Silvercorp Metals Inc.: Financial and Operating Results for the 4th Quarter and Fiscal Year Ended March 31, 2009

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/14/09 -- Silvercorp Metals Inc. (TSX: SVM)(NYSE Amex: SVM) ("Silvercorp" or the "Company") reports its unaudited financial and operating results for the fourth quarter and fiscal year ended March 31, 2009 and provides an outlook for fiscal year 2010. The financial results in the following text are expressed in US dollars (US$) unless stated otherwise.

FOURTH QUARTER HIGHLIGHTS AND SIGNIFICANT ITEMS

- Net income was $1.2 million or $0.01 per share in the fourth quarter. Adjusted non-GAAP earnings for the quarter, after excluding three exceptional items, were $6.9 million or $0.05 per share, up 165% compared to $2.6 million or $0.02 in the last quarter.

- Cash flow from operations of $10.6 million in the quarter, up 25% from $8.5 million in the prior quarter. For the year, cash provided by operating activities was $47.0 million. Cash, cash equivalents and short term investments at the end of the year were in total $65 million, with no debt.

- 1.04 million ounces of silver produced in the quarter, resulting in an annual record of 4.2 million ounces, and the 3rd consecutive year of silver production growth.

- Silver head grade at the Ying Mine improved to 487 gram per tonne (g/t) in the quarter up from 420g/t in the previous quarter.

- Total production cost per ounce of silver adjusted for by-product credits at the Ying Mine improved to negative $3.24 per ounce, compared to $0.18 in the last quarter.

- The Net Smelter Return (NSR) for silver increased by 18% compared to the previous quarter.

- Silvercorp's common shares commenced trading on NYSE Amex.

- Raised CAD$30 million in March 2009 through a 10 million common share equity financing.

- Paid quarterly dividend of CAD$0.02 per share.

FINANCIALS

For the quarter, the Company recorded a net income of $1.2 million or $0.01 per share and adjusted non-GAAP earnings were $6.9 million or $0.05 per share, after excluding three exceptional items recorded during the quarter. Those items are:

- $1.2 million unrealized foreign exchange loss relating to translation from Chinese Yuan to Canadian dollars. The unrealized foreign exchange loss in the previous quarter was $2.5 million.

- $1.6 million accrued dividend withholding tax relating to dividends declared in February 2009 by the Company's 77.5% owned Chinese subsidiary Henan Found Mining Co. Ltd. from the 2008 calendar year earnings. According to a new Chinese Income Tax regulation effective on January 1, 2008, dividends paid to overseas investors are subject to a 10% withholding tax.

- $2.9 million non-cash impairment charge writing down an equity investment in New Pacific Metals Inc. to the market value.

Condensed statements of non-GAAP operation results for the three months and year ended March 31, 2009 are as follows:


               Three months ended March 31,            Years ended March 31,
                    2009      2009    2008         2009     2009       2008
             --------------------------------------------------------------
(US $000's,    Excluding                      Excluding
 except per  exceptional                    exceptional
 share           items(i)                       items(i)
 numbers)

Sales             17,392  $ 17,392  26,845       83,523   83,523  $ 108,363
Gross profit      11,010    11,010  20,229       47,836   47,836     85,040
Accretion of
 assets
 retirement
 obligations         (35)      (35)    (17)        (123)    (123)       (62)
Amortization         (24)      (24)   (175)        (817)    (817)      (517)
Foreign
 exchange gain
 (loss)(i)         1,853       673     507        7,538    2,872       (612)
General
 exploration        (500)     (500) (1,038)      (2,325)  (2,325)    (1,817)
Impairment
 charges(i)            -    (2,907)      -            -  (50,707)         -
General
 administration   (2,262)   (2,262) (3,936)     (11,357) (11,357)    (9,671)
Other income
 and expenses       (224)     (224)  1,178         (782)    (782)     7,324
             --------------------------------------------------------------
Income (loss)
 before income
 taxes and non-
 controlling
 interest          9,818     5,731  16,748       39,970  (15,403)    79,685
Income tax
 (expense)
 recovery(i)        (895)   (2,480) (1,957)      (4,618)     937       (551)
Non-
 controlling
 interest(i)      (1,994)   (2,013) (3,932)      (8,033)  (1,531)   (19,197)
             --------------------------------------------------------------
Net income
 (loss)      $     6,929  $  1,238  10,859       27,319  (15,997) $  59,937
             --------------------------------------------------------------
             --------------------------------------------------------------
Earnings
 (loss) per
 share       $      0.05      0.01    0.07  $      0.18    (0.11) $    0.41

(i) The financial statements are prepared in accordance with Canadian GAAP
    (GAAP). This news release refers to adjusted earnings and adjusted
    earnings per share, which are not measures recognized under GAAP in
    Canada or the United States and do not have a standardized meaning
    prescribed by GAAP. For adjusted earnings and adjusted earnings per
    share, the Company adjusted net income (loss) as reported to remove
    the effect of unusual and/or nonrecurring transactions in these
    measures, including: (i) non-cash impairment charges mainly relating
    to writing down an equity investment in New Pacific Metals Inc. to
    market value, (ii) accrued withholding taxes and (iii) unrealized
    foreign exchange loss relating to translation from Chinese yuan to
    Canadian dollars.

For the quarter, the Company recorded sales of $17.4 million, a decline of 35% compared to sales of $26.8 million for the same period last year, and an increase of 14% compared with sales of $15.2 million in the last quarter. The average quarterly Net Smelter Return (NSR) net of value added tax for silver, lead and zinc of $8.68/oz, $0.52/lb and $0.37/lb decreased by 33%, 51% and 32%, respectively, compared to a year ago, but increased by 18%, 27% and 32%, respectively, compared to the previous quarter.

For the year, the Company recorded sales of $83.5 million, a 23% decline compared to fiscal 2008 sales of $108.4 million. As previously mentioned, sales were negatively affected by the decline in metal prices. For the 2009 fiscal year, the average realized NSR for silver, lead and zinc were $10.17/oz, $0.65/lb and $0.41/lb, down 10%, 34% and 53% respectively, compared to fiscal 2008.

For the quarter, gross profit from operations were $11.0 million, representing a gross margin of 63%, down $9.2 million or 46% compared to the same quarter last year of $20.2 million, or 75% of sales, but up $5.8 million from the last quarter's gross profit of $5.2 million, or 35% of sales.

For the year, gross profit was $47.8 million, about 57% of sales, compared to $85.0 million being 78% of sales in fiscal 2008. The declining gross profit was mainly attributed to (i) declining metal prices since July 2008 and (ii) the lower grade nature of ores from the TLP, LM and HPG mines which increased the unit cost of production.

For the quarter, cash provided by operating activities was $10.6 million, a decrease of 38% from $17.2 million for the same period last year, but a 24% increase from $8.5 million in the last quarter.

For the 2009 fiscal year, cash provided by operating activities was $47.0 million, a decrease of 41% from $79.8 million for fiscal 2008.

The Company completed a CAD$31 million equity financing in March 2009. As at March 31, 2009, the Company had $41.5 million in cash and $24.0 million in short term investments and $47.6 million in working capital and remained debt-free.

For the quarter, capital expenditures amounted to $2.2 million, including the purchase of mineral rights and properties and capitalized exploration costs totaling $0.7 million and the purchase of equipment and construction costs for the new mill totaling $1.5 million.

For the year, cash capital expenditures amounted to $49.8 million. The major items included the acquisition of the GC/SMT property for $24.3 million, exploration and mine development at Ying Mining Camp of $12.8 million and the purchase of equipment and construction costs for the new mill totaling $12.7 million.

METAL PRICES

Sales revenue and selling prices (NSR, net of smelter charges and the value added tax) for the three months and year ended March 31, 2009, are as follows:


---------------------------------------------------------------------------
                           For the three months ended

                March 31, 2009      December 31, 2008       March 31, 2008
---------------------------------------------------------------------------
                          Sales                 Sales                 Sales
                 NSR    revenue        NSR    revenue        NSR    revenue
              ($ per      ($ in     ($ per      ($ in     ($ per      ($ in
               oz/lb)     000's)     oz/lb)     000's)     oz/lb)     000's)

Silver          8.68      8,987       7.34      8,006      12.89     12,897

Gold             648        258        449        270        491        227

Lead            0.52      6,869       0.41      6,047       1.06     12,406

Zinc            0.37      1,278       0.28        845       0.55      1,315
---------------------------------------------------------------------------


---------------------------------------------------------------------------
                              For the year ended

                     March 31, 2009                    March 31, 2008
---------------------------------------------------------------------------
                    NSR     Sales revenue              NSR    Sales revenue
           ($ per oz/lb)      ($ in 000's)    ($ per oz/lb)     ($ in 000's)

Silver            10.17            42,583            11.28           44,678

Gold                614             1,154              552            1,190

Lead               0.65            34,424             0.98           48,433

Zinc               0.41             5,362             0.88           14,062
---------------------------------------------------------------------------

OPERATIONS

In the quarter, 60,466 tonnes of ores were mined which was less than previous quarters as the Company's operations were closed for three weeks for the Chinese New Year in January and mining operations at the TLP, HPG and LM mines were suspended. The comparison of total ores mined in the past five quarters are as follows:


---------------------------------------------------------------------------
                        Q4 2009    Q3 2009    Q2 2009    Q1 2009    Q4 2008
                      31-Mar-09  31-Dec-08  30-Sep-08  30-Jun-08  31-Mar-08
---------------------------------------------------------------------------

Ores Mined (tonne)

 Direct Smelting
  Ores (tonne)            2,624      3,288      2,571      3,388      3,169

 Ores to be milled
  (tonne)                57,842    118,658    121,963    129,465     69,319
                      -----------------------------------------------------

                         60,466    121,946    124,534    132,853     72,488
---------------------------------------------------------------------------

During the quarter, mining production was primarily from the Ying Mine. Enhanced management of mining contractors and quality control have reduced mining dilution significantly; as a result, silver head grade improved to 486.7g/t, 16% higher than the previous quarter's head grade of 420.2g/t. Head grades also improved compared to the last quarter for lead (9.1% vs. 7.7%) and zinc (3.1% vs. 2.6%).

For the quarter, production cost and cash cost per ounce of silver, adjusted for by-product credits, were negative $3.24 and negative $3.62, respectively, a significant improvement from $0.18 and negative $1.39 in the previous quarter. The reduced costs per ounce were mainly due to improved head grades and higher metal prices.

The operating results for the past five quarters at the Ying Mine are summarized as follows:


---------------------------------------------------------------------------
                        Q4 2009    Q3 2009    Q2 2009    Q1 2009    Q4 2008
                      31-Mar-09  31-Dec-08  30-Sep-08  30-Jun-08  31-Mar-08
---------------------------------------------------------------------------

Ores Mined (tonne)

 Direct Smelting
  Ores (tonne)            2,610      3,114      2,387      3,071      2,673

 Ores to be milled
  (tonne)                55,232     77,968     71,456     74,496     59,398
                      -----------------------------------------------------

                         57,842     81,082     73,843     77,567     62,071
---------------------------------------------------------------------------

Run of Mine Ores
 (tonne)

 Direct Smelting
  Ores (tonne)            2,726      3,114      2,387      3,071      2,673

 Ores Milled
  (tonne)                60,167     70,854     69,493     74,691     51,996
                      -----------------------------------------------------

                         62,893     73,968     71,880     77,762     54,669
---------------------------------------------------------------------------

Head Grades of
 Run of Mine Ores

 Silver (gram/tonne)      486.7      420.2      331.2      396.0      488.9

 Lead (%)                   9.1        7.7        6.0        6.7        8.1

 Zinc (%)                   3.1        2.6        2.5        3.3        3.8
---------------------------------------------------------------------------

Recovery Rate of
 the Run of Mine Ores

 Silver (%)                93.1       92.9       91.3       90.7       91.6

 Lead (%)                  97.2       96.7       95.6       95.9       96.0

 Zinc (%)                  69.4       78.1       68.2       72.0       73.2
---------------------------------------------------------------------------

Sales Data

 Silver
  (in thousands ounce)      931        880        622        889        929

 Lead
  (in thousands pound)   12,150     11,419      8,096     11,250      9,596

 Zinc
  (in thousands pound)    3,082      2,894      2,300      4,062      2,167
---------------------------------------------------------------------------

Cash Mining cost
 ($ per tonne)            45.44      45.10      55.71      55.61      37.69

Total Mining cost
 ($ per tonne)            58.71      61.60      72.86      69.44      48.66

Cash Milling cost
 ($ per tonne)            10.57      10.32      11.24      10.80      10.41

Total Milling cost
 ($ per tonne)            11.76      11.24      12.24      11.75      11.30
---------------------------------------------------------------------------

Total Production Costs

 Silver ($ per ounce)      2.48       3.49       4.46       3.28       3.23

 Lead ($ per pound)        0.15       0.20       0.31       0.21       0.27

 Zinc ($ per pound)        0.11       0.13       0.15       0.13       0.14
---------------------------------------------------------------------------

Production Cost per
 Ounce of Silver,
 adjusted for
 by-product credits       (3.24)      0.18      (3.44)     (7.28)     (5.97)

Cash Cost per Ounce of
 Silver, adjusted for
 by-product credits       (3.62)     (1.39)     (5.14)     (7.42)     (6.15)
---------------------------------------------------------------------------

Fiscal year 2009 was the Company's third consecutive year of production growth with annual production of 4.2 million ounces of silver, a 6% increase over fiscal 2008. The Company also produced 53 million pounds of lead and 13 million pounds of zinc, compared to 50 million pounds of lead and 16 million pounds of zinc produced a year ago.

During fiscal 2009 two new mines, TLP and LM, were put into production, bringing total ores mined to 439,799 tonnes, a 44% increase from 306,143 tonnes in fiscal 2008.

The comparison of production for each producing mine and consolidated production is as follows:


---------------------------------------------------------------------------

                          Fiscal 2009                      Fiscal 2008
--------------------------------------------------- -----------------------

               Ying     HPG     TLP      LM  Consol'   Ying     HPG  Consol'
--------------------------------------------------- -----------------------

Ores mined
 (tonne)

 Direct
  Smelting
  Ores
  (tonne)    11,182     504      95      71  11,852  11,010   1,919  12,929

 Ores to be
  milled
  (tonne)   279,152  54,361  59,118  35,316 427,947 242,829  50,385 293,214
            --------------------------------------- -----------------------

            290,334  54,865  59,213  35,387 439,799 253,839  52,304 306,143
--------------------------------------------------- -----------------------

Run of Mine
 Ores (tonne)

 Direct
  Smelting
  Ores
  (tonne)    11,298     504      95      71  11,968  11,010   1,919  12,929

 Ores
  Milled
  (tonne)   275,204  59,887  69,375  34,653 439,119 245,487  46,612 292,099
            --------------------------------------- -----------------------

            286,502  60,391  69,470  34,724 451,087 256,497  48,531 305,028
--------------------------------------------------- -----------------------

Head Grades
 of Run of
 Mine Ores

 Silver
  (gram/
  tonne)      407.0   154.4   160.4   266.7   311.6   464.2   207.4   420.3

 Lead (%)       7.3     5.8     2.3     1.8     5.6     7.4     7.4     7.4

 Zinc (%)       2.9     0.9       -       -     1.9     3.1     1.1     2.7
--------------------------------------------------- -----------------------

Recovery rate
 of Run of
 Mine Ores

 Silver (%)    92.0    81.6    84.1    88.1    89.9    91.3    89.0    91.1

 Lead (%)      96.5    93.2     2.3    86.8    94.3    95.8    93.8    95.5

 Zinc (%)      69.3    71.4       -       -    76.1    72.0    65.6    71.6
--------------------------------------------------- -----------------------

Sales Data

 Silver (in
  thousands
  ounce)      3,408     209     271     301   4,189   3,684     276   3,960

 Lead (in
  thousands
  pound)     42,914   5,899   2,932   1,320  53,065  42,282   7,342  49,624

 Zinc (in
  thousands
  pound)     12,338     618       -       -  12,956  15,136     776  15,912
--------------------------------------------------- -----------------------

Cash Mining
 cost ($ per
 tonne)       51.24   44.33   47.82   67.94   51.26   39.27   29.89   38.40

Total Mining
 cost ($ per
 tonne)       66.11   73.43   56.27  108.19   69.09   51.59   44.84   50.44

Cash Milling
 cost ($ per
 tonne)       10.63   12.50   11.44   15.55   11.39   10.01   15.95   10.85

Total Milling
 cost ($ per
 tonne)       11.62   13.80   12.54   15.55   12.37   11.00   17.36   11.93
--------------------------------------------------- -----------------------

Production
 Costs

 Silver
  ($ per
  ounces)      3.49    7.72    9.48    7.22    4.34    2.25    3.90    2.44

 Lead
  ($ per
  pound)       0.22    0.46    0.57    0.45    0.28    0.19    0.35    0.21

 Zinc
  ($ per
  pound)       0.14    0.28       -       -    0.18    0.18    0.28    0.19
--------------------------------------------------- -----------------------

Production
 Costs per
 Ounce of
 Silver,
 adjusted for
 by-product
 credits      (2.86)   1.13    8.75    6.33   (1.25)  (9.65) (17.12) (10.15)

Cash Costs
 per Ounce
 of Silver,
 adjusted for
 by-product
 credits      (3.87)  (6.55)   5.14    5.15   (2.77) (10.11) (22.56) (10.99)
---------------------------------------------------------------------------

OUTLOOK

In light of somewhat improved global commodity prices, the Company has adjusted its China operations strategies accordingly. While maintaining full scale production at the Ying Mine, production at the TLP, LM and HPG mines, which was suspended in late December 2008, will be partially resumed.

At the Ying Mine, mining, development and exploration are proceeding as planned with production being maintained at 700-750 tonnes of ore per day. Ore production is forecast to be 260,000 tonnes for fiscal 2010. Projected head grades, recovery rates and metal production for the Ying Mine are listed in the table below:


---------------------------------------------------------------------------
Ying Mine Production Forecast
Fiscal 2010 (Ending March 31, 2010)
---------------------------------------------------------------------------
Ores mined/milled    Commodity   Grade   Recoveries   Projected metal sales
---------------------------------------------------------------------------
260,000 Tonnes       Silver     480g/t           91%        3.65 Million oz
                     ------------------------------------------------------
                     Lead            9%          95%         49 Million lbs
                     ------------------------------------------------------
                     Zinc            3%          72%         12 Million lbs
---------------------------------------------------------------------------

At the TLP, HPG and LM mines, the Company will focus on exploration and mine development. Mine production is scheduled to be partially resumed in the first quarter fiscal 2010. Mine production is planned at 120,000 tonnes for the TLP and LM mines and 30,000 tonnes for the HPG mine in fiscal 2010. This will yield approximately 1.0-1.4 million ounces of silver to bring the total silver production from the Ying Mining Camp to around 4.65-5.05 million ounces in fiscal 2010.

Using metal prices in January 2009 and the above production projections, the Company's mining operations are projected to operate with a gross profit margin of between 55% and 60%, resulting in expected cash flows from operations of $35 million to $40 million. Capital expenditures for fiscal 2010 are budgeted at $16 million for the Ying Mining Camp, including $11 million for the Ying Mine and $5 million for the TLP, LM and HPG mines.

At the GC project in Guangdong Province, the Company has made the following progress in applying for a mining permit and advancing the project towards production:

- An Environmental Assessment Report was completed in March 2009 and has passed a review by an expert panel appointed by the Environmental Protection Bureau of Guangdong Province and by the local community. The panel recommended that the Environmental Protection Bureau approve the GC project mining development. Pending receipt of the final approval from the Environmental Protection Bureau, a mining permit application can be submitted to the Ministry of Land and Resources of China in Beijing.

- 2008 exploration results and recent drilling results are being incorporated into a NI43-101 technical update with a new resource estimate for the GC project which is expected to be released in June 2009.

- The Company has engaged a Chinese engineering firm with Class A qualification in mine and mill designs to provide a full mine and mill design for the GC project. This will be equivalent to a feasibility study in Canada.

The Company has budgeted approximately $4 million for the GC project in fiscal 2010 for exploration, reports, mine and mill designs, and for permitting. This brings the Company's overall capital expenditures budget for fiscal 2010 to $20 million.

The Company is also actively evaluating mining assets with defined resources in North America for acquisition or joint venture.

Selected unaudited interim consolidated results for the three months and year ended March 31, 2009 are attached to this news release.

CONFERENCE CALL AND WEBCAST INFORMATION

A conference call and live audio webcast to discuss these results have been scheduled as follows:

Date: Friday, May 15, 2009

Time: 7:00 am PT (10:00 am ET)

Dial-In Number: 1-612-332-0107

Live audio webcast: www.silvercorp.ca (click on the link on the home page)

Playback webcast can be accessed at: www.silvercorp.ca

About Silvercorp Metals Inc.

Silvercorp Metals Inc., China's largest primary silver producer, is engaged in the acquisition, exploration and development of silver related mineral properties located in the People's Republic of China ("China"). Silvercorp Metals Inc. is operating and developing four Silver-Lead-Zinc mines at the highly profitable Ying Mining Camp, Henan Province, China. Silvercorp is also applying for a mining permit at the newly acquired, 95% owned, GC&SMT property to profitably mine and produce silver, lead and zinc in Guangdong Province, China. The Company's common shares are included as a component of the S&P/TSX Composite and the S&P/TSX Global Mining Indexes.

CAUTIONARY DISCLAIMER -- FORWARD LOOKING STATEMENTS

Statements in this press release other than purely historical factual information, including statements relating to mineral resources and reserves, or the Company's future plans and objectives, or expected production levels, exploration, head grades, recovery rates, cash flows, and capital expenditures constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in mineral exploration, development, and mining. Production projections are based not on mineral reserves but on mineral resources which do not have demonstrated economic viability. There can be no assurance that such forward-looking statements, including those in the outlook section, 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 such statements. Except in accordance with applicable securities laws, the Company expressly disclaims any obligation to update any forward-looking statements or forward-looking statements that are incorporated by reference herein.


SILVERCORP METALS INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited - expressed in thousands of US dollars)

                                                  March 31,    March 31,
                                                      2009         2008
-----------------------------------------------------------------------
ASSETS

Current Assets
 Cash and cash equivalents                    $     41,470  $    47,093
 Short term investments                             23,962       37,146
 Restricted cash                                       732            -
 Accounts receivable and prepaids                    2,933        5,260
 Inventories                                         1,529        2,389
 Current portion of future income taxes                143            -
 Amount due from related parties                       249           47
-----------------------------------------------------------------------
                                                    71,018       91,935

Long term prepaids                                   1,050        5,194
Long term investments                               12,186       17,874
Restricted cash                                        293            -
Property, plant and equipment                       29,072       14,349
Mineral rights and properties                       89,413       60,905
Reclamation deposits                                     8           10
Future income tax assets                             2,162            -
-----------------------------------------------------------------------
                                              $    205,202  $   190,267
-----------------------------------------------------------------------

LIABILITIES

Current Liabilities
 Accounts payable and accrued liabilities     $      8,533  $     7,027
 Deposits received from customers                    1,290        2,573
 Notes payable                                         658            -
 Dividends payable                                   2,564            -
 Income tax payable                                  3,041          720
 Amounts due to related parties                      7,353       12,118
-----------------------------------------------------------------------
                                                    23,439       22,438

Future income tax liabilities                       19,678        6,346
Asset retirement obligation                          2,029        1,226
-----------------------------------------------------------------------
                                                    45,146       30,010

Non-controlling interests                            7,610       11,265

SHAREHOLDERS' EQUITY

Share capital                                      135,604       78,334
Contributed surplus                                  3,764        1,722
Reserves                                            31,893        2,078
Accumulated other comprehensive income (loss)      (10,167)      14,122
Retained earnings                                   (8,648)      52,736
-----------------------------------------------------------------------
                                                   152,446      148,992
-----------------------------------------------------------------------

                                              $    205,202  $   190,267
-----------------------------------------------------------------------
-----------------------------------------------------------------------


SILVERCORP METALS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - expressed in thousands of US dollars, except for share figures)

                    Three months ended March 31,       Years ended March 31,
                    -------------------------------------------------------
                             2009          2008          2009          2008
---------------------------------------------------------------------------

Sales               $      17,392  $     26,845  $     83,523  $    108,363
---------------------------------------------------------------------------

Cost of sales               6,276         6,459        29,322        20,114
Amortization and
 depletion                    106           157         6,365         3,208
---------------------------------------------------------------------------
                            6,382         6,616        35,687        23,322
---------------------------------------------------------------------------

Gross profit               11,010        20,229        47,836        85,041
---------------------------------------------------------------------------

Expenses
 Accretion of asset
  retirement
  obligations                  35            17           123            62
 Amortization                  24           175           817           517
 Foreign exchange
  loss (gain)                (673)         (507)       (2,872)          612
 General exploration
  and property
  investigation
  expenses                    500         1,038         2,325         1,817
 Impairment charges         2,907             -        50,707             -
 Investor relations           109            69           550           284
 Office,
  administration and
  miscellaneous             2,023         2,410         9,319         7,254
 Professional fees            130         1,457         1,488         2,134
---------------------------------------------------------------------------
                            5,055         4,659        62,457        12,680
---------------------------------------------------------------------------
Earnings (loss)
 before other income
 and expenses               5,955        15,570       (14,621)       72,361
Other income and
 expenses
 Equity loss in
  investment                   12           (78)       (1,455)         (250)
 Exploration cost
  after recovery                -           563             -             -
 Gain (loss) on
  disposal of mineral
  rights and property           -             -          (819)          563
 Loss on disposal of
  property, plant and
  equipment                  (308)            -          (328)          (48)
 Interest income               75           693         1,342         2,585
 Other income                  (3)            -           478         4,474
---------------------------------------------------------------------------
                             (224)        1,178          (782)        7,324
Income (loss)
 before
 income taxes and
 non-controlling
 interests                  5,731        16,748       (15,403)       79,685

Income tax expense
 (recovery)
 Current                    2,805         1,988         6,988           441
 Future                      (325)          (31)       (7,925)          110
---------------------------------------------------------------------------
                            2,480         1,957          (937)          551

Income (loss)
 before
 non-controlling
 interests                  3,251        14,791       (14,466)       79,134

Non-controlling
 interests                 (2,013)       (3,932)       (1,531)      (19,197)
---------------------------------------------------------------------------

Net income (loss)   $       1,238  $     10,859  $    (15,997) $     59,937
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Basic earnings
 (loss) per share   $        0.01  $       0.07 $       (0.11) $       0.41
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Diluted earnings
 (loss) per share   $        0.01  $       0.07  $      (0.11) $       0.40
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Weighted Average
 Number of Shares
 Outstanding - Basic  153,869,610   148,940,949   152,350,041   147,660,730
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Weighted Average
 Number of Shares
 Outstanding -
 Diluted              154,996,312   151,005,453   152,350,041   150,954,072
---------------------------------------------------------------------------
---------------------------------------------------------------------------


SILVERCORP METALS INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited - expressed in thousands of US dollars)

                                    Three months ended          Years ended
                                              March 31,            March 31,
                                   ----------------------------------------
                                        2009      2008       2009      2008
---------------------------------------------------------------------------

Net income (loss) for the period   $   1,238  $ 10,859  $ (15,997) $ 59,937
Other comprehensive income (loss),
 net of taxes:
 Transition adjustment to opening
  balance upon adoption of new
  standards                                -         -          -         9
 Unrealized loss on available for
  sale securities                        (48)      (49)      (155)      (48)
 Unrealized exchange gain on
  translation of self-sustaining
  foreign operations                   1,079     2,656     11,270     3,972
 Unrealized exchange gain (loss) on
  translation of functional currency
  to reporting currency               (5,770)   13,592    (35,404)    9,709
---------------------------------------------------------------------------
Other comprehensive income (loss)     (4,739)   16,199    (24,289)   13,642
---------------------------------------------------------------------------
Comprehensive income (loss)        $  (3,501) $ 27,058  $ (40,286) $ 73,579
---------------------------------------------------------------------------
---------------------------------------------------------------------------


SILVERCORP METALS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited - expressed in thousands of US dollars)

                                   Three months ended           Years ended
                                             March 31,             March 31,
---------------------------------------------------------------------------
                                      2009       2008       2009       2008
---------------------------------------------------------------------------
Cash provided by (used for)
Operating activities
 Net income (loss)
  for the period                   $ 1,238  $  10,859  $ (15,997) $  59,937
 Add (deduct) items not
  affecting cash:
  Accretion of asset
   retirement obligations               35         17        122         62
  Amortization                         130        332      7,182      3,725
  Equity Investment
   loss (gain)                         (12)        78      1,455        250
  Future income tax expenses
   (recovery)                         (325)       (31)    (7,925)       110
  Impairment charges                 2,907          -     50,707          -
  Loss (gain) on disposal of
   mineral property                      -       (563)       819       (563)
  Loss on disposal of property,
   plant, and equipment                309          -        328         48
  Non-cash other income                  -          -          -     (4,388)
  Non-controlling interests          2,013      3,932      1,531     19,197
  Stock-based compensation             107        595      2,103      2,473
  Unrealized foreign exchange
   loss on future income
   tax liabilities                     883          -      4,378          -
---------------------------------------------------------------------------
                                     7,285     15,219     44,703     80,851

 Net change in non-cash
  working capital
  Accounts receivable
   and prepaids                        339     (2,030)     2,513     (3,627)
  Inventory                          3,028       (975)       496       (342)
  Restricted cash                   (1,020)         -     (1,020)         -
  Accounts payable and
   accrued liabilities              (1,633)     2,441       (734)     3,413
  Asset retirement obligation
   discharged upon payment               -          -          -       (514)
  Income tax payable                 2,361        662      2,300       (950)
  Deposits received from
   customers                           265      1,913     (1,272)       955
---------------------------------------------------------------------------
Cash provided by operating
 activities                         10,625     17,230     46,986     79,786
---------------------------------------------------------------------------

Investing activities
 Acquisition of mineral
  rights and properties               (713)   (10,212)   (37,115)   (36,583)
 Acquisition of property,
  plant, and equipment              (1,524)    (4,019)   (12,697)    (7,452)
 Purchase of long term
  investments                         (146)    (1,648)      (291)    (5,552)
 Decrease (increase) of
  short term investments            (9,414)    (1,164)    12,982    (29,489)
 Decrease (increase) in
  long term prepaids                 1,499        366       (354)    (3,397)
 Proceeds from disposal of
  mineral rights and properties          -        563        814        563
 Proceeds from disposal of
  property, plant, and equipment         -          -          2        157
 Distribution to non-controlling
  interest shareholder              (1,974)         -    (13,173)    (3,371)
 Cash dividends distributed         (2,476)         -     (5,466)    (6,891)
 Non-controlling interest
  contribution                           -          -        215          -
---------------------------------------------------------------------------
Cash used in investing activities  (14,748)   (16,114)   (55,083)   (92,015)
---------------------------------------------------------------------------

Financing activities
 Repayment from (advance to)
  related parties                     (225)        74        (36)    (1,429)
 Advance (repayment) under loans
  payable                              655     (1,689)       655          -
 Share subscriptions for cash,
  net of commission and expenses    22,634        475     22,656      2,294
 Shares returned to treasury for
  cancellation                           -          -     (9,473)         -
---------------------------------------------------------------------------
Cash provided by (used in)
 financing activities               23,064     (1,140)    13,802        865
---------------------------------------------------------------------------

Effect of exchange rate changes
 on cash and cash equivalents       (6,279)      (165)   (11,326)     5,128

Increased (decrease) in cash and
 cash equivalents                   12,662       (189)    (5,623)    (6,237)

Cash and cash equivalents,
 beginning of period                28,808     47,282     47,093     53,330
---------------------------------------------------------------------------

Cash and cash equivalents,
 end of period                    $ 41,470  $  47,093  $  41,470  $  47,093
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Supplemental information:
 Interest paid                    $      -  $      13  $      30  $      87
 Income tax paid                  $    554  $       -  $   4,703  $   1,274

Non-cash investing activities:
 Common shares issued for mineral
  rights and properties           $      -  $       -  $  36,484  $       -
 Common shares of New Pacific
  Metals Corp. received as partial
  consideration for the Option
  Agreement related to Kang Dian
  Project                         $      -  $   1,336  $       -  $   4,388
 Capitalized future income tax on
  acquisiton of mineral rights
  and properties                  $      -  $       -  $  19,220  $       -
 Capitalized asset retirement
  obligation as per initial
  measurement                     $      -  $       -  $     726  $       -


SILVERCORP METALS INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(Unaudited - expressed in thousands of US dollars)

                                   Three months ended           Years ended
                                             March 31,             March 31,
                                -------------------------------------------
                                      2009       2008       2009       2008
                                -------------------------------------------

Share capital
 Common shares                  $  135,604  $  78,334  $ 135,604  $  78,334
                                -------------------------------------------
                                   135,604     78,334    135,604     78,334

Contributed Surplus                  3,764      1,722      3,764      1,722
Reserves                            31,893      2,078     31,893      2,078

Accumulated comprehensive
 income
 Retained earnings,
  beginning of periods              13,511     41,877     52,736      1,767
 Net earnings (loss)                 1,238     10,859    (15,997)    59,937
 Cancellation of shares
  under normal course
  issuer bid                             -          -     (7,541)         -
 Dividends declared                 (2,565)         -     (8,031)    (6,891)
 Appropriation to reserves         (20,832)         -    (29,815)    (2,077)
                                -------------------------------------------
 Retained earnings,
  end of periods                    (8,648)    52,736     (8,648)    52,736
 Accumulated other
  comprehansive income
  (loss)                           (10,167)    14,122    (10,167)    14,122
---------------------------------------------------------------------------
                                   (18,815)    66,858    (18,815)    66,858
---------------------------------------------------------------------------
                                $  152,446  $ 148,992  $ 152,446  $ 148,992
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Contacts:
Silvercorp Metals Inc.
Rui Feng
Chairman & CEO
(604) 669-9397 or Toll Free 1(888) 224-1881

Silvercorp Metals Inc.
Lorne Waldman
Corporate Secretary
(604) 669-9397 or Toll Free 1(888) 224-1881
(604) 669-9387 (FAX)
info@silvercorp.ca
www.silvercorp.ca

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