Silvercorp Metals Reports 70% Revenue Growth in Q1 Fiscal 2027 Amid Voluntary Safety Upgrade Pause

• Q1 Fiscal 2027 revenue reached $138.7 million, a 70% increase over the same quarter last year, with full financial results due August 10, 2026, after market close.
• Starting mid-June, Silvercorp voluntarily suspended operations at its Ying and GC mines to complete the "Six Major Safety Systems" underground upgrade programme under new Chinese safety regulations.
• Gold production rose 24% to 2,536 ounces, while silver, silver equivalent, lead and zinc output each declined between 15% and 17%, reflecting lower ore grades and the production suspension.
• Construction advanced at three growth projects: El Domo in Ecuador, the Chaarat ZAAV project in Kyrgyzstan, and the Kuanping mine.
• Combined drilling and exploration tunneling across the Ying and GC sites exceeded 100,000 metres for the quarter.

Silvercorp Metals Inc. (TSX/NYSE American: SVM) is a Canada-based mining company that produces silver, gold, lead and zinc. Its strategy centres on generating cash flow from long-life mines, growing output through drilling programmes, pursuing acquisitions, and maintaining a long-term commitment to responsible mining. Alongside its operations in China, the Company is developing projects in Ecuador and Kyrgyzstan.

Q1 Fiscal 2027 Revenue of $138.7 Million Representing 70% Year-Over-Year Increase Despite Temporary Production Slowdown

Silvercorp reported revenue of $138.7 million for the first quarter of Fiscal 2027, ended June 30, 2026, a 70% increase over the same period last year. The Company will release its full unaudited interim financial results on August 10, 2026, after market close.

Production results for the quarter were mixed. Gold output rose 24% to 2,536 ounces. Silver production fell 17% to 1.5 million ounces, while silver equivalent production, a figure that converts gold output into its silver value based on realised prices and adds it to silver ounces produced, declined 15% to 1.7 million ounces. Lead and zinc production each fell 15%, to 13.4 million pounds and 4.4 million pounds respectively.

At the operating level, the Ying Mining District processed 323,216 tonnes of ore, up 14% from a year earlier, though lower head grades linked to increased shrinkage mining, combined with the June suspension, reduced metal output. The GC Mine processed 63,237 tonnes, down 16%, with silver production down 39% for the same reasons.

Voluntary Safety Compliance Suspension at Ying and GC Mines Implementing Six Major Safety Systems

Beginning in mid-June, Silvercorp voluntarily suspended operations at both the Ying Mining District and the GC Mine to conduct self-reviews and complete the "Six Major Safety Systems" underground upgrades, bringing both mines into compliance with new Chinese government mining regulations.

The suspension affected metals production for the quarter but did not halt other site activity. Combined drilling across Ying and GC reached 86,104 metres, alongside 18,749 metres of exploration tunneling, while construction of the new No. 3 mill at Ying commenced, with foundation work and an elevated water tank currently under way.

The upgrade work is a one-time initiative tied to the new regulatory requirements rather than an ongoing operational change. Both mines are expected to return to normal production once the compliance work is complete.

Multi-Project Construction Progress Across El Domo Ecuador, Chaarat ZAAV Kyrgyzstan and Kuanping Mine

At El Domo in Ecuador, construction continued despite rainfall during the quarter. Approximately 604,600 cubic metres of earthworks were completed, covering the non-contact water channel, processing plant foundations and the initial tailings storage dam, and open-pit pre-stripping began. Processing plant equipment has been procured and shipped, and the plant construction contract has been awarded to TGJA, which recently built an 80,000 tonne per day flotation mill at the nearby Mirador copper-gold mine. Commissioning remains targeted for July 2027.

At the Chaarat ZAAV project in Kyrgyzstan, mining contractor CRCC19, selected after a process involving five bidders, has begun building access roads and preparing the site foundation for the heap leach pad, alongside construction of a temporary camp. CRCC19 also serves as the mining contractor at El Domo. A 50,000 metre drilling programme is under way, with 12,967 metres completed in the quarter using 16 drill rigs, and assay results are pending. A bankable feasibility study, compiled by engineering firm LogiProc, is expected in late July 2026.

At the Kuanping mine, construction included 2,155 metres of ramp development, 886 metres of exploration tunneling and 3,716 metres of drilling during the quarter.

Milestones and Next Steps

Silvercorp's Q1 Fiscal 2027 financial results are due August 10, 2026. The Chaarat ZAAV feasibility study is expected by late July 2026, with drilling assay results from the project still outstanding. El Domo remains on track for commissioning by July 2027, with plant construction and equipment delivery continuing alongside pre-stripping at the open pit. The Six Major Safety Systems upgrades at Ying and GC remain in progress, with both mines expected to resume normal operations on completion.

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