Silvercorp Update On Progress To Identify The Anonymous Letter
Writer And To Restore Its Reputation
VANCOUVER,
British Columbia � September 12, 2011 � Silvercorp
Metals Inc. ("Silvercorp"; or the
"Company";) welcomes the British Columbia Securities Commission
(BCSC) taking quick and decisive actions to investigate the allegations
against the Company in an anonymous letter dated August 29, 2011 (refuted by
the Company's in its September 2, 2011 news release), and in particular the
BCSC's efforts to discover the anonymous letter writer's identity.
The
BCSC, in a departure from their usual policy of keeping investigations
confidential, announced on Friday that in order to conduct a balanced and
thorough review it is publicly asking the author of the anonymous letter to
come forward. The BCSC is examining both the nature of the complaint
and the allegations contained in the letter. The BCSC is also asking
anyone else who may have information related to the allegations or the
identity of the author to contact Michael Pesunti
of the BCSC Enforcement division at 1-800-373-6393 or 604-899-6500.
"We
see this as an important first step towards mitigating the damage done to Silvercorp's reputation,";
commented Dr. Rui Feng, Silvercorp's Chief Executive Officer. "We are
cooperating fully with the BCSC and other regulatory and law enforcement
agencies so that truth can be restored, Silvercorp's
reputation can be cleansed, and those involved in this manipulative scheme
are held accountable.";
In
accordance with good corporate governance practices, as announced in the
September 2, 2011 news release, the Company has established a task force of
independent directors consisting of Dr. Robert Gayton,
Ph.D. in Accounting, Paul Simpson, LL,B. and Earl Drake, Canada's
former ambassador to China (the "Independent Committee";).
The Independent Committee's mandate has been to work with regulatory
authorities to investigate and discover the identity of the party behind
these allegations. The Independent Committee, as is its standard duty
even in the face of an anonymous and apparently baseless allegation, is
taking such appropriate additional steps and independent confirmations as
they determine necessary to restore the market's confidence,
To
date the Independent Committee has sought the assistance of various
regulatory and law enforcement authorities including the British Columbia Securities
Commission, the U.S. Securities and Exchange Commission ("SEC";),
and the Royal Canadian Mounted Police Integrated Market Enforcement Team
("RCMP";). In addition to the BCSC, the SEC and RCMP have
opened files and are carrying out their own investigation into this apparent
fraud AGAINST the Company, through the manipulation of its market.
Repurchase Program Update
Pursuant
to its normal course issuer bid ("NCIB";) announced on June 17,
2011, Silvercorp has acquired a total of 2,318,012
of its common shares at an average price of CDN$8.12. Under the NCIB
the Company intends to acquire up to 10 million common shares. All
common shares purchased under the NCIB will be cancelled.
Investor Relations Update
Silvercorp is participating in the following
conferences during fall 2011:
- September 11-13 � Rodman
& Renshaw, Global Investment Conference,
New York
- September
18-21 � Denver Gold Forum
- October 20-21 � The Silver
Summit, Spokane, Washington
- October
26-29 � New Orleans Investment
Conference
- November 4-5 � Internationale Edelmetall
& Rohstoffmesse, Munich, Germany
- November 27-28 � San
Francisco Hard Assets Conference
Annual General Meeting
The
Company's annual general meeting is scheduled for 10:00 am PST on Friday,
September 23, 2011 at the Malaspina Room located on
the Concourse Level of the Fairmont Waterfront Hotel, 900 Canada Place Way,
Vancouver, British Columbia.
Investor Tour
The
Company invites interested investors, analysts and media to visit Silvercorp's Ying mine site on its investor trip
commencing on September 25, 2011. Please also visit our website during the
week of September 25th for up-to-date photos and guest commentary about the
trip.
About Silvercorp
Metals Inc.
Silvercorp Metals Inc. is engaged in the acquisition,
exploration, development and mining of high-grade silver-related mineral
properties in China and Canada. Silvercorp is the
largest primary silver producer in China through the operation of the four
silver-lead-zinc mines at the Ying Mining Camp in the Henan Province of
China. The Company is developing its GC silver-lead-zinc mine in the
Guangdong Province and recently acquired the BYP gold-lead-zinc mine in Hunan
province. In Canada, Silvercorp is preparing to
apply for a Small Mine Permit for the Silvertip high grade silver-lead-zinc
mine project in northern British Columbia to provide a further platform for
growth and geographic diversification. The Company's shares are traded on the
New York Stock Exchange and Toronto Stock Exchange and are included as a component
of the S&P/TSX Composite and the S&P/TSX Global Mining Indexes.
For further information:
SILVERCORP
METALS INC. Rui Feng,
Chairman/CEO &Lorne Waldman, Corporate Secretary Phone:(604) 669-9397,
Toll Free Phone: 1-888-224-1881 Fax: (604) 669-9387, Email: info@silvercorp.ca, website: www.silvercorp.ca.
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