Silvercorp Update

Silvercorp Reports Record Silver Production for Q1 of Fiscal 2011: Sales Up 63%, Net Income Up 88%, Cash Flow of $23.2 Million, Up 123%

VANCOUVER, British Columbia � August 12, 2010 � Silvercorp Metals Inc. (�Silvercorp� or the �Company�) reported today its unaudited financial and operating results for the first quarter ended June 30, 2010 (�Q1 2011�). The following financial results are expressed in US dollars (US$) unless stated otherwise.

FIRST QUARTER HIGHLIGHTS

• Silver production increased 18% to a record 1.4 million ounces, compared to the first quarter of fiscal year 2010 (�Q1 2010�);
   
• Net earnings increased 88% to $14.1 million, or $0.09 per share;
   
• Sales increased 63% to a record $36.7 million, driven by increased quantities of silver, lead and zinc sold combined with higher realized selling prices;
   
• Cash flow from operations increased 123% to $23.2 million, or $0.14 per share;
   
• Total production cost of negative $5.21 per ounce of silver and cash cost of negative $6.31 per ounce of silver positions Silvercorp as an industry leading low cost silver producer;
   
• Received the Environmental Permit for the GC Project from the Department of Environmental Protection of Guangdong Province, a key requirement for the mining permit application to the Ministry of Land and Resources of China;
   
• Dividend payment of $3.2 million, or CAD$0.02 per share;
   
• Total cash, cash equivalents and short term investments increased to $106.1 million.

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