Mr. Lon Shaver reports

SILVERCORP ANNOUNCES PROJECT UPDATE FOR EL DOMO

Silvercorp Metals Inc. has provided an update for its budget and construction schedule for the construction of El Domo project.

The construction budget for the project has been updated to $298.2-million, an increase of $14.6-million compared with the $283.6-million estimate dated Feb. 4, 2026 (for reference, the 2021 feasibility study budget was $248-million). The main items of increase or decrease are as follows:

1. Diesel fuel adjustment: Ecuador eliminated diesel subsidies, resulting in the diesel price increasing from under $3 per gallon in December, 2024, to $5.64 per gallon in October, 2026, an increase of $2.70 per gallon. As a result, the fuel adjustment for package No. 1 is $3.6-million and for package No. 2 is $4.7-million, totalling $8.3-million for remaining construction;
2. Enhancement work for water-management-related infrastructure: due to the heavy rainfall, additional work to upgrade the designs and enhance the construction for reinforcement results in $3.5-million, plus site cleaning costs of $1.2-million, for a $4.7-million budget addition. This is added to the package No. 1 TSF budget;
3. Equipment and facilities for site power supply: $2.4-million increase mainly due to the additional demand for the power cables and power distribution facilities based on the detailed engineering design;
4. Construction on processing plant: $3.7-million increase according to actual bill of quantities in the package No. 3 construction contract;
5. New items:
   1. Two cofferdams and pipes beneath the TSF starter dam to drain the water from the impoundment area during the construction period, plus cemented roadside ditches are required to divert water from the construction site, at a cost close to $2-million; this is added to the package No. 1 TSF budget;
   2. Two new reactive power compensators (SVG) are estimated at $2-million plus other power-supply-related items of $1.3-million for a total of $3.3-million;
6. Savings of $9.8-million were mainly achieved through: (i) using rocks from the process plant site preparation for haul road construction instead of purchasing for $1.8-million; (ii) eliminating the West non-contact water channel for $1.5-million, as the explosives magazine site has effectively diverted surface water; (iii) reducing the permanent camp size for $700,000 as the construction camp currently in use is satisfactory for long-term use; and (iv) reducing contingency for $2.7-million.

Due to the extended rainfall experienced at site caused by Super El Nino, El Domo completion date is expected to be delayed by four months. The company is forecasting that El Domo project is scheduled to be in production by Nov. 1, 2027.

Capital cost estimate details

The table below compares the updated budget with the budget released on Feb. 4, 2026, and also the total actual expenditures as of Sept. 30, 2026.

Progress achieved by Sept. 30, 2026

For package No. 1: The main delay includes TSF construction and the non-contact water channel. Site preparation for the process plant has been completed, and construction of foundations for the processing plant is well under way.

The company awarded the mining contract for the package No. 2 project to China Railway 19th Bureau Group Co. Ltd. on a unit cost basis, valued at $35-million for mining and stripping. This updated budget increases by $4.7-million to reflect the diesel price increase.

Foundations for the fine ore bin were 92 per cent complete, 45 per cent for the grinding and flotation plant, 21 per cent for the thickener, 86 per cent for the dewatering plant, 75 per cent for the warehouse, and 35 per cent for the oil depot. Buildings were 78 per cent and 46 per cent complete for the lab and office, respectively, essentially on schedule and as budgeted. The plant site is well protected by the Northeast non-contact water channel.

As most costs are related to the prefabricated structural steel for the process plant, which has been ordered and shipped from the factories, and payment is pending on arrival at the Ecuadorean port and final installation, total actual expenditures as of Sept. 30, 2026, are not significant.

Most equipment has been ordered and paid an approximately 30-per-cent down payment, which is roughly $10.6-million.

Construction of the power line has been continuously delayed as more reviews and approvals have been required from CNEL. Only construction of a substation at El Domo site has commenced. Meanwhile, 10 gen-sets of 17-megawatt capacity have been manufactured and are ready to be shipped to site as an independent power supply.

About Silvercorp Metals Inc.

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 cash flow from long-life mines; (2) organic growth through extensive drilling for discovery; (3) continuing merger and acquisition efforts to unlock value; and (4) long-term commitment to responsible mining and environmental, social and governance.

We seek Safe Harbor.