TORONTO, ONTARIO--(Marketwired - April 10, 2013) -

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Silvermet Inc. ("Silvermet" or the "Company") (News - Market indicators) is pleased to announce financial and operating results for 2012.

Highlights (in US$)

• 2012 was the highest year of production and sales since the start of operations in 2009.
• Silvermet continues to generate positive cash flow with a strengthening working capital balance, no debt, relatively stable zinc prices and smelter treatment charges.
• 2012 sales in Dry Metric Tonnes ("DMT") increased by 35% to 20,153 DMT of zinc concentrate, containing 29.6 million pounds of zinc, compared to the 21.9 million pounds of zinc sold in 2011.
• 2012 revenues increased by 26% to $22.1 million (at 100%) compared to $17.6 million in 2011.
• Cash costs declined by 10% to $0.57 per pound in 2012 from $0.63 per pound in 2011.
• Zinc recovery rates increased to 75% in 2012 from 67% in 2011.
• 2012 production increased by 29% to 19,706 DMT zinc concentrate (containing 67% zinc) compared to 2011 production of 15,328 DMT.
• 2012 EBITDA increased by 37% to $4.6 million (at 100%) compared to $3.4 million in 2011, reflecting primarily increased zinc concentrate shipments.
• During 2012, Silvermet repurchased and cancelled 4,918,000 common shares under the TSX Venture Exchange approved Normal Course Issuer Bid at an average price of C$0.075.
• Silvermet is debt free, cash flow positive and profitable.

The previously announced expansion plans in the Adana and Izmir regions of Turkey are progressing well. Each plant is planned to have annual EAFD processing capacity of 110,000 DMT and is estimated to cost $70 million to construct, for a total investment of $140 million. The two new facilities will have significantly higher EBITDA margins than the existing Iskenderun plant, with the use of improved technology. When all three facilities are in production, the total EAFD processing capacity will increase from the current 60,000 DMT per annum to 280,000 DMT and annual zinc concentrate production will increase to 100,000 DMT containing approximately 150 million pounds of zinc.

The US$49 million project finance loan from EBRD will provide 70% of the estimated US$70 million cost for the new Adana zinc plant, with the joint venture partners contributing the remaining US$21 million (Silvermet's 49% share - US$10.3 million). Silvermet is presently evaluating various funding alternatives, including the use of cash on hand for part of this funding.

Construction of each plant is estimated to require 18 months. At present, it is anticipated that permitting approval for the first plant in Adana, Turkey will be received in Q2, 2013 with construction to begin shortly thereafter pending closing of the financing agreement with EBRD. Construction of the Izmir plant is expected to follow six months later.

With various announced zinc mine closures, most zinc industry analysts are forecasting a tightening of zinc concentrate supply in the coming years. The resulting downward pressure on smelter charges and upward trend on zinc prices is expected to coincide with the commissioning of the new plants.

About Silvermet:

Silvermet's principal business activity is the recycling of electric arc furnace dust ("EAFD"), a waste product created by steel mills, through a Waelz kiln to produce a zinc concentrate that is sold to smelters throughout the world. The Company owns 49% of Befesa Silvermet Turkey ("BST"), which operates a Waelz kiln facility located in Iskenderun, Turkey.

Additional Information:

Additional information can be accessed at the Company's website www.silvermet.ca or through the Company's public filings at www.sedar.com.

Caution concerning forward-looking statements: The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, political instability, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raised additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events except as may be required under applicable securities laws. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.