The Premier Silver Producer in China Corporate Presentation - - PDF document

Corporate Presentation

November 10, 2016

The Premier Silver Producer in China

OTC: SVMLF

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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

• r 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

• r 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.

Forward Looking Statements

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Overview: China’s Largest Primary Silver Producer

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Reserves & Resources1 Silver (MOz) Lead (Kt) Zinc (Kt) Proven & Probable Reserves 101.0 442.5 267.5 Measured & Indicated Resources 137.3 613.1 408.0 Inferred Resources 91.9 358.0 286.8

Ying Mining District, Henan Province

FY2017: 4.6Moz Silver

BYP Mine, Hunan Province

(On Care and Maintenance)

GC Project, Guangdong Province

FY2017: 0.5Moz Silver

1 Excludes BYP Gold Mine Resource. See appendix III-V for breakout.

China

XHP Project Henan Province

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Silvercorp’s Strategy

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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

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Slide 4 A1

Author, 11/8/2016

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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

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Slide 5 A4

Author, 11/8/2016

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6 Months Ended September 30, 2016 (millions US$) 6 Months Ended September 30, 2015 (millions US$) 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

Financial Snapshot –

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58% 48% 40% 39% 36% 0% 10% 20% 30% 40% 50% 60%

Gross Profit Margins*

Low Cost Silver Producer - Fiscal 2017 Q2 Results

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• Low cost producer of silver - cash cost of

negative $3.05** per Ag ounce for Q2 FY2017

Q2 FY2017 Sales Mix by Metal

** Net of by-product credits. AISCC of $3.16 per Oz * Quarter ended Sep. 30, 2016.

Silver, 58.3% Gold, 2.3% Lead, 30.5% Zinc, 8.8%

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3.16

8.68 11.47 15.43 16.46 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00

AISCC

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Low All in Sustaining Cost Relative to Peers

* Quarter ended Sep. 30, 2016.

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200,000 180,000 160,000 120,000 100,000 80,000 60,000 40,000 20,000 50 100 350 300 250 200 150

Tonnaes —Grades

Silver Head Grades and Ore Production Monthly Data at Ying Mining District (Jan 2012 to Sep 2016)

IMPROVING HEAD GRADES

Silver Grade Gram/tonne

140,000

Tonnes of Ore

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Ying Mining District: Silvercorp’s Flagship Asset

• Flagship Ying District consists of

underground mines including SGX, TLP, LM, and HPG mines

• Over 70km2 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

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Longer Term Goal: Increase the production capacity to match our existing milling capacity

Ying Mining District: Cost Control Efforts are Working

No.1 – 1,000 tpd Mill

• No. 2 – 2,200 tpd Mill

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• Cost cutting efforts have

succeeded at reducing head counts and lowering general and administration costs at Ying.

• An employee incentive

compensation plan is encouraging more efficient production

• General and administrative

expenses in Q2 FY2017 decreased 16% compare to Q2FY2016

• Total Production Cost has been

reduced

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Concentrate Thickener Mill Plant Shaft 110KV Power Substation 11 Dewatering Plant Concentrate Warehouse

GC Mine: Commercial Mining Underway

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GC Mine in Guangdong – Our Newest Mine

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Main Access Ramp

• 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.

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Silver Production – Over 46 Million Ounces to Date

1. Gold converted to silver at a rate of 50:1; Silvercorp’s fiscal year ends March 31st 2. FY2017E: actual production for the first six months + guidance figures for the remaining six months.

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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.

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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.

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Enterprise Blog: A Tool to Achieve Dilution and Cost Control

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. Check List Table containing supporting photo of red paints marking the ore body boundary and drill hole locations is “posted”

• n the “blog” for the

workplace.

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Benefits of the “Enterprise Blog”

• Information collection, distribution, retrieval, and monitoring has

become transparent and instantly.

• Information and knowledge collected by the frontline technicians or

engineers freely flows throughout layers of the management structure.

• Structured data format allows for statistics for key management info.
• Management has the pressure, incentive, and tools to make prompt

and more accurate decisions.

• Collaboration becomes easy, KPI assessments are fair and timely,

and each person is accountable for his work. Enterprise Blog: A Tool to Achieve Dilution and Cost Control

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Consolidated net profit per tonne

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10 11 12 13 14 15 16 17 18 (15) 35 85 135 185

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Fiscal 2014 Fiscal 2015 Fiscal 2016 Fiscal 2017

S i l v e r p r i c e P e r t

• n

n e v a l u e

Consolidated net profit per tonne

Revenue per tonne ($/t) AISC per tonne ($/t) Profit per tonne ($/t) Net realized silver selling price ($/oz)

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5,000 10,000 15,000 20,000 25,000 30,000 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Fiscal 2014 Fiscal 2015 Fiscal 2016 Fiscal 2017

G r

• s

s p r

• f

i t S a l e s a n d c

• s

t

Consolidated gross profit

Sales revenue (000's of $) Cost of sales (000's of $) Gross profit (000's of $)

Consolidated gross profit

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225,000m of drilling and 128,000m of tunnelling between 2013 - 2016

Exploration Achieves Internal Growth at Ying Mining District

• Expansion and definition of previous known Mineral Resource blocks.
• New mineralization defined downdip and along strike within known

vein structures.

• New mineralized parallel and splay structures discovered beside major

structures.

• New mineralized structures in less-explored areas in the Ying property.

Results of the extensive exploration program have been incorporated into the exploration database for the current 43-101 resource update which is being prepared by AMC Consulting and expected in November 2016.

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Reserve & Resource Growth

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1 Excludes Lead and Zinc. Gold was converted to Silver equivalent at a rate of 50:1. 2 Measured & Indicated Resources Inclusive of Reserves. See Appendix III, IV and V for breakout of Measured, Indicated and Inferred, Proven and Probable categories.

98.5 117.9 142.8 154.1

64.2 58.7 98.2 102.4

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40 60 80 100 120 140 160 180

2010 2011 2012 2014 Ounces of Silver and Silver Eq.* (Millions)1,2

Reserves & Resources: FY2010 - FY2014

M&I P&P Reserves

Updated Ying District NI43-101 expected - fall 2016.

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BYP Gold Mine – a non-core asset

Status:

• suspended mining operations in

August 2014

• Currently it is working to re-start

the operation or other options.

500 tpd Mill at the BYP Mine

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FY2017 Production Guidance

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• Guidance as of February 5, 2016. So far, the first 6 months has surpassed the guidance substantially

Ore processed (tonnes) 610,000 250,000 860,000 491,743 Silver (gram per tonne) 260 109 Lead (%) 4.1 1.3 Zinc (%) 0.8 3.0 Silver ('000 ounces) 4.6 0.5 5.1 3.5 Lead (million pounds) 50.7 6.3 57.0 36.7 Zinc (million pounds) 5.3 14.0 19.3 11.1

Actual Total for 6 MOs of F2017

Head Grades Metal Production

FY2017 Production Guidance

Project Ying Mining District GC Mine Grand Total

24 * includes tunnel development. ** includes $7.2 million for transportation tunnel and haul road construction, and $5.0 million of mining right fees. *** in F2017 Company’s focus is shifting to increased usage of exploration tunneling based on previous year’s drilling. Guidance as of Feb. 5, 2016.

Mines/ Projects Mine Development* Facilities/ Land Usage/ Equipment** Drilling/Tunnelling Exploration*** Total US$ million Cost ($million) Work (meters) Cost ($million) Cost ($million) Drilling (meters) Ying Mining District 2.1 6,743 13.5 14.6 48,375 30.2 GC Mine 0.5 1,080 0.5 3,545 1.0 Total Budget 2.6 7,823 14.0 14.6 51,920 31.2

FY2017 Capital Expenditure Guidance

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Appendices

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Top 10 Institutional Investors – Firms and Funds % O/S 1 Van Eck Associates Corporation 10.34 2 Rafferty Asset Management LLC 4.15 3 Global X Management Company LLC 1.38 4 Esposito Partners, LLC 0.95 5 Norges Bank Investment Management (NBIM) 0.79 6 AMG Fondsverwaltung AG 0.70 7 Renaissance Technologies LLC 0.65 8 Stabilitas GmbH 0.60 9 BlackRock Institutional Trust Company, N.A. 0.36 10 Old Mutual Global Investors (UK) Limited 0.29 Analyst Coverage Chris Thompson Raymond James

Source: Thomson One September 28, 2016 Data

Appendix I: Ownership and Coverage

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Board of Directors Rui Feng Malcolm Swallow Yikang Liu Paul Simpson David Kong Management Rui Feng, Ph.D., Geology Chairman and CEO, Director Derek Liu, CGA, CPA Chief Financial Officer Luke Liu, M. Eng. PhD (Mining Eng.) Vice President China Operations Lorne Waldman, MBA, LL.B. Senior Vice President Alex Zhang, M. Eng., M.Sci., P. Geo. Vice President, Exploration Gordon Neal, Vice President, Corporate Development

Appendix II: Management & Board

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• 1. Table excludes HPG mine Proven reserves of 16,900 oz Au (560,000 tonnes grading 0.94 g/t Au) and HPG mine Probable reserves of 12,200 00 oz Au (360,000 tonnes grading 1.05

g/t Au)

• 2. For further information please refer to the Technical Report for Ying Gold-Silver-Lead-Zinc Property (filed September 2014) and the GC Technical Report (filed February 2012). All reports

are available on SEDAR (www.sedar.com).

• 3. Rounding of some figures may lead to minor discrepancies in some totals
• 4. Mineral reserves include consideration of mining dilution

Appendix III: Summary of Silver Reserves1,2,3,4

28 Project Reserve Category Tonnes (Million) Head Grades Contained Metal Reserves Ag (g/t) Pb (%) Zn (%) Ag (Moz) Pb (t) Zn (t) Ying Mining District Proven 5.24 207 3.56 1.34 34.81 186,700 70,200 Probable 7.40 200 2.62 0.77 47.71 193,700 57,000 GC Project Proven 0.46 199 1.12 3.18 3.0 5,200 14,800 Probable 4.29 113 1.33 2.93 15.5 56,900 125,500 Consolidated Proven 5.70 37.81 191,900 85,000 Probable 11.69 63.21 250,600 182,500 Total 17.39 101.02 442,500 267,500

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• 1. Table excludes HPG mine Measured resources of 23,900 oz Au (660,000 tonnes grading 1.12 g/t Au), Indicated resources of 20,000 oz Au (500,000 tonnes grading 1.25

g/t Au), Inferred resources of 14,600 oz Au (430,000 tonnes grading 1.07 g/t Au). Table also excludes BYP Au-Pb-Zn project resources (BYP resources summarized on Slide 28).

• 2. For further information please refer to the revised Technical Report for Ying Gold-Silver-Lead-Zinc Property (filed September 2014) and the GC Technical Report (filed

February 2012). All reports are available on*SEDAR (www.sedar.com).

• 3. Rounding of some figures may lead to minor discrepancies in some totals
• 4. Resources are inclusive of resources converted in mineral reserves.

Appendix IV: Summary of Silver Resources1,2,3,4

29 Project Reserve Category Tonnes (Million) Head Grades Contained Metal Resources (Inclusive of Reserves) Ag (g/t) Pb (%) Zn (%) Ag (Moz) Pb (t) Zn (t) Ying Mining District Measured 5.56 253 4.53 1.67 45.81 253,400 94,600 Indicated 8.45 226 3.05 0.92 61.49 258,800 78,100 Inferred 7.53 251 3.26 0.99 60.50 245,500 74,900 GC Project Measured 0.59 230 1.41 3.33 4.4 8,400 19,800 Indicated 7.04 113 1.31 3.06 25.6 92,500 215,500 Inferred 7.96 123 1.41 2.66 31.4 112,500 211,900 Consolidated Measured 6.15 50.21 261,800 114,400 Indicated 15.49 87.09 351,300 293,600 Inferred 15.49 91.90 358,000 286,800

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Mineral Resources for Gold Zones as of December 31, 2011:

CLASS Cut-off Grades (g/t) Resource Grades Contained Metal Resources (tonne)

Au (g/t)

Au (oz)

Indicated 1.0 3,510,000 2.59 292,000 Inferred 1.0 2,470,000 1.84 146,000 Mineral Resources for Lead and Zinc Zones as of December 31, 2011:

CLASS Cut-off Grades (g/t) Resource Grades Contained Metal Resources (tonne)

Pb(%) Zn(%)

Pb (Tonnes) Zn (Tonnes)

Indicated 2.0 Pb+Zn 7,330,000 1.16 2.52 85,000 184,700 Inferred 2.0 Pb+Zn 7,550,000 0.85 2.75 64,200 207,600

Notes to Resource Tables:

• 1. CIM definitions apply
• 2. Mined tonnages deducted
• 3. Resources are rounded to nearest 10,000 tonnes
• 4. Cut-off grades are based on mining, processing and G & A costs of $38/t
• 5. Technical report filed on August 16, 2012 at www.sedar.com

Appendix V: BYP Mine Resource

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Key Growth Catalysts

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• Ying Mining District :
• More efficient and lower cost mining
• Reduced management overhead and greater incentives
• Longer term opportunity to increase mining capacity to match milling

capacity

• Further near district acquisitions
• GC Project:
• Commercial production underway
• Fine tuning operations to improve efficiencies and lower costs
• Continue exploration to expand resources
• Growth:
• Grow existing assets organically through land expansion and drilling
• Acquire under-explored, smaller-scale mining projects, ideally in Asia, with

resource growth potential

• BYP

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Alex Zhang, P. Geo., Vice President of Exploration and Luke Liu, M. Eng. PhD Vice President China Operations are the Qualified Person within the meaning of National Instrument 43-101 – Standards Of Disclosure for Mineral Projects (“NI 43-101”) who supervised the preparation of the scientific and technical information of Silvercorp included in this presentation. For more information on Silvercorp’s projects, readers should refer to Silvercorp’s Annual Information Form, dated June 16, 2016, and its technical reports, each of which is available on SEDAR at www.sedar.com. The scientific and technical information related to Silvercorp’s projects included in this investor presentation are derived from the technical reports entitled:

• NI 43-101 Technical Report for Ying Gold-Silver-Lead-Zinc Property, Henan Province, China, prepared July

29, 2014 by P R Stephenson, P. Geo., H A Smith, P.Eng., A Riles, MAIG, M Molavi, P.Eng

• NI 43-101 Technical Report on the BYP Gold-Lead-Zinc Property, Hunan Province, China, dated June 30,

2012, prepared by P R Stephenson, P. Geo., H A Smith, P.Eng., A Riles, MAIG, M Molavi, P.Eng, D. Nussipakynova, P.Geo., A. Ross, P.Geo.

• NI 43-101 Technical Report on the GC Ag-Zn-Pb Project in Guangdong Province, People’s Republic of

China, dated January 23, 2012, prepared by Brian O’Connor, P. Geo, Peter Mokos, MAusIMM (CP), Alan Riles, MAIG, Owen Watson, MAusIMM (CP), Mo Molavi, P. Eng, Patrick Stephenson, P. Geo, AMC Mining Consultants (Canada) Ltd.

Endnotes and Cautionary Statements

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Suite #1378 - 200 Granville St., Vancouver, BC, Canada V6C 1S4 Tel: 604-669-9397 | Fax: 604-669-9387 | Toll-Free: 1-888-224-1881 Email: investor@silvercorp.ca Website: www.silvercorp.ca

Head Office

Silvercorp’s disclosure documents are available from the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com

Contact Information

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