Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX:SVM) (NYSE:SVM) is pleased to announce that, further to its news releases of January 16 and 27, 2026, Silvercorp has successfully converted Chaarat ZAAV CJSC ("ZAAV") into a joint venture company ("JVC") between Silvercorp and Kyrgyzaltyn (a wholly-owned entity of the Kyrgyz Republic), with Silvercorp holding a 70% interest and being the operator of the JVC and Kyrgyzaltyn holding a 30% free-carried interest, per the Share Purchase and Shareholders Agreement ("Shareholders Agreement") with Kyrgyzaltyn.  ZAAV holds a 100% interest in the mining license (~7 square kilometres) hosting the fully-permitted Tulkubash/Kyzyltash gold projects as well as surrounding exploration licenses (27.42 square kilometres) hosting the Karator and Ishakuld gold zones (the "Projects") located in the Tien Shan area of the Kyrgyz Republic.

ZAAV has applied for an extension of the JVC's mining license and the Kyrgyzstan government has issued to ZAAV a new mining license and license agreement which extends the valid period of the mining license from June 25, 2032 to June 25, 2062.  Subsequent to this, Silvercorp has made a $60 million cash payment to the Kyrgyzstan government.  Per the Cooperation Agreement the Company signed with the National Investment Agency under the President of the Kyrgyz Republic (the "NIA"), Silvercorp was to pay $60 million (minus the offset bonus payment under applicable Kyrgyz laws).  A further $10 million cash payment will be paid after certain other milestones are achieved. 

ZAAV has had its first shareholder meeting and the first Board Directors meeting to appoint the General Manager and the CFO, nominated by Silvercorp, and has approved the Phase 1 Development of Tulkubash for 2026-2027.