Update on the Acquisition of Adventus Mining Corporation

Trading Symbols: TSX/NYSE AMERICAN: SVM

VANCOUVER, British Columbia –July 5, 2024 – Silvercorp Metals Inc. (“Silvercorp” or the “Company”) (TSX/NYSE American: SVM) today provided an update regarding its proposed acquisition of Adventus Mining Corporation ("Adventus").

As announced in the Company’s April 26, 2024 news release, the Company has entered into an arrangement agreement (the “Arrangement Agreement”) with Adventus pursuant to which the Company agreed to acquire all of the issued and outstanding common shares of Adventus by way of a plan of arrangement, subject to the satisfaction of certain conditions (the “Transaction”).  One of those conditions is the absence of any Material Adverse Effect (as defined in the Arrangement Agreement”) in respect of Adventus.  The Company has determined that such a Material Adverse Effect has arisen.

The Material Adverse Effect arises from the litigation referred to in the Adventus news release of June 17, 2024, which seeks to void the environmental licence of the Curipamba-El Domo project. Since we became aware of this litigation and brought it to the attention of Adventus some weeks ago, Silvercorp has made continuous, diligent efforts to understand and analyze the litigation and its implications.  As a result of the analysis Silvercorp has done, and having taken advice from its legal and other advisors, Silvercorp reached the conclusion that this litigation presently constitutes a Material Adverse Effect, as defined in the Agreement, in respect of Adventus.

The Company will continue to monitor and evaluate the litigation and its surrounding circumstances and remains open to working cooperatively with Adventus with a view to closing the Transaction if the conditions to closing for the benefit of the Company can be satisfied.

The Arrangement Agreement specifies a deadline of July 31 for the satisfaction of all conditions to closing.  Silvercorp has expressed to Adventus its willingness to discuss extending this deadline.

About Silvercorp

Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc with a long history of profitability and growth potential. The Company’s strategy is to create shareholder value by 1) focusing on generating free cashflow from long-life mines; 2) organic growth through extensive drilling for discovery; 3) ongoing merger and acquisition efforts to unlock value; and 4) a long-term commitment to responsible mining and ESG. For more information, please visit our website at www.silvercorpmetals.com.