencing significant mining, in the next few quarters, the Company will focus on trial mining and stope preparation work.

As the Company has completed the first phase of mine development and moves to trial mine production, the existing mine contractor, which was originally contracted to carry out mine development, was terminated and is being replaced with a mining contractor specializing in longhole and shrinkage stope mining. Transitioning to the new contractor will take some time and may cause some delays to the start-up of the trial mining.

The Company continued to use development ore to test mill equipment and to fine tune the mill circuits to achieve the desired metallurgical recoveries for silver, lead, zinc, tin, and sulphur. The testing process has identified numerous issues and many improvements were made in the mill circuits. While the floatation test results are approaching the designed recovery rates for silver (60%), lead (85%), zinc (86%), and sulphur, the gravity circuit only recovers approximately 5% tin, significantly lower than the 40% recovery rate in the metallurgic tests. The Company will focus on improving the tin recovery in the next several months.

The tailing dewatering facility for dry stacking has also been improved with modifications to equipment achieving desired results. The construction of the tailing dry stacking dam and reservoir facility has been completed and has passed government inspection.

During Q3 Fiscal 2014, approximately 4,800m of tunnels, including 700m of development tunnels, 2,000m of exploration tunnels and 2,100m of mining preparation tunnels, were completed.

In Q3 Fiscal 2014, $4.6 million (Q3 Fiscal 2013 - $4.7 million) of exploration and development expenditures were incurred at the GC mine. For the nine months ended December 31, 2013, $13.9 million (nine months ended December 31, 2012 - $10.9 million) of exploration and development expenditures were incurred at the GC mine.

3. BYP Mine, Hunan Province, China

In Q3 Fiscal 2014, the construction of the head frame continued. Once completed, the newly completed 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 is complete and trial runs are ongoing. Exploration and development expenditures at the BYP mine were $1.3 million in the current fiscal year compared to $4.6 million in the prior year.

4. X Mines, Henan Province, China

The X Mines consist of two mining projects: the XBG project and XHP project.

During the nine months ended December 31, 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., sold its 90% equity interest in Zhongxing Mining Co. Ltd. (XBG project) for $12.5 million (RMB 76 million). This transaction was completed in this quarter.

Since the end of the first quarter, the Company has suspended major activities at the XHP project as part of its cost saving measures.

QUARTERLY DIVIDEND

To maintain the Company's strong balance sheet and liquidity during the current lower metal price environment, on February 12, 2014, the Board of Directors decided to reduce the quarterly dividend from CAD$0.025 to CAD$0.005 per share per quarter. This measure will save the Company approximately $12 million over the next full year, and ensure that the Company remains in a strong position to act on opportunities that develop in the current downturn. The declaration and payment of future dividends is at the discretion of the Board of Directors and any future decision to increase, or eliminate dividend payments will be based on a number of factors including commodity prices, market conditions, financial results, cash requirements and other relevant factors.

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. 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; 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)
		December 31, 2013			March 31, 2013
ASSETS
Current Assets
	Cash and cash equivalents	$	79,561		$	72,283
	Short-term investments		18,428			45,623
	Trade and other receivables		6,019			1,442
	Inventories		6,073			7,522
	Due from related parties		23			123
	Prepaids and deposits		5,446			5,118
			115,550			132,111
Non-current Assets
	Long-term prepaids and deposits		2,053			1,877
	Investment in an associate		6,080			6,523
	Other investments		11,417			15,516
	Plant and equipment		104,922			103,517
	Mineral rights and properties		268,107			316,678
TOTAL ASSETS		$	508,129		$	576,222
LIABILITIES AND EQUITY
Current Liabilities
	Accounts payable and accrued liabilities	$	32,143		$	29,285
	Deposits received		8,961			11,497
	Dividends payable		4,017			4,204
	Income tax payable		1,224			1,349
	Due to related parties		1,640			1,207
			47,985			47,542
Non-current Liabilities
	Deferred income tax liabilities		15,755			24,603
	Environmental rehabilitation		6,108			5,974
Total Liabilities			69,848			78,119
Equity
	Share capital		233,503			233,082
	Share option reserve		10,051			8,314
	Reserves		25,409			24,717
	Accumulated other comprehensive loss		(927	)		(1,495	)
	Retained earnings		106,307			155,817
Total equity attributable to the equity holders of the Company			374,343			420,435
Non-controlling interests			63,938			77,668
Total Equity			438,281			498,103
TOTAL LIABILITIES AND EQUITY		$	508,129		$	576,222

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 December 31,							Nine Months Ended December 31,
		2013			2012				2013			2012
Sales		$	23,970		$	58,717			$	92,265		$	148,475
Cost of sales			13,501			21,241				50,806			57,029
Gross profit			10,469			37,476				41,459			91,446
General and administrative			6,338			6,445				20,893			19,482
General exploration and property investigation			654			1,345				2,466			3,198
Other taxes			408			854				1,575			2,502
Foreign exchange gain			(1,667	)		(697	)			(2,750	)		(332	)
Loss on disposal of plant and equipment			21			60				144			85
Loss on disposal of mineral rights and properties			181			-				181			-
Share of loss in associate			-			42				153			231
Impairment on associate			-			9,640				-			9,640
Impairment of mineral rights and properties			-			-				66,573			-
Loss on investments			65			78				608			671
Other income			39			(214	)			(117	)		(382	)
Income (loss) from operations			4,430			19,923				(48,267	)		56,351
Finance income			1,047			999				2,953			2,841
Finance costs			(33	)		(24	)			(99	)		(69	)
Income (loss) before income taxes			5,444			20,898				(45,413	)		59,123
Income tax expense (recovery)			2,300			10,267				(1,734	)		25,471
Net income (loss)		$	3,144		$	10,631			$	(43,679	)	$	33,652
Attributable to:
	Equity holders of the Company	$	2,163		$	5,236			$	(36,476	)	$	20,850
	Non-controlling interests		981			5,395				(7,203	)		12,802
		$	3,144		$	10,631			$	(43,679	)	$	33,652
Earnings (loss) per share attributable to the equity holders of the Company
Basic earnings (loss) per share		$	0.01		$	0.03			$	(0.21	)	$	0.12
Diluted earnings (loss) per share		$	0.01		$	0.03			$	(0.21	)	$	0.12
Weighted Average Number of Shares Outstanding - Basic			170,878,775			170,748,449				170,813,858			170,720,668
Weighted Average Number of Shares Outstanding - Diluted			170,925,150			171,072,001				170,813,858			171,072,034

SILVERCORP METALS INC.
Condensed Consolidated Interim Statements of Cash Flow
(Unaudited) (Expressed in thousands of U.S. dollars)
			Three Months Ended December 31,							Nine Months Ended December 31,
			2013			2012				2013			2012
Cash provided by
Operating activities
	Net income (loss)		$	3,144		$	10,631			$	(43,679	)	$	33,652
	Add (deduct) items not affecting cash:
		Unwinding of discount of environmental rehabilitation		33			24				99			69
		Depreciation, amortization and depletion		2,936			4,463				11,418			11,653
		Share of loss in associate		-			42				153			231
		Impairment on associate		-			9,640				-			9,640
		Impairment of mineral rights and properties		-			-				66,573			-
		Write down of inventories		-			-				-			348
		Income tax expense (recovery)		2,300			10,267				(1,734	)		25,471
		Loss on investments		65			78				608			671
		Loss on disposal of plant and equipment		21			60				144			85
		Loss on disposal of mineral rights and properties		181			-				181			-
		Share-based compensation		561			546				1,878			2,154
	Income tax paid			(2,111	)		(7,948	)			(5,461	)		(22,323	)
	Changes in non-cash operating working capital			2,743			20				2,948			9,341
Net cash provided by operating activities				9,873			27,823				33,128			70,992
Investing activities
	Mineral rights and properties
		Capital expenditures		(15,922	)		(15,442	)			(42,527	)		(41,855	)
		Proceeds on disposals		13,349			-				13,349			-
	Plant and equipment
		Additions		(1,604	)		(7,138	)			(13,031	)		(24,723	)
		Proceeds on disposals		1,418			-				1,418			-
	Other investments
		Acquisition		-			-				-			(595	)
	Net redemptions (purchases) of short-term investments			4,257			(13,884	)			26,894			(16,239	)
	Proceeds on sale of a subsidiary (net of cash disposed, $4)			3,274			-				8,160			-
Net cash provided by (used in) investing activities				4,772			(36,464	)			(5,737	)		(83,412	)
Financing activities
	Related parties
		Payments made		(320	)		(16	)			(1,642	)		(365	)
		Repayments received		102			313				317			972
	Non-controlling interests
		Distribution		(5,168	)		(7,224	)			(5,168	)		(14,612	)
	Cash dividends distributed			(4,148	)		(4,295	)			(12,438	)		(12,820	)
	Proceeds from issuance of common shares			192			126				280			239
Net cash used in financing activities				(9,342	)		(11,096	)			(18,651	)		(26,586	)
Effect of exchange rate changes on cash and cash equivalents				(1,821	)		1,239				(1,462	)		(118	)
Increase (decrease) in cash and cash equivalents				3,482			(18,498	)			7,278			(39,124	)
Cash and cash equivalents, beginning of the period				76,079			89,334				72,283			109,960
Cash and cash equivalents included in assets held for sale				-			(1,818	)			-			(1,818	)
Cash and cash equivalents, end of the period			$	79,561		$	69,018			$	79,561		$	69,018

SILVERCORP METALS INC.
Mining Data
(Expressed in thousands of U.S. dollars, except for mining data figures)
			Three months ended December 31, 2013
			Ying Mining District1	X Mines2		BYP	Total
Production Data
	Mine Data
		Ore Mined (tonne)
		Direct Smelting Ore (tonne)	715	-		-	715
		Stockpiled Ore (tonne)	148,135	-		20,690	168,825
			148,850	-		20,690	169,540
	Run of Mine Ore (tonne)
		Direct Smelting Ore (tonne)	715	-		-	715
		Ore Milled (tonne)	149,040	3,496	*	19,574	172,110
			149,755	3,496		19,574	172,825
	Mining cost per tonne of ore mined ($)		60.89	-		53.22	59.95
		Cash mining cost per tonne of ore mined ($)	50.59	-		22.81	47.20
		Non cash mining cost per tonne of ore mined ($)	10.30	-		30.41	12.75
	Unit shipping costs ($)		4.06	-		-	3.57
	Milling cost per tonne of ore milled ($)		18.60	-		15.31	18.22
		Cash milling cost per tonne of ore milled ($)	16.00	-		13.76	15.74
		Non cash milling cost per tonne of ore milled ($)	2.60	-		1.55	2.48
	Average Production Cost
		Silver ($ per ounce)	8.83	-		-	9.12
		Gold ($ per ounce)	483	-		959	532
		Lead ($ per pound)	0.42	-		-	0.44
		Zinc ($ per pound)	0.34	-		-	0.35
	Total production cost per ounce of Silver ($)		4.39	-			4.39
	Total cash cost per ounce of Silver ($)		2.00	-			2.00
	Total production cost per ounce of Gold ($)					959	959
	Total cash cost per ounce of Gold ($)					502	502
	Total Recovery of the Run of Mine Ore
		Silver (%)	93.1	-			93.1
		Gold (%)				92.7	92.7
		Lead (%)	95.7	-			95.7
		Zinc (%)	64.2	-			64.2
	Head Grades of Run of Mine Ore
		Silver (gram/tonne)	202	-			202
		Gold (gram/tonne)				2.7	2.7
		Lead (%)	2.9	-			2.9
		Zinc (%)	0.7	-			0.7
Sales Data
	Metal Sales
		Silver (in thousands of ounces)	883	2	*	-	885
		Gold (in thousands of ounces)	0.9	-		1.1	2.0
		Lead (in thousands of pounds)	8,814	186	*	-	9,000
		Zinc (in thousands of pounds)	1,572	100	*	-	1,672
	Metal Sales
		Silver (in thousands of $)	14,304	-		-	14,304
		Gold (in thousands of $)	808	-		1,045	1,853
		Lead (in thousands of $)	6,824	-		-	6,824
		Zinc (in thousands of $)	989	-		-	989
			22,925	-		1,045	23,970
	Average Selling Price, Net of Value Added Tax and Smelter Charges
		Silver ($ per ounce)	16.20	-		-	16.20
		Gold ($ per ounce)	887	-		995	945
		Lead ($ per pound)	0.77	-		-	0.77
		Zinc ($ per pound)	0.63	-		-	0.63
1 Ying Mining District includes mines: SGX, TLP, HPG&LM.
2 X Mines includes the XHP project.
* 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)
			Three months ended December 31, 2012
			Ying Mining District1	X Mines2		BYP	Total
Production Data
	Mine Data
		Ore Mined (tonne)
		Direct Smelting Ore (tonne)	2,334	-		-	2,334
		Stockpiled Ore (tonne)	234,360	8,932	*	35,558	278,850
			236,694	8,932		35,558	281,184
	Run of Mine Ore (tonne)
		Direct Smelting Ore (tonne)	2,334	-		-	2,334
		Ore Milled (tonne)	224,430	27,265	*	32,699	284,394
			226,764	27,265		32,699	286,728
	Mining cost per tonne of ore mined ($)		64.47	-		70.48	65.26
		Cash mining cost per tonne of ore mined ($)	54.92	-		24.72	50.98
		Non cash mining cost per tonne of ore mined ($)	9.55	-		45.76	14.28
	Unit shipping costs ($)		3.62	-		-	3.15
	Milling cost per tonne of ore milled ($)		14.21	-		14.38	14.23
		Cash milling cost per tonne of ore milled ($)	12.61	-		13.49	12.72
		Non cash milling cost per tonne of ore milled ($)	1.60	-		0.89	1.51
	Average Production Cost
		Silver ($ per ounce)	8.53	-		-	9.01
		Gold ($ per ounce)	409	-		646	418
		Lead ($ per pound)	0.27	-		-	0.29
		Zinc ($ per pound)	0.22	-		-	0.23
	Total production cost per ounce of Silver ($)		1.52	-			1.52
	Total cash cost per ounce of Silver ($)		(0.17)	-			(0.17)
	Total production cost per ounce of Gold ($)					630	630
	Total cash cost per ounce of Gold ($)					266	266
	Total Recovery of the Run of Mine Ore
		Silver (%)	93.3	-			93.3
		Gold (%)				92.7	92.7
		Lead (%)	95.1	-			95.1
		Zinc (%)	70.4	-			70.4
	Head Grades of Run of Mine Ore
		Silver (gram/tonne)	222	-			222
		Gold (gram/tonne)				3.7	3.7
		Lead (%)	3.2	-			3.2
		Zinc (%)	1.0	-			1.0
Sales Data
	Metal Sales
		Silver (in thousands of ounces)	1,508	11	*	-	1,519
		Gold (in thousands of ounces)	1.3	0.1	*	4.3	5.7
		Lead (in thousands of pounds)	15,642	788	*	-	16,430
		Zinc (in thousands of pounds)	3,231	463	*	283	3,977
	Metal Sales
		Silver (in thousands of $)	37,551	-		-	37,551
		Gold (in thousands of $)	1,533	-		4,934	6,467
		Lead (in thousands of $)	12,480	-		-	12,480
		Zinc (in thousands of $)	2,061	-		158	2,219
			53,625	-		5,092	58,717
	Average Selling Price, Net of Value Added Tax and Smelter Charges
		Silver ($ per ounce)	24.90	-		-	24.90
		Gold ($ per ounce)	1,193	-		1,145	1,155
		Lead ($ per pound)	0.80	-		-	0.80
		Zinc ($ per pound)	0.64	-		0.56	0.63
1 Ying Mining District includes mines: SGX, TLP, HPG&LM.
2 X Mines includes the XBG project and XHP project.
* 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)
			Nine months ended December 31, 2013
			Ying Mining District1	X Mines2		BYP	Total
Production Data
	Mine Data
		Ore Mined (tonne)
		Direct Smelting Ore (tonne)	2,181	-		-	2,181
		Stockpiled Ore (tonne)	533,029	-		67,418	600,447
			535,210	-		67,418	602,628
	Run of Mine Ore (tonne)
		Direct Smelting Ore (tonne)	2,181	-		-	2,181
		Ore Milled (tonne)	541,040	10,425	*	69,621	621,086
			543,221	10,425		69,621	623,267
	Mining cost per tonne of ore mined ($)		61.42	-		54.35	60.63
		Cash mining cost per tonne of ore mined ($)	51.02	-		23.48	47.94
		Non cash mining cost per tonne of ore mined ($)	10.40	-		30.87	12.69
	Unit shipping costs ($)		4.33	-		-	3.85
	Milling cost per tonne of ore milled ($)		16.07	-		15.35	15.99
		Cash milling cost per tonne of ore milled ($)	13.98	-		14.05	13.99
		Non cash milling cost per tonne of ore milled ($)	2.09	-		1.30	2.00
	Average Production Cost
		Silver ($ per ounce)	8.94	-		-	9.28
		Gold ($ per ounce)	503	-		903	570
		Lead ($ per pound)	0.41	-		-	0.42
		Zinc ($ per pound)	0.33	-		0.45	0.34
	Total production cost per ounce of Silver ($)		4.47	-			4.47
	Total cash cost per ounce of Silver ($)		2.04	-			2.04
	Total production cost per ounce of Gold ($)					899	899
	Total cash cost per ounce of Gold ($)					473	473
	Total Recovery of the Run of Mine Ore
		Silver (%)	92.6	-			92.6
		Gold (%)				92.6	92.6
		Lead (%)	95.0	-			95.0
		Zinc (%)	67.4	-			67.4
	Head Grades of Run of Mine Ore
		Silver (gram/tonne)	206	-			206
		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)	3,269	12	*	-	3,281
		Gold (in thousands of ounces)	3.1	0.2	*	5.5	8.8
		Lead (in thousands of pounds)	31,397	590	*	-	31,987
		Zinc (in thousands of pounds)	6,697	584	*	282	7,563
	Metal Sales
		Silver (in thousands of $)	55,064	-		-	55,064
		Gold (in thousands of $)	2,909	-		5,991	8,900
		Lead (in thousands of $)	24,006	-		-	24,006
		Zinc (in thousands of $)	4,141	-		154	4,295
			86,120	-		6,145	92,265
	Average Selling Price, Net of Value Added Tax and Smelter Charges
		Silver ($ per ounce)	16.85	-		-	16.85
		Gold ($ per ounce)	949	-		1,084	1,036
		Lead ($ per pound)	0.76	-		-	0.76
		Zinc ($ per pound)	0.62	-		0.55	0.62
1 Ying Mining District includes mines: SGX, TLP, HPG&LM.
2 X Mines includes the XHP project.
* 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)
			Nine months ended December 31, 2012
			Ying Mining District1	X Mines2		BYP	Total
Production Data
	Mine Data
		Ore Mined (tonne)
		Direct Smelting Ore (tonne)	7,027	-		-	7,027
		Stockpiled Ore (tonne)	616,496	19,309	*	89,759	725,564
			623,523	19,309		89,759	732,591
	Run of Mine Ore (tonne)
		Direct Smelting Ore (tonne)	7,027	-		-	7,027
		Ore Milled (tonne)	609,362	58,349	*	77,862	745,573
			616,389	58,349		77,862	752,600
	Mining cost per tonne of ore mined ($)		65.15	-		60.75	64.60
		Cash mining cost per tonne of ore mined ($)	54.53	-		23.86	50.67
		Non cash mining cost per tonne of ore mined ($)	10.62	-		36.89	13.93
	Unit shipping costs ($)		3.72	-		-	3.25
	Milling cost per tonne of ore milled ($)		14.64	-		15.10	14.69
		Cash milling cost per tonne of ore milled ($)	12.92	-		14.00	13.04
		Non cash milling cost per tonne of ore milled ($)	1.72	-		1.10	1.65
	Average Production Cost
		Silver ($ per ounce)	8.69	-		-	9.07
		Gold ($ per ounce)	425	-		760	452
		Lead ($ per pound)	0.29	-		-	0.31
		Zinc ($ per pound)	0.23	-		-	0.24
	Total production cost per ounce of Silver ($)		1.66	-			1.66
	Total cash cost per ounce of Silver ($)		(0.26)	-			(0.26)
	Total production cost per ounce of Gold ($)					752	752
	Total cash cost per ounce of Gold ($)					356	356
	Total Recovery of the Run of Mine Ore
		Silver (%)	92.6	-			92.6
		Gold (%)				92.5	92.5
		Lead (%)	94.5	-			94.5
		Zinc(%)	67.8	-			67.8
	Head Grades of Run of Mine Ore
		Silver (gram/tonne)	224	-			224
		Gold (gram/tonne)				3.1	3.1
		Lead (%)	3.4	-			3.4
		Zinc (%)	1.1	-			1.1
Sales Data
	Metal Sales
		Silver (in thousands of ounces)	4,009	21	*	-	4,030
		Gold (in thousands of ounces)	3.4	0.2	*	7.2	10.8
		Lead (in thousands of pounds)	42,757	1,313	*	-	44,070
		Zinc (in thousands of pounds)	9,617	574	*	283	10,474
	Metal Sales
		Silver (in thousands of $)	95,241	-		-	95,241
		Gold (in thousands of $)	3,894	-		8,667	12,561
		Lead (in thousands of $)	34,412	-		-	34,412
		Zinc (in thousands of $)	6,103	-		158	6,261
			139,650	-		8,825	148,475
	Average Selling Price, Net of Value Added Tax and Smelter Charges
		Silver ($ per ounce)	23.76	-		-	23.76
		Gold ($ per ounce)	1,162	-		1,196	1,185
		Lead ($ per pound)	0.80	-		-	0.80
		Zinc ($ per pound)	0.63	-		0.56	0.63
1 Ying Mining District includes mines: SGX, TLP, HPG&LM.
2 X Mines includes the XBG project and XHP project.
* Represents development tunnelling ore at the X mines.