Silvercorp Reports Intercept of 4.55 Metres Grading 2,196 Grams per Tonne Silver, 13.63% Lead and 1.38% Zinc at the LM Mine, Ying Mining District, Henan Province, China

Drilling at LM Mine

At the LM mine area, the underground drilling program was conducted from underground tunnels on level 830m to test the downdip and striking extensions of major mineralized vein structures LM2, LM5 and LM6. A total of 5,024m in 15 holes was completed with two underground rigs and 375 core samples were collected in the first half of 2012. As of June 30, 2012 the Company received assay results for 13 holes drilled in 2012 as well as three holes drilled in December 2011. Of the 16 holes the Company received assay results for 12 holes intercepted high-grade silver-lead-zinc zones. Mineralization zones in the vein structures LM5 and LM6 have been obviously extended to their northeast strike direction and to the depth from the current production sections.

Drilling at LM West

At LM West, total drilling in the first half of 2012 was 17,974m in 41 completed core holes using six underground drill rigs and resulted in the collection of 1,973 core samples. The holes were designed to extend and expand the known mineralization zones previously defined in the major vein structures LM7, LM8, LM12, LM13 and LM17. By the end of June 2012, the Company received assay results for 33 holes drilled in the first half of 2012 and 10 holes which were drilled in December 2011. Of those assay results received, 35 of the 43 holes intercepted high-grade silver-lead-zinc zones while the remaining holes intercepted vein structures with weak mineralization or alteration. The high-grade mineralization zone in vein structure LM8 has been successfully traced for approximately 300m downdip to the 450m elevation. A high-grade copper-gold-silver zone with 4.65% copper ("Cu"), 3.34 grams per tonne ("g/t") gold ("Au") over 2.34m was intercepted in a single exploration hole, which may indicate exploration potential for copper and gold to the west of the current LM Mine West production area.

Table 1 below lists assay results for 47 holes that intercepted significant mineralization at the LM Mine and the LM Mine West. Highlights of selected intercepts are as follows:

LM Mine:

• Hole ZKL5604 intercepted 1.21m of Vein LM5E grading at 545 g/t silver ("Ag"), 3.10% lead ("Pb") and 0.53% zinc ("Zn") at the 592m elevation;
   
• Hole ZKX12802 intercepted 6.81m of Vein W6 grading 314 g/t Ag, 1.99% Pb and 0.40% Zn at the 784m elevation, including a 0.22m interval grading 1,087 g/t Ag, 16.39% Pb and 7.57% Zn and a 1.31m interval grading 959 g/t Ag, 4.29% Pb and 0.08% Zn;
   
• Hole ZKL5405 intercepted 4.55m of LM2 grading 2,196 g/t Ag, 13.63% Pb and 1.38% Zn at the 724m elevation, including a 3.18m interval grading 3,091 g/t Ag, 17.00% Pb and 1.92% Zn;
   
• Hole ZKL6005 intercepted 2.51m of Vein LM5W grading 754 g/t Ag, 5.56% Pb and 0.77% Zn at the 564m elevation, including a 0.38 interval grading 1,307 g/t Ag, 4.46% Pb and 0.51% Zn.
   

LM West:

• Hole ZKX11121 intercepted 2.45m of Vein LM16 grading 408 g/t Ag, 3.64% Pb and 0.23% Zn at the 737m elevation;
   
• Hole ZKX0605 intercepted 1.10m of Vein LM12 grading 1,485 g/t Ag, 1.83% Pb and 0.12% Zn at the 873m elevation;
   
• Hole ZKX0803 intercepted 0.94m of Vein LM8 grading 538 g/t Ag, 0.95% Pb and 0.05% Zn at the 921m elevation;
   
• Hole ZKX10804 intercepted 0.94m of Vein LM8 grading 1,371 g/t Ag, 0.91% Pb and 0.28% Zn at the 456m elevation, including a 0.54m interval grading 2,227 g/t Ag, 1.36% Pb and 0.45% Zn;
   
• Hole ZKX11002 intercepted 1.18m of Vein LM8 grading 904 g/t Ag, 2.35% Pb and 0.86% Zn at the 650m elevation, including a 0.63m interval grading 1,642 g/t Ag, 4.30% Pb and 1.56% Zn;
   
• Hole ZKX3601 intercepted a 3.45m of Vein LM16 grading 413g/t Ag, 5.16% Pb and 0.15% Zn at the 811m elevation, including a 1.02m interval grading 1,290 g/t Ag, 16.42% Pb and 0.43% Zn;
   
• Hole ZKX0931 intercepted a 2.34m of a new copper-gold-silver zone grading 46 g/t Ag, 3.34 g/t Au and 4.65% Cu.
   

All intervals are reported as down-hole lengths and are not corrected to true widths for the mineralized intervals as drill holes typically cut mineralization at variable angles and geometries of mineralized zones remain speculative until further drilling is completed.

Quality Control

Drill cores are in NQ size. Drill core samples, limited by apparent mineralization contact or shear/alteration contact, were split into halves by saw cutting. The half cores are stored in the Company's core shacks for future reference and checking, and the other half core samples are shipped in security sealed bags to three labs: (1) the Analytical Lab of Henan Non-Ferrous Metals Geological and Exploitation Institute in Zhengzhou (Zhengzhou Nonferrous Lab); (2) the Henan Rock Minerals Testing Center in Zhengzhou (Henan Testing Center); and (3) the SGS lab in Tianjin. All labs are officially accredited labs in China. Adopted analytical methods in the three labs are as follows:

Zhengzhou Nonferrous Lab

The sample preparation consists of drying, crushing and splitting of a 250-gram subsample which is then pulverized to minus-200 mesh. Two-acid digestion and AAS finish are utilized on a 0.5-gram sample for silver, lead and zinc analysis. Titration is utilized as a modified process for higher grade materials.

Henan Testing Center

Sample is dried and crushed to minus 1mm and then split to a 200-300g subsample which is further pulverized to minus 200 mesh. Two subsamples are prepared from the pulverized sample. One is digested with aqua regia for gold analysis with AAS, and the other is digested with two-acids for analysis of silver, lead, zinc and copper.

SGS Lab

Sample is dried, crushed and split to a 250-gram subsample which is further pulverized to 85 per cent passing 200 mesh. Fire assay and AAS finish are utilized for gold assay. Four-acid digestion and ICP-AES finish are used in analyzing silver, lead, zinc and copper.

A routine quality assurance/quality control procedure is adopted at each lab to monitor the analytical quality at the lab. Certified reference materials ("CRM"), pulp duplicates and blanks are inserted into each lab batch of samples. QA/QC data at the lab are attached to the assay certificates for each batch of samples.

The Company maintains a comprehensive quality assurance and quality control program to ensure best practice in sample preparation and analysis of the drill core samples. Project geologists regularly insert CRM, field duplicates and blanks to each batch of core samples to monitor the sample preparation and analysis procedures at the labs. The analytical quality of the labs is further evaluated with external checks by sending about 3% of the pulp samples to higher level labs to check for lab bias.

Data from both the Company's and the labs' QA/QC programs are timely reviewed and evaluated by project geologists.

Rujin Jiang, P. Geo., is the Qualified Person on the project as defined under NI 43-101. He has verified the information and has reviewed and approved the contents of this news release.

About Silvercorp

Silvercorp 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 District in the Henan Province of China. Silvercorp recently acquired the XBG and XHP silver-gold-lead-zinc mines nearby the Ying Mining District in Henan Province, further consolidating the region. Silvercorp has commenced production at its second production foothold in China, the BYP gold-lead-zinc project in Hunan Province, and is currently constructing the mill and related facilities in preparation for mining at the GC silver-lead-zinc project in Guangdong Province. In Canada, Silvercorp is preparing an application 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 (symbol: SVM) and Toronto Stock Exchange (symbol: SVM) and are included as a component of the S&P/TSX Composite and the S&P/TSX Global Mining Indexes.

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