NYSE: SVM

Corporate Presentation
February 2010

NYSE: SVM

Cautionary Statements
Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995:
Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements, including but not limited to those with respect to the price of silver, lead and zinc, the
possibility, timing and amount of estimated future production, costs of production, reserve determination and reserve conversion rates involve known and
unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Silvercorp to be materially different from any
future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks related to
international operations, risks related to Chinese government issuance of mining and related development permits, risks related to joint venture operations, the
actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices
of silver, lead and zinc, as well as other Risk Factors.
Although Silvercorp has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results
not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events
could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
The shares of Silvercorp Metals Inc. trade on the New York Stock Exchange (NYSE:SVM) and the Toronto Stock Exchange (TSX: SVM). Neither the NYSE nor
the TSX have approved or disapproved the form or content of this presentation.

Cautionary Note To U.S. Investors Concerning Estimates Of Measured, Indicated And Inferred Resources
This presentation uses the terms “Measured”, “Indicated” and Inferred” Resources. U.S. investors are advised that while such terms are recognized and required
by Canadian regulations, the Securities and Exchange Commission does not recognize them. “Inferred Resources” have a great amount of uncertainty as to their
existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred resource will ever be upgraded
to a higher category. Under Canadian rules, estimates of Inferred Resources may not form the basis of feasibility or other economic studies. U.S. investors are
cautioned not to assume that all or any part of Measured or Indicated Resources will ever be converted into reserves. U.S. investors are also
cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.

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NYSE: SVM

Silvercorp’s Strategic Vision
Silvercorp has built a record of success by formulating and executing a
distinct long-term strategy characterized by THREE key steps:
1) Acquire a project and conduct selective exploration to further delineate its
potential.
2) Develop mine operations and generate profits before the project’s potential
is fully drilled.
3) Cash flow generated from operations is used to fund further exploration,
resource expansion and production ramp up.
Silvercorp’s goal is to focus on profitability while building a long-term growth base
financed by internal cash flows.

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NYSE: SVM

Management & Board
Management
Rui Feng, Ph.D., Geology
Chairman & CEO, Director

Myles J. Gao, P.Geo.
President & COO, Director

Maria Tang, CA, CPA

Dr. Feng & Yikang Liu

Interim Chief Financial Officer

Board of Directors

Lorne Waldman, MBA, LL.B.
Corporate Secretary

Rui Feng

Myles J. Gao

Shaoyang Shen, MBA, CMA

Yikang Liu

Earl Drake

Paul Simpson

Greg Hall

General Manager, China Operations

Jack Austin, P.C., Q.C., B.A., LL.B.,LL.M
Special Advisor to the Chairman

Robert Gayton
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NYSE: SVM

Silvercorp’s Operations
ƒ Ying Mining District,
Henan Province, to
produce ~4.7 - 5.0
million ounces of
silver in FY2010
ƒ Main production to
come from flagship
Ying Mine (~90% of
production).
ƒ Remaining production
to come from the TLP,
LM and HPG mines
where infrastructure
development is
ongoing.

Ying Mine

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NYSE: SVM

Ying Mining District, Henan Province
Milling Capacity: 2,500 tpd
Mining Capacity: 1,500 tpd

1,000 tpd Mill

YING MINE

HPG Mine
TLP Mine
New 1,500 tpd Mill

LM Mine

Mill Office

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NYSE: SVM

Production Forecast for FY2010
FY2010 Ying Mine Production Forecast
Ores Mined
315,000
Tonnes

Commodity

Grade

Recoveries

Projected Metal Sales

Silver

480 g/t

91%

4.5 Million Oz

Lead

9.0%

95%

58.0 Million lbs

Zinc

3.0%

72%

14.0 Million lbs

Total Silver Production Forecast for FY2010
Ying Mining

Ying Mine

4.5 million ounces of silver

District

LM, TLP, HPG

0.2 – 0.5 million ounces of silver

Est. Cash Flow
~$55-60 Million

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NYSE: SVM

GC Development Project – 2nd Base for Growth
ƒ Feasibility study underway.
ƒ Production Capacity:
1,500 tpd mine & mill in
operation by 2012.
ƒ Capital cost:
Mill construction: $10 million
Mine development: $20
million
ƒ Production:
Silver: > 2 million oz
Lead & Zinc: > 40 million lbs
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NYSE: SVM

GC Development Project
ƒ

Measured & Indicated Resource: 28.5 million
ounces of silver, 96,000 tonnes of lead, and
214,000 tonnes of zinc (NI43-101 Technical Report
- June 26, 2009).

ƒ

Inferred Resource: 30.8 million ounces of silver,
115,000 tonnes of lead and 213,000 tonnes of zinc.

ƒ

Silvercorp is currently engaged in the environmental
permitting process.

GC Landscape

ƒ

Mine and mill design, equivalent to a feasibility study by Canadian Standards, is
underway.

ƒ

Mining permit expected in 2010 from the Ministry of Land and Resources after the EIS
is approved.

ƒ

Mine & Mill construction to commence in 2010-2011 and production expected in 2012.

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NYSE: SVM

GC Development Project – High Growth Potential

2008 Drill Program
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NYSE: SVM

Capital Expenditures Budget for FY2010
Project/Mines

Description

1H/2010A

2H/2010E

Ying Mine

Exploration, Development and
Mill

$6 Million

$5 Million

TLP, LM & HPG Mines

Development and Remaining
Acquisition Cost

$2 Million

$3 Million

GC Project

Drilling, Permitting & Surface
Rights

$1 Million

$3 Million

Total Capital Expenditures Budget for Fiscal 2010: $20 Million*

* To be financed by internally generated cash flow of approx. $55-$60 million for FY2010.

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NYSE: SVM

Growth in Resources
History

250

April 2005: Silver Resource
Defined at Ying

Resource Growth: FY2004 - FY2010

225

Indicated

September 2007: Resource
expansion at Ying and addition of
HPG Mine
May 2008: Addition of GC/SMT
Project Resource
November 2008: Addition of TLP
and LM Resource
June 2009: Updated GC Technical
Report increases M&I Resources

Ounces of Silver (Millions)

200

May 2006: Drilling doubles Ying
resources

217.0

Measured

194.7

Inferred

16.5

17.0

163.4

175

84.4

12.9

150

63.0

123.0
125

97.1

100

8.0

75

9.31

46.3

41.9

32.1

50

43.3

25

10.5
8.36

104.2
57.1

114.6

116

2009

2010

72.1

24.5
0

2004

2005

2006

2007

2008

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NYSE: SVM

Silver Production History & Forecast
Silver Production - Actual and Forecast*
9.00

GC

Millions

Ounces of Silver

8.00

7.5 – 8.0

7.00

HPG+TLP+LM

6.00

Ying

5.0 – 5.6

5.6 – 6.0

4.7 – 5.0

5.00

3.96

4.00

2.00

0.50

4.20

0.40

1.80

2.20

2.20

3.80

3.70

3.70

FY2011E

FY2012E

FY2013E

0.55

3.00
2.00
1.00

1.94
3.42

3.65

FY2008A

FY2009A

4.50

1.94

0.00
FY2007A

FY2010E

* Capital Requirement of US$20-25 million per year over next 3 years
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NYSE: SVM

Capital Structure & Financial Highlights
Capital Structure

Financial Highlights for Q3/FY2010

NYSE: SVM; TSX: SVM

Revenue: $31.3 Million (FY2009: $83.5M)

52-Week Hi/Low: $8.00/$1.95

Net Income: $12.4 Million (FY2009: $27.3M*)

Shares Outstanding: 161.9 Million

Cash Flow: $15.9 Million (FY2009: $47.0M)

3-mo Avg. Daily Vol.: 2.3 Million (NYSE+TSX)

Cash Position: $87.8 Million

Basic Market Cap.: ~$930 Million

No LT Debt; No Hedging

(Based on share price on Feb 10, 2010 close)

Component of the NYSE Composite and
S&P/TSX Composite and Global Mining
Indexes

CDN$0.02/Share Quarterly Dividends

All amounts in US Dollars unless otherwise stated.
* Adjusted Net Income. Please see May 14, 2009 News Release.
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NYSE: SVM

Industry Leading Profitability

ƒ

Lowest cost producer of silver among
industry peers: cash cost was -$7.73
per ounce of silver in Q3/2010
(FY2009:-$2.77)

Cash Cost per Oz Silver Adjusted for By-Product
Credits - Latest Quarter*

$8.57

10
6
2
-2
-6

$4.91

$3.97

$0.85

US$

ƒ

Highest gross profit margin among
industry peers: Q3/2010 Æ 77%

Coeur
D'Alene

Pan
American

Silver
Wheaton

Hecla

-$6.33

Silvercorp

Silvercorp Sales Mix by Metal
76%

Lead 41%

Margin %

80%

54%

60%
40%

29%

40%

20%
0%

Silver 50%
Gold 1%

Zinc 8%

Pan American
Silver

Hecla Mining

Silver
Wheaton

Silvercorp

* Latest Quarter ended September 30, 2009

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NYSE: SVM

Robust Operating Cash Flows
ƒ

Cash Flows From Operations: Q1/FY2007 - Q3/FY2010

$9.9

$6.7

$17.2

$11.8

$15.2

$15.9 $15.9
$11.7

$8.5

$10.5 $10.4

09
20
c/

09

De

20
p/

Se

/2
Ju

ne

/2
ar

M

9
00

9
00

08
20
c/

08

De

20
p/

Se

/2
Ju

ne

/2
ar

M

8
00

8
00

07
20
c/

07

De

20
p/

Se

/2
Ju

ne

/2
ar

M

7
00

7
00

06
20

De

20

00

p/

c/

06

$1.7

Se

/2
ne

$23.1

$18.9 $20.5

6

30.00
25.00
20.00
15.00
10.00
5.00
0.00

Ju

Cash Flow (US$Millions)

Silvercorp has generated positive cash flows every quarter since production
commenced in April 2006.

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NYSE: SVM

The China Environment
Low Capital &
Operating Costs

Low-cost mining equipment
and experienced labour.

Rapid Construction
Times

All supplies sourced locally
and hard working labour force.

Close to End Market

Smelters located within 160
kilometres of Silvercorp’s
mills.

Third Largest Silver
Producing Country

Home to world-class silver
deposits.

Hand sorted ore for direct shipment to smelters
Top Silver Producing Countries in 2008

Fragmented primary silver
market. Many opportunities
for consolidation, but difficult
to obtain data (No NI43-101
report).

Moz Silver Produced

140
120

118.5
103.9
86.5

100
80

58.5

60
40
20
0

Many Regions
Underexplored

Many opportunities for new
discoveries.

Peru

Mexico

China

Australia

Source: CPM Silver Yearbook 2009

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NYSE: SVM

Significant Achievements
9 Ying Mining Camp consolidated: acquired three new
mines for short-term production growth.
9 15 quarters of positive cash flows from operations.
9 500% growth in silver resources from 43.3M oz in
2005 to 217M oz in 2009.
9 Completion of new mill at Ying Mining Camp, bringing
total milling capacity to 2,500 tpd.

Full Tailings Dam

9 Acquisition of the GC project, establishing second
production base for mid-term production growth.
9 Dividend payments of $21.05 million to date.
9 Listing on the NYSE in November 2009.
9 Growth financed by internal cash flows.

Miner at Ying

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NYSE: SVM

Summary of Projects & Resources
District

Mine/Ownership

HPG








GC/
SMT

• 95% JV with Private Chinese Company
• Under permit application process; mine and mill construction
planned in 2010-11 with production expected for 2012

Ying
Ying Mining
District, Henan
Province

GC Development
District,
Guangdong Province

Status

LM
TLP

77.5% JV with Henan Geological Bureau
Acquired March 2004; Commercial production began April 2006
70% JV with Private Chinese Company
Acquired November 2007; Partial production in progress
77.5% JV with Henan Geological Bureau
Acquired December 2007; Partial production in progress
70% JV with Private Chinese Company
Acquired January 2007; Partial production in progress

Full
Production
Partial
Production/
Mine
Development

Mine Permit
Application

Contained Metal Resources

Resource
Category

Resource
(Tonnes)

Ag (oz)

Pb (t)

Zn (t)

Ag Equiv.* (oz)

M&I

13,180,995

100,971,298

456,027

324,539

211,128,643

Inferred

14,198,806

116,087,193

633,339

336,362

270,279,520

* Resource estimates from NI43-101 reports on Ying and HPG mines from August 2007; TLP and LM mines from November 2008; and GC project from June 2009. Ag
equivalent for Ying, HPG, TLM and LM projects are calculated using metal prices of US$6.50/oz Ag, US$0.40/lb Pb and US$0.45/lb Zn. Ag equivalent for GC project is
calculated based on US$12/oz Ag, $0.75/lb Pb and $0.75/lb Zn. Calculations reflect gross metal content and have not been adjusted for metallurgical recoveries.

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NYSE: SVM

Contact Information
Head Office
Suite #1378 - 200 Granville St., Vancouver, BC, Canada V6C 1S4
Tel: 604-669-9397 | Fax: 604-669-9387 | Toll-Free: 1-888-224-1881
Email: info@silvercorp.ca Website: www.silvercorpmetals.com

China Offices
Suite 601 – Building 1, China View Mansion, #A2 East GongTi Road
Chaoyang District, Beijing, China 100027
Tel: 86-10-8587-1130 | Fax: 86-10-8587-1132
Henan Found Mining - Xin De Ke Ji Plaza, Jin Shui Dong Road
Zhengzhou City, Henan Province, China 450052
Tel: 86-371-797-1169 | Fax: 86-371-797-1570
Suite B, 14th Floor, Hua Yi Plaza, #387 Qing Nian Road
Kunming City, Yunnan Province, China 650021
Tel: 86-871-317-9128 | Fax: 86-871-317-0726

Silvercorp’s disclosure
documents are available
from the System for
Electronic Document
Analysis and Retrieval
(SEDAR) at
www.sedar.com

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