NEWS RELEASE

Trading Symbol: TSX: SVM

SILVERCORP REPORTS SILVER PRODUCTION OF 5.0 MILLION OUNCES, CASH FLOWS FROM OPERATIONS OF $31.9 MILLION, OR $0.19 PER SHARE, FOR FISCAL YEAR ENDED MARCH 31, 2016

VANCOUVER, British Columbia - May 26, 2016 - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX: SVM) today reported its financial and operating results for the fourth quarter and fiscal year ended March 31, 2016 ("Fiscal 2016").

FISCAL YEAR 2016 HIGHLIGHTS

• Net income attributable to equity shareholders of $6.3 million, or $0.04 per share, compared to net loss attributable to equity shareholders of $103.1 million, or a loss of $0.60 per share in the prior year;

• Silver, lead and zinc head grades at the Ying Mining District ("Ying") improved by 12%, 12% and 3% to 268 g/t, 3.9% and 0.8%, respectively compared to the prior year;

• G&A costs decreased by 16% to $17.4 million compared to $20.6 million in the prior year;

• All‐in sustaining cost per ounce of silver, net of by‐product credits, of $10.20, compared to

  $11.33 in the prior year;

• Silver sales of 5.0 million ounces, lead sales of 52.5 million pounds and zinc sales of 17.5 million pounds, down 2%, and up 2% and 10%, respectively, from the prior year;

• Sales of $107.9 million, down 16% from the prior year on a 17% drop in average selling price of silver;

• Gross margin of 33% compared with 43% in the prior year;

• Cash cost per ounce of silver, net of by‐product credits, of $1.44, compared to $0.22 in the prior year;

• Cash flow from operations of $31.9 million, or $0.19 per share, down 41% compared to $54.1 million, or $0.32 per share in the prior year; and,

• Ended the fiscal year with $62.0 million in cash, cash equivalents and short‐term investments.

  FOURTH QUARTER HIGHLIGHTS

• Silver sales of 1.0 million ounces, an increase of 6% compared to the same prior year quarter;

• Lead sales of 9.3 million pounds and zinc sales of 3.6 million pounds, up 2% and 41%, respectively, compared to the same prior year quarter;

• Gross margin of 32% compared with 26% in the same prior year quarter;

• Head Grades for silver at Ying improved by 16% to 310g/t;

• Cash flow from operations of $4.3 million, or $0.03 per share, compared to $4.8 million or $0.03

  per share in the same prior year quarter;

• Cash cost per ounce of silver, net of by‐product credits, of $2.21, compared to $0.89 in the same prior year quarter;

• All in sustaining cost per ounce of silver, net of by‐product credits, of $9.91, compared to $14.15 in the same prior year quarter; and,

• Sales of $19.4 million, a decrease of 4% compared to the same prior year quarter.

FINANCIALS

1. Fiscal 2016 vs. Fiscal 2015

   For the year ended March 31, 2016, net income attributable to equity holders of the Company was

   $6.3 million, or $0.04 per share, compared to net loss of $103.1 million, or a loss of $0.60 per share, in Fiscal 2015. The net loss in the prior fiscal year included non‐cash impairment charges of $130.3 million, which reduced the carrying values of the GC mine and XHP project.

   The Company's financial results in Fiscal 2016 were mainly impacted by the following: (i) lower metal prices, as the realized selling price for silver, lead and zinc, on consolidated average basis, dropped by 17%, 4% and 22%, respectively; (ii) less metals sold mainly because the Company intentionally increased its concentrate inventory in reaction to the low metal prices; and, (iii) a 16% decrease in general and administrative spending compared to the prior year. In reaction to the low metal prices in Fiscal 2016, the Company intentionally increased its inventory of silver‐lead and zinc concentrate inventories at Ying by 2,815 and 80 tonnes respectively, ending the fiscal year 2016 with 3,205 tonnes of silver‐lead and 280 tonnes of zinc concentrates, respectively, compared to 390 tonnes of silver‐lead and 200 tonnes of zinc concentrates as at March 31, 2015. The estimated metals contained in ending concentrate inventories were approximately 0.4 million ounces of silver, 3.7 million pounds of lead and 0.3 million pounds of zinc.

   In Fiscal 2016, the Company realized sales of $107.9 million compared to $128.5 million in Fiscal 2015.

   Cost of sales in Fiscal 2016 was $71.9 million compared to $73.7 million in Fiscal 2015 and included cash costs of $54.5 million compared to $53.0 million in Fiscal 2015.

   In Fiscal 2016, the gross profit margin was 33% compared to 43% in Fiscal 2015. The decrease in overall gross profit margin was due to lower metal prices and increased per ton production costs. Additionally, the inclusion of the 10% gross profit margin from the GC mine reduced the average gross profit margin. Ying's gross profit margin was 38% in the current year compared to 48% gross profit margin in Fiscal 2015.

   Cash flow from operations in Fiscal 2016 was $31.9 million or $0.19 per share, compared to $54.1 million, or $0.32 per share, in Fiscal 2015. The Company ended the fiscal year with $62.0 million in cash, cash equivalents and short‐term investments.

2. Q4 Fiscal 2016 vs. Q4 Fiscal 2015

For the quarter ended March 31, 2016 ("Q4 Fiscal 2016"), net loss attributable to equity holders of the Company was $1.5 million, or $0.01 per share compared to a loss of $118.5 million, or $0.69 per share in the three months ended March 31, 2015 ("Q4 Fiscal 2015). The loss in the prior year quarter included non‐cash impairment charges of $130.3 million, which reduced the carrying values of the GC mine and XHP project.

The loss incurred in the current quarter was mainly due to: (i) a 14% decrease in the realized price for silver, from $13.26 in Q4 Fiscal 2015 to $11.45 in Q4 Fiscal 2016; and (ii) a 6% decrease in ore

production and,(iii) a $2.2 million foreign exchange loss recorded in Q4 Fiscal 2016 compared to a gain of $3.3 million in the prior year quarter.

In Q4 Fiscal 2016, the Company realized sales of $19.4 million compared to $20.3 million in the prior year quarter. Cost of sales in Q4 Fiscal 2016 was $13.2 million compared to $15.0 million in Q4 Fiscal 2015.

The gross profit margin in Q4 Fiscal 2016 improved to 32%, compared to 26% in Q4 Fiscal 2015.

Cash flow from operations in Q4 Fiscal 2016 was $4.3 million or $0.03 per share, comparable to $4.8 million, or $0.03 per share, in Q4 Fiscal 2015.

OPERATIONS AND DEVELOPMENT

In Fiscal 2016, on a consolidated basis, the Company sold 5.0 million ounces of silver, 2,400 ounces of gold, 52.5 million pounds of lead and 17.5 million pounds of zinc, compared to 5.1 million ounces of silver, 5,900 ounces of gold, 51.5 million pounds of lead and 15.9 million pounds of zinc in Fiscal 2015.

Ying Mining District, Henan Province, China

* Annual figures may not add due to rounding

In Q4 Fiscal 2016, the Company mined 99,415 tonnes of ore at Ying compared to 112,327 tonnes in Q4 Fiscal 2015. Head grades improved to 310 grams per tonne ("g/t") for silver, 4.0% for lead and 0.9% for zinc, compared to 268 g/t for silver, 3.7% for lead and 0.8% for zinc in the same quarter last year, benefiting from ongoing dilution and operation improvements in Fiscal 2016. Total and cash mining costs per tonne were $83.24 and $54.63, compared to $74.84 and $53.25 in Q4 Fiscal 2015, respectively. The increase of cash mining costs was mainly due to fixed overhead costs being allocated to reduced ore mined.

In Q4 Fiscal 2016, a total of 99,203 tonnes of ore were milled compared to 99,478 tonnes in Q4 Fiscal 2015. The cash milling cost per tonne was $13.70 in Q4 Fiscal 2016 compared to $16.20 in Q4 Fiscal 2015. The decrease in cash milling costs was mainly due to the decrease in material and utility costs.

In Q4 Fiscal 2016, Ying Mining District sold 0.9 million ounces of silver, 300 ounces of gold, 7.4 million pounds of lead and 1.0 million pounds of zinc, compared to 0.8 million ounces of silver, 600 ounces of gold, 8.3 million pounds of lead, and 0.9 million pounds of zinc sold in Q4 Fiscal 2015.

In Fiscal 2016, total ore mined at Ying was 589,766 tonnes, a decrease of 10% compared to total ore production of 658,729 tonnes in Fiscal 2015. Silver and lead head grades improved by 12% and 12%, respectively, to 268 gram per tonne ("g/t") for silver and 3.9% for lead from 240 g/t for silver and 3.5% for lead in Fiscal 2016.

The decrease of ore mined was mainly due to the production interruption arising from the termination of a mining contractor. In February 2015, the Company terminated one mining contractor upon the expiration of its contract and entered into contracts with three new mining contractors to replace the terminated contractor who previously worked out of three portals at the SGX mine. The changeover process was slow as negotiation was required, which not resolved until June 2015. The changeover disruptions impacted not only production, but also resulted in additional costs incurred at the SGX mine during the transition period.

Total and cash mining costs per tonne were $79.93 and $56.90 per tonne, respectively, compared to

$64.27 and $49.92 per tonne, respectively, in Fiscal 2015. The increase in cash mining costs was mainly due to: (i) a $1.5 million, or $2.50 per tonne increase arising from the mining contractor change‐over interruption; (ii) a $1.1 million, or $1.90 per tonne, increase in mining preparation costs as more underground Diamond drilling and preparation tunnelling were conducted in the current period; and (iii) lower production output resulting in a higher per unit fixed costs allocation.

In Fiscal 2016, total ore milled at Ying was 587,450 tonnes, a decrease of 9% compared to 646,943 tonnes in Fiscal 2015. Cash milling costs were $ 12.34 per tonne compared to $13.39 in Fiscal 2015. The decrease in cash milling costs was mainly due to the decrease in material and utility costs.

In Fiscal 2016, Ying sold 4.4 million ounces of silver, 2,300 ounces of gold, 43.5 million pounds of lead, and 5.2 million pounds of zinc, compared to 4.6 million ounces of silver, 3,200 ounces of gold, 46.7 million pounds of lead, and 6.6 million pounds of zinc in Fiscal 2015. The decrease of metal sales is mainly due to: (i) a 9% decrease in ore milled, (ii) offset by a 12% increase in both silver and lead head grade, and (iii) a significant increase in ending silver‐lead and zinc concentrates containing approximately 0.4 million ounces of silver, 3.7 million pounds of lead and 0.3 million pounds of zinc.

Cash cost per ounce of silver, net of by‐product credits, at Ying, was $1.38 compared to $0.61 in the prior year. The increase was mainly due to less by‐product credits realized and higher cash mining costs.

All‐in sustaining costs per ounce of silver, net of by‐product credits, at Ying was $8.60 compared to

$8.25 in the prior year. The increase was mainly due to higher cash cost per ounce of silver offset by less corporate expenditures and sustaining capital expenditures incurred. All in cost per ounce of silver, net of by‐product credits was $10.10 compared to $13.42 in the prior year, and the decrease is mainly due to less investment capital expenditures in the current period.

In Fiscal 2016, approximately 63,398 meters ("m") of underground Diamond drilling and 19,113 m of preparation tunnelling were completed and expensed as mining preparation costs at Ying. In addition, approximately 58,268 m of horizontal tunnel, raises and declines were completed and capitalized. Total exploration and development expenditures capitalized at Ying in Fiscal 2016 were

$18.9 million compared to $30.4 million in Fiscal 2015. The Company also incurred $6.1 million in capital expenditures to construct a transportation tunnel and road at Ying in Fiscal 2016.