Lundin Mining Corporation press release

SILVERCORP REPORTS ADJUSTED NET INCOME OF $151 MILLION, $0.69 PER SHARE, AND CASH FLOW FROM OPERATING ACTIVITIES OF $310.6 MILLION FOR FISCAL 2026

2026-05-26

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Trading Symbol: TSX/NYSE AMERICAN: SVM

VANCOUVER, BC, May 26, 2026/CNW/ - Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX: SVM) (NYSE American: SVM) reported its financial and operating results for the three months ("Q4 Fiscal 2026") and twelve months ("Fiscal 2026") ended March 31, 2026. All amounts are expressed in US dollars, and figures may not add due to rounding.

HIGHLIGHTS FOR Q4 FISCAL 2026

Ongoing production during Chinese New Year: Produced approximately 1.5 million ounces of silver, 2,492 ounces of gold, or approximately 1.6 million ounces of silver equivalent1(silver and gold only) during the quarter; Record quarterly revenue: Sold approximately 1.5 million ounces of silver, 2,623 ounces of gold, 13.6 million pounds of lead, and 3.9 million pounds of zinc, for revenue of $147.4 million, an increase of 96% over the three months ended March 31, 2025 ("Q4 Fiscal 2025"), mainly driven by a 183% higher average realized silver price of $78.6 per ounce, with silver representing 78% of the quarterly revenue; Cash cost per ounce of silver1(net of by-product credits): Negative $1.92, significant improvement from $2.49 in Q4 Fiscal 2025 attributable to the more mechanized and less expensive shrinkage mining method; All-in sustaining cost ("AISC") per ounce of silver1(net of by-product credits): $17.35, 21% higher than $14.31 in Q4 Fiscal 2025, mainly due to higher government taxes linked to increased revenue and higher sustaining capital expenditures; Record adjusted earnings before interest, income tax, depreciation and amortization ("EBITDA")1attributable to equity shareholders of $98.1 million, or $0.44 per share, compared to $29.8 million or $0.14 per share in Q4 Fiscal 2025; Record adjusted net income1attributable to equity shareholders of $59.3 million, or $0.27 per share, after excluding the non-cash or one-time items, compared to $14.7 million or $0.07 per share in Q4 Fiscal 2025; Net loss attributable to equity shareholders of $0.7 million, or $0.003 per share, mainly due to a $60.4 million non-cash charge on "mark-to-market" of the fair value of the derivative liabilities related to the convertible notes. In Q4 Fiscal 2026 the Company removed the Convertible Notes' cash settlement option, reclassifying the conversion feature from a derivative liability to equity to avoid future fair value volatility in the Profit & Loss account; Robust cash flow from operating activitiesof $90.2 million, up $59.5 million, compared to $30.7 million in Q4 Fiscal 2025; Capital expenditures: Spent and capitalized $14.6 million on exploration, development, and equipment and facilities at the China operations and $14.6 million at the Ecuador operations for the development and construction of the El Domo mine; Strong free cash flow1of $57.9 million, up $43.7 million, compared to $14.2 million in Q4 Fiscal 2025; Completed the acquisitionof holding 70% Chaarat ZAAV CJSC ("ZAAV") with a $92 million cash payment to Chaarat Gold Holdings Limited ("Chaarat") on January 23, 2026 and a further $60 million payment to the Kyrgyz government subsequent to the quarter after the government issued to ZAAV a new mining license and license agreement extending the valid period of the mining license a further 30 years from June 25, 2032 to June 25, 2062; and Strong treasury position: ended the period with cash and cash equivalents and short-term investments of $422.3 million, a decrease of $40.5 million from December 31, 2025, and a portfolio of equity investments with a total market value of $274.6 million, an increase of $41.4 million from December 31, 2025.

| | | | 1 | Non-GAAP measures, please refer to MD&A section 15 for reconciliation. |

HIGHLIGHTS FOR FISCAL 2026

Steady silver equivalent production:Produced approximately 6.8 million ounces of silver and 8,723 ounces of gold, or approximately 7.5 million ounces of silver equivalent1; Realized silver selling priceof $46.44 per ounce after smelter deductions, increased 72% from $26.95 in Fiscal 2025; Record annual revenueof $438.1 million, an increase of 47% over the year ended March 31, 2025 ("Fiscal 2025"), with silver representing 72% of the total revenue; Cash cost per ounce of silver1(net of by-product credits): negative $0.94, improved from negative $0.54 in Fiscal 2025; AISC per ounce of silver1(net of by-product credits): $14.25, 18% higher than $12.12 in Fiscal 2025, mainly due to higher government taxes linked to increased revenue and an increase in sustaining capital expenditures to increase mining capacity at Ying; Adjusted EBITDA1attributable to equity shareholders of $238.1 million, or $1.09 per share, compared to $132.2 million or $0.65 per share in Fiscal 2025; Adjusted net income1attributable to equity shareholders of $150.8 million, or $0.69 per share, after excluding non-cash or one-time items, compared to $75.1 million or $0.37 per share in Fiscal 2025; Net loss attributable to equity shareholders of $9.9 million, or $0.05 per share, mainly due to a $178.5 million non-cash charge on "mark-to-market" of the fair value of the derivative liabilities primarily related to the convertible notes; Cash flow from operating activitiesof $310.6 million, up $171.9 million, compared to $138.6 million in Fiscal 2025; Capital expenditures: spent and capitalized $75.0 million on exploration, development, and equipment and facilities at the China operations and $49.4 million at the Ecuador operations for the development and construction of the El Domo mine and permitting activities for the Condor project; Free cash flow1of $181.3 million, up $122.5 million, compared to $58.8 million in Q4 Fiscal 2025; Continued excellence in ESG practices: MSCI ESG rating improved from A to AA, placing the company at a leading level within the industry; Sustainalytics risk score of 21.9, falling within the medium risk category, reflecting the company's effective ESG risk management.

CONSOLIDATED FINANCIAL AND OPERATING RESULTS

| | Three months ended March 31, | | Years ended March 31, | | | | | | | 2026 | 2025 | Changes | | 2026 | 2025 | Changes | | Financial Results (in thousands of $, except per share) | | | | | | | | | Revenue | $ 147,359 | $ 75,113 | 96 % | | $ 438,135 | $ 298,895 | 47 % | | Mine operating earnings | 99,959 | 26,146 | 282 % | | 253,708 | 123,551 | 105 % | | Net loss* | (722) | (7,585) | (91) % | | (9,944) | 58,190 | (117) % | | Per share - basic | (0.003) | (0.03) | (91) % | | (0.05) | 0.29 | (116) % | | Adjusted earnings* | 59,255 | 14,747 | 302 % | | 150,786 | 75,089 | 101 % | | Per share - basic | 0.27 | 0.07 | 296 % | | 0.69 | 0.37 | 87 % | | EBITDA* | 38,887 | 9,680 | 302 % | | 84,207 | 116,916 | (28) % | | Per share | 0.18 | 0.04 | 296 % | | 0.38 | 0.57 | (33) % | | Adjusted EBITDA* | 98,102 | 29,764 | 230 % | | 238,127 | 132,211 | 80 % | | Per share | 0.44 | 0.14 | 225 % | | 1.09 | 0.65 | 67 % | | Cash flow from operating activities | 90,164 | 30,701 | 194 % | | 310,568 | 138,631 | 124 % | | Sustaining capital expenditures | 12,551 | 9,353 | 34 % | | 49,067 | 43,931 | 12 % | | Growth capital expenditures | 19,750 | 7,175 | 175 % | | 80,186 | 35,871 | 124 % | | Free cash flow | 57,863 | 14,174 | 308 % | | 181,315 | 58,828 | 208 % | | Basic weighted average shares outstanding | 220,862,813 | 217,452,033 | 1 % | | 219,425,164 | 204,008,035 | 7 % | | Metals sold | | | | | | | | | Silver (million ounces) | 1.5 | 1.6 | (9) % | | 6.8 | 6.9 | (2) % | | Gold (ounces) | 2,623 | 3,465 | (24) % | | 8,857 | 7,577 | 17 % | | Lead (million pounds) | 13.6 | 16.3 | (17) % | | 60.0 | 62.3 | (4) % | | Zinc (million pounds) | 3.9 | 4.5 | (14) % | | 21.7 | 23.5 | (7) % | | Average Selling Price,Net of Value Added Tax and Smelter Charges | | | | | | | | | Silver ($/ounce) | 78.56 | 27.78 | 183 % | | 46.44 | 26.95 | 72 % | | Gold ($/ounce) | 4,408 | 2,533 | 74 % | | 3,556 | 2,351 | 51 % | | Lead ($/pound) | 0.98 | 0.93 | 5 % | | 0.96 | 0.96 | — % | | Zinc($/pound) | 1.25 | 1.06 | 18 % | | 1.06 | 1.11 | (5) % | | Cost Data per ounce of silver, net of by-product credits ($) | | | | | | | | | Cash cost | (1.92) | 2.49 | (177) % | | (0.94) | (0.54) | (74) % | | All-in sustaining cost | 17.35 | 14.31 | 21 % | | 14.25 | 12.12 | 18 % | | Financial Position (in thousands of $) as at | March 31, 2026 | December 31, 2025 | | | March 31, 2026 | March 31, 2025 | | | Cash and cash equivalents and short-term investments | $ 422,335 | $ 462,840 | (9) % | | 422,335 | 462,840 | 14 % | | Working capital | 319,461 | 94,573 | 238 % | | 319,461 | 310,359 | 3 % |

| _*Attributable to equity holders_ |

INDIVIDUAL MINE OPERATING PERFORMANCE

(i) Ying Mining District

Q4 Fiscal 2026

The Ying Mining District delivered a stable Q4 Fiscal 2026, with ore mined of 293,437 tonnes, up 43% over Q4 Fiscal 2025, driven by the increased use of shrinkage mining relative to cut-and-fill re-suing. Mill throughput was 311,677 tonnes, up 2% over Q4 Fiscal 2025.

Production was approximately 1.4 million ounces of silver, 2,492 ounces of gold, or 1.5 million ounces of silver equivalent, 12.9 million pounds of lead, and 1.4 million pounds of zinc, representing decreases of 11% in silver, 20% in gold, 18% in silver equivalent, 17% in lead and 30% in zinc, respectively, over Q4 Fiscal 2025. Lower metal production was due to lower head grades, as a result of higher dilution associated with an increase in more cost efficient shrinkage mining.

Cash cost per tonne of ore was $78.27 in Q4 Fiscal 2026, down 8% from Q4 Fiscal 2025 and below the lower end of Fiscal 2026 guidance of $86.8. The improvement reflects ongoing mine mechanization and the greater use of cost-efficient shrinkage mining versus labour intensive re-suing mining, boosting mine and mill productivity. Cash cost per ounce of silver, net of by-product credits, was negative $1.03, compared with $3.05 in Q4 Fiscal 2025, driven by the lower cost per tonne and an increase of $0.8 million in by-product credits from revenue of non-silver metals.

AISC per tonne of ore was up 11% in Q4 Fiscal 2026, to $134.23, remaining below the Fiscal 2026 guidance range of $157.8–$160.5. AISC per ounce of silver, net of by-product credits, was $13.09, delivering robust margins amid higher silver prices.

Fiscal 2026

In Fiscal 2026, the Ying Mining District mined approximately 1,211,916 tonnes of ore, up 18% over Fiscal 2025. Mill throughput was 1,188,459 tonnes, up 17% over Fiscal 2025.

Production was approximately 6.3 million ounces of silver, 8,723 ounces of gold, or 7.0 million ounces of silver equivalent, 55.1 million pounds of lead, and 6.6 million pounds of zinc, representing a production increase of 16% in gold and production decreases of 1% in silver, 1% in silver equivalent, 3% in lead and 23% in zinc compared to Fiscal 2025. Lower production was due to lower head grades, as a result of a higher dilution associated with an increase in shrinkage mining.

Cash cost per tonne of ore was $79.71 in Fiscal 2026, down 10% from Fiscal 2025 and below the lower end of Fiscal 2026 guidance of $86.8, mainly attributable to improved mining and milling productivity driven by increased underground mechanization. Cash cost per ounce of silver, net of by-product credits, was negative $0.01, compared with $0.62 in Fiscal 2025, driven by the lower cash cost per tonne and an increase of $10.0 million in by-product credits from revenue of non-silver metals.

AISC per tonne of ore improved 4% in Fiscal 2026, to $134.19, remaining below the Fiscal 2026 guidance range of $157.8–$160.5. AISC per ounce of silver, net of by-product credits, was $11.49.

Mining Permit Expansion Applications

As of March 31, 2026, the Company has completed the mining permits extension and mining capacity expansion for the four mining permits comprising the Ying Mining District, which are the SGX, TLP-LM, HPG, and DCG mining permits. The total mining capacity allowed by the mining permits is 1.32 million tonnes per year.

| Mining permit | SGX | TLP-LM | HPG | DCG | Ying total | | Capacity (tonnes) | 500,000 p.a. | 600,000 p.a. | 120,000 p.a. | 100,000 p.a. | 1,320,000 p.a. | | Expiry dates | 9/24/2035 | 26/02/2041 | 29/04/2028 | 16/6/2037 | |

Production Safety License Renewal

Following the grant of the new mining permits for SGX, TLP-LM, HPG, and DCG, the Company is working on the renewal of the required production safety licenses. At SGX, the safety facility design has been approved, and it is currently in the construction phase for the mine capacity expansion. At HPG, the safety facility design has been reviewed by the emergency management department of Henan Province, pending final signature. At TLP-LM and DCG, the safety facility designs have been completed and submitted to the emergency management department for approval.

| Ying Mining District | Three months ended | | Years ended March 31, | | | | | | | | March 31, 2026 | December 31, 2025 | September 30,

2025 | June 30,

2025 | March 31,

2025 | | 2026 | 2025 | | Ore processed (tonnes) | | | | | | | | | | Silver-lead ore | 279,627 | 299,217 | 235,168 | 252,958 | 265,199 | | 1,066,970 | 927,171 | | Gold ore | 32,050 | 29,208 | 29,834 | 30,397 | 39,025 | | 121,489 | 86,488 | | | 311,677 | 328,425 | 265,002 | 283,355 | 304,224 | | 1,188,459 | 1,013,659 | | Average head grades for silver-lead ore | | | | | | | | | | Silver (grams/tonne) | 161 | 190 | 207 | 217 | 198 | | 193 | 225 | | Lead (%) | 2.2 | 2.3 | 2.6 | 2.8 | 2.9 | | 2.5 | 3.0 | | Zinc (%) | 0.4 | 0.4 | 0.4 | 0.5 | 0.5 | | 0.4 | 0.6 | | Average head grades for gold-ore | | | | | | | | | | Gold (grams/tonne) | 1.1 | 1.2 | 1.4 | 1.5 | 1.4 | | 1.3 | 1.7 | | Silver (grams/tonne) | 54 | 57 | 81 | 51 | 62 | | 61 | 72 | | Lead (%) | 0.9 | 1.1 | 0.9 | 0.8 | 0.7 | | 0.9 | 0.9 | | Recovery rates | | | | | | | | | | Silver (%) | 95.0 | 95.3 | 94.8 | 94.6 | 94.2 | | 95.4 | 94.7 | | Gold (%) | 90.8 | 92.8 | 94.2 | 93.4 | 91.7 | | 92.7 | 92.9 | | Lead (%) | 93.2 | 93.6 | 93.5 | 94.1 | 92.3 | | 93.7 | 93.6 | | Zinc (%) | 63.9 | 63.0 | 65.8 | 64.3 | 67.3 | | 64.1 | 69.7 | | Cash Costs | | | | | | | | | | Cash cost ($/tonne) | 78.27 | 75.80 | 82.89 | 83.08 | 84.90 | | 79.71 | 88.46 | | AISC ($/tonne) | 134.23 | 134.06 | 139.22 | 129.83 | 120.62 | | 134.19 | 139.33 | | Cash cost, net of by-product credits ($/ounce of silver) | (1.03) | (1.22) | 0.97 | 1.26 | 3.05 | | 0.01 | 0.62 | | AISC, net of by-product credits ($/ounce of silver) | 13.09 | 11.32 | 11.75 | 10.10 | 11.35 | | 11.49 | 9.68 | | Metal Production | | | | | | | | | | Silver (million ounces) | 1.4 | 1.7 | 1.5 | 1.7 | 1.6 | | 6.3 | 6.4 | | Gold (ounces) | 2,492 | 2,096 | 2,085 | 2,050 | 3,110 | | 8,723 | 7,495 | | Silver equivalent (million ounces) | 1.5 | 1.9 | 1.7 | 1.9 | 1.9 | | 7.0 | 7.1 | | Lead (million pounds) | 12.9 | 14.7 | 12.9 | 14.6 | 15.6 | | 55.1 | 56.8 | | Zinc (million pounds) | 1.4 | 1.9 | 1.4 | 1.8 | 2.0 | | 6.6 | 8.6 |

| Gold recovery only refers to the recovery rate for gold ore processed. | |

(ii) GC Mine

Q4 Fiscal 2026

The GC Mine produced approximately 0.1 million ounces of silver, 1.1 million pounds of lead, and 2.5 million pounds of zinc in Q4 Fiscal 2026, representing an increase of 3% in silver, 51% in lead and 4% in zinc over Q4 Fiscal 2025, primarily attributable to an increase in ore processed.

Cash cost per tonne of $71.12 and AISC per tonne of $109.68, and improved 8% and 7%, respectively, from Q4 Fiscal 2025, attributable to a lower unit overhead cost allocation with an increase of 24% in ore processed.

On a per ounce of silver, net of by-product credits basis, cash cost and AISC were negative $19.93 and $10.22, respectively, compared to negative $8.53 and $15.05 in Q4 Fiscal 2025. The improvement primarily reflects a $1.0 million increase in by-product credits.

Fiscal 2026

The GC Mine produced approximately 0.5 million ounces of silver, 5.2 million pounds of lead, and 15.1 million pounds of zinc in Fiscal 2026, representing an increase of 3% in zinc and decreases of 11% in silver and 2% in lead, compared to Fiscal 2025.

Cash cost per tonne of $60.08 and AISC per tonne of $87.48, and increased 9% and 5%, respectively, from Fiscal 2025, mainly due to a higher per tonne fixed costs allocation resulting from the decrease in ore production.

On a per ounce of silver, net of by-product credits basis, cash cost and AISC were negative $14.23 and $4.70, respectively, compared to negative $14.71 and $3.12 in Fiscal 2025.

GC Mine Classification Update

The Company has commissioned Changsha Mining Research Institute to prepare the development and utilization plan to change the GC's classification from a lead-zinc mine to a silver mine. GC has an annual production capacity of 300,000 tonnes, is considered a medium-scale operation and is limited to no more than three production levels operating simultaneously. Once classified as a silver mine, GC would be considered large-scale and would no longer be subject to this restriction.

| GC Mine | Three months ended | | Years ended March 31, | | | | | | | | March 31, 2026 | December 31,

2025 | September 30, 2025 | June 30,

2025 | March 31, 2025 | | 2026 | 2025 | | Ore Production (tonne) | 48,840 | 87,095 | 76,249 | 74,869 | 41,760 | | 287,053 | 299,036 | | Head grades | | | | | | | | | | Silver (grams/tonne) | 52 | 52 | 64 | 69 | 61 | | 59 | 67 | | Lead (%) | 0.9 | 1.0 | 0.9 | 0.8 | 0.9 | | 0.9 | 0.9 | | Zinc (%) | 2.6 | 2.9 | 2.8 | 2.3 | 2.9 | | 2.7 | 2.5 | | Recovery rates | | | | | | | | | | Silver (%) | 86.3 | 85.9 | 85.8 | 85.3 | 83.7 | | 85.7 | 83.1 | | Lead (%) | 93.5 | 89.1 | 89.0 | 90.1 | 87.4 | | 93.4 | 89.3 | | Zinc (%) | 90.6 | 92.7 | 91.1 | 90.0 | 90.3 | | 91.3 | 90.3 | | Cash Costs | | | | | | | | | | Cash cost ($/tonne) | 71.12 | 53.37 | 58.20 | 62.53 | 77.46 | | 60.08 | 54.97 | | AISC ($/tonne) | 109.68 | 68.53 | 82.63 | 99.93 | 117.83 | | 87.48 | 83.36 | | Cash cost,net of by-product credits ($/ounce of silver) | (19.93) | (29.05) | (11.44) | (0.80) | (8.53) | | (14.23) | (14.71) | | AISC, net of by-product credits ($/ounce of silver) | 10.22 | (15.66) | 4.71 | 20.02 | 15.05 | | 4.70 | 3.12 | | Metal Production | | | | | | | | | | Silver (million ounces) | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | | 0.5 | 0.5 | | Lead (million pounds) | 1.1 | 1.7 | 1.3 | 1.1 | 0.7 | | 5.2 | 5.3 | | Zinc (million pounds) | 2.5 | 5.1 | 4.2 | 3.4 | 2.4 | | 15.1 | 14.8 |

CAPITAL EXPENDITURES AND DEVELOPMENT FOR GROWTH

Total capital expenditures in Fiscal 2026 were $124.4 million, up 44% compared to $86.6 million in Fiscal 2025 mainly due to the expenditures of $39.0 million at the El Domo Project and $4.6 million at the Kuanping project for mine construction.

| | Capitalized expenditures | Plant and equipment | Total Capital expenditures | | | | | | | | Ramp, Development Tunneling, and other | Exploration Tunneling | Exploration Drilling | | | | | | | | (Metres) | ($ Thousand) | (Metres) | ($ Thousand) | (Metres) | ($ Thousand) | ($ Thousand) | ($ Thousand) | | Year ended March 31, 2026 | | | | | | | | | | Ying Mining District | 45,068 | $ 28,675 | 60,147 | $ 23,529 | 138,163 | $ 3,930 | $ 7,442 | $ 63,575 | | GC Mine | 3,726 | 1,885 | 7,870 | 3,018 | 20,749 | 453 | 634 | 5,990 | | El Domo | — | 45,794 | — | — | — | — | 635 | 46,429 | | Condor | — | 2,659 | — | — | 2,268 | 315 | — | 2,974 | | Kuanping | 5,724 | 3,679 | 1,838 | 588 | 1,625 | 79 | 1,079 | 5,426 | | Consolidated | 54,519 | 82,692 | 69,856 | 27,135 | 162,804 | 4,777 | 9,790 | 124,394 | | | | | | | | | | | | Year ended March 31, 2025 | | | | | | | | | | Ying Mining District | 34,486 | $ 23,764 | 62,035 | $ 22,504 | 60,804 | $ 1,942 | $ 22,045 | $ 70,255 | | GC Mine | 2,607 | 1,664 | 9,559 | 3,570 | 41,335 | 889 | 606 | 6,729 | | El Domo | — | 7,166 | — | — | — | — | 305 | 7,471 | | Condor | — | 1,275 | — | — | — | — | — | 1,275 | | Kuanping | — | 543 | — | — | — | — | 284 | 827 | | Consolidated | 37,092 | 34,412 | 71,594 | 26,074 | 102,139 | 2,831 | 23,240 | 86,557 |

i) Ying Mining District

Capitalized expenditures for underground ramps, tunnels and drilling amounted to $56.1 million, plus $7.4 million for plant and equipment, compared to $48.2 million for underground ramps, tunnels and drilling and $22.0 million for plant and equipment in Fiscal 2025.