The Premier Silver Producer in China Corporate Presentation - PDF document

OTC: SVMLF 0 The Premier Silver Producer in China Corporate Presentation November 10, 2016

Forward Looking Statements Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including but not limited to those with respect to the price of silver, lead and zinc, the possibility, timing and amount of estimated future production, costs of production, reserve determination and reserve conversion rates involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Silvercorp to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks related to international operations, risks related to Chinese government issuance of mining and related development permits, risks related to joint venture operations, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of silver, lead and zinc, as well as other Risk Factors. Although Silvercorp 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 or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The shares of Silvercorp Metals Inc. trade on the Toronto Stock Exchange (TSX: SVM). The TSX has not approved or disapproved the form or content of this presentation. Cautionary Note To U.S. Investors Concerning Estimates Of Measured, Indicated And Inferred Resources This presentation uses the terms “Measured”, “Indicated” and Inferred” Resources. U.S. investors are advised that while such terms are recognized and required by Canadian regulations, the Securities and Exchange Commission does not recognize them. “Inferred Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Resources may not form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that all or any part of Measured or Indicated Resources will ever be converted into reserves. U.S. investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable. 1 1

Overview: China’s Largest Primary Silver Producer Ying Mining District, Henan Province FY2017: 4.6Moz Silver XHP Project Henan Province China BYP Mine, Silver Lead Zinc Reserves & (MOz) (Kt) (Kt) Hunan Province Resources 1 (On Care and Maintenance) Proven & Probable 101.0 442.5 267.5 Reserves Measured & Indicated 137.3 613.1 408.0 GC Project, Resources Guangdong Province Inferred Resources 91.9 358.0 286.8 FY2017: 0.5Moz Silver 1 Excludes BYP Gold Mine Resource. See appendix III-V for breakout. 2 2

A1 Silvercorp’s Strategy Our Strategy • Grow existing assets organically through drilling and land expansion • Acquire under-explored mining projects with resource growth potential • Apply leading edge mine techniques to optimize operations, reducing dilution and costs • Leverage underutilized milling capacity as commodity prices improve 3 3

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A4 Silvercorp’s Strategy Ten Years of Proven Execution • Successfully acquired and developed multiple projects • Built 800,000 t/a mining + milling capacity at Ying Mining District and built 500,000 t/a mine and mill capacity at GC Project. • Consolidated mine life remains above 10 years after 10 years of production (46.4 million Oz silver and 689 million pounds of lead and zinc produced to date) • Strong Operating Performance and Financial Position 4 4

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Financial Snapshot – 6 Months Ended 6 Months Ended September 30, 2016 September 30, 2015 (millions US$) (millions US$) Revenue $81.6 $59.4 Gross Profit $42.5 $20.3 Net Income $22.5 $6.8 Cash Flow from Operations $47.2 $18.0 Cash, cash equivalents and short-term investments: $92.1 Million, up $18.7 million since last quarter. Shares Outstanding: 167 million (basic and diluted) TSX Exchange: SVM • Repurchased 4.0 million shares in the latest 12 months • Reinstatement of dividend $0.02/year 5 5

Low Cost Silver Producer - Fiscal 2017 Q2 Results  Low cost producer of silver - cash cost of negative $3.05** per Ag ounce for Q2 FY2017 Q2 FY2017 Sales Mix by Metal Gross Profit Margins* 58% 60% Zinc, 8.8% 48% 50% 39% 40% 40% 36% Lead, 30.5% Silver, 30% 58.3% 20% 10% Gold, 2.3% 0% * Quarter ended Sep. 30, 2016. ** Net of by-product credits. AISCC of $3.16 per Oz 6 6

Low All in Sustaining Cost Relative to Peers 18.00 AISCC 16.46 16.00 15.43 14.00 11.47 12.00 10.00 8.68 8.00 6.00 4.00 3.16 2.00 0.00 * Quarter ended Sep. 30, 2016. 7 7

IMPROVING HEAD GRADES Silver Head Grades and Ore Production Monthly Data at Ying Mining District (Jan 2012 to Sep 2016) Tonnaes —Grades 200,000 350 180,000 300 160,000 250 Silver Grade Gram/tonne 140,000 Tonnes of Ore 120,000 200 100,000 150 80,000 60,000 100 40,000 50 20,000 0 0 8 8

Ying Mining District: Silvercorp’s Flagship Asset • Flagship Ying District consists of underground mines including SGX, TLP, LM, and HPG mines Over 70km 2 land package • • Extensive underground drilling has maintained mine life at >10 years • Has produced over 48.4 million Oz silver since 2006 • Two centralized mills with 3,200 t/d capacity • Producing silver-lead and zinc concentrates • 6 smelters within 200km of the district • Opportunity for further acquisitions in local area 9 9

Ying Mining District: Cost Control Efforts are Working • Cost cutting efforts have succeeded at reducing head counts and lowering general and administration costs at Ying. • An employee incentive No. 2 – 2,200 tpd Mill compensation plan is encouraging more efficient production • General and administrative expenses in Q2 FY2017 decreased 16% compare to Q2FY2016 • Total Production Cost has been No.1 – 1,000 tpd Mill reduced Longer Term Goal: Increase the production capacity to match our existing milling capacity 10 10

GC Mine: Commercial Mining Underway Shaft Mill Plant Concentrate Thickener 110KV Power Substation Dewatering Plant Concentrate Warehouse 11 11

GC Mine in Guangdong – Our Newest Mine • Underground silver/zinc mine • Excellent infrastructure and access • Sold 183,000 Oz Ag and 6.3 million lbs. Pb/Zn during Q2 FY2017. • Contributed $6.3 million in revenue. • FY2017 capital ex budget of $1.0 million, including $0.5 million for tunnel development and $0.5 million to compete the shaft development. Main Access Ramp 12 12

Silver Production – Over 46 Million Ounces to Date Gold converted to silver at a rate of 50:1; Silvercorp’s fiscal year ends March 31 st 1. 2. FY2017E: actual production for the first six months + guidance figures for the remaining six months. 13 13

Lead+Zinc Production – Over 689 Million Pounds to Date 1. FY2017E: actual production for the first six months + guidance figures for the remaining six months. 14 14

Enterprise Blog: A Tool to Achieve Dilution and Cost Control Improvement in the head grades of metals can be attributed in part to an internal “Enterprise Blog” (EB) system in the management of Mine Production and Safety Information. “EB” system is an internet social media system that makes the distribution and flow of the work related knowledge and information easy and transparent for parties at different locations. Each of the mining stopes, development faces, or equipment is assigned a “blog” name. Daily onsite inspection results of different workplaces are listed in “check list tables” containing structured data with supporting photos. Result from each workplace is required to be “posted” on its “blog”. Different levels of the management team can access to the daily “blog” for each workplace instantly once posted. The system will also record if a management person has accessed the “blog” to read or comment. 15 15

Enterprise Blog: A Tool to Achieve Dilution and Cost Control Check List Table containing supporting photo of red paints marking the ore body boundary and drill hole locations is “posted” on the “blog” for the workplace. Daily onsite inspection results listed in “check list tables” containing data and supporting photos of Carbon monoxide reading shown is “posted” on the “blog” contained in the “Check List Table” for the workplace. 16 16