VANCOUVER, BRITISH COLUMBIA, Dec. 6, 2010 (Marketwire) -- Silvercorp Metals Inc. (TSX:SVM)(NYSE:SVM) ("Silvercorp" or the "Corporation") announced today that it has entered into an agreement to sell, to a syndicate of underwriters led by CIBC and BMO Capital Markets (collectively the "Underwriters"), on a bought deal basis, 8,000,000 common shares at a price of US$12.70 per common share, for aggregate gross proceeds of approximately US$101.6 million (the "Offering"). The Corporation has granted the Underwriters the option to purchase up to an additional 1,200,000 common shares at the same price, exercisable in whole or in part, at any time up until 30 days following closing of the Offering. If the option is exercised in full the gross proceeds would be approximately US$116.8 million.

The proceeds from the Offering will be used to complete the acquisition of the BYP gold-lead-zinc mine in China, for development at the GC mine in China and development at the Silvertip property in British Columbia, and for general corporate purposes.

Closing of the Offering is scheduled for December 14, 2010.

The Corporation intends to file a prospectus supplement to its existing base shelf prospectus on or about December 7, 2010 with the securities regulatory authorities in each of the provinces and territories of Canada, except Quebec, and will make a similar filing with the U.S. Securities and Exchange Commission. You may obtain a copy of the base shelf prospectus and prospectus supplement filed in the United States from CIBC World Markets Corp., 425 Lexington Avenue, 5th Floor, New York, New York, 10017, by fax at 212-667-6303 or by e-mail at useprospectus@us.cibc.com. You may obtain a copy of the base shelf prospectus and prospectus supplements filed in Canada from CIBC, fax 416-594-7242 or request a copy by telephone at 416-594-7270. You may obtain a copy of the base shelf prospectus and prospectus supplement filed in the United States from BMO Capital Markets Corp., Attention: Lori Begley, 3 Times Square, 27th Floor, New York, New York, 10036 (tel:212-885-4039). You may obtain a copy of the base shelf prospectus and prospectus supplements filed in Canada from BMO Capital Markets by contacting Investor Relations, Distribution Department, 1 First Canadian Place, B2 Level, Toronto, Ontario, M5X 1H3 (tel: 416-363-6996 x224).

Silvercorp Metals Inc. is engaged in the acquisition, exploration, development and mining of high-grade silver-related mineral properties in China and Canada. Silvercorp is the largest primary silver producer in China through the operation of the four silver-lead-zinc mines at the Ying Mining Camp in the Henan Province of China. The Corporation has applied for a mining permit for its GC silver-lead-zinc mine in the Guangdong Province and recently announced the acquisition of a 70% interest in the BYP gold-lead-zinc mine in Hunan province. In Canada, Silvercorp is in preparation of applying for a Small Mine Permit for the Silvertip silver-lead-zinc mine project in northern British Columbia to provide a further platform for growth and geographic diversification. The Corporation's shares are traded on the New York Stock Exchange and Toronto Stock Exchange and are included as a component of the S&P/TSX Composite and the S&P/TSX Global Mining Indexes.