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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 13, 2010) -
Silvercorp Metals Inc. (TSX:SVM)(NYSE:SVM) ("Silvercorp" or the "Corporation") announces that further to its bought deal financing (the "Offering") announced on December 6, 2010, the syndicate of underwriters led by CIBC and BMO Capital Markets and including Raymond James Ltd., UBS Securities Canada Inc. and Salman Partners Inc. (the "Underwriters"), have exercised the over-allotment option (the "Option") granted to them. Pursuant to the Option, the Underwriters will acquire an additional 1,200,000 common shares at a price of US$12.70 per common share, for aggregate gross proceeds of approximately US$15.24 million, bringing the aggregate gross proceeds of the Offering to US$116.8 million. Closing of the Offering is scheduled for December 14, 2010.


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.


The Corporation filed a prospectus supplement to its existing base shelf prospectus on December 7, 2010 with the securities regulatory authorities in each of the provinces of Canada, except Quebec, and made 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 supplement 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.


This press release shall not constitute an offer to sell or a solicitation of an offer to buy common shares nor shall there be any sale of such securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.