SILVERCORP INTERSECTS 1.64 METRES TRUE WIDTH GRADING 24.66 GRAMS PER TONNE GOLD, 56 GRAMS PER TONNE SILVER, 3.28% LEAD, AND 2.12% ZINC FROM VEIN H16 AT THE HPG MINE

2022-01-12

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Trading Symbol TSX: SVM NYSE American: SVM

VANCOUVER, BC , Jan. 12, 2022 /CNW/ - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX: SVM) (NYSE American: SVM) is pleased to report additional high-grade intercepts from its 2021 exploration program at the HPG mine. Extensive exploration drilling and tunneling are ongoing at the HPG mine and all other mines in the Ying Mining District, Henan Province , China .

[](https://mma.prnewswire.com/media/1724644/Silvercorp_Metals_Inc_SILVERCORP_INTERSECTS_1_64_METRES_TRUE_WID.html)

From June 1 to December 31, 2021 , 24,369 metres ("m") from a total of 153 diamond drill holes, including 89 underground holes and 64 surface holes, were completed at the HPG mine. Assay results for 134 holes have been received, with 82 holes intercepting mineralization. Currently, there are nine rigs drilling at the HPG mine.

The strategy of the drilling program is threefold: 1) drill above or beneath the stopes that were previously mined but stopped due to more variation in grades, thickness, and attitudes of the vein structures than previously modeled to easily obtain ore; 2) drill for gold-silver -lead-zinc veins in the resource area at higher elevations near the surface and southwest side to expand the resources; and 3) drill for a rhyolitic breccia dyke that is prominently exposed in the middle of the mining area and mineralized with gold-silver-lead-zinc.

Drilling Above or Beneath Previously Mined Stopes

Most holes drilled during this period targeted blocks containing known ore veins in production areas that were previously missed due to limited drilling or tunneling, changes in the strikes and dips, and/or pinch-swelling of the pay-zones within the veins. The high-grade intercepts are mainly associated with the southwest-striking H5 series, H15 series, H16 series, H17 series, H11, and H14 veins. Since access tunnels are already in place, any high-grade mineralization discovered can quickly be converted to reserves and mined.

Highlights of the high-grade gold-silver-lead-zinc intercepts near the surface or previously mined stopes:

Underground hole ZK2542 intersected a 1.91 m interval ( 1.64 m true width) of vein H16 grading 24.66 g/t gold ("Au"), 56 g/t silver ("Ag"), 3.28% lead ("Pb"), 2.12% zinc ("Zn"), and 0.11% copper ("Cu") from 29.11 m depth, at an elevation of 527 m ; Underground hole ZK2314 intersected a 0.75 m interval ( 0.48 m true width) of vein H15 grading 21.00 g/t Au, 54 g/t Ag, 0.45% Pb, 0.09% Zn, and 0.24% Cu from 132.91 m depth, at an elevation of 444 m ; and Underground hole ZK24N04 intersected a 2.45 m interval ( 2.10 m true width) of vein H15 grading 0.65 g/t Au, 155 g/t Ag, 14.93% Pb, 0.03% Zn, and 0.42% Cu from 160.36 m depth, at an elevation of 549 m .

Near Surface Mineralization in Gold-Silver-Lead-Zinc Veins

Nineteen diamond drill holes were drilled from surface, with additional underground diamond drilling employed to test for near surface mineralization above 520 m within the HPG resource area. The drilling intersected gold-silver-lead-zinc veins including the H9 series, H11 series, H14 series, H15 series, H16 series, H17 series, and H10_1. The purpose of this drilling was to extend the resources to higher elevations within the current resource area.

Highlights of the high-grade gold-silver-lead-zinc intercepts near the surface or previously mined stopes:

Surface hole ZK2419 intersected a 2.20 m interval ( 1.90 m true width) of vein H17 grading 22.99 g/t Au, 35 g/t Ag, 0.49% Pb, 0.07% Zn, and 0.02% Cu from 78.57 m depth, at an elevation of 817 m ; and Surface hole ZK1218 intersected a 1.36 m interval ( 1.22 m true width) of vein H17 grading 10.54 g/t Au, 17 g/t Ag, 0.60% Pb, 0.02% Zn, and 0.05% Cu from 89.69 m depth, at an elevation of 783 m .

Drilling High-Grade Gold-Silver-Lead-Zinc Veins at the Southwest Side of the Resource Area

Surface and underground diamond drilling at the southwest side of the resource area intersected high-grade gold-silver-lead-zinc veins of the H20W, H12_1, H39, H41, and H40 series, at an elevation between 435 m and 655 m . These vein structures strike north to north-northeast, and have vertical to sub-vertical dips to the east. Among them, H41W is a newly discovered north-northeast striking high-grade vein that was intersected during this period.

Highlights of the high-grade gold-silver-lead-zinc intercepts at the southwest side of the resource area:

Underground hole ZK11206 intersected a 1.33 m interval ( 1.10 m true width) of vein H41W grading 2.86 g/t Au, 1,469 g/t Ag, 3.69% Pb, 2.33% Zn, and 0.13% Cu from 66.90 m depth, at an elevation of 613 m ; Underground hole ZK11207 intersected a 0.50 m interval ( 0.28 m true width) of vein H41W grading 0.18 g/t Au, 2,642 g/t Ag, 0.63% Pb, 0.21% Zn, and 0.09% Cu from 62.50 m depth, at an elevation of 613 m ; Underground hole ZK11604 intersected a 1.67 m interval ( 1.12 m true width) of vein H40 grading 7.31 g/t Au, 100 g/t Ag, 1.78% Pb, 0.19% Zn, and 0.03% Cu from 266.55 m depth, at an elevation of 532 m ; and Surface hole ZK11406 intersected a 0.52 m interval ( 0.31 m true width) of vein H20W grading 14.60 g/t Au, 15 g/t Ag, 0.07% Pb, 0.09% Zn, and 0.02% Cu from 199.41 m depth, at an elevation of 527 m .

Drilling for a Rhyolitic Breccia Dyke

The breccia dyke extends along a northwest trend for approximately two kilometres ("km"), has a thickness from 25 to 200 m , and dips steeply to the northeast. Hole ZK1315 from this drill program intercepted a significant width of mineralization which is associated with siderite-ankerite-pyrite, and minor galena, sphalerite, and chalcopyrite in the matrix of the breccia. It is possible all the gold-silver -lead-zinc veins mined at the HPG mine have cut the breccia dyke.

Hole ZK1315 intersected an 18.41 m interval grading 1.42 g/t Au, 122 g/t Ag, 0.97% Pb, 0.56% Zn, and 0.14% Cu in the breccia (Table 1). An earlier drill hole ZK1511 from nearby also intercepted a 31.8 m interval grading 1.14 g/t Au, 52 g/t Ag, 0.3% Pb, and 0.25% Zn.

This discovery of broad mineralization in the breccia dyke has been confirmed by a cross-cut tunnel PD2-570-15WCM, which cut a 20.7 m interval grading 1.06 g/t Au, 122 g/t Ag, 1.33% Pb, 1.48% Zn, and 0.14% Cu at an elevation of 570 m (Table 4).

Table 1: Assay results for 103 drill holes from the HPG mine

| Hole ID | From (m) | To (m) | Elevation (m) | Interval (m) | True Width (m) | Au (g/t) | Ag (g/t) | Pb (%) | Zn (%) | Cu (%) | Vein | | ZK02N02 | 107.08 | 108.99 | 442 | 1.91 | 0.82 | 0.13 | 11 | 0.62 | 3.64 | 0.01 | H5 | | ZK02N21 | 57.75 | 59.23 | 488 | 1.48 | 1.32 | 0.05 | 103 | 1.10 | 0.35 | 0.03 | H5 | | ZK04N01 | 109.45 | 110.99 | 533 | 1.54 | 1.18 | 0.89 | 43 | 2.01 | 0.21 | 0.14 | H5 | | ZK04N03 | 117.82 | 118.35 | 536 | 0.53 | 0.38 | 0.36 | 121 | 5.29 | 0.17 | 0.08 | H5 | | ZK04N04 | 136.53 | 137.45 | 489 | 0.92 | 0.89 | 0.24 | 73 | 3.16 | 2.41 | 0.06 | H5 | | ZK04N05 | 109.22 | 109.75 | 539 | 0.53 | 0.40 | 0.30 | 221 | 1.72 | 0.07 | 0.03 | H5a | | ZK04N05 | 123.74 | 124.32 | 531 | 0.58 | 0.43 | 0.59 | 214 | 0.18 | 0.04 | 0.11 | H5 | | ZK04N12 | 77.50 | 78.26 | 487 | 0.76 | 0.66 | 0.35 | 49 | 4.71 | 0.93 | 0.06 | H5 | | ZK06N02 | 88.33 | 88.87 | 552 | 0.54 | 0.47 | 31.00 | 23 | 0.58 | 0.04 | 0.03 | H5a | | ZK0722 | 117.30 | 117.84 | 546 | 0.54 | 0.49 | 0.16 | 198 | 0.73 | 0.30 | 0.09 | H11E | | ZK0724 | 58.02 | 60.41 | 590 | 2.39 | 1.86 | 4.42 | 78 | 1.00 | 0.28 | 0.05 | H15W | | ZK0725 | 18.06 | 18.77 | 615 | 0.71 | 0.56 | 2.23 | 90 | 0.05 | 0.05 | 0.01 | H10_1 | | ZK07N04 | 26.18 | 28.17 | 865 | 1.99 | 1.03 | 1.01 | 252 | 0.73 | 0.91 | 0.04 | H5 | | ZK07N05 | 18.58 | 19.71 | 501 | 1.13 | 0.94 | 0.52 | 58 | 0.78 | 0.24 | 0.08 | H5 | | ZK07N11 | 9.83 | 11.13 | 462 | 1.30 | 1.09 | 4.36 | 21 | 0.04 | 0.01 | 0.01 | B01 | | ZK07N11 | 87.52 | 88.05 | 444 | 0.53 | 0.44 | 2.18 | 34 | 3.18 | 0.62 | 0.05 | H10_1W | | ZK0921 | 127.98 | 128.93 | 628 | 0.95 | 0.82 | 2.48 | 76 | 0.47 | 0.40 | 0.03 | H16 | | ZK09N19 | 0.00 | 1.46 | 464 | 1.46 | 1.12 | 0.21 | 102 | 0.11 | 0.05 | 0.71 | B6 | | ZK09N19 | 44.31 | 44.83 | 450 | 0.52 | 0.31 | 0.85 | 159 | 1.48 | 1.11 | 0.05 | H5_2 | | ZK09N20 | 8.26 | 9.46 | 457 | 1.20 | 0.79 | 0.78 | 74 | 0.09 | 0.02 | 0.38 | H5E1 | | ZK09N22 | 23.44 | 24.35 | 457 | 0.91 | 0.86 | 0.06 | 159 | 0.72 | 1.25 | 0.03 | H5W | | ZK11006 | 109.01 | 109.71 | 581 | 0.70 | 0.61 | 1.58 | 160 | 1.40 | 0.43 | 0.42 | H41a | | ZK11006 | 247.01 | 248.21 | 483 | 1.20 | 0.95 | 1.18 | 13 | 0.40 | 2.31 | 0.00 | H40 | | ZK11206 | 66.90 | 68.23 | 613 | 1.33 | 1.10 | 2.86 | 1,469 | 3.69 | 2.33 | 0.13 | H41W [1] | | ZK11207 | 62.50 | 63.00 | 613 | 0.50 | 0.28 | 0.18 | 2,642 | 0.63 | 0.21 | 0.09 | H41W | | ZK11208 | 112.37 | 112.97 | 577 | 0.60 | 0.59 | 0.87 | 162 | 1.03 | 1.11 | 0.11 | H42E | | ZK11208 | 233.37 | 233.88 | 490 | 0.51 | 0.47 | 0.55 | 137 | 2.29 | 1.96 | 0.24 | H20W | | ZK11208 | 244.84 | 245.37 | 481 | 0.53 | 0.40 | 20.30 | 10 | 0.04 | 0.01 | 0.01 | H40 | | ZK11208 | 249.82 | 251.42 | 478 | 1.60 | 1.21 | 5.13 | 10 | 0.41 | 0.42 | 0.05 | H40W | | ZK11404 | 68.27 | 69.02 | 622 | 0.75 | 0.63 | 1.56 | 16 | 0.33 | 0.26 | 0.02 | H41W | | ZK11404 | 202.48 | 203.53 | 550 | 1.05 | 0.70 | 4.29 | 22 | 0.34 | 0.11 | 0.03 | H17 | | ZK11406 | 183.96 | 184.54 | 537 | 0.58 | 0.33 | 2.32 | 5 | 0.02 | 0.02 | 0.01 | H17 | | ZK11406 | 199.41 | 199.93 | 527 | 0.52 | 0.31 | 14.60 | 15 | 0.07 | 0.09 | 0.02 | H20W | | ZK11406 | 222.92 | 224.69 | 511 | 1.77 | 1.23 | 0.72 | 56 | 0.62 | 0.20 | 1.09 | H17_1 | | ZK11407 | 68.53 | 70.58 | 608 | 2.05 | 1.59 | 0.89 | 45 | 0.85 | 2.10 | 0.08 | H41W | | ZK11407 | 223.33 | 224.78 | 492 | 1.45 | 1.27 | 0.95 | 114 | 0.47 | 0.17 | 0.18 | H20W | | ZK11408 | 72.37 | 72.89 | 610 | 0.52 | 0.40 | 0.26 | 41 | 5.81 | 1.43 | 0.06 | H41W | | ZK11604 | 43.88 | 44.58 | 638 | 0.70 | 0.57 | 0.88 | 75 | 0.10 | 0.16 | 0.05 | H41a | | ZK11604 | 72.27 | 74.30 | 624 | 2.03 | 1.65 | 1.60 | 114 | 0.78 | 1.33 | 0.11 | H41W | | ZK11604 | 76.50 | 77.23 | 622 | 0.73 | 0.60 | 0.21 | 26 | 3.23 | 4.12 | 0.02 | H41W1 [1] | | ZK11604 | 210.38 | 210.88 | 558 | 0.50 | 0.32 | 3.21 | 97 | 0.59 | 0.31 | 0.21 | H16_3 | | ZK11604 | 266.55 | 268.22 | 532 | 1.67 | 1.12 | 7.31 | 100 | 1.78 | 0.19 | 0.03 | H40 | | Including | 266.55 | 267.57 | 532 | 1.02 | 0.68 | 9.90 | 157 | 2.70 | 0.22 | 0.03 | H40 | | ZK11N12 | 55.19 | 56.29 | 427 | 1.10 | 0.68 | 0.11 | 111 | 0.14 | 0.05 | 0.38 | H5 | | ZK11N13 | 2.56 | 4.66 | 462 | 2.10 | 1.21 | 0.98 | 78 | 0.08 | 0.02 | 0.41 | B6 [1] | | ZK11N13 | 65.35 | 70.12 | 449 | 4.77 | 2.11 | 0.50 | 111 | 0.29 | 0.29 | 0.20 | H5_2 | | ZK1218 | 89.69 | 91.05 | 783 | 1.36 | 1.22 | 10.54 | 17 | 0.60 | 0.02 | 0.05 | H17 | | ZK12207 | 42.65 | 43.66 | 519 | 1.01 | 0.78 | 3.28 | 6 | 0.18 | 0.27 | 0.01 | H11 | | ZK12N03 | 92.37 | 94.52 | 482 | 2.15 | 1.72 | 0.06 | 49 | 10.23 | 0.97 | 0.02 | H4 | | Including | 93.72 | 94.52 | 482 | 0.80 | 0.64 | 0.13 | 101 | 22.69 | 2.14 | 0.04 | H4 | | ZK1310-1 | 157.21 | 158.13 | 630 | 0.92 | 0.56 | 2.14 | 177 | 17.09 | 0.29 | 0.07 | H10_1 | | ZK1314 | 155.16 | 156.21 | 622 | 1.05 | 0.33 | 2.37 | 86 | 0.93 | 1.69 | 0.06 | H9 | | ZK1315 | 202.28 | 220.69 | 573 | 18.41 | N/A [2] | 1.42 | 122 | 0.97 | 0.56 | 0.14 | Breccia Dyke [1] | | ZK1321 | 87.06 | 87.63 | 690 | 0.57 | N/A | 1.18 | 19 | 0.37 | 0.23 | 0.02 | N/A [3] | | ZK1322 | 132.00 | 132.61 | 667 | 0.61 | 0.50 | 8.45 | 30 | 0.31 | 0.07 | 0.02 | H9 | | ZK15N21 | 0.75 | 4.19 | 627 | 1.54 | 2.60 | 0.67 | 11 | 1.12 | 1.01 | 0.03 | H10_1a | | ZK15N22 | 23.84 | 27.69 | 620 | 3.85 | 3.79 | 0.54 | 62 | 6.05 | 0.32 | 0.02 | H39_1a | | ZK15S03 | 172.52 | 174.88 | 636 | 2.36 | 1.51 | 0.72 | 58 | 0.42 | 0.02 | 0.24 | H17_1 | | ZK15S04 | 103.46 | 105.03 | 647 | 1.57 | 0.97 | 4.35 | 45 | 1.31 | 0.26 | 0.01 | H14W | | ZK15S05 | 172.79 | 173.32 | 553 | 0.53 | 0.21 | 7.66 | 22 | 1.85 | 3.94 | 0.30 | H17_1 | | ZK1830 | 47.53 | 49.08 | 782 | 1.55 | 1.35 | 1.82 | 13 | 0.04 | 0.03 | 0.01 | H17 | | ZK2033 | 94.63 | 95.60 | 755 | 0.97 | 0.76 | 3.14 | 21 | 0.01 | 0.05 | 0.01 | H17 | | ZK2035 | 69.11 | 70.78 | 765 | 1.67 | 1.66 | 1.57 | 6 | 0.04 | 0.06 | 0.01 | H17 | | ZK2036 | 42.82 | 44.47 | 796 | 1.65 | 1.61 | 3.03 | 32 | 0.05 | 0.04 | 0.02 | H17 | | ZK2037 | 57.31 | 58.58 | 770 | 1.27 | 1.04 | 8.68 | 28 | 0.07 | 0.12 | 0.05 | H17 | | ZK2314 | 3.18 | 4.90 | 536 | 1.72 | 1.00 | 1.37 | 17 | 1.95 | 0.72 | 0.03 | H14 | | ZK2314 | 132.91 | 133.66 | 444 | 0.75 | 0.48 | 21.00 | 54 | 0.45 | 0.09 | 0.24 | H15 | | ZK2314 | 146.14 | 147.38 | 435 | 1.24 | 0.79 | 0.92 | 106 | 0.80 | 0.06 | 0.39 | H20W | | ZK2341 | 71.08 | 72.78 | 795 | 1.70 | 1.11 | 0.65 | 137 | 3.64 | 4.76 | 0.03 | H16 | | ZK2349 | 88.10 | 90.24 | 768 | 2.14 | 0.94 | 0.18 | 171 | 1.32 | 0.23 | 0.09 | H11 | | ZK2349 | 151.63 | 152.30 | 723 | 0.67 | 0.52 | 0.90 | 13 | 0.92 | 1.34 | 0.03 | N/A | | ZK2349 | 166.28 | 166.94 | 712 | 0.66 | 0.39 | 0.85 | 141 | 0.44 | 0.27 | 0.43 | H9 | | ZK2349 | 248.31 | 249.29 | 654 | 0.98 | 0.59 | 1.84 | 4 | 0.07 | 0.03 | 0.01 | H39_1 | | ZK2349 | 255.80 | 257.17 | 649 | 1.37 | 0.27 | 2.80 | 8 | 0.08 | 0.02 | 0.01 | H12_1 | | ZK2419 | 78.57 | 80.77 | 817 | 2.20 | 1.90 | 22.99 | 35 | 0.49 | 0.07 | 0.02 | H17 | | Including | 79.22 | 80.77 | 816 | 1.55 | 1.34 | 32.40 | 42 | 0.63 | 0.07 | 0.03 | H17 | | ZK24N03 | 154.46 | 155.24 | 557 | 0.78 | 0.63 | 0.60 | 56 | 1.42 | 0.05 | 0.18 | H15 | | ZK24N04 | 160.36 | 162.81 | 549 | 2.45 | 2.10 | 0.65 | 155 | 14.93 | 0.03 | 0.42 | H15 | | ZK24N10 | 157.27 | 157.93 | 617 | 0.66 | 0.50 | 0.66 | 23 | 0.92 | 3.38 | 0.01 | H15W | | ZK2542 | 29.11 | 31.02 | 527 | 1.91 | 1.64 | 24.66 | 56 | 3.28 | 2.12 | 0.11 | H16 | | including | 29.89 | 31.02 | 527 | 1.13 | 0.97 | 41.06 | 87 | 5.48 | 3.51 | 0.17 | H16 | | ZK2542 | 52.06 | 52.96 | 518 | 0.90 | 0.80 | 3.20 | 7 | 0.22 | 0.16 | 0.01 | H16_1 | | ZK2542 | 109.59 | 110.61 | 496 | 1.02 | 0.55 | 4.25 | 60 | 1.66 | 1.33 | 0.27 | H20Wa | | ZK2542 | 119.52 | 120.07 | 492 | 0.55 | 0.41 | 2.32 | 4 | 0.62 | 0.18 | 0.02 | H20W | | ZK2542 | 141.01 | 141.51 | 483 | 0.50 | 0.37 | 4.43 | 4 | 0.11 | 0.17 | 0.01 | H17 | | ZK2544 | 32.89 | 34.42 | 522 | 1.53 | 1.53 | 1.10 | 9 | 0.34 | 0.96 | 0.02 | H16 | | ZK2544 | 119.37 | 121.03 | 479 | 1.66 | 1.64 | 2.43 | 20 | 1.54 | 0.28 | 0.06 | H20W | | ZK2545 | 3.91 | 4.53 | 537 | 0.62 | 0.56 | 3.20 | 3 | 0.04 | 0.06 | 0.00 | H14 | | ZK2545 | 27.90 | 30.21 | 525 | 2.31 | 2.04 | 3.00 | 16 | 0.74 | 0.74 | 0.03 | H16 | | ZK2545 | 95.18 | 95.78 | 496 | 0.60 | 0.57 | 3.25 | 5 | 0.03 | 0.03 | 0.01 | H15 | | ZK2545 | 118.27 | 121.76 | 485 | 3.49 | 2.00 | 2.06 | 34 | 0.29 | 0.35 | 0.19 | H20W | | ZK2546 | 101.97 | 102.85 | 520 | 0.88 | 0.72 | 3.44 | 94 | 0.97 | 0.16 | 0.05 | H20W | | ZK2547 | 342.39 | 343.05 | 580 | 0.66 | 0.30 | 1.70 | 61 | 0.55 | 0.03 | 0.01 | H41W | | ZK2548 | 15.93 | 16.48 | 796 | 0.55 | 0.50 | 0.03 | 21 | 7.25 | 2.17 | 0.02 | H11 | | ZK2548 | 81.94 | 83.21 | 758 | 1.27 | 1.16 | 0.05 | 82 | 1.98 | 0.84 | 0.14 | H14 | | ZK2548 | 187.62 | 188.15 | 697 | 0.53 | 0.38 | 8.72 | 35 | 6.25 | 1.12 | 0.02 | H16_3 | | ZK2548 | 270.84 | 272.20 | 651 | 1.36 | 0.85 | 0.35 | 85 | 0.23 | 0.38 | 0.77 | H17 | | ZK2548 | 306.72 | 307.24 | 631 | 0.52 | 0.45 | 0.89 | 65 | 0.29 | 0.72 | 0.01 | H20W | | ZK26N02 | 153.05 | 154.38 | 593 | 1.33 | 0.92 | 0.64 | 46 | 1.94 | 0.13 | 0.02 | H15 | | ZK26N02 | 157.24 | 157.97 | 591 | 0.73 | 0.50 | 0.07 | 40 | 2.19 | 1.11 | 0.02 | H15_1 | | ZK2732 | 27.53 | 28.08 | 531 | 0.55 | 0.53 | 9.47 | 12 | 0.24 | 0.28 | 0.01 | H16 | | ZK2732 | 51.23 | 51.89 | 524 | 0.66 | 0.66 | 5.61 | 7 | 0.05 | 0.06 | 0.01 | H16_1 | | ZK2732 | 70.12 | 70.87 | 518 | 0.75 | 0.72 | 1.77 | 3 | 0.15 | 0.01 | 0.00 | H16_3 | | ZK2732 | 150.69 | 151.20 | 495 | 0.51 | 0.28 | 4.93 | 18 | 1.04 | 4.47 | 0.12 | H20W | | ZK2732 | 218.43 | 219.44 | 475 | 1.01 | 0.56 | 2.66 | 45 | 0.24 | 0.37 | 0.58 | H42 | | ZK2733 | 33.10 | 37.32 | 510 | 4.22 | 3.32 | 1.45 | 10 | 0.19 | 0.42 | 0.01 | H16 | | ZK2733 | 255.24 | 256.76 | 324 | 1.52 | 0.65 | 1.25 | 27 | 5.99 | 1.67 | 0.02 | H20W |

| [1] New veins. [2] True thickness unknown. [3] New unnamed veins. |

Tunneling Programs at the HPG Mine

A total of 1,436 m of exploration tunnels were developed at the HPG mine during this period. The exploration tunneling, which comprised of drifting, cross-cutting and raising, was driven along and across major mineralized vein structures to upgrade the drill-defined mineral resources, and to test for new parallel and splay structures (Tables 2 and 3).

Table 2: Summary of the tunneling programs at the HPG mine

| Major Target Veins | Elevation (m) | Total Tunneling (m) | Channel Samples Collected | Drift Included (m) | Total Mineralization Exposed by Drifts [1] | | | | | | | | Length (m) | True Width (m) | Au (g/t | Ag (g/t) | Pb (%) | Zn (%) | Cu (%) | | | | | | | H20W, H11, H5, H5a, H41, H15, H5_2, H14, H3, H32, B10, H17, H40E, H10_1, H9, H12_1 | 150-640 | 1,436 | 995 | 1,181 | 286 | 0.64 | 1.61 | 80 | 2.11 | 1.58 | 0.12 |

| [1] Mineralization is defined by silver equivalent value (AgEq) greater than or equal to 130 g/t at the HPG mine (Formula used for AgEq calculation: AgEq = Ag g/t + 70.15 Au g/t + 35.91 Pb% + 21.9 * Zn%). |

Table 3: Selected mineralized zones exposed by drift tunneling at the HPG mine

(m) | True Width (m) | Au (g/t) | Ag (g/t) | Pb (%) | | Zn (%) | Cu (%) | | PD5-H11-610-17SYM | H11 | 610 | 24 | 24 | 0.61 | 0.59 | 0.10 | 35 | 6.80 | | 0.89 | 0.03 | | PD3-H17-150-34NYM | H17 | 150 | 40 | 20 | 1.06 | 1.03 | 0.53 | 19 | 0.72 | | 3.08 | 0.10 | | PD3-H20W-460-27SYM | H20W | 460 | 100 | 55 | 0.93 | 0.89 | 3.99 | 126 | 1.20 | | 1.47 | 0.17 | | PD3-H3-340-0SYM | H3 | 340 | 50 | 10 | 0.50 | 0.32 | 0.36 | 63 | 2.11 | | 4.49 | 0.02 | | PD5-H41-640-15SYM | H41 | 640 | 26 | 22 | 0.43 | 0.41 | 4.45 | 45 | 1.88 | | 1.39 | 0.08 | | PD600-H5_2-510-7NYM | H5_2 | 510 | 40 | 25 | 0.54 | 0.53 | 0.15 | 42 | 5.95 | | 0.17 | 0.06 | | PD3-H5_2-460-9SYM | H5_2 | 460 | 30 | 10 | 0.99 | 0.97 | 0.04 | 240 | 0.94 | | 1.40 | 0.05 | | PD3-H5a-300-7SYM | H5a | 300 | 31 | 31 | 0.72 | 0.70 | 2.75 | 67 | 1.35 | | 0.57 | 0.05 | | W_Tunnel-H9-630-13SYM | H9 | 630 | 25 | 25 | 0.53 | 0.52 | 3.76 | 100 | 3.93 | | 3.40 | 0.28 | | W_Tunnel-H9-630-13NYM | H9 | 630 | 34 | 29 | 0.58 | 0.55 | 0.99 | 49 | 2.37 | | 1.02 | 0.11 |

Table 4: Selected mineralized zones exposed by crosscut tunneling at the HPG mine

| Tunnel ID | Vein | From (m) | To (m) | Length (m) | Elevation (m) | True Width (m) | Au (g/t) | Ag (g/t) | Pb (%) | Zn (%) | Cu (%) | | PD3-380-9_Bay2 | B6 [1] | 36.00 | 42.00 | 6.00 | 380 | 4.24 | 2.18 | 22 | 0.25 | 0.14 | 0.01 | | PD2-570-15WCM | Breccia dyke [1] | 3.00 | 23.7 | 20.7 | 570 | N/A [2] | 1.06 | 122 | 1.33 | 1.48 | 0.14 | | PD600-H5a-560-6WCM | H5 | 148.24 | 149.46 | 1.22 | 560 | 1.22 | 0.30 | 82 | 2.60 | 1.15 | 0.08 | | PD3-H5-300-7ECM | H5a | 3.84 | 4.16 | 0.32 | 300 | 0.31 | 5.64 | 373 | 2.80 | 1.63 | 0.05 | | XSD-H9-630-13ECM | H10_1 | 44.52 | 45.84 | 1.32 | 630 | 1.08 | 0.18 | 224 | 4.71 | 0.23 | 0.05 | | PD3-460-Decline3 | H15 | 147.81 | 148.24 | 0.43 | 405 | 0.42 | 3.75 | 1395 | 0.78 | 12.50 | 0.40 |

| [1] New veins. [2] True width unknown. |

Quality Control

Drill cores are NQ size. Drill core samples, limited by apparent mineralization contacts or shear/alteration contacts, were split into halves by saw cutting. The half cores are stored in the Company's core shacks for future reference and checks, and the other half core samples are shipped in securely sealed bags to the Chengde Huakan 514 Geology and Minerals Test and Research Institute in Chengde, Hebei Province , China , 226 km northeast of Beijing , the Zhengzhou Nonferrous Exploration Institute Lab in Zhengzhou , Henan Province , China , and SGS in Tianjin, China . All three labs are ISO9000 certified analytical labs. For analysis, the sample is dried and crushed to minus 1 mm and then split into a 200-300 g 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 atomic absorption spectroscopy ("AAS"), and the other is digested with two-acids for analysis of silver, lead, zinc, and copper with AAS.