Silvercorp Secures 36-Year Mining Licence Extension for Kyrgyzstan Gold Projects

• Silvercorp converted ZAAV into a joint venture company with Kyrgyzaltyn, the state-owned mining entity of the Kyrgyz Republic, with Silvercorp holding a 70% controlling interest.
• The joint venture's mining licence covering the Tulkubash/Kyzyltash gold projects has been extended by 30 years, now valid until June 2062.
• Silvercorp made a US$60 million cash payment to the Kyrgyzstan government, with a further US$10 million payable upon reaching agreed milestones.
• The joint venture's inaugural board meeting approved Phase 1 Development of the Tulkubash project, covering 2026 to 2027.
• The Tulkubash/Kyzyltash projects are the largest undeveloped gold deposits in the West Tien Shan gold belt.

Silvercorp Metals Inc. (TSX/NYSE American: SVM) is a Canadian-based mining company focused on silver, gold, lead, and zinc. The company creates value through free cash flow generation from long-life mines, exploration drilling, and acquisitions, while maintaining a commitment to responsible mining and ESG practices.

Joint Venture Formation with Kyrgyzaltyn and ZAAV Conversion

Silvercorp has completed the conversion of Chaarat ZAAV CJSC (ZAAV) into a formal joint venture company with Kyrgyzaltyn, an entity wholly owned by the Kyrgyz Republic. Silvercorp holds a 70% interest and acts as operator, while Kyrgyzaltyn receives a 30% free-carried interest, meaning the state partner is not required to contribute capital to maintain its stake.

The joint venture company holds a 100% interest in the mining licence area of approximately seven square kilometres hosting the Tulkubash and Kyzyltash gold projects. It also holds surrounding exploration licences covering over 27 square kilometres, which include the Karator and Ishakuld gold zones.

A General Manager and Chief Financial Officer, both nominated by Silvercorp, have been appointed to provide operational leadership under the company's majority control.

Mining Licence Extension to 2062 and Government Payments

The joint venture's mining licence, previously set to expire in June 2032, has been extended to June 2062, a 30-year extension that covers the Tulkubash and Kyzyltash gold projects. The extension was granted under the terms of Silvercorp's Cooperation Agreement with the National Investment Agency under the President of the Kyrgyz Republic.

In connection with the licence extension, Silvercorp made a US$60 million cash payment to the Kyrgyzstan government. This payment was reduced by an offset for a bonus payment made under applicable Kyrgyz law. A further US$10 million remains payable upon the achievement of agreed milestones.

Chair and Chief Executive Officer Dr. Rui Feng commented:

"We are proud to partner with Kyrgyzaltyn and the government of the Kyrgyz Republic to develop the Tulkubash/Kyzyltash gold projects, the largest undeveloped gold deposits in the West Tien Shan gold belt. With Kyrgyzaltyn as our partner, all interests are aligned for us to begin construction, and ultimately achieve production to establish a win-win enterprise."

Phase 1 Development Approval and Project Advancement

At its inaugural meeting, the joint venture board approved Phase 1 Development of the Tulkubash project for the 2026 to 2027 period. Tulkubash is fully permitted, with the environmental and regulatory approvals required to proceed already in place.

The Tulkubash/Kyzyltash projects together hold a combined measured and indicated mineral resource of 4.5 million ounces of gold, with a further 0.9 million ounces in the inferred category. The projects are situated in the West Tien Shan gold belt and are described as the largest undeveloped gold deposits in the region.

Chair and Chief Executive Officer Dr. Rui Feng added:

"Silvercorp has a proven track record of building and operating mines, and we look forward to working with our Kyrgyz partners in developing these world-class gold deposits into a profitable mining operation."

Looking Ahead

With the joint venture formally constituted, the mining licence secured until 2062, and Phase 1 Development approved, Silvercorp has completed the key legal and regulatory steps required to advance Tulkubash. The company's near-term focus is on executing Phase 1 activities through 2027. A further US$10 million payment to the Kyrgyzstan government remains contingent on the achievement of agreed milestones. Additional details on the Cooperation Agreement will be provided in Silvercorp's upcoming financial disclosures.

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