Silvercorp Reports $522 Million After-Tax NPV for Condor Gold Project

• After-tax NPV of $522 million at 5% discount rate with 29% IRR at base case metal prices; $1.56 billion NPV and 61% IRR at near-spot prices
• 13-year mine life producing 1.38 million ounces of payable gold, 5.27 million ounces of silver, 95.7 million pounds of zinc and 8.4 million pounds of lead
• Initial capital of $292 million with post-tax payback of three years from commercial production
• All-in sustaining cost of $1,258 per ounce net of by-product credits
• Environmental impact study approved; citizen participation process underway with completion expected in three to four months

Silvercorp Metals Inc. (TSX/NYC American: SVM) is a Canadian mining company that produces silver, gold, lead and zinc. The company operates producing mines in China's Ying Mining District and the GC Mine, has construction underway at El Domo, and is developing the Condor project in Ecuador. The company's stated strategy includes generating free cash flow from long-life mines, organic growth through exploration drilling, evaluating acquisition opportunities, and maintaining responsible mining practices.

Preliminary Economic Assessment Results and Financial Metrics

The preliminary economic assessment for the Condor project uses base case metal prices of $2,600 per ounce gold, $31 per ounce silver, $1.27 per pound zinc and $0.91 per pound lead. At these prices, the project shows an after-tax net present value of $522 million at a 5% discount rate with a 29% internal rate of return. The assessment includes sensitivity analysis showing NPV increases to $1.56 billion with IRR of 61% at near-spot prices of $4,300 per ounce gold and $60 per ounce silver.

The project maintains positive economics across the range of metal price scenarios tested in the assessment. The sensitivity tables show the project retains economic viability at gold prices 30% below base case assumptions. Operating and capital cost sensitivities were also evaluated, with results documented in the company's release tables.

Production over the 13-year mine life totals 1.38 million ounces of payable gold, 5.27 million ounces of payable silver, 95.7 million pounds of payable zinc and 8.4 million pounds of payable lead. All-in sustaining costs are calculated at $1,258 per ounce net of by-product credits. Initial capital costs are estimated at $292 million, with post-tax payback calculated at three years from the start of commercial production.

Underground Mine Plan and Operating Costs

The mine design accesses mineralisation through a portal at approximately 1,100 metres elevation, at the same level as the ore bodies. This configuration reduces the length and cost of main ramp development compared to mines requiring significant vertical access. The operation will use mechanised longhole open stoping methods, with mining divided into five blocks across the Camp and Los Cuyes deposits.

Underground development and mining will be conducted by a contractor currently operating in Ecuador. This approach eliminates the need for Silvercorp to purchase mining equipment and allocate sustaining capital for fleet replacement. Material handling uses 50-tonne trucks for ore haulage directly to surface, with 30-tonne ejector trucks for waste rock movement. The mine plan requires 136.7 kilometres of lateral development and 4.8 kilometres of vertical development.

Total operating costs are estimated at $82.09 per tonne processed, covering mining, processing, general administration and refining charges. The processing facility will operate at 5,000 tonnes per day using combined gravity concentration, carbon-in-pulp cyanidation and sequential flotation. Gold recovery to dore is estimated at 93%, with additional silver, lead and zinc recovered through flotation of cyanidation residues. Development waste will be used as backfill material, supplemented by riverbed gravels, with no waste rock remaining on surface at completion.

Environmental Permitting and Development Timeline

The environmental impact study received approval from Ecuador's Ministry of Environment in 2025. The project is currently in the Citizen Participation Process with directly affected communities, required under Ecuadorian mining regulations. This consultation phase is expected to take three to four months to complete. Following successful completion, the environmental permit for exploitation will be issued, authorising underground development at a small mining scale.

The environmental permit will enable commencement of underground access tunnels into the Camp and Los Cuyes deposits. These tunnels will facilitate underground drilling to upgrade mineral resources and explore extensions of known mineralised zones. This work will support subsequent prefeasibility and feasibility studies.

The development schedule incorporates a two-year construction period before commercial production begins in Year 1. Mill construction starts first, with underground portal development commencing nine months later. Full production ramp-up is scheduled for Year 2. The mine is designed for steady-state production of 1.8 million tonnes annually, equivalent to 5,000 tonnes per day, operating 360 days per year.

Development Path Forward

Silvercorp's near-term priorities include completing the citizen participation process and obtaining the environmental permit for underground exploitation within three to four months. The permit will authorise commencement of underground development work. Underground access will enable resource definition drilling whilst establishing infrastructure for future operations.

The preliminary economic assessment includes inferred mineral resources that require additional definition before classification as mineral reserves. The company plans prefeasibility and feasibility studies following resource upgrades. A detailed NI 43-101 technical report supporting the preliminary economic assessment will be filed within 45 days, providing comprehensive technical information for the project.

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