6-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

February 8, 2018

Commission File No. 0001-34184

SILVERCORP METALS INC.
(Translation of registrant's name into English)

Suite 1378 - 200 Granville Street
Vancouver, BC Canada V6C 1S4
(Address of principal executive office)

[Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F]

Form 20-F [   ] Form 40-F [ X ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1) [   ]

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is "submitting" the Form 6-K in paper as permitted by Regulation S-T "Rule" 101(b)(7) [   ]

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes [   ] No [ X ]

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

1

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: February 8, 2018	SILVERCORP METALS INC.
	/s/ Derek Liu
	Derek Liu
	Chief Financial Officer

2

EXHIBIT INDEX

EXHIBIT DESCRIPTION OF EXHIBIT

99.1	News Release - February 8, 2018 Silvercorp Reports Q3 Results
99.2	Form 52-109F2 Certificate of interim filings- full certificate- CFO
99.3	Form 52-109F2 Certificate of interim filings- full certificate- CEO
99.4	Silvercorp Metals Inc. Financial Statements for the 3rd Quarter ended September 30, 2017
99.5	Silvercorp Metals Inc. MD&A for the 3rd Quarter ended September 30, 2017

3

EX-99.1

Exhibit 99.1

NEWS RELEASE
Trading Symbol:	TSX: SVM
	NYSE AMERICAN: SVM

SILVERCORP REPORTS Q3 RESULTS: NET INCOME OF $12.7 MILLION, $0.08 PER SHARE AND PROVIDES FISCAL 2019 PRODUCTION AND CASH COSTS GUIDANCE

VANCOUVER, British Columbia – February 8, 2018 – Silvercorp Metals Inc. (“Silvercorp” or the “Company”) (TSX: SVM) (NYSE American: SVM) reported its financial and operating results for the third quarter ended December 31, 2017. All amounts are expressed in US Dollars.

THIRD QUARTER HIGHLIGHTS

• Net income attributable to equity shareholders of $12.7 million, or $0.08 per share¹ , compared to net income attributable to equity shareholders of $13.1 million, or $0.08 per share in the prior year quarter;

• Gross margin of 52% compared with 55% in the prior year quarter;

• Sales of $44.4 million, down $3.4 million or 7% compared to $47.8 million in the prior year quarter;

• Inventories of silver-lead concentrate of 6,234 tonnes, valued at approximately $16.0 million, an increase of $4.5 million or 39%, compared to 4,666 tonnes valued at approximately $11.5 million in the prior year quarter;

• Silver, lead, and zinc metals sold amounted to approximately 1.5 million ounces silver, 15.8 million pounds lead, and 6.4 million pounds zinc, compared to 1.7 million ounces silver, 19.5 million pounds lead, and 5.7 million pounds zinc in the prior year quarter;

• Head grades were 315 grams per tonne (“g/t”) for silver, 4.5% for lead, and 1.0% for zinc at the Ying Mining District, compared to 303 g/t for silver, 4.8% for lead and 0.8% for zinc in the prior year quarter;

• Total and cash mining costs per tonne ore² of $74.16 and $56.11, respectively, compared to $67.12 and $47.52 in the prior year quarter;

• Cash cost per ounce of silver² , net of by-product credits, of negative $5.92, compared to negative $5.48 in the prior year quarter;

• All-in sustaining cost per ounce of silver² , net of by-product credits, of $3.16, compared to $1.87 in the prior year quarter;

• Spent $1.8 million to buyback 788,000 common shares of the Company;

• Paid $1.7 million dividend to equity shareholders of the Company;

• Invested $3.8 million to participate in a private placement of New Pacific Metals Corp.; and,

• Ended the quarter with $113.3 million in cash and cash equivalents and short-term investments, an increase of $16.8 million or 17%, compared to $96.5 million as at March 31, 2017.

¹ Earnings per share refers to basic earnings per share

² Non IFRS measure, please refer to section 10 of the corresponding MD&A for reconciliation

1

FINANCIALS

Net income attributable to equity shareholders of the Company in Q3 Fiscal 2018 was $12.7 million or basic earnings per share of $0.08, compared to $13.1 million, or $0.08 per share in Q3 Fiscal 2017.

Sales in Q3 Fiscal 2018 were $44.4 million, down 7% compared to $47.8 million in the same quarter last year. Silver and gold sales represented $19.8 million and $0.6 million, respectively, while base metals represented $23.9 million of total sales, compared to silver, gold and base metals sales of $23.4 million, $0.7 million, and $23.7 million, respectively, in the prior year quarter.

The Company’s financial results in Q3 Fiscal 2018 were mainly impacted by the following: i) an increase of 8% and 37% in the realized selling prices for lead and zinc, compared to the prior year quarter, ii) a 3% decrease in the realized selling price for silver, iii) less metals sold as inventory built up; and iv) higher per tonne production costs.

As at December 31, 2017, silver-lead concentrate inventories were 6,234 tonnes containing approximately 0.7 million ounces of silver and 6.9 million pounds of lead, an increase of 34% or 1,568 tonnes, compared to 4,666 tonnes silver-lead concentrate inventories containing approximately 0.5 million ounces of silver and 5.4 million pounds of lead held as at December 31, 2016.

Cost of sales in Q3 Fiscal 2018 was $21.2 million, comparable to $21.5 million in Q3 Fiscal 2017. The cost of sales included $15.6 million (Q3 Fiscal 2017 - $14.9 million) cash production costs, $1.3 million mineral resources tax (Q3 Fiscal 2017 - $1.4 million), and $4.4 million (Q3 Fiscal 2017 - $5.2 million) depreciation and amortization charges.

Gross profit margin in Q3 Fiscal 2018 was 52%, compared to 55% in Q3 Fiscal 2017. Ying Mining District’s gross margin was 55% compared to a 58% gross profit margin in the prior year quarter. GC Mine’s profit margin was 41% compared to a 39% gross profit margin in the prior year quarter.

General and administrative expenses in Q3 Fiscal 2018 and the nine months ended December 31, 2017 were $4.9 million and $14.0 million (Q3 Fiscal 2017 - $4.0 million, nine months ended December 31, 2016 - $12.5 million). The increase was mainly due to the resumption of activities at the XHP Project to review alternatives and activities carried at the BYP Mine to renew its mining license, resulting in additional office and administrative expenses and labour costs.

Income tax expenses in Q3 Fiscal 2018 were $4.3 million compared to $5.4 million in Q3 Fiscal 2017. The income tax expense recorded in Q3 Fiscal 2017 included current income tax expense of $3.7 million (Q3 Fiscal 2016 – $4.7 million) and deferred income tax expense of $0.6 million (Q3 Fiscal 2016 – $0.6 million).

Cash flows provided by operating activities in Q3 Fiscal 2018 were $27.5 million, compared to $28.3 million in the prior year quarter. Before changes in non-cash operating working capital, cash flows provided by operating activities in Q3 Fiscal 2018 were $23.0 million, a decrease of $3.4 million or 13%, compared to $26.4 million in the prior year quarter.

For the nine months ended December 31, 2017, net income attributable to equity shareholders of the Company was $34.8 million or $0.21 per share, up 15% compared to $30.2 million or $0.18 per share in the same prior year period; sales were $131.6 million, up 2% from $129.4 million in the same prior year period; and cash flow from operating activities was $65.1 million, down 14% from $75.6 million in the same prior year period.

Working capital as at December 31, 2017 was $84.9 million, an increase of $14.2 million or 20%, compared to $70.7 million working capital as at March 31, 2017.

2

OPERATIONS AND DEVELOPMENT

(i) Q3 Fiscal 2018 vs. Q3 Fiscal 2017

On a consolidated basis, the Company mined 252,284 tonnes of ore in Q3 Fiscal 2018, comparable to 252,784 tonnes in Q3 Fiscal 2017. Ore milled were 256,037 tonnes, compared to 263,339 tonnes of ore milled in Q3 Fiscal 2017.

In Q3 Fiscal 2018, the Company sold approximately 1.5 million ounces of silver, 700 ounces of gold, 15.8 million pounds of lead, and 6.4 million pounds of zinc, compared to 1.7 million ounces of silver, 700 ounces of gold, 19.5 million pounds of lead, and 5.7 million pounds of zinc, respectively, in Q3 Fiscal 2017. Sales from lead and zinc accounted for 54% of the total sales and amounted to $23.8 million, an increase of $0.3 million, compared to $23.5 million in the prior year quarter.

The consolidated total mining costs and cash mining costs were $74.16 and $56.11 per tonne, compared to $67.12 and $47.52 per tonne, respectively, in Q3 Fiscal 2017. The increase in cash mining costs were mainly due to: i) a $0.9 million increase in raw material supply costs, ii) a $0.4 million increase in mining preparation costs resulting from more underground tunnelling expensed in the current quarter, and iii) a $0.5 million increase in mining labor costs due to additional bonus accrued as per the Company’s profit sharing plan in China.

The consolidated total milling costs and cash milling costs in Q3 Fiscal 2018 were $13.45 and $11.31 per tonne, compared to $12.40 and $10.32 per tonne, respectively, in Q3 Fiscal 2017. The increase in cash milling costs were mainly due to $0.2 million increase in raw material supply costs.

The consolidated total production costs and cash costs per ounce of silver, net of by-product credits, were negative $3.04 and negative $5.92 compared to negative $2.50 and negative $5.48 respectively, in the prior year quarter. The overall decrease in cash cost per ounce of silver, net of by-product credits, is mainly due to a 1% increase in by-product credits, mainly arising from 8% and 37% increase in lead and zinc net realized selling prices.

The consolidated all-in sustaining costs per ounce of silver, net of by-product credits, is $3.16 compared to $1.87 in Q3 Fiscal 2017.

(ii) Nine months ended December 31, 2017 vs Nine months ended December 31, 2016

For the nine months ended December 31, 2017, approximately 4.7 million ounces of silver, 2,400 ounces of gold, 48.6 million pounds of lead, and 17.0 million pounds of zinc were sold compared to 5.2 million ounces of silver, 2,600 ounces of gold, 56.1 million of lead, and 16.8 million pounds of zinc sold in the same prior year period.

The consolidated total mining and cash mining costs were $71.07 and $53.17 per tonne, 6% and 16% increase compared to $66.79 and $45.92 per tonne in the same prior year period while the consolidated total milling costs and cash milling costs were $12.81 and $10.55, comparable to $12.86 and $10.62 per tonne in the same prior year period.

The consolidated cash production costs and all-in sustaining costs per ounce of silver, net of by-product credits, were negative $4.97 and $3.35 compared to negative $2.95 and $3.96, respectively, in the same prior year period.

3

1. Ying Mining District, Henan Province, China

Operational results - Ying Mining District
	Q3 2018		Q2 2018		Q1 2018		Q4 2017		Q3 2017		Nine months ended December 31,
	December 31, 2017		September 30, 2017		June 30, 2017		March 31, 2017		December 31, 2016		2017		2016
Ore Mined (tonne)	166,619		173,294		160,408		112,755		171,303		500,321		524,005
Ore Milled (tonne)	167,543		173,946		164,959		108,051		182,259		506,448		530,160
Head Grades
Silver (gram/tonne)	315		294		304		298		303		304		305
Lead (%)	4.5		4.3		4.6		4.8		4.8		4.5		4.7
Zinc (%)	1.0		0.8		0.8		0.8		0.8		0.9		1.0
Recoveries
Silver (%)	95.8		95.6		95.8		96.6		95.1		95.7		95.4
Lead (%)	96.4		96.2		96.3		95.6		96.7		96.3		96.4
Zinc (%)	57.3		50.7		45.8		46.2		47.5		51.7		46.0
Metal Sales
Silver (in thousands of ounce)	1,322		1,472		1,324		1,255		1,555		4,118		4,675
Gold (in thousands of ounce)	0.7		0.8		0.9		0.7		0.7		2.4		2.6
Lead (in thousands of pound)	13,487		15,279		13,765		13,520		17,269		42,531		49,898
Zinc (in thousands of pound)	2,006		2,269		755		1,033		1,210		5,030		4,815
Cash mining cost ($ per tonne)	66.71		59.67		54.78		49.99		55.21		60.45		52.18
Total mining cost ($ per tonne)	90.12		81.20		76.67		53.50		80.53		82.72		78.46
Cash milling cost ($ per tonne)	9.84		8.50		8.07		10.43		9.09		8.80		9.31
Total milling cost ($ per tonne)	11.87		10.45		10.10		13.60		11.03		10.80		11.35
Cash production cost ($ per tonne)	80.60		71.85		66.93		64.34		68.22		73.18		65.35
Cash cost per ounce of silver ($)	(4.53	)	(4.27	)	(2.97	)	(3.73	)	(4.60	)	(4.03	)	(2.50	)
All-in sustaining cost per ounce of silver ($)	2.13		1.08		3.66		0.74		1.34		2.25		3.11

(i) Q3 Fiscal 2018 vs. Q3 Fiscal 2017

In Q3 Fiscal 2018, the total ore mined at the Ying Mining District was 166,619 tonnes, a decrease of 3% or 4,684 tonnes, compared to 171,303 tonnes mined in the prior year quarter. Correspondingly, ore milled in Q3 Fiscal 2018 decreased by 8% to 167,543 tonnes from 182,259 tonnes in the prior year quarter.

Head grades were 315 grams per ton (“g/t”) for silver, 4.5% for lead, and 1.0% for zinc, compared to 303 g/t for silver, 4.8% for lead and 0.8% for zinc in the prior year quarter. The Company continues to achieve improvements in dilution control using its “Enterprise Blog” to assist manage daily operations.

Metals sold were approximately 1.3 million ounces silver, 13.5 million pounds lead, and 2.0 million pounds zinc, compared to 1.6 million ounces silver, 17.3 million pounds lead, and 1.2 million pounds of zinc in the prior year quarter. The decrease of silver and lead sold was mainly due to silver-lead concentrate inventory built up.

Silver-lead concentrate inventories were 6,200 tonnes containing approximately 0.7 million ounces of silver and 6.8 million pounds of lead, an increase of 33% or 1,544 tonnes, compared to 4,656 tonnes silver-lead concentrate inventories held as at December 31, 2016.

Total and cash mining costs per tonne at the Ying Mining District in Q3 Fiscal 2018 were $90.12 and $66.71 per tonne, respectively, compared to $80.53 and $55.21 per tonne in the prior year quarter. The increase in cash mining costs were mainly due to: i) a $0.9 million increase in raw material supply costs, and iii) a $0.4 million increase in mining labor costs due to additional bonus accrued as per the Company’s profit sharing plan in China.

Total and cash milling costs per tonne at the Ying Mining District in Q3 Fiscal 2018 were $11.87 and $9.84, compared to $11.03 and $9.09 in Q3 Fiscal 2017. The increase in cash milling costs was mainly due to a 15% increase in per tonne raw material supply costs.

Cash cost per ounce of silver, net of by-product credits, in Q3 Fiscal 2018 at the Ying Mining District, was negative $4.53, comparable to negative $4.60 in the prior year quarter.

All in sustaining costs per ounce of silver, net of by-product credits, in Q3 Fiscal 2018 at the Ying Mining District was $2.13 compared to $1.34 in the prior year quarter.

Approximately 25,109 m or $0.4 million of underground diamond drilling (Fiscal Q3 2017 – 36,756 m or $0.6 million) and 5,187 m or $1.6 million of preparation tunnelling (Fiscal Q3 2017 – 4,900 m or $1.4 million) were completed and expensed as mining preparation costs at the Ying Mining District. In addition,

4

approximately 16,326 m or $6.0 million of horizontal tunnel, raises and declines (Q3 Fiscal 2017 – 17,823 m or $5.5 million) were completed and capitalized.

(ii) Nine months ended December 31, 2017 vs Nine months ended December 31, 2016

For the nine months ended December 31, 2017, a total of 500,321 tonnes of ore were mined and 506,448 tonnes milled at the Ying Mining District, down by 5% and 4%, compared to 524,005 tonnes mined and 530,160 tonnes milled in the same prior year period.

Average head grades were 304 g/t for silver, 4.5% for lead, and 0.9% for zinc compared to 305 g/t for silver, 4.7% for lead, and 1.0% for zinc, respectively, in the same prior year period.

Metals sold were approximately 4.1 million ounces of silver, 2,400 ounces of gold, 42.5 million pounds of lead, and 5.0 million pounds of zinc, compared to 4.7 million ounces of silver, 2,600 ounces of gold, 49.9 million pounds of lead, and 4.8 million pounds of zinc in prior year period.

The cash mining costs was $60.45 per tonne, an increase of 16% compared to $52.18 in the same prior year period. The increase was mainly due to more underground drilling and tunneling being expensed as mining preparation costs as well as the increase of raw material supply prices. The cash milling cost was $8.80 per tonne, a decrease of 5% compared to $9.31 in the same prior year period.

Cash cost per ounce of silver and all in sustaining costs per ounce of silver, net of by product credits, were negative $4.03 and $2.25 respectively, compared to negative $2.50 and $3.11 in the same prior year period.

Approximately 86,007 m or $1.7 million of underground diamond drilling (same prior year period – 71,794 m or $1.7 million) and 16,914 or $4.9 million of preparation tunnelling (same prior year period – 15,069 m or $4.2 million) were completed and expensed as mining preparation costs at the Ying Mining District. In addition, approximately 52,174 m or $16.2 million of horizontal tunnel, raises, and declines (same prior year period – 50,500 m or $15.2 million) were completed and capitalized.

2. GC Mine, Guangdong Province, China

Operational results - GC Mine	Q3 2018		Q2 2018		Q1 2018		Q4 2017		Q3 2017		Nine months ended December 31,
	December 31, 2017		September 30, 2017		June 30, 2017		March 31, 2017		December 31, 2016		2017		2016
Ore Mined (tonne)	85,665		65,812		64,865		40,224		81,481		216,341		220,522
Ore Milled (tonne)	88,494		63,648		65,944		39,929		81,080		218,086		220,767
Head Grades
Silver (gram/tonne)	97		102		98		91		89		99		94
Lead (%)	1.4		1.4		1.6		1.3		1.4		1.5		1.5
Zinc (%)	2.8		2.8		2.7		2.6		2.8		2.8		2.9
Recovery Rates
Silver (%)	73.6		74.4		81.2		72.8		75.4		76.1		76.2
Lead (%)	83.9		82.8		88.8		82.4		85.5		85.2		86.3
Zinc (%)	81.3		81.6		80.9		74.8		86.5		81.2		86.3
Metal Sales
Silver (in thousands of ounce)	196		155		189		53		179		540		511
Lead (in thousands of pound)	2,263		1,656		2,147		818		2,214		6,066		6,237
Zinc (in thousands of pound)	4,399		3,311		4,244		455		4,478		11,954		11,991
Cash mining cost ($ per tonne)	35.48		34.60		39.20		37.91		31.34		36.33		31.04
Total mining cost ($ per tonne)	43.10		42.62		46.99		45.37		38.90		44.12		39.05
Cash milling cost ($ per tonne)	14.09		14.63		16.73		20.06		13.09		14.60		13.76
Total milling cost ($ per tonne)	16.45		17.90		19.85		24.99		15.50		17.46		16.47
Cash production cost ($ per tonne)	49.57		49.23		55.93		57.97		44.43		50.93		44.80
Cash cost per ounce of silver ($)	(15.34	)	(13.56	)	(7.80	)	(1.72	)	(13.11	)	(12.19	)	(7.15	)
All-in sustaining cost per ounce of silver ($)	(4.52	)	(3.77	)	(2.48	)	14.55		(6.12	)	(3.59	)	(1.29	)

(i) Q3 Fiscal 2018 vs. Q3 Fiscal 2017

In Q3 Fiscal 2018, the total ore mined at the GC Mine was 85,665 tonnes, an increase of 4,184 tonnes or 5%, compared to 81,481 tonnes mined in Q3 Fiscal 2017, while ore milled increased by 9% to 88,494 tonnes from 81,080 tonnes in the prior year quarter.

Head grades were 97 g/t for silver, 1.4% for lead, and 2.8% for zinc compared to 89 g/t for silver, 1.4% for lead, and 2.8% for zinc in the prior year quarter.

5

The GC Mine sold 196 thousand ounces of silver, 2.3 million pounds of lead, 4.4 million pounds of zinc, compared to 179 thousand ounces of silver, 2.2 million pounds of lead, and 4.5 million pounds of zinc sold in the prior year quarter.

Total and cash mining costs per tonne at the GC Mine in Q3 Fiscal 2018 were $43.10 and $35.48 per tonne, compared to $38.90 and $31.34 per tonne in Q3 Fiscal 2017. The increase in cash mining costs was mainly due to: i) a $0.2 million increase in mining preparation costs resulting from more underground drilling expensed in the current quarter, and ii) a $0.2 million increase in mining contractor fees.

Total and cash milling costs per tonne at the GC Mine in Q3 Fiscal 2018 were $16.45 and $14.09, compared to $15.50 and $13.09, respectively, in Q3 Fiscal 2017. The increase in milling costs was mainly due to a $0.2 million increase in raw material supply costs.

Correspondingly, the cash production costs per tonne of ore processed in Q3 Fiscal 2018 at the GC Mine increased to $49.57 from $44.43 in the prior year quarter.

Cash costs per ounce of silver, net of by-product credits, at the GC Mine, was negative $15.34 compared to negative $13.11 in the prior year quarter. The improvement was mainly due to a $1.4 million or 23% increase in by-product credits resulting from a 12% and 37% increase in net realized lead and zinc selling prices at the GC Mine.

All in sustaining costs per ounce of silver, net of by-product credits, in Q3 Fiscal 2018 at the GC Mine was negative $4.52 compared to negative $6.12 in the prior year quarter.

Approximately 7,770 m or $0.4 million of underground diamond drilling (Q3 Fiscal 2017 – 3,935 m or $0.2 million) and 5,053 m or $1.2 million of tunnelling (Q3 Fiscal 2017 – 4,640 m or $1.3 million) were completed and expensed as mining preparation costs at the GC Mine. In addition, approximately 17 m or $0.1 million of horizontal tunnel, raises and declines (Q3 Fiscal 2017 – 554 m or $0.3 million) were completed and capitalized.

(ii) Nine months ended December 31, 2017 vs Nine months ended December 31, 2016

For the nine months ended December 31, 2017, a total of 216,341 tonnes of ore were mined and 218,086 tonnes were milled at the GC Mine compared to 220,522 tonnes mined and 220,767 tonnes milled in the same prior year period.

Average head grades were 99 g/t for silver, 1.5% for lead, and 2.8% for zinc compared to 94 g/t for silver, 1.5% for lead, and 2.9% for zinc, respectively, in the same prior year period.

Metals sold were 540 thousand ounces of silver, 6.1 million pounds of lead, and 12.0 million pounds of zinc, compared to 511 thousand ounces of silver, 6.2 million pounds of lead, and 12.0 million pounds of zinc in the same prior year period.

The cash mining costs at the GC Mine was $36.33 per tonne, an increase of 17% compared to $31.04 per tonne in the same prior year period. The increase in cash mining costs was mainly due to a $0.9 million increase in mining preparation costs as more underground drilling and tunnelling was expensed in the current period.

The cash milling costs was $14.60 per tonne, an increase of 6% compared to $13.76 in the same prior year period.

Cash costs per ounce of silver and all in sustaining costs per ounce of silver, net of by product credits, were negative $12.19 and negative $3.59 respectively, compared to negative $7.15 and $1.29 in the same prior year period. The improvement is mainly due to higher by-product credits achieved arising from a 12% and 37% increase, respectively, in lead and zinc realized selling prices.

Approximately 18,253 m or $0.9 million of underground diamond drilling (same prior year period – 9,489 m or $0.6 million) and 14,285 m or $3.8 million of tunnelling (same prior year period – 11,976 m or $3.2 million) were completed and expensed as mining preparation costs at the GC Mine. In addition,

6

approximately 280 m or $0.2 million of horizontal tunnel, raise, and declines (same prior year period –1,685 m or $0.7 million) were completed and capitalized.

FISCAL 2019 PRODUCTION AND CASH COST GUIDANCE

	Ore processed	Silver	Lead	Zinc
	(tonnes)	(g/t)	(%)	(%)
Ying Mining District	630,000	285	4.3	0.9
GC Mine	250,000	98	1.6	3.0
	Silver	Lead	Zinc	Cash cost*	AISC*
	(Moz)	(Mlbs)	(Mlbs)	($/t)	($/t)
Ying Mining District	5.4	56.1	6.2	75.4	123.7
GC Mine	0.6	7.5	13.6	57.2	75.5
Consolidated	6.0	63.6	19.8	70.2	122.2

(*) Both AISC and cash cost are non-IFRS measures. AISC refers to all-in sustaining cost per tonne of ore processed. Cash cost refers to cash production costs per tonne of ore processed. Foreign exchange rates assumptions used are: US$1 = CAD$1.25, US$1 = RMB¥6.50.

In Fiscal 2019, the Company expects to process approximately 880,000 tonnes of ore, yielding 6.0 million ounces of silver, 63.6 million pounds of lead, and 19.8 million pounds of zinc. Fiscal 2019 production guidance represents an increase of approximately 4% in silver production, 1% in lead production, and 8% in zinc production compared to the prior year’s guidance released on February 2, 2017.

1. Ying Mining District, Henan Province, China

In Fiscal 2019, Ying Mining District plans to mine and process 630,000 tonnes of ore averaging 285 g/t silver, 4.3% lead, and 0.9% zinc with expected metal production of 5.4 million ounces of silver, 56.1 million pounds of lead, and 6.2 million pounds of zinc. Fiscal 2019 production guidance at the Ying Mining District represents an increase of approximately 4% in silver head grade and 2% in lead head grade compared to prior year’s guidance. Metal production is comparable to prior year’s guidance.

The cash production costs is expected to be $75.4 per tonne of ore, and the all-in sustaining costs is estimated at $123.7 per tonne of ore processed.

Capital expenditures at the Ying Mining District in Fiscal 2019 are budgeted at $31.8 million, including $23.2 million for mine tunnelling and ramp development and $8.6 million for equipment and infrastructure.

2. GC Mine, Guangdong Province, China

In Fiscal 2019, GC Mine plans to mine and process 250,000 tonnes of ore averaging 98 g/t silver, 1.6% lead, and 3.0% zinc with expected metal production of 0.6 million ounces of silver, 7.5 million pounds of lead and 13.6 million pounds of zinc. Fiscal 2019 represents an increase of approximately 50% in silver production, 6% in lead production, and 11% in zinc production.

The cash production costs is expected to be $57.2 per tonne of ore, and the all-in sustaining costs would be $57.2 per tonne of ore processed.

Capital expenditures at GC Mine in Fiscal 2019 are budgeted at $3.0 million, including $1.7 million for mine tunnelling and ramp development and $1.3 million for equipment and infrastructure.

Mr. JianZhao Yin, P.Geo., is the Qualified Person for Silvercorp under NI 43-101 and has reviewed and given consent to the technical information contained in this news release.

This earnings release should be read in conjunction with the Company's Management Discussion & Analysis, Financial Statements and Notes to Financial Statements for the corresponding period, which have been posted on SEDAR at www.sedar.com and are also available on the Company's website at www.silvercorp.ca. All figures are in United States dollars unless otherwise stated.

7

About Silvercorp

Silvercorp is a low-cost silver-producing Canadian mining company with multiple mines in China. The Company's vision is to deliver shareholder value by focusing on the acquisition of under developed projects with resource potential and the ability to grow organically. For more information, please visit our website at www.silvercorp.ca.

For further information

Silvercorp Metals Inc.
Lorne Waldman
Senior Vice President
Phone: (604) 669-9397
Toll Free 1(888) 224-1881
Email: investor@silvercorp.ca
Website: www.silvercorp.ca

CAUTIONARY DISCLAIMER - FORWARD LOOKING STATEMENTS

Certain of the statements and information in this press release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian provincial securities laws. Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”, “forecasts”, “objectives”, “budgets”, “schedules”, “potential” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information. Forward-looking statements or information relate to, among other things: the price of silver and other metals; the accuracy of mineral resource and mineral reserve estimates at the Company’s material properties; the sufficiency of the Company’s capital to finance the Company’s operations; estimates of the Company’s revenues and capital expenditures; estimated production from the Company’s mines in the Ying Mining District; timing of receipt of permits and regulatory approvals; availability of funds from production to finance the Company’s operations; and access to and availability of funding for future construction, use of proceeds from any financing and development of the Company’s properties.

Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: fluctuating commodity prices; calculation of resources, reserves and mineralization and precious and base metal recovery; interpretations and assumptions of mineral resource and mineral reserve estimates; exploration and development programs; feasibility and engineering reports; permits and licences; title to properties; property interests; joint venture partners; acquisition of commercially mineable mineral rights; financing; recent market events and conditions; economic factors affecting the Company; timing, estimated amount, capital and operating expenditures and economic returns of future production; integration of future acquisitions into the Company’s existing operations; competition; operations and political conditions; regulatory environment in China and Canada; environmental risks; foreign exchange rate fluctuations; insurance; risks and hazards of mining operations; key personnel; conflicts of interest; dependence on management; internal control over financial reporting as per the requirements of the Sarbanes-Oxley Act; and bringing actions and enforcing judgments under U.S. securities laws.

This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements or information. Forward-looking statements or information are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements or information due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Company’s Annual Information Form for the year ended March 31, 2017 under the heading “Risk Factors”. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information.

8

The Company’s forward-looking statements and information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this press release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements and information if circumstances or management’s assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking statements and information.

9

SILVERCORP METALS INC.

Consolidated Statements of Financial Position

(Unaudited - Expressed in thousands of U.S. dollars)

		As at December 31,			As at March 31,
		2017			2017
ASSETS
Current Assets
Cash and cash equivalents	$	66,274		$	73,003
Short-term investments		46,986			23,466
Trade and other receivables		1,205			1,311
Inventories		13,631			8,710
Due from a related party		25			92
Prepaids and deposits		3,972			4,250
		132,093			110,832
Non-current Assets
Long-term prepaids and deposits		962			959
Reclamation deposits		5,363			5,054
Investment in an associate		33,902			8,517
Other investments		6,800			1,207
Plant and equipment		68,814			65,201
Mineral rights and properties		223,935			206,200
TOTAL ASSETS	$	471,869		$	397,970
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities	$	34,799		$	30,374
Deposits received		7,351			6,798
Income tax payable		5,037			2,985
		47,187			40,157
Non-current Liabilities
Deferred income tax liabilities		31,516			27,692
Environmental rehabilitation		13,215			12,186
Total Liabilities		91,918			80,035
Equity
Share capital		230,844			232,155
Share option reserve		14,343			13,325
Reserves		25,409			25,409
Accumulated other comprehensive loss		(32,164	)		(50,419	)
Retained earnings		74,089			42,651
Total equity attributable to the equity holders of the Company		312,521			263,121
Non-controlling interests		67,430			54,814
Total Equity		379,951			317,935
TOTAL LIABILITIES AND EQUITY	$	471,869		$	397,970

10

SILVERCORP METALS INC.

Consolidated Statements of Income

(Unaudited - Expressed in thousands of U.S. dollars, except for per share figures)

		Three Months Ended December 31,						Nine Months Ended December 31,
		2017			2016			2017			2016
Sales	$	44,352		$	47,838		$	131,590		$	129,407
Cost of sales
Production costs		15,553			14,921			45,839			42,863
Mineral resource taxes		1,255			1,361			3,683			2,802
Depreciation and amortization		4,378			5,178			13,291			15,861
		21,186			21,460			62,813			61,526
Gross profit		23,166			26,378			68,777			67,881
General and administrative		4,915			3,950			13,958			12,462
Government fees and other taxes		902			1,050			2,433			3,476
Foreign exchange (gain) loss		(236	)		(444	)		2,490			(536	)
Loss on disposal of plant and equipment		148			392			324			457
Gain on disposal of NSR		-			-			(4,320	)		-
Share of loss (income) in associate		142			126			511			(160	)
Dilution gain on investment in associate		(822	)		-			(822	)		-
Reclassification of other comprehensive loss upon ownership dilution of investment in associate		18			-			18			-
Impairment of plant and equipment and mineral rights and properties		-			-			-			181
Other income		(1,560	)		(201	)		(1,867	)		(324	)
Income from operations		19,659			21,505			56,052			52,325
Finance income		822			647			2,046			1,615
Finance costs		(112	)		(161	)		(329	)		(685	)
Income before income taxes		20,369			21,991			57,769			53,255
Income tax expense		4,302			5,353			13,586			14,091
Net income	$	16,067		$	16,638		$	44,183		$	39,164
Attributable to:
Equity holders of the Company	$	12,718		$	13,115		$	34,800		$	30,167
Non-controlling interests		3,349			3,523			9,383			8,997
	$	16,067		$	16,638		$	44,183		$	39,164
Earnings per share attributable to the equity holders of the Company
Basic earnings per share	$	0.08		$	0.08		$	0.21		$	0.18
Diluted earnings per share	$	0.07		$	0.08		$	0.20		$	0.18
Weighted Average Number of Shares Outstanding - Basic		168,077,624			167,192,640			168,003,035			167,048,582
Weighted Average Number of Shares Outstanding - Diluted		169,782,024			171,284,390			169,992,421			171,115,860

11

SILVERCORP METALS INC.

Consolidated Statements of Cash Flow

(Unaudited - Expressed in thousands of U.S. dollars)

		Three Months Ended December 31,						Nine Months Ended December 31,
		2017			2016			2017			2016
Cash provided by
Operating activities
Net income	$	16,067		$	16,638		$	44,183		$	39,164
Add (deduct) items not affecting cash:
Finance costs		112			161			329			685
Depreciation, amortization and depletion		4,683			5,463			14,176			16,812
Share of loss (income) in associate		142			126			511			(160	)
Dilution gain on investment in associate		(822	)		-			(822	)		-
Reclassification of other comprehensive loss upon wonership dilution of investment in associate		18			-			18			-
Gain on disposal of NSR		-			-			(4,320	)		-
Impairment of plant and equipment and mineral rights and properties		-			-			-			181
Income tax expense		4,302			5,353			13,586			14,091
Finance income		(822	)		(647	)		(2,046	)		(1,615	)
Loss on disposal of plant and equipment		148			392			324			457
Share-based compensation		458			214			1,144			654
Income taxes paid		(2,065	)		(1,115	)		(9,647	)		(4,030	)
Interest received		822			647			2,046			1,615
Interest paid		-			(853	)		-			(954	)
Changes in non-cash operating working capital		4,431			1,955			5,598			8,656
Net cash provided by operating activities		27,474			28,334			65,080			75,556
Investing activities
Mineral rights and properties
Capital expenditures		(5,705	)		(14,897	)		(16,638	)		(25,605	)
Plant and equipment
Additions		(1,724	)		(1,433	)		(4,455	)		(4,556	)
Proceeds on disposals		-			19			19			51
Other investments
Acquisition		-			(782	)		-			(782	)
Proceeds on disposals		-			-			-			33
Reclamation		(17	)		(1,775	)		(36	)		(2,160	)
Investment in associate		(3,836	)		-			(23,861	)		-
Net purchases of short-term investments		10,422			(5,542	)		(21,345	)		(11,518	)
Net cash used in investing activities		(860	)		(24,410	)		(66,316	)		(44,537	)
Financing activities
Non-controlling interests
Distribution		-			-			(4,891	)		(1,460	)
Cash dividends distributed		(1,683	)		(1,585	)		(3,362	)		(1,585	)
Proceeds from issuance of common shares		174			192			342			489
Common shares repurchased as part of normal course issuer bid		(1,779	)		-			(1,779	)		-
Net cash used in financing activities		(3,288	)		(1,393	)		(9,690	)		(2,556	)
Effect of exchange rate changes on cash and cash equivalents		1,579			(2,041	)		4,197			(3,452	)
Increase (decrease) in cash and cash equivalents		24,905			490			(6,729	)		25,011
Cash and cash equivalents, beginning of the period		41,369			66,484			73,003			41,963
Cash and cash equivalents, end of the period	$	66,274		$	66,974		$	66,274		$	66,974

12

SILVERCORP METALS INC.

Mining Data

(Expressed in thousands of U.S. dollars, except for mining data figures)

				Three months ended December 31, 2017
				Ying Mining District1		GC2		Total
Production Data
	Mine Data
		Ore Mined (tonne)		166,619		85,665		252,284
		Ore Milled (tonne)		167,543		88,494		256,037
	+	Mining cost per tonne of ore mined ($)		90.12		43.10		74.16
			Cash mining cost per tonne of ore mined ($)	66.71		35.48		56.11
			Non cash mining cost per tonne of ore mined ($)	23.41		7.62		18.05
	+		Unit shipping costs($)	4.05		-		2.69
	+	Milling cost per tonne of ore milled ($)		11.87		16.45		13.45
			Cash milling cost per tonne of ore milled ($)	9.84		14.09		11.31
			Non cash milling cost per tonne of ore milled ($)	2.03		2.36		2.14
	+	Average Production Cost
			Silver ($ per ounce)	5.64		5.91		5.86
			Gold ($ per ounce)	380		-		406
			Lead ($ per pound)	0.44		0.58		0.47
			Zinc ($ per pound)	0.49		0.64		0.52
			Other ($ per pound)	0.45		-		0.01
	+	Total production cost per ounce of Silver, net of by-product credits ($)		(1.87	)	(10.95	)	(3.04	)
	+	Total cash cost per ounce of Silver, net of by-product credits ($)		(4.53	)	(15.34	)	(5.92	)
	+	All-in sustaining cost per ounce of Silver, net of by-product credits ($)		2.13		(4.52	)	3.16
	+	All-in cost per ounce of Silver, net of by-product credits ($)		2.97		(7.23	)	3.50
		Recovery Rates
			Silver (%)	95.8		73.6		92.7
			Lead (%)	96.4		83.9		94.6
			Zinc (%)	57.3		81.3		71.7
		Head Grades
			Silver (gram/tonne)	315		97		240
			Lead (%)	4.5		1.4		3.4
			Zinc (%)	1.0		2.8		1.6
	Concentrate in stock
			Lead concentrate (tonne)	6,200		34		6,234
			Zinc concentate (tonne)	230		60		290
Sales Data
	Metal Sales
		Silver (in thousands of ounces)		1,322		196		1,518
		Gold (in thousands of ounces)		0.7		-		0.7
		Lead (in thousands of pounds)		13,487		2,263		15,750
		Zinc (in thousands of pounds)		2,006		4,399		6,405
	Metal Sales
		Silver (in thousands of $)		17,718		2,088		19,806
		Gold (in thousands of $)		632		-		632
		Lead (in thousands of $)		14,045		2,378		16,423
		Zinc (in thousands of $)		2,337		5,048		7,385
		Other (in thousands of $)		100		6		106
				34,832		9,520		44,352
	Average Selling Price, Net of Value Added Tax and Smelter Charges
		Silver ($ per ounce)		13.40		10.65		13.05
		Gold ($ per ounce)		903		-		903
		Lead ($ per pound)		1.04		1.05		1.04
		Zinc ($ per pound)		1.17		1.15		1.15

1 Ying Mining District includes mines: SGX, TLP, HPG,LM, BCG and HZG.
2 GC Silver recovery rate consists of 52.5% from lead concentrates and 21.1% from zinc concentrates .
2 GC Silver sold in zinc concentrates is subjected to higher smelter and refining charges which lower the net silver selling price.

13

SILVERCORP METALS INC.

Mining Data

(Expressed in thousands of U.S. dollars, except for mining data figures)

				Three months ended December 31, 2016
				Ying Mining
				District1		GC2		Total
Production Data
	Mine Data
		Ore Mined (tonne)		171,303		81,481		252,784
		Ore Milled (tonne)		182,259		81,080		263,339
	+	Mining cost per tonne of ore mined ($)		80.53		38.90		67.12
			Cash mining cost per tonne of ore mined ($)	55.21		31.34		47.52
			Non cash mining cost per tonne of ore mined ($)	25.32		7.56		19.60
	+	Unit shipping costs($)		3.92		-		2.67
	+	Milling cost per tonne of ore milled ($)		11.03		15.50		12.40
			Cash milling cost per tonne of ore milled ($)	9.09		13.09		10.32
			Non cash milling cost per tonne of ore milled ($)	1.94		2.41		2.08
	+	Average Production Cost
			Silver ($ per ounce)	5.41		5.68		5.67
			Gold ($ per ounce)	401		-		434
			Lead ($ per pound)	0.37		0.55		0.40
			Zinc ($ per pound)	0.32		0.49		0.35
			Other ($ per pound)	-		3.99		2.88
	+	Total production cost per ounce of Silver, net of by-product credits ($)		(1.81	)	(8.45	)	(2.50	)
	+	Total cash cost per ounce of Silver, net of by-product credits ($)		(4.60	)	(13.11	)	(5.48	)
	+	All-in sustaining cost per ounce of Silver, net of by-product credits ($)		1.34		(6.12	)	1.87
	+	All-in cost per ounce of Silver, net of by-product credits ($)		1.46		(4.77	)	2.12
		Recovery Rates
			Silver (%)	95.1		75.4		92.8
			Lead (%)	96.7		85.5		95.4
			Zinc (%)	47.5		86.5		70.9
		Head Grades
			Silver (gram/tonne)	303		89		237
			Lead (%)	4.8		1.4		3.7
			Zinc (%)	0.8		2.8		1.5
	Concentrate in stock
			Lead concentrate (tonne)	4,656		10		4,666
			Zinc concentate (tonne)	670		29		699
Sales Data
	Metal Sales
		Silver (in thousands of ounces)		1,555		179		1,734
		Gold (in thousands of ounces)		0.7		-		0.7
		Lead (in thousands of pounds)		17,269		2,214		19,483
		Zinc (in thousands of pounds)		1,210		4,478		5,688
		Other (in thousands of pound)		-		28		28
	Metal Sales
		Silver (in thousands of $)		21,664		1,746		23,410
		Gold (in thousands of $)		723		-		723
		Lead (in thousands of $)		16,658		2,085		18,743
		Zinc (in thousands of $)		995		3,775		4,770
		Other (in thousands of $)		-		192		192
				40,040		7,798		47,838
	Average Selling Price, Net of Value Added Tax and Smelter Charges
		Silver ($ per ounce)		13.93		9.75		13.50
		Gold ($ per ounce)		1,033		-		1,033
		Lead ($ per pound)		0.96		0.94		0.96
		Zinc ($ per pound)		0.82		0.84		0.84

¹ Ying Mining District includes mines: SGX, TLP, HPG,LM, BCG a nd HZG.
² GC Silver recovery rate cons is ts of 51.0% from l ead concentrates a nd 24.4% from zinc concentrates .
² GC Silver sold in zinc concentrates i s s ubjected to higher s melter a nd refining charges which l ower the net silver selling price .

14

SILVERCORP METALS INC.

Mining Data

(Expressed in thousands of U.S. dollars, except for mining data figures)

				Nine months ended December 31, 2017
				Ying Mining
				District1		GC2		Consolidated
Production Data
	Mine Data
		Ore Mined (tonne)		500,321		216,341		716,662
		Ore Milled (tonne)		506,448		218,086		724,534
	+	Mining cost per tonne of ore mined ($)		82.72		44.12		71.07
			Cash mining cost per tonne of ore mined ($)	60.45		36.33		53.17
			Non cash mining cost per tonne of ore mined ($)	22.27		7.79		17.90
	+	Unit shipping costs($)		3.93		-		2.75
	+	Milling cost per tonne of ore milled ($)		10.80		17.46		12.81
			Cash milling cost per tonne of ore milled ($)	8.80		14.60		10.55
			Non cash milling cost per tonne of ore milled ($)	2.00		2.86		2.26
	+	Average Production Cost
			Silver ($ per ounce)	5.74		6.35		6.04
			Gold ($ per ounce)	424		-		458
			Lead ($ per pound)	0.41		0.59		0.44
			Zinc ($ per pound)	0.46		0.63		0.48
			Other ($ per pound)	0.39		0.01		0.02
	+	Total production cost per ounce of Silver, net of by-product credits ($)		(1.40	)	(7.60	)	(2.12	)
	+	Total cash cost per ounce of Silver, net of by-product credits ($)		(4.03	)	(12.19	)	(4.97	)
	+	All-in sustaining cost per ounce of Silver, net of by-product credits ($)		2.25		(3.59	)	3.35
	+	All-in cost per ounce of Silver, net of by-product credits ($)		2.69		(3.53	)	3.75
		Recovery Rates
			Silver (%)	95.7		76.1		93.3
			Lead (%)	96.3		85.2		94.9
			Zinc (%)	51.7		81.2		68.9
		Head Grades
			Silver (gram/tonne)	304		99		242
			Lead (%)	4.5		1.5		3.6
			Zinc (%)	0.9		2.8		1.4
	Concentrate in stock
		Lead concentrate (tonne)		6,200		34		6,234
		Zinc concentate (tonne)		230		60		290
Sales Data
	Metal Sales
		Silver (in thousands of ounces)		4,118		540		4,658
		Gold (in thousands of ounces)		2.4		-		2.4
		Lead (in thousands of pounds)		42,531		6,066		48,597
		Zinc (in thousands of pounds)		5,030		11,954		16,984
		Other (in thousands of pounds)		524		16,190		16,714
	Metal Sales
		Silver (in thousands of $)		56,850		5,735		62,585
		Gold (in thousands of $)		2,448		-		2,448
		Lead (in thousands of $)		41,728		5,948		47,676
		Zinc (in thousands of $)		5,604		12,548		18,152
		Other (in thousands of $)		495		234		729
				107,125		24,465		131,590
	Average Selling Price, Net of Value Added Tax and Smelter Charges
		Silver ($ per ounce)		13.81		10.62		13.44
		Gold ($ per ounce)		1,020		-		1,020
		Lead ($ per pound)		0.98		0.98		0.98
		Zinc ($ per pound)		1.11		1.05		1.07

1 Ying Mining District includes mines: SGX, TLP, HPG,LM, BCG and HZG.
2 GC Silver recovery rate consists of 55.4% from lead concentrates and 20.7% from zinc concentrates .
2 GC Silver sold i n zinc concentrates i s s ubjected to higher smelter and refining charges which lowers the net silver selling price.

15

SILVERCORP METALS INC.

Mining Data

(Expressed in thousands of U.S. dollars, except for mining data figures)

				Nine months ended December 31, 2016
				Ying Mining
				District1		GC2		Total
Production Data
	Mine Data
		Ore Mined (tonne)		524,005		220,522		744,527
		Ore Milled (tonne)		530,160		220,767		750,927
	+	Mining cost per tonne of ore mined ($)		78.46		39.05		66.79
			Cash mining cost per tonne of ore mined ($)	52.18		31.04		45.92
			Non cash mining cost per tonne of ore mined ($)	26.28		8.01		20.87
	+	Unit shipping costs($)		3.86		-		2.72
	+	Milling cost per tonne of ore milled ($)		11.35		16.47		12.86
			Cash milling cost per tonne of ore milled ($)	9.31		13.76		10.62
			Non cash milling cost per tonne of ore milled ($)	2.04		2.71		2.24
	+	Average Production Cost
			Silver ($ per ounce)	5.93		6.70		6.23
			Gold ($ per ounce)	434		-		468
			Lead ($ per pound)	0.33		0.49		0.35
			Zinc ($ per pound)	0.29		0.46		0.32
			Other ($ per pound)	-		0.02		0.02
	+	Total production cost per ounce of Silver, net of by-product credits ($)		0.39		(2.52	)	0.10
	+	Total cash cost per ounce of Silver, net of by-product credits ($)		(2.50	)	(7.15	)	(2.95	)
	+	All-in sustaining cost per ounce of Silver, net of by-product credits ($)		3.11		(1.29	)	3.96
	+	All-in cost per ounce of Silver, net of by-product credits ($)		3.81		(0.63	)	4.65
		Recovery Rates
			Silver (%)	95.4		76.2		93.2
			Lead (%)	96.4		86.3		95.2
			Zinc (%)	46.0		86.3		68.0
		Head Grades
			Silver (gram/tonne)	305		94		243
			Lead (%)	4.7		1.5		3.7
			Zinc (%)	1.0		2.9		1.5
	Concentrate in stock
		Lead concentrate (tonne)		4,656		10		4,666
		Zinc concentate (tonne)		670		29		699
Sales Data
	Metal Sales
		Silver (in thousands of ounces)		4,675		511		5,186
		Gold (in thousands of ounces)		2.6		-		2.6
		Lead (in thousands of pounds)		49,898		6,237		56,135
		Zinc (in thousands of pounds)		4,815		11,991		16,806
		Other (in thousands of pound)		-		8,579		8,579
	Metal Sales
		Silver (in thousands of $)		65,953		5,268		71,221
		Gold (in thousands of $)		2,682		-		2,682
		Lead (in thousands of $)		38,723		4,656		43,379
		Zinc (in thousands of $)		3,308		8,514		11,822
		Other (in thousands of $)		-		303		303
				110,666		18,741		129,407
	Average Selling Price, Net of Value Added Tax and Smelter Charges
		Silver ($ per ounce)		14.11		10.31		13.73
		Gold ($ per ounce)		1,032		-		1,032
		Lead ($ per pound)		0.78		0.75		0.77
		Zinc ($ per pound)		0.69		0.71		0.70

¹ Ying Mining District i ncludes mines : SGX, TLP, HPG,LM, BCG a nd HZG.
² GC Silver recovery rate consists of 54.2% from l ead concentrates a nd 22.0% from zinc concentrates .
² GC Silver sold in zinc concentrates i s subjected to higher smelter a nd refi ning charges which l ower the net s ilver selling price.

16

EX-99.2

Exhibit 99.2

Form 52-109F2
Certification of interim filings - full certificate

I, Derek Liu, Chief Financial Officer of Silvercorp Metals Inc. certify the following:

1.	Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Silvercorp Metals Inc. (the “issuer”) for the interim period ended December 31, 2017.
2.	No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
3.	Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
4.	Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.
5.	Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a)	designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
	(i)	material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
	(ii)	information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
(b)	designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.

5.1	Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
5.2	ICFR – material weakness relating to design: The issuer has disclosed in its interim MD&A for each material weakness relating to design existing at the end of the interim period

(a) a description of the material weakness;

(b)	the impact of the material weakness on the issuer’s financial reporting and its ICFR; and
(c)	the issuer’s current plans, if any, or any actions already undertaken, for remediating the material weakness.

5.3	N/A
6.	Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on October 1, 2017 and ended on December 31, 2017 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: February 8, 2018

“Derek Liu”

Derek Liu

Chief Financial Officer

2

EX-99.3

Exhibit 99.3

Form 52-109F2
Certification of interim filings - full certificate

I, Rui Feng, Chief Executive Officer of Silvercorp Metals Inc. certify the following:

1.	Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Silvercorp Metals Inc. (the “issuer”) for the interim period ended December 31, 2017.
2.	No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
3.	Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
4.	Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.
5.	Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a)	designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
	(i)	material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
	(ii)	information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
(b)	designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.

5.1	Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
5.2	ICFR – material weakness relating to design: The issuer has disclosed in its interim MD&A for each material weakness relating to design existing at the end of the interim period

(a) a description of the material weakness;

(b)	the impact of the material weakness on the issuer’s financial reporting and its ICFR; and
(c)	the issuer’s current plans, if any, or any actions already undertaken, for remediating the material weakness.

5.3	N/A
6.	Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on October 1, 2017 and ended on December 31, 2017 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: February 8, 2018

“Rui Feng”

Rui Feng

Chief Executive Officer

2

EX-99.4

Exhibit 99.4

SILVERCORP METALS INC.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the three and nine months ended December 31, 2017 and 2016
(Expressed in thousands of US dollars, unless otherwise stated)
(Unaudited)

SILVERCORP METALS INC.

Condensed Consolidated Interim Statements of Financial Position

(Unaudited) (Expressed in thousands of U.S. dollars)

			As at December 31,			As at March 31,
	Notes		2017			2017
ASSETS
Current Assets
Cash and cash equivalents	18	$	66,274		$	73,003
Short-term investments			46,986			23,466
Trade and other receivables			1,205			1,311
Inventories			13,631			8,710
Due from a related party	10		25			92
Prepaids and deposits			3,972			4,250
			132,093			110,832
Non-current Assets
Long-term prepaids and deposits			962			959
Reclamation deposits			5,363			5,054
Investment in an associate	3		33,902			8,517
Other investments	4		6,800			1,207
Plant and equipment	5		68,814			65,201
Mineral rights and properties	6		223,935			206,200
TOTAL ASSETS		$	471,869		$	397,970
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities		$	34,799		$	30,374
Deposits received			7,351			6,798
Income tax payable			5,037			2,985
			47,187			40,157
Non-current Liabilities
Deferred income tax liabilities			31,516			27,692
Environmental rehabilitation			13,215			12,186
Total Liabilities			91,918			80,035
Equity
Share capital			230,844			232,155
Share option reserve	7		14,343			13,325
Reserves			25,409			25,409
Accumulated other comprehensive loss	8		(32,164	)		(50,419	)
Retained earnings			74,089			42,651
Total equity attributable to the equity holders of the Company			312,521			263,121
Non-controlling interests	9		67,430			54,814
Total Equity			379,951			317,935
TOTAL LIABILITIES AND EQUITY		$	471,869		$	397,970
Commitments and contingencies	17

Approved on behalf of the Board:

(Signed) David Kong
Director

(Signed) Rui Feng
Director

See accompanying notes to the condensed consolidated interim financial statements

1

SILVERCORP METALS INC.

Condensed Consolidated Interim Statements of Income

(Unaudited)(Expressed in thousands of U.S. dollars, except numbers for share and per share figures)

			Three Months Ended December 31,						Nine Months Ended December 31,
	Notes		2017			2016			2017			2016
Sales	16(c)	$	44,352		$	47,838		$	131,590		$	129,407
Cost of sales
Production costs			15,553			14,921			45,839			42,863
Mineral resource taxes			1,255			1,361			3,683			2,802
Depreciation and amortization			4,378			5,178			13,291			15,861
			21,186			21,460			62,813			61,526
Gross profit			23,166			26,378			68,777			67,881
General and administrative	11		4,915			3,950			13,958			12,462
Government fees and other taxes	12		902			1,050			2,433			3,476
Foreign exchange (gain) loss			(236	)		(444	)		2,490			(536	)
Loss on disposal of plant and equipment	5		148			392			324			457
Gain on disposal of NSR	4		-			-			(4,320	)		-
Share of loss (income) in associate	3		142			126			511			(160	)
Dilution gain on investment in associate	3		(822	)		-			(822	)		-
Reclassification of other comprehensive loss upon ownership dilution of investment in associate	3, 8		18			-			18			-
Impairment of plant and equipment and mineral rights and properties			-			-			-			181
Other income			(1,560	)		(201	)		(1,867	)		(324	)
Income from operations			19,659			21,505			56,052			52,325
Finance income	13		822			647			2,046			1,615
Finance costs	13		(112	)		(161	)		(329	)		(685	)
Income before income taxes			20,369			21,991			57,769			53,255
Income tax expense	14		4,302			5,353			13,586			14,091
Net income		$	16,067		$	16,638		$	44,183		$	39,164
Attributable to:
Equity holders of the Company		$	12,718		$	13,115		$	34,800		$	30,167
Non-controlling interests	9		3,349			3,523			9,383			8,997
		$	16,067		$	16,638		$	44,183		$	39,164
Earnings per share attributable to the equity holders of the Company
Basic earnings per share		$	0.08		$	0.08		$	0.21		$	0.18
Diluted earnings per share		$	0.07		$	0.08		$	0.20		$	0.18
Weighted Average Number of Shares Outstanding - Basic			168,077,624			167,192,640			168,003,035			167,048,582
Weighted Average Number of Shares Outstanding - Diluted			169,782,024			171,284,390			169,992,421			171,115,860

See accompanying notes to the condensed consolidated interim financial statements

2

SILVERCORP METALS INC.

Condensed Consolidated Interim Statements of Comprehensive Income

(Unaudited) (Expressed in thousands of U.S. dollars)

			Three Months Ended December 31,						Nine Months Ended December 31,
	Notes		2017			2016			2017			2016
Net income		$	16,067		$	16,638		$	44,183		$	39,164
Other comprehensive income (loss), net of taxes:
Items that may subsequently be reclassified to net income or loss:
Currency translation adjustment, net of tax of $nil			6,519			(11,730	)		20,662			(20,602	)
Share of other comprehensive (loss) income in associate	3		(38	)		61			(51	)		(12	)
Reclassification to net income upon ownership dilution of investment in associate	3, 8		18			-			18			-
Items that will not subsequently be reclassified to net income or loss:
Change in fair value on equity investments designated as FVTOCI, net of tax of $nil	4		338			(122	)		859			19
Other comprehensive income (loss), net of taxes		$	6,837		$	(11,791	)	$	21,488		$	(20,595	)
Attributable to:
Equity holders of the Company		$	5,471		$	(9,769	)	$	18,255		$	(16,991	)
Non-controlling interests	9		1,366			(2,022	)		3,233			(3,604	)
		$	6,837		$	(11,791	)	$	21,488		$	(20,595	)
Total comprehensive income		$	22,904		$	4,847		$	65,671		$	18,569
Attributable to:
Equity holders of the Company		$	18,189		$	3,346		$	53,055		$	13,176
Non-controlling interests			4,715			1,501			12,616			5,393
		$	22,904		$	4,847		$	65,671		$	18,569

See accompanying notes to the condensed consolidated interim financial statements

3

SILVERCORP METALS INC.

Condensed Consolidated Interim Statements of Cash Flows

(Unaudited) (Expressed in thousands of U.S. dollars)

			Three Months Ended December 31,						Nine Months Ended December 31,
	Notes		2017			2016			2017			2016
Cash provided by
Operating activities
Net income		$	16,067		$	16,638		$	44,183		$	39,164
Add (deduct) items not affecting cash:
Finance costs	13		112			161			329			685
Depreciation, amortization and depletion			4,683			5,463			14,176			16,812
Share of loss (income) in associate	3		142			126			511			(160	)
Dilution gain on investment in associate	3		(822	)		-			(822	)		-
Reclassification of other comprehensive loss upon wonership dilution of investment in associate	3, 8		18			-			18			-
Gain on disposal of NSR	4		-			-			(4,320	)		-
Impairment of plant and equipment and mineral rights and properties			-			-			-			181
Income tax expense	14		4,302			5,353			13,586			14,091
Finance income	13		(822	)		(647	)		(2,046	)		(1,615	)
Loss on disposal of plant and equipment	5		148			392			324			457
Share-based compensation	7(b)		458			214			1,144			654
Income taxes paid			(2,065	)		(1,115	)		(9,647	)		(4,030	)
Interest received			822			647			2,046			1,615
Interest paid			-			(853	)		-			(954	)
Changes in non-cash operating working capital	18		4,431			1,955			5,598			8,656
Net cash provided by operating activities			27,474			28,334			65,080			75,556
Investing activities
Mineral rights and properties
Capital expenditures			(5,705	)		(14,897	)		(16,638	)		(25,605	)
Plant and equipment
Additions			(1,724	)		(1,433	)		(4,455	)		(4,556	)
Proceeds on disposals	5		-			19			19			51
Other investments
Acquisition	6		-			(782	)		-			(782	)
Proceeds on disposals	6		-			-			-			33
Reclamation			(17	)		(1,775	)		(36	)		(2,160	)
Investment in associate	3		(3,836	)		-			(23,861	)		-
Net purchases of short-term investments			10,422			(5,542	)		(21,345	)		(11,518	)
Net cash used in investing activities			(860	)		(24,410	)		(66,316	)		(44,537	)
Financing activities
Non-controlling interests
Distribution	9		-			-			(4,891	)		(1,460	)
Cash dividends distributed	7(c)		(1,683	)		(1,585	)		(3,362	)		(1,585	)
Proceeds from issuance of common shares			174			192			342			489
Common shares repurchased as part of normal course issuer bid	7(d)		(1,779	)		-			(1,779	)		-
Net cash used in financing activities			(3,288	)		(1,393	)		(9,690	)		(2,556	)
Effect of exchange rate changes on cash and cash equivalents			1,579			(2,041	)		4,197			(3,452	)
Increase (decrease) in cash and cash equivalents			24,905			490			(6,729	)		25,011
Cash and cash equivalents, beginning of the period			41,369			66,484			73,003			41,963
Cash and cash equivalents, end of the period		$	66,274		$	66,974		$	66,274		$	66,974
Supplementary cash flow information	18

See accompanying notes to the condensed consolidated interim financial statements

4

SILVERCORP METALS INC.

Condensed Consolidated Interim Statements of Changes in Equity

(Unaudited) (Expressed in thousands of U.S. dollars, except numbers for share figures)

		Share capital
								Share					Accumulated other			Retained			Total equity attributable			Non-
		Number of						option					comprehensive			earnings			to the equity holders of			controlling
	Notes	shares			Amount			reserve			Reserves		loss			(deficit)			the Company			interests			Total equity
Balance, April 1, 2016		166,846,356		$	230,933		$	12,628		$	25,409	$	(35,994	)	$	562		$	233,538		$	53,021		$	286,559
Options exercised		460,964			657			(168	)		-		-			-			489			-			489
Share-based compensation		-			-			654			-		-			-			654			-			654
Dividends declared		-			-			-			-		-			(1,585	)		(1,585	)		-			(1,585	)
Distribution to non-controlling interests		-			-			-			-		-			-			-			(1,460	)		(1,460	)
Comprehensive (loss) income		-			-			-			-		(16,991	)		30,167			13,176			5,393			18,569
Balance, December 31, 2016		167,307,320		$	231,590		$	13,114		$	25,409	$	(52,985	)	$	29,144		$	246,272		$	56,954		$	303,226
Options exercised		582,316			565			(150	)		-		-			-			415			-			415
Share-based compensation		-			-			361			-		-			-			361			-			361
Distribution to non-controlling interests		-			-			-			-		-			-			-			(5,630	)		(5,630	)
Comprehensive income		-			-			-			-		2,566			13,507			16,073			3,490			19,563
Balance, March 31, 2017		167,889,636		$	232,155		$	13,325		$	25,409	$	(50,419	)	$	42,651		$	263,121		$	54,814		$	317,935
Options exercised		564,619			468			(126	)		-		-			-			342			-			342
Share-based compensation	7(b)	-			-			1,144			-		-			-			1,144			-			1,144
Dividends declared	7(c)	-			-			-			-		-			(3,362	)		(3,362	)		-			(3,362	)
Common shares repurchased as part of normal course issuer bid	7(d)	(788,000	)		(1,779	)		-			-		-			-			(1,779	)		-			(1,779	)
Comprehensive income		-			-			-			-		18,255			34,800			53,055			12,616			65,671
Balance, December 31, 2017		167,666,255		$	230,844		$	14,343		$	25,409	$	(32,164	)	$	74,089		$	312,521		$	67,430		$	379,951

See accompanying notes to the condensed consolidated interim financial statements

5

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements as at December 31, 2017 and for three and nine months ended December 31, 2017 and 2016

(Unaudited)(Expressed in thousands of U.S. dollars, unless otherwise stated)

1. CORPORATE INFORMATION

Silvercorp Metals Inc., along with its subsidiary companies (collectively the “Company”), is engaged in the acquisition, exploration, development, and mining of precious and base metal mineral properties. The Company’s producing mines and other current exploration and development projects are in China.

The Company is a publicly listed company incorporated in Canada with limited liability under the legislation of the Province of British Columbia. The Company’s shares are listed on the Toronto Stock Exchange and as of May 15, 2017, on NYSE American Stock Exchange.

The head office, registered address and records office of the Company are located at 200 Granville Street, Suite 1378, Vancouver, British Columbia, Canada, V6C 1S4.

Operating results for the three and nine months ended December 31, 2017, are not necessarily indicative of the results that may be expected for the year ending March 31, 2018.

2. SIGNIFICANT ACCOUNTING POLICIES

(a)Statement of Compliance

These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34 – Interim Financial Reporting (“IAS 34”) of the International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). These condensed consolidated interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended March 31, 2017. These condensed consolidated interim financial statements follow the same significant accounting policies set out in note 2 to the audited consolidated financial statements for the year ended March 31, 2017 except for narrow scope amendments to IAS 7 – Statement of Cashflows and IAS 12 – Income Taxes which were effective in the current year. These amendments had no material impact on the Company’s financial statements.

These condensed consolidated interim financial statements were authorized for issue in accordance with a resolution of the Board of Directors dated on February 7, 2018.

(b)Basis of Consolidation

These condensed consolidated interim financial statements include the accounts of the Company and its wholly or partially owned subsidiaries.

Subsidiaries are consolidated from the date on which the Company obtains control up to the date of the disposition of control. Control is achieved when the Company has power over the subsidiary, is exposed or has rights to variable returns from its involvement with the subsidiary; and has the ability to use its power to affect its returns.

For non-wholly-owned subsidiaries over which the Company has control, the net assets attributable to outside equity shareholders are presented as “non-controlling interests” in the equity section of the consolidated balance sheets. Net income for the period that is attributable to the non-controlling interests is calculated based on the ownership of the non-controlling interest shareholders in the

6

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements as at December 31, 2017 and for three and nine months ended December 31, 2017 and 2016

(Unaudited)(Expressed in thousands of U.S. dollars, unless otherwise stated)

subsidiary. Adjustments to recognize the non-controlling interests’ share of changes to the subsidiary’s equity are made even if this results in the non-controlling interests having a deficit balance. Changes in the Company’s ownership interest in a subsidiary that do not result in a loss of control are recorded as equity transactions. The carrying amount of non-controlling interests is adjusted to reflect the change in the non-controlling interests’ relative interests in the subsidiary and the difference between the adjustment to the carrying amount of non-controlling interest and the Company’s share of proceeds received and/or consideration paid is recognized directly in equity and attributed to equity holders of the Company.

Balances, transactions, revenues and expenses between the Company and its subsidiaries are eliminated on consolidation.

Details of the Company’s significant subsidiaries which are consolidated are as follows:

			Proportion of ownership interest held
		Place of	December 31,	March 31,	Mineral
Name of subsidiaries	Principal activity	incorporation	2017	2017	properties
Silvercorp Metals China Inc.	Holding company	Canada	100%	100%
Silvercorp Metals (China) Inc.	Holding company	China	100%	100%
0875786 B.C. LTD.	Holding company	Canada	100%	100%
Fortune Mining Limited	Holding company	BVI (i)	100%	100%	RZY
Fortune Copper Limited	Holding company	BVI	100%	100%
Fortune Gold Mining Limited	Holding company	BVI	100%	100%
Victor Resources Ltd.	Holding company	BVI	100%	100%
Yangtze Mining Ltd.	Holding company	BVI	100%	100%
Victor Mining Ltd.	Holding company	BVI	100%	100%
Yangtze Mining (H.K.) Ltd.	Holding company	Hong Kong	100%	100%
Fortune Gold Mining (H.K.) Limited	Holding company	Hong Kong	100%	100%
Wonder Success Limited	Holding company	Hong Kong	100%	100%
Henan Huawei Mining Co. Ltd. ("Henan Huawei")	Mining	China	80%	80%	HPG, LM (ii)
Henan Found Mining Co. Ltd. ("Henan Found")	Mining	China	77.5%	77.5%	Ying, TLP (ii)
Songxian Gold Mining Co., Ltd. ("SX Gold")	Mining	China	77.5%	77.5%	XHP
Xinshao Yunxiang Mining Co., Ltd. ("Yunxiang")	Mining	China	70%	70%	BYP
Guangdong Found Mining Co. Ltd. (Guangdong Found")	Mining	China	95%	95%	GC
(i) British Virgin Island ("BVI")
(ii) Collectively as "Ying Mining District"

(c) Accounting standards issued but not yet in effect

IFRS 15 – Revenue from contracts with customers, the standard on revenue from contacts with customers was issued in September 2015 and may be effective for annual reporting periods beginning on or after January 1, 2018 for public entities with early adoption permitted. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt the guidance. In April 2016, the IASB issued targeted amendments to IFRS 15 related to identifying performance obligations, principal vs agent consideration, licensing and transitional relief for modified contracts and completed contracts. The Company has reviewed its revenue streams and underlying contracts with customers to determine the impact that the adoption of IFRS 15 will have on its financial statements. The Company plans to apply IFRS 15 at the date it becomes effective but has not yet selected a transition approach and does not anticipate that there will be any significant recognition or measurement impact subsequent to adoption. The Company continues to evaluate the impact that the adoption will have on disclosure in the consolidated financial statements.

7

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements as at December 31, 2017 and for three and nine months ended December 31, 2017 and 2016

(Unaudited)(Expressed in thousands of U.S. dollars, unless otherwise stated)

IFRS 9 (2014) – Financial Instruments (amended 2014): In July 2014, the IASB issued the final version of IFRS 9 – Financial Instruments (“IFRS 9”). The Company adopted IFRS 9 (2010) – Financial Instruments effective April 1, 2011. The Company has reviewed its financial instruments to determine the impact that the adoption of IFRS 9 will have on its financial statements. The Company does not anticipate that there will be any changes to the classification or the carrying values of the Company’s financial instruments as a result of the adoption. The Company does not currently apply hedge accounting to its risk management contracts and does not intend to apply hedge accounting to any of its existing risk management contracts on adoption of IFRS 9. The Company continues to evaluate the impact that the adoption will have on disclosure in the consolidated financial statements.

IFRS 16 - Leases was issued by the IASB and will replace Leases (“IAS 17”). IFRS 16 requires most leases to be reported on a company’s balance sheet as assets and liabilities. IFRS 16 is effective for annual periods beginning on or after January 1, 2019 with early application permitted for companies that also apply IFRS

15 - Revenue from Contracts with Customers. The Company has developed a project plan and is gathering data to assess the impact that the adoption of IFRS 16 will have on its consolidated financial statements by cataloging and reviewing all existing leases.

3. INVESTMENT IN AN ASSOCIATE

New Pacific Metals Corp. (“NUAG”) is a Canadian public company listed on the TSX Venture Exchange (symbol: NUAG). NUAG is a related party of the Company by way of two common directors and officers, and the Company accounts for its investment in NUAG using the equity method as it is able to exercise significant influence over the financial and operating policies of NUAG.

In July 2017, the Company participated in NUAG’s private placement and subscribed 25,000,000 common shares of NUAG for $20.0 million and acquired additional 474,600 shares from the public market for $0.5 million during the nine months ended December 31, 2017.

In November 2017, the Company participated in NUAG’s strategic private placement. The placement was for 19,000,000 million units, and the Company subscribed 3,000,000 units while Pan American Silver Corp. subscribed 16,000,000 units, at a price of CAD$1.42 per unit. Each unit is comprised of one common share of NUAG and one half of one common share purchase warrant. Arising from this strategic private placement, the Company’s ownership in NUAG was diluted from 32.2% to 29.8% and a dilution gain of $0.8 million was recorded.

For three and nine months ended December 31, 2017, other comprehensive loss of $18 and $18, respectively (three and nine months ended December 31, 2016 - $nil and $nil, respectively) was reclassified to net income as a result of the Company’s ownership dilution in NUAG.

As at December 31, 2017, the Company owned 39,280,900 common shares (March 31, 2017 – 10,806,300) of NUAG, representing an ownership interest of 29.8% (March 31, 2017 – 16.1%). The summary of the investment in NUAG common shares and its market value as at the respective balance sheet dates are as follows:

8

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements as at December 31, 2017 and for three and nine months ended December 31, 2017 and 2016

(Unaudited)(Expressed in thousands of U.S. dollars, unless otherwise stated)

						Value of NUAG's
	Number of					common shares per
	shares		Amount			quoted market price
Balance, April 1, 2016	10,806,300	$	3,133		$	2,333
Share of net income			282
Share of other comprehensive loss			(12	)
Impairment recovery			5,278
Foreign exchange impact			(164	)
Balance, March 31, 2017	10,806,300		8,517			8,517
Participate in Private placement	28,000,000		23,352
Purchase from open market	474,600		509
Share of net loss			(511	)
Share of other comprehensive loss			(51	)
Dilution gain			822
Foreign exchange impact			1,264
Balance December 31, 2017	39,280,900	$	33,902		$	46,029

4. OTHER INVESTMENTS

		December 31, 2017		March 31, 2017
Equity investments designated as FVTOCI
Publicly-traded companies	$	6,800	$	1,207

Investments in publicly-traded companies with no significant influence

Investments in publicly-traded companies represent equity interests of other publicly-trading mining companies that the Company has acquired through the open market or through private placements. These equity interests are for long-term investment purposes and consist of common shares and warrants. As of December 31, 2017, none of the investments held by the Company represented more than 10% of the respective interest of investees.

The continuity of such investments is as follow:

		Fair value			Accumulated fair value change included in OCI
April 1, 2016	$	287		$	(6,429	)
Change in fair value on equity investments designated as FVTOCI		196			196
Purchase of equity investments		782			-
Impact of foreign currency translation		(58	)		-
March 31, 2017	$	1,207		$	(6,233	)
Change in fair value on equity investments designated as FVTOCI		859			859
Equity investments received as consideration for disposal of NSR		4,320			-
Impact of foreign currency translation		414			-
December 31, 2017	$	6,800		$	(5,374	)

On April 5, 2017, the Company entered into a royalty purchase and sale agreement (the “Agreement”) with Maverix Metals Inc. (“Maverix”), a publicly traded (TSX-V: MMX) Canadian precious metals royalty and streaming company, to sell its 2.5% net smelter return (“NSR”) on the Silvertip Mine for consideration of up to 6,600,000 of Maverix’s common shares payable as follows:

9

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements as at December 31, 2017 and for three and nine months ended December 31, 2017 and 2016

(Unaudited)(Expressed in thousands of U.S. dollars, unless otherwise stated)

• 3,800,000 common shares of Maverix on closing of the transaction; and

• 2,800,000 common shares of Maverix when the Silvertip Mine achieves (i) commercial production, and (ii) a cumulative throughput of 400,000 tonnes of ore through the processing plant.

On April 19, 2017, the transaction was closed and the Company received a total of 3,800,000 Maverix common shares valued at $4,320 (CAD$5.8 million) and recognized a gain of $4,320 on disposal of the NSR.

5. PLANT AND EQUIPMENT

Plant and equipment consist of:

		Land use rights			Office						Motor			Construction
Cost		and building			equipment			Machinery			vehicles			in progress			Total
Balance as at April 1, 2016	$	91,162		$	6,442		$	27,255		$	7,103		$	9,075		$	141,037
Additions		1,748			215			850			300			1,656			4,769
Disposals		(267	)		(323	)		(321	)		(837	)		(3	)		(1,751	)
Reclassification of asset groups(1)		7,841			-			318			-			(8,159	)		-
Impact of foreign currency translation		(6,000	)		(370	)		(1,750	)		(435	)		(426	)		(8,981	)
Balance as at March 31, 2017	$	94,484		$	5,964		$	26,352		$	6,131		$	2,143		$	135,074
Additions		1,120			707			816			438			1,212			4,293
Disposals		(245	)		(184	)		(293	)		(424	)		-			(1,146	)
Reclassification of asset groups(1)		339			-			4			-			(343	)		-
Impact of foreign currency translation		5,625			634			1,284			330			154			8,027
Ending balance as at December 31, 2017	$	101,323		$	7,121		$	28,163		$	6,475		$	3,166		$	146,248
Impairment, accumulated depreciation and amortization
Balance as at April 1, 2016	$	(42,658	)	$	(4,693	)	$	(17,177	)	$	(5,407	)	$	(57	)	$	(69,992	)
Disposals		82			276			187			617			-			1,162
Depreciation and amortization		(2,893	)		(507	)		(1,674	)		(480	)		-			(5,554	)
Impact of foreign currency translation		2,763			258			1,144			342			4			4,511
Balance as at March 31, 2017	$	(42,706	)	$	(4,666	)	$	(17,520	)	$	(4,928	)	$	(53	)	$	(69,873	)
Disposals		67			166			205			365			-			803
Depreciation and amortization		(2,352	)		(304	)		(1,215	)		(282	)		-			(4,153	)
Impact of foreign currency translation		(2,581	)		(265	)		(1,075	)		(287	)		(3	)		(4,211	)
Ending balance as at December 31, 2017	$	(47,572	)	$	(5,069	)	$	(19,605	)	$	(5,132	)	$	(56	)	$	(77,434	)
Carrying amounts
Balance as at March 31, 2017	$	51,778		$	1,298		$	8,832		$	1,203		$	2,090		$	65,201
Ending balance as at December 31, 2017	$	53,751		$	2,052		$	8,558		$	1,343		$	3,110		$	68,814

⁽¹⁾ when an asset is available for use, it is reclassified from construction in progress to one of the appropriate plant and equipment categories.

Carrying amounts as at December 31, 2017		Ying Mining District		BYP		GC		Other		Total
Land use rights and building	$	36,638	$	2,502	$	13,543	$	1,070	$	53,753
Office equipment		1,661		46		165		179		2,051
Machinery		5,622		344		2,593		-		8,559
Motor vehicles		1,246		33		61		2		1,342
Construction in progress		1,209		1,900		-		-		3,109
Total	$	46,376	$	4,825	$	16,362	$	1,251	$	68,814
Carrying amounts as at March 31, 2017		Ying Mining District		BYP		GC		Other		Total
Land use rights and building	$	35,079	$	2,533	$	13,087	$	1,079	$	51,778
Office equipment		1,009		51		160		78		1,298
Machinery		5,817		372		2,643		-		8,832
Motor vehicles		1,138		44		21		-		1,203
Construction in progress		255		1,831		4		-		2,090
Total	$	43,298	$	4,831	$	15,915	$	1,157	$	65,201

10

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements as at December 31, 2017 and for three and nine months ended December 31, 2017 and 2016

(Unaudited)(Expressed in thousands of U.S. dollars, unless otherwise stated)

During the three and nine months ended December 31, 2017, certain plant and equipment were disposed for proceeds of $nil and $19, respectively (three and nine months ended December 31, 2016 - $19 and $51, respectively) and loss of $148 and $324, respectively (three and nine months ended December 31, 2016 –loss of $392 and $457, respectively).

6. MINERAL RIGHTS AND PROPERTIES

Mineral rights and properties consist of:

		Producing and development properties									Exploration and evaluation properties
Cost		Ying Mining District			BYP			GC			XHP			RZY			Total
Balance as at April 1, 2016	$	232,127		$	64,815		$	109,478		$	21,257		$	179		$	427,856
Capitalized expenditures		18,058			-			714			-			-			18,772
Mine right fee		1,337			-			-			-			-			1,337
Environmental rehabiliation		(1,448	)		(101	)		(57	)		-			-			(1,606	)
Foreign currecy translation impact		(15,227	)		(968	)		(6,933	)		(1,351	)		(5	)		(24,484	)
Balance as at March 31, 2017	$	234,847		$	63,746		$	103,202		$	19,906		$	174		$	421,875
Capitalized expenditures		16,200			-			246			234			-			16,680
Foreign currecy translation impact		14,305			829			6,065			1,175			11			22,385
Ending balance as at December 31, 2017	$	265,352		$	64,575		$	109,513		$	21,315		$	185		$	460,940
Impairment and accumulated depletion
Balance as at April 1, 2016	$	(55,524	)	$	(57,386	)	$	(77,609	)	$	(21,257	)	$	-		$	(211,776	)
Impairment loss		-			-			-			-			(181	)		(181	)
Depletion		(12,457	)		-			(1,869	)		-			-			(14,326	)
Foreign currecy translation impact		3,824			495			4,931			1,351			7			10,608
Balance as at March 31, 2017	$	(64,157	)	$	(56,891	)	$	(74,547	)	$	(19,906	)	$	(174	)	$	(215,675	)
Depletion		(9,659	)		-			(1,561	)		-			-			(11,220	)
Foreign currecy translation impact		(4,078	)		(427	)		(4,427	)		(1,167	)		(11	)		(10,110	)
Ending balance as at December 31, 2017	$	(77,894	)	$	(57,318	)	$	(80,535	)	$	(21,073	)	$	(185	)	$	(237,005	)
Carrying amounts
Balance as at March 31, 2017	$	170,690		$	6,855		$	28,655		$	-		$	-		$	206,200
Ending balance as at December 31, 2017	$	187,458		$	7,257		$	28,978		$	242		$	-		$	223,935

7. SHARE CAPITAL

(a) Authorized

Unlimited number of common shares without par value. All shares issued as at December 31, 2017 were fully paid.

(b) Stock options

The Company has a stock option plan which allows for the maximum number of common shares to be reserved for issuance on the exercise of options granted under the stock option plan to be a rolling 10% of the issued and outstanding common shares from time to time. The maximum exercise period may not exceed 10 years from the date of the grant of the options to employees, officers, and consultants. The following is a summary of option transactions:

11

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements as at December 31, 2017 and for three and nine months ended December 31, 2017 and 2016

(Unaudited)(Expressed in thousands of U.S. dollars, unless otherwise stated)

				Weighted average
				exercise price per
	Number of shares			share CAD$
Balance, April 1, 2016	9,174,025		$	2.39
Options granted	1,173,000			3.77
Options exercised	(1,043,280	)		1.13
Options forfeited	(847,238	)		3.61
Options expired	(777,000	)		8.92
Balance, March 31, 2017	7,679,507		$	1.97
Option granted	1,120,000			3.36
Options exercised	(564,619	)		0.77
Options forfeited	(116,125	)		2.92
Options expired	(505,000	)		5.70
Balance, December 31, 2017	7,613,763		$	2.00

During the nine months ended December 31, 2017, a total of 1,120,000 options with a life of three years were granted to officers and employees at an exercise price of CAD$3.36 per share subject to a vesting schedule over a two-year term with 25% of the options vesting every six months from the date of grant.

The fair value of stock options granted during the nine months ended December 31, 2017 and 2016 were calculated as of the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions:

		Nine months ended December 31,
		2017		2016
Risk free interest rate		1.54%		0.59%
Expected life of option in years		2.25 years		2.25 years
Expected volatility		72%		70%
Expected dividend yield		1.17%		-
Estimated forfeiture rate		10%		11%
Weighted average share of price at date of grant	$	3.36	$	4.34

The weighted average grant date fair value of options granted during the nine months ended December 31, 2017 was CAD$1.33 (nine months ended December 31, 2016 – CAD$1.74). Volatility was determined based on the historical volatility of the Company’s shares over the estimated life of stock options. For the three and nine months ended December 31, 2017, a total of $458 and $1,114, respectively (three and nine months ended December 31, 2016 - $214 and $654, respectively) in share-based compensation expense was recognized and included in the general and administrative expenses on the condensed consolidated interim statements of income.

12

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements as at December 31, 2017 and for three and nine months ended December 31, 2017 and 2016

(Unaudited)(Expressed in thousands of U.S. dollars, unless otherwise stated)

The following table summarizes information about stock options outstanding at December 31, 2017:

								Weighted
			Weighted average		Weighted			average
		Number of options	remaining		average	Number of options		exercise
		outstanding at	contractual life		exercise price	exercisable at		price in
	Exercise price in CAD$	December 31, 2017	(Years)		in CAD$	December 31, 2017		CAD$
$	0.66	2,591,294	1.00	$	0.66	2,591,294		0.66
$	1.43	1,497,257	2.42	$	1.43	1,221,425		1.43
$	1.75	354,625	1.41	$	1.75	305,000		1.75
$	1.76	238,683	1.79	$	1.76	174,109		1.76
$	2.98	126,843	1.06	$	2.98	117,876		2.98
$	3.25	168,375	0.42	$	3.25	168,375		3.25
$	3.36	1,070,000	2.75	$	3.36	-		-
$	3.41	266,124	0.70	$	3.41	266,124		3.41
$	3.63	960,000	2.05	$	3.63	247,500		3.63
$	3.91	167,562	0.18	$	3.91	167,562		3.91
$	4.34	143,000	1.71	$	4.34	71,500		4.34
$	5.58	30,000	2.15	$	5.58	7,500		5.58
	$ 0.66 - 5.58	7,613,763	1.68	$	2.00	5,338,265	$	1.50

Subsequent to December 31, 2017, a total of 101,767 options with exercise prices ranging from CAD$0.66 to CAD$2.98 were exercised and 65,751 options with exercise prices ranging from CAD$1.43 to CAD$3.63 were cancelled.

(c) Cash dividends declared

During the three and nine months ended December 31, 2017, dividends of $1,683 and $3,362, respectively (for three and nine months ended December 31, 2016 - $1,585 and $1,585, respectively) were declared and paid.

(d) Normal course issuer bid

On November 23, 2017, the Company announced a normal course issuer bid (“NCIB”) which allows it to acquire up to 8,409,712 of its own common shares until November 26, 2018.

As at December 31, 2017, the Company acquired a total of 788,000 common shares at a cost of $1,779 under the NCIB program. Transaction costs related to the acquisition of the common shares were $6. All shares bought were subsequently cancelled.

8. ACCUMULATED OTHER COMPREHENSIVE INCOME

		December 31, 2017			March 31, 2017
Change in fair value on equity investments designated as FVTOCI	$	(37,027	)	$	(37,886	)
Share of other comprehensive loss in associate		(231	)		(198	)
Currency translation adjustment		5,094			(12,335	)
Balance, end of the period	$	(32,164	)	$	(50,419	)

13

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements as at December 31, 2017 and for three and nine months ended December 31, 2017 and 2016

(Unaudited)(Expressed in thousands of U.S. dollars, unless otherwise stated)

The unrealized loss on equity investments designated as FVTOCI, share of other comprehensive loss in associate and currency translation adjustment are net of tax of $nil for all periods presented.

9. NON-CONTROLLING INTERESTS

The continuity of non-controlling interests is summarized as follows:

		Henan			Henan						Guangdong
		Found			Huawei			Yunxiang			Found			SX Gold			Total
Balance, April 1, 2016	$	51,596		$	4,231		$	4,197		$	(3,082	)	$	(3,921	)	$	53,021
Share of net income (loss)		11,247			756			(340	)		186			(25	)		11,824
Share of other comprehensive income (loss)		(2,703	)		(141	)		(193	)		48			48			(2,941	)
Distributions		(6,328	)		(762	)		-			-			-			(7,090	)
Balance, March 31, 2017	$	53,812		$	4,084		$	3,664		$	(2,848	)	$	(3,898	)	$	54,814
Share of net income (loss)		7,980			945			(286	)		323			421			9,383
Share of other comprehensive income (loss)		2,847			303			136			(24	)		(29	)		3,233
Balance, December 31, 2017	$	64,639		$	5,332		$	3,514		$	(2,549	)	$	(3,506	)	$	67,430

As at December 31, 2017, non-controlling interests in Henan Found, Henan Huawei, Yunxiang, Guangdong Found and SX Gold were 22.5%, 20%, 30%, 5% and 22.5%, respectively.

Henan Non-ferrous Geology Minerals Ltd. (“Henan Non-ferrous”) is the 17.5% equity interest holder of Henan Found. During the three and nine months ended December 31, 2017, Henan Found paid dividends of $nil and $3,804, respectively that was declared and accrued in the prior year to Henan Non-ferrous (three and nine months ended December 31, 2016 – $nil and $1,460, respectively).

Henan Xinxiangrong Mining Ltd. (“Henan Xinxiangrong”) is the 5% equity interest holder of Henan Found. During the three and nine months ended December 31, 2017, Henan Found paid dividends of $nil and $1,087, respectively that was declared and accrued in the prior year to Henan Xinxiangrong (three and nine months ended December 31, 2016 – $nil and $nil, respectively).

10. RELATED PARTY TRANSACTIONS

Related party transactions are made on terms agreed upon by the related parties. The balances with related parties are unsecured, non-interest bearing, and due on demand. Related party transactions not disclosed elsewhere in the condensed consolidated interim financial statements are as follows:

(a) Transactions with NUAG

Due from related parties		December 31, 2017		March 31, 2017
NUAG	$	25	$	92

According to a services and administrative costs reallocation agreement between the Company and NUAG, the Company recovers costs for services rendered to NUAG and expenses incurred on behalf of NUAG. During the three and nine months ended December 31, 2017, the Company recovered $137 and $387, respectively (three and nine months ended December 31, 2016 - $46 and $139, respectively) from NUAG for services rendered and expenses incurred on behalf of NUAG. The costs recovered from NUAG were

14

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements as at December 31, 2017 and for three and nine months ended December 31, 2017 and 2016

(Unaudited)(Expressed in thousands of U.S. dollars, unless otherwise stated)

recorded as a direct reduction of general and administrative expenses on the condensed consolidated interim statements of income.

(b) Transactions with key management personnel

The Company has identified its directors and senior officers as its key management personnel as they have authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly. The compensation costs for key management personnel, including the grant date fair value for options granted to key management personnel and fees paid or payable to company controlled by key management personnel, were as follows:

		Three Month ended December 31, 2017				Nine Month ended December 31,
		2017		2016		2017		2016
Salaries and bonuses	$	376	$	357	$	1,908	$	1,094
Share-based compensation		433		-		433		134
	$	809	$	357	$	2,341	$	1,228

11. GENERAL AND ADMINISTRATIVE

General and administrative expenses consist of:

		Three months ended December 31,				Nine months ended December 31,
General and administrative		2017		2016		2017		2016
Office and administrative expenses	$	1,894	$	1,379	$	4,886	$	4,074
Amortization and depreciation		305		285		885		951
Salaries and benefits		2,176		1,833		6,315		5,305
Share-based compensation		458		214		1,144		654
Professional fees		82		239		728		1,478
	$	4,915	$	3,950	$	13,958	$	12,462

12. GOVERNMENT FEES AND OTHER TAXES

Government fees and other taxes consist of:

		Three months ended December 31,				Nine months ended December 31,
		2017		2016		2017		2016
Government fees	$	67	$	141	$	341	$	1,317
Other taxes		835		909		2,092		2,159
	$	902	$	1,050	$	2,433	$	3,476

Government fees include environmental protection fees paid to the state and local Chinese government. Other taxes were composed of surtax on value-added tax, land usage levy, stamp duty and other miscellaneous levies, duties and taxes imposed by the state and local Chinese government.

15

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements as at December 31, 2017 and for three and nine months ended December 31, 2017 and 2016

(Unaudited)(Expressed in thousands of U.S. dollars, unless otherwise stated)

13. FINANCE ITEMS

Finance items consist of:

		Three months ended December 31,				Nine months ended December 31,
Finance income		2017		2016		2017		2016
Interest income	$	822	$	647	$	2,046	$	1,615
		Three months ended December 31,				Nine months ended December 31,
Finance costs		2017		2016		2017		2016
Interest on mine right fee	$	-	$	10	$	-	$	226
Interest on bank loan		-		49		-		149
Unwinding of discount of environmental rehabilitation provision		112		102		329		310
	$	112	$	161	$	329	$	685

14. INCOME TAX

The significant components of income tax expense are as follows:

		Three months ended December 31,				Nine months ended December 31,
Income tax expense		2017		2016		2017		2016
Current	$	3,712	$	4,737	$	11,455	$	10,343
Deferred		590		616		2,131		3,748
	$	4,302	$	5,353	$	13,586	$	14,091

15. FINANCIAL INSTRUMENTS

The Company manages its exposure to financial risks, including liquidity risk, foreign exchange risk, interest rate risk, credit risk and equity price risk in accordance with its risk management framework. The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework and reviews the Company’s policies on an ongoing basis.

(a)Fair value

The Company classifies its fair value measurements within a fair value hierarchy, which reflects the significance of the inputs used in making the measurements as defined in IFRS 13, Fair Value Measurement (“IFRS 13”).

Level 1 – Unadjusted quoted prices at the measurement date for identical assets or liabilities in active markets.

Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 – Unobservable inputs which are supported by little or no market activity.

The following tables set forth the Company’s financial assets and liabilities that are measured at fair value level on a recurring basis within the fair value hierarchy at December 31, 2017 and March 31, 2017 that

16

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements as at December 31, 2017 and for three and nine months ended December 31, 2017 and 2016

(Unaudited)(Expressed in thousands of U.S. dollars, unless otherwise stated)

are not otherwise disclosed. As required by IFRS 13, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

		Fair value as at December 31, 2017
Recurring measurements		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	66,274	$	-	$	-	$	66,274
Investments in publicly traded companies		6,800		-		-		6,800
		Fair value as at March 31, 2017
Recurring measurements		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	73,003	$	-	$	-	$	73,003
Investments in publicly traded companies		1,207		-		-		1,207

Fair value of the other financial instruments excluded from the table above approximates their carrying amount as of December 31, 2017 and March 31, 2017, respectively, due to the short-term nature of these instruments.

There were no transfers into or out of level 3 during the three and nine months ended December 31, 2017 and 2016.

(a)Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its short-term business requirements. The Company has in place a planning and budgeting process to help determine the funds required to support the Company’s normal operating requirements on an ongoing basis and its expansion plans.

In the normal course of business, the Company enters into contracts that give rise to commitments for future minimum payments. The following summarizes the remaining contractual maturities of the Company’s financial liabilities.

				December 31, 2017						March 31, 2017
		Within a year		2-3 years		4-5 years		Total		Total
Accounts payable and accrued liabilities	$	34,799	$	-	$	-	$	34,799	$	30,374

(b) Foreign exchange risk

The Company reports its financial statements in US dollars. The functional currency of the head office, Canadian subsidiaries and all intermediate holding companies is CAD and the functional currency of all Chinese subsidiaries is RMB. The Company is exposed to foreign exchange risk when the Company undertakes transactions and holds assets and liabilities in currencies other than its functional currencies. The Company currently does not engage in foreign exchange currency hedging. The Company's exposure to currency risk affect net income is summarized as follow:

17

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements as at December 31, 2017 and for three and nine months ended December 31, 2017 and 2016

(Unaudited)(Expressed in thousands of U.S. dollars, unless otherwise stated)

		December 31, 2017		March 31, 2017
Financial assets denominated in U.S. Dollars	$	21,830	$	29,093
Financial assets denominated in Chinese RMB	$	1	$	7,115

As at December 31, 2017, with other variables unchanged, a 10% strengthening (weakening) of the CAD against the USD would have decreased (increased) net income by approximately $2.2 million.

(c) Interest rate risk

The Company is exposed to interest rate risk on its cash equivalents and short-term investments. As at December 31, 2017, all of its interest-bearing cash equivalents and short-term investments earn interest at market rates that are fixed to maturity or at variable interest rate with terms of less than one year. The Company monitors its exposure to changes in interest rates on cash equivalents and short-term investments. Due to the short-term nature of the financial instruments, fluctuations in interest rates would not have a significant impact on the Company’s after-tax net income.

(d) Credit risk

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company is exposed to credit risk primarily associated to accounts receivable, due from related parties, cash and cash equivalents and short-term investments. The carrying amount of assets included on the balance sheet represents the maximum credit exposure.

The Company undertakes credit evaluations on counterparties as necessary, requests deposits from customers prior to delivery, and has monitoring processes intended to mitigate credit risks. The Company has no trade receivables from customers as at December 31, 2017. There were no amounts in other receivables which were past due at December 31, 2017 (at March 31, 2017 - $nil) for which no provision is recognized.

(e) Equity price risk

The Company holds certain marketable securities that will fluctuate in value as a result of trading on Canadian financial markets. As the Company’s marketable securities holding are mainly in mining companies, the value will also fluctuate based on commodity prices. Based upon the Company’s portfolio at December 31, 2017, a 10% increase (decrease) in the market price of the securities held, ignoring any foreign currency effects would have resulted in an increase (decrease) to comprehensive income of approximately $0.68 million.

18

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements as at December 31, 2017 and for three and nine months ended December 31, 2017 and 2016

(Unaudited)(Expressed in thousands of U.S. dollars, unless otherwise stated)

16. SEGMENTED INFORMATION

The Company's reportable operating segments are components of the Company where separate financial information is available that is evaluated regularly by the Company’s Chief Executive Officer who is the Chief Operating Decision Maker (“CODM”). The operational segments are determined based on the Company’s management and internal reporting structure. Operating segments are summarized as follows:

Operational Segments	Subsidiaries Included in the Segment	Properties Included in the Segment
Mining
Henan Luoning	Henan Found and Henan Huawei	Ying Mining District
Hunan	Yunxiang	BYP
Guangdong	Guangdong Found	GC
Other	SX Gold and 0875786 B.C. Ltd.	XHP
Administrative
Vancouver	Silvercorp Metals Inc. and BVI's holding companies	RZY
Beijing	Silvercorp Metals (China) Inc.

(a) Segmented information for assets and liabilities are as follows:

December 31, 2017
		Mining									Administrative
		Henan													Total
Statement of financial position items:		Luoning		Hunan	Guangdong				Other		Beijing		Vancouver
Current assets	$	93,926	$	1,531		$	10,359	$	677	$	2,392	$	23,208	$	132,093
Plant and equipment		46,376		4,825			16,362		10		1,088		153		68,814
Mineral rights and properties		187,458		7,257			28,978		242		-		-		223,935
Investment in an associate		-		-			-		-		-		33,902		33,902
Other investments		-		-			-		5,604		-		1,196		6,800
Reclamation deposits		5,201		-			154		-		-		8		5,363
Long-term prepaids and deposits		411		105			240		206		-		-		962
Total assets	$	333,372	$	13,718		$	56,093	$	6,739	$	3,480	$	58,467	$	471,869
Current liabilities	$	32,858	$	1,607		$	6,563	$	2,898	$	1,058	$	2,203	$	47,187
Deferred income tax liabilities		30,622		894			-		-		-		-		31,516
Environmental rehabilitation		11,038		998			884		295		-		-		13,215
Total liabilities	$	74,518	$	3,499		$	7,447	$	3,193	$	1,058	$	2,203	$	91,918
March 31, 2017
		Mining									Administrative
		Henan													Total
Statement of financial position items:		Luoning		Hunan	Guangdong				Other		Beijing		Vancouver
Current assets	$	64,298	$	1,869		$	4,796	$	523	$	823	$	38,523	$	110,832
Plant and equipment		43,297		4,832			15,915		-		1,081		76		65,201
Mineral rights and properties		170,690		6,855			28,655		-		-		-		206,200
Investment in an associate		-		-			-		-		-		8,517		8,517
Other investments		-		-			-		-		-		1,207		1,207
Reclamation deposits		4,901		-			145		-		-		8		5,054
Long-term prepaids and deposits		432		99			306		122		-		-		959
Total assets	$	283,618	$	13,655		$	49,817	$	645	$	1,904	$	48,331	$	397,970
Current liabilities	$	29,951	$	1,425		$	3,860	$	2,959	$	184	$	1,778	$	40,157
Mine right fee payable		-		-			-		-		-		-		-
Deferred income tax liabilities		26,846		846			-		-		-		-		27,692
Environmental rehabilitation		10,183		918			813		272		-		-		12,186
Total liabilities	$	66,980	$	3,189		$	4,673	$	3,231	$	184	$	1,778	$	80,035

19

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements as at December 31, 2017 and for three and nine months ended December 31, 2017 and 2016

(Unaudited)(Expressed in thousands of U.S. dollars, unless otherwise stated)

(b)Segmented information for operating results are as follows:

Three months ended December 31, 2017
					Mining									Administrative
		Henan																		Total
Statement of operations:		Luoning			Hunan(1)		Guangdong				Other			Beijing			Vancouver
Sales	$	34,832		$	-		$	9,520		$	-		$	-		$	-		$	44,352
Cost of sales		(15,616	)		-			(5,570	)		-			-			-			(21,186	)
Gross profit		19,216			-			3,950			-			-			-			23,166
Operating (expenses) recovery		(2,249	)		(380	)		(984	)		2,095			(380	)		(1,609	)		(3,507	)
Finance items		292			(20	)		3			(2	)		63			374			710
Income tax (expenses) recovery		(4,314	)		12			-			-			-			-			(4,302	)
Net income (loss)	$	12,945		$	(388	)	$	2,969		$	2,093		$	(317	)	$	(1,235	)	$	16,067
Attributed to:
Equity holders of the Company		10,092			(271	)		2,826			1,623			(317	)		(1,235	)		12,718
Non-controlling interests		2,853			(117	)		143			470			-			-			3,349
Net income (loss)	$	12,945		$	(388	)	$	2,969		$	2,093		$	(317	)	$	(1,235	)	$	16,067
(1) Hunan's BYP project was placed on care and maintenance starting August 2014;
Three months ended December 31, 2016
					Mining									Administrative
		Henan																		Total
Statement of operations:		Luoning			Hunan		Guangdong				Other			Beijing			Vancouver
Sales	$	40,040		$	-		$	7,798		$	-		$	-		$	-		$	47,838
Cost of sales		(16,685	)		-			(4,775	)		-			-			-			(21,460	)
Gross profit		23,355			-			3,023			-			-			-			26,378
Operating expenses		(2,032	)		(497	)		(895	)		(55	)		(315	)		(1,079	)		(4,873	)
Finance items		30			(34	)		27			(3	)		59			407			486
Income tax (expenses) recovery		(5,338	)		(20	)		-			-			-			5			(5,353	)
Net income (loss)	$	16,015		$	(551	)	$	2,155		$	(58	)	$	(256	)	$	(667	)	$	16,638
Attributed to:
Equity holders of the Company		12,413			(386	)		2,056			(45	)		(256	)		(667	)		13,115
Non-controlling interests		3,602			(165	)		99			(13	)		-			-			3,523
Net income (loss)	$	16,015		$	(551	)	$	2,155		$	(58	)	$	(256	)	$	(667	)	$	16,638

20

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements as at December 31, 2017 and for three and nine months ended December 31, 2017 and 2016

(Unaudited)(Expressed in thousands of U.S. dollars, unless otherwise stated)

Nine months ended December 31, 2017
					Mining									Administrative
		Henan																		Total
Statement of income:		Luoning			Hunan(1)		Guangdong				Other			Beijing			Vancouver
Sales	$	107,125		$	-		$	24,465		$	-		$	-		$	-		$	131,590
Cost of sales		(47,454	)		-			(15,359	)		-			-			-			(62,813	)
Gross profit		59,671			-			9,106			-			-			-			68,777
Operating (expenses) income		(6,091	)		(896	)		(2,222	)		6,202			(999	)		(8,719	)		(12,725	)
Finance items, net		355			(59	)		2			(7	)		193			1,233			1,717
Income tax expenses		(13,587	)		2			-			-			(1	)		-			(13,586	)
Net income (loss)	$	40,348		$	(953	)	$	6,886		$	6,195		$	(807	)	$	(7,486	)	$	44,183
Attributable to:
Equity holders of the Company		31,423			(667	)		6,563			5,774			(807	)		(7,486	)		34,800
Non-controlling interests		8,925			(286	)		323			421			-			-			9,383
Net income (loss)	$	40,348		$	(953	)	$	6,886		$	6,195		$	(807	)	$	(7,486	)	$	44,183

⁽¹⁾ Hunan's BYP project was placed on care and maintenance in August 2014;

Nine months ended December 31, 2016
					Mining									Administrative
		Henan																		Total
Statement of income:		Luoning			Hunan		Guangdong				Other			Beijing			Vancouver
Sales	$	110,666		$	-		$	18,741		$	-		$	-		$	-		$	129,407
Cost of sales		(48,819	)		-			(12,707	)		-			-			-			(61,526	)
Gross profit		61,847			-			6,034			-			-			-			67,881
Operating expenses		(7,122	)		(926	)		(2,053	)		(113	)		(1,044	)		(4,117	)		(15,375	)
Impairment loss		-			-			-			-			-			(181	)		(181	)
Finance items, net		(55	)		(49	)		29			(7	)		200			812			930
Income tax (expenses) recovery		(13,617	)		52			-			-			(1	)		(525	)		(14,091	)
Net income (loss)	$	41,053		$	(923	)	$	4,010		$	(120	)	$	(845	)	$	(4,011	)	$	39,164
Attributable to:
Equity holders of the Company		31,924			(646	)		3,838			(93	)		(845	)		(4,011	)		30,167
Non-controlling interests		9,129			(277	)		172			(27	)		-			-			8,997
Net income (loss)	$	41,053		$	(923	)	$	4,010		$	(120	)	$	(845	)	$	(4,011	)	$	39,164

21

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements as at December 31, 2017 and for three and nine months ended December 31, 2017 and 2016

(Unaudited)(Expressed in thousands of U.S. dollars, unless otherwise stated)

(c) Sales by metal

The sales generated for the three and nine months ended December 31, 2017 and 2016 was all earned in China and is comprised of:

		Three months ended December 31, 2017
		Henan Luoning		Guangdong		Total
Silver (Ag)	$	17,718	$	2,088	$	19,806
Gold (Au)		632		-		632
Lead (Pb)		14,045		2,378		16,423
Zinc (Zn)		2,337		5,048		7,385
Other		100		6		106
	$	34,832	$	9,520	$	44,352
		Three months ended December 31, 2016
		Henan Luoning		Guangdong		Total
Silver (Ag)	$	21,664	$	1,746	$	23,410
Gold (Au)		723		-		723
Lead (Pb)		16,658		2,085		18,743
Zinc (Zn)		995		3,775		4,770
Other		-		192		192
	$	40,040	$	7,798	$	47,838
		Nine months ended December 31, 2017
		Henan Luoning		Guangdong		Total
Silver (Ag)	$	56,850	$	5,735	$	62,585
Gold (Au)		2,448		-		2,448
Lead (Pb)		41,728		5,948		47,676
Zinc (Zn)		5,604		12,548		18,152
Other		495		234		729
	$	107,125	$	24,465	$	131,590
		Nine months ended December 31, 2016
		Henan Luoning		Guangdong		Total
Silver (Ag)	$	65,953	$	5,268	$	71,221
Gold (Au)		2,682		-		2,682
Lead (Pb)		38,723		4,656		43,379
Zinc (Zn)		3,308		8,514		11,822
Other		-		303		303
	$	110,666	$	18,741	$	129,407

(d) Major customers

For the nine months ended December 31, 2017, three major customers (nine months ended December 31, 2016 - three) accounted for 22% to 27%, (nine months ended December 31, 2016 - 16% to 32%) and collectively 74% (nine months ended December 31, 2016 - 78%) of the total sales of the Company.

22

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements as at December 31, 2017 and for three and nine months ended December 31, 2017 and 2016

(Unaudited)(Expressed in thousands of U.S. dollars, unless otherwise stated)

17. COMMITMENTS AND CONTINGENCIES

Commitments, not disclosed elsewhere in these financial statements, are as follows:

		Total		Less than 1 year		1-5 years		After 5 years
Operating leases	$	3,264	$	405	$	2,859	$	-
Commitments	$	6,418	$	-	$	-	$	6,418

As of December 31, 2017, the Company has two office rental agreements totaling $3,264 for the next five years and commitments of $6,418 related to the GC property. During the three and nine months ended December 31, 2017, the Company incurred rental expenses of $165 and $490, respectively (three and nine months ended December 31, 2016 - $93 and $393, respectively), which were included in office and administrative expenses on the condensed consolidated interim statement of income.

Although the Company has taken steps to verify title to properties in which it has an interest, these procedures do not guarantee the Company's title. Property title may be subject to, among other things, unregistered prior agreements or transfers and may be affected by undetected defects.

Due to the size, complexity and nature of the Company’s operations, the Company is subject to various claims, legal and tax matters arising in the ordinary course of business. Each of these matters is subject to various uncertainties and it is possible that some of these matters may be resolved unfavorably to the Company. The Company accrues for such items when a liability is both probable and the amount can be reasonably estimated.

In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company and its legal counsel evaluate the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. Major legal proceedings against the Company are summarized as follows:

• On August 19, 2014, an action was commenced against the Company in the Supreme Court of British Columbia seeking an unspecified amount of damages for a claim of false imprisonment and defamation (the “Huang Action”). The case was scheduled for a 60 day jury trial, commencing February 2018. The Company also commenced third party proceedings against other parties (the “Third Parties”), claiming contribution and indemnity. On August 22, 2016, the Company commenced an action against the parties to Huang Action and others seeking damages (the “Silvercorp Action”).
  Subsequent to the period end, the parties to the Huang Action and Silvercorp Action, have reached a confidential settlement agreement. The settlement resolves all claims between the Company, Mr. Huang, and the Third Parties in all actions, including the Huang Action and the Silvercorp Action, which will both be dismissed by consent. Nothing contained in this settlement represents an admission of liability, fault, or wrongdoing on the part of any of the parties.

• During the year ended March 31, 2016, an action was initiated by Luoyang Mining Group Co., Ltd. (“Luoyang Mining”) against Henan Found seeking payment of $1.6 million (RMB10.0 million) plus interest related to the acquisition agreements Henan Found entered into in August 2012 to acquire the XHP Project. The $1.6 million has been included into the accounts payable and accrued liabilities on the condensed consolidated interim statements of financial position of the Company. Henan

23

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements as at December 31, 2017 and for three and nine months ended December 31, 2017 and 2016

(Unaudited)(Expressed in thousands of U.S. dollars, unless otherwise stated)

Found did not make the final payment as certain commercial conditions were not fulfilled by Luoyang Mining. In April 2016, Henan Found filed a counter claim in Luoyang People’s Court against Luoyang Mining to have the original acquisition agreements nullified and is seeking repayment of the amount paid to date of $9.7 million (RMB62.8 million) plus compensation of direct loss of $2.5 million (RMB16.5 million) arising from the XHP Project. A trial was heard in March 2017 but a court decision has not yet been made. The acquisition costs of the XHP Project was impaired to $nil in fiscal year 2015.

• During the year ended March 31, 2016, SX Gold, a 100% owned subsidiary of Henan Found, commenced a legal action against Luoyang HA Mining Co. Ltd. (“HA Mining”) to seek payment of $4.0 million (RMB26.0 million) plus interest related to a share transfer agreement that SX Gold entered into with HA Mining in September 2013. Pursuant to the agreement, SX Gold was to transfer all shares it held in Songxian Zhongxin Mining Co. Ltd. to HA Mining for $11.8 million (RMB76.0 million).
  SX Gold fulfilled its responsibilities and the title of the shares was transferred to HA Mining, who paid $7.8 million (RMB50.0 million). The remaining $4.0 million (RMB26.0 million) was not paid and was written off by the Company in prior years. In April 2016, HA Mining filed a counter claim for $2.2 million (RMB14.0 million). On June 17, 2016, the court issued an order in favor of SX Gold. The Luoyang Intermediate People’s Court, Henan, China issued a court order demanding HA Mining to pay $3.4 million (RMB22.75 million) to SX Gold. On July 1, 2016, HA Mining filed an appeal to the Henan High People’s Count, China. A trial was heard in April 2017 and on June 16, 2017, the Henan High People’s Court, China dismissed HA Mining’s appeal and upheld the rulings made by the Luoyang Intermediate People’s Court, Henan, China. On August 4, 2017, HA Mining submitted an application to the Supreme People’s Court of China (the “Supreme Court”) to rehear the case, the application was rejected by the Supreme Court on November 24, 2017. On December 6, 2017, SX Gold and HA Mining reached a mutual settlement agreement that HA Mining would pay $2.3 million (RMB15.0 million) to SX Gold. As of December 31, 2017, HA Mining paid $2.3 million (RMB15.0 million) to the Company, which was included in other income of the condensed consolidated interim statements of income, and the case was closed.

18. SUPPLEMENTARY CASH FLOW INFORMATION

		December 31, 2017		March 31, 2017
Cash on hand and at bank	$	42,012	$	39,243
Bank term deposits and GICs		24,262		33,760
Total cash and cash equivalents	$	66,274	$	73,003

Changes in non-cash operating working capital:		Three Months Ended December 31,					Nine Months Ended December 31,
		2017		2016			2017			2016
Trade and other receivables	$	115	$	77		$	179		$	866
Inventories		(2,645	)	(618	)		(3,074	)		(1,097	)
Prepaids and deposits		652		414			438			184
Accounts payable and accrued liabilities		7,945		3,956			7,835			8,744
Deposits received		(1,670	)	(1,824	)		149			127
Due from a related party		34		(50	)		71			(168	)
	$	4,431	$	1,955		$	5,598		$	8,656

24

EX-99.5

Exhibit 99.5

SILVERCORP METALS INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of US dollars, except per share figures or otherwise stated)

Table of Contents

1.	Core Business and Strategy	2
2.	Third Quarter of Fiscal Year 2018 Highlights	2
3.	Operating Performance	3
4.	Investment in New Pacific Metals Corp. (“NUAG”)	12
5.	Third Quarter Fiscal 2018 Financial Results	14
6.	Liquidity and Capital Resources	17
7.	Financial Instruments and Related Risks	19
8.	Off-Balance Sheet Arrangements	21
9.	Transactions with Related Parties	21
10.	Alternative Performance (Non-IFRS) Measures	22
11.	Critical Accounting Policies and Estimates	30
12.	New Accounting Standards	31
13.	Other MD&A Requirements	32
14.	Outstanding Share Data	32
15.	Risks and Uncertainties	33
16.	Disclosure Controls and Procedures	36
17.	Changes in Internal Control over Financial Reporting	36
18.	Directors and Officers	36
Forward Looking Statements		37

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

Management’s Discussion and Analysis (“MD&A”) is intended to help the reader understand the significant factors that have affected Silvercorp Metals Inc. and its subsidiaries’ (“Silvercorp” or the “Company”) performance and such factors that may affect its future performance. This MD&A should be read in conjunction with the Company’s unaudited condensed consolidated financial statements for the three and nine months ended December 31, 2017 and the related notes contained therein. In addition, the following should be read in conjunction with the audited consolidated financial statements of the Company for the year ended March 31, 2017, the related MD&A, the Annual Information Form (available on SEDAR at www.sedar.com), and the annual report on Form 40-F. The Company reports its financial position, results of operations and cash flow in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). Silvercorp’s significant accounting policies are set out in Note 2 of the unaudited condensed consolidated financial statements for the three and nine months ended December 31, 2017, as well as Note 2 to the audited consolidated financial statements for the year ended March 31, 2017. This MD&A refers to various non-IFRS measures, such as total and cash cost per ounce of silver, net of by-product credits, all-in & all-in sustaining cost per ounce of silver, net of by-product credits, cash flow from operations per share, adjusted net income and adjusted earning per share, and production costs per tonne. Non-IFRS measures do not have standardized meanings under IFRS. Accordingly, non-IFRS measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. To facilitate a better understanding of these measures as calculated by the Company, we have provided detailed descriptions and reconciliations, in section 10 of this MD&A. Figures may not add due to rounding.

This MD&A is prepared as of February 7, 2018 and expressed in thousands of U.S. dollars, except share, per share, unit cost, and production data, unless otherwise stated.

1. Core Business and Strategy

Silvercorp Metals Inc. is engaged in the acquisition, exploration, development and mining of high-grade silver-related mineral properties in China. Silvercorp is a leading primary silver producer in China through the operation of several silver-lead-zinc mines at the Ying Mining District in Henan Province, China and its GC silver-lead-zinc mine in Guangdong Province, China. The Company’s shares are traded on Toronto Stock Exchange and commencing May 15, 2017, on NYSE American Stock Exchange.

2. Third Quarter of Fiscal Year 2018 Highlights

• Net income attributable to equity shareholders of $12.7 million, or $0.08 per share¹ , compared to net income attributable to equity shareholders of $13.1 million, or $0.08 per share in the prior year quarter;

• Gross margin of 52% compared with 55% in the prior year quarter;

• Sales of $44.4 million, down $3.4 million or 7%, compared to $47.8 million in the prior year quarter;

• Inventories of silver-lead concentrate of 6,234 tonnes, valued at approximately $16.0 million, an increase of $4.5 million or 39%, compared to 4,666 tonnes valued at approximately $11.5 million in the prior year quarter;

• Silver, lead, and zinc metals sold amounted to approximately 1.5 million ounces silver, 15.8 million pounds lead, and 6.4 million pounds zinc, compared to 1.7 million ounces silver, 19.5 million pounds lead, and 5.7 million pounds zinc in the prior year quarter;

• Head grades were 315 grams per tonne (“g/t”) for silver, 4.5% for lead, and 1.0% for zinc at the Ying Mining District, compared to 303 g/t for silver, 4.8% for lead and 0.8% for zinc in the prior year quarter;

• Total and cash mining costs per tonne ore² of $74.16 and $56.11, respectively, compared to $67.12 and $47.52 in the prior year quarter;

• Cash cost per ounce of silver² , net of by-product credits, of negative $5.92, compared to negative $5.48 in the prior year quarter;

• All-in sustaining cost per ounce of silver² , net of by-product credits, of $3.16, compared to $1.87 in the prior year quarter;

____________________
¹ Earnings per share refers to basic earnings per share
² Non IFRS measure, please refer to section 10 for reconciliation

Management’s Discussion and Analysis Page 2

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

• Spent $1.8 million to buyback 788,000 common shares of the Company;

• Paid $1.7 million dividend to equity shareholders of the Company;

• Invested $3.8 million to participate in a private placement of New Pacific Metals Corp; and,

• Ended the quarter with $113.3 million in cash and cash equivalents and short-term investments, an increase of $16.8 million or 17% compared to $96.5 million as at March 31, 2017.

3. Operating Performance

The following table summarizes consolidated and each mining district’s operational information for the three months ended December 31, 2017:

		Three months ended December 31, 2017
		Ying Mining District1		GC2		Total
Production Data
Mine Data
	Ore Mined (tonne)	166,619		85,665		252,284
	Ore Milled (tonne)	167,543		88,494		256,037
+	Mining cost per tonne of ore mined ($)	90.12		43.10		74.16
	Cash mining cost per tonne of ore mined ($)	66.71		35.48		56.11
	Non cash mining cost per tonne of ore mined ($)	23.41		7.62		18.05
+	Unit shipping costs($)	4.05		-		2.69
+	Milling cost per tonne of ore milled ($)	11.87		16.45		13.45
	Cash milling cost per tonne of ore milled ($)	9.84		14.09		11.31
	Non cash milling cost per tonne of ore milled ($)	2.03		2.36		2.14
+	Average Production Cost
	Silver ($ per ounce)	5.64		5.91		5.86
	Gold ($ per ounce)	380		-		406
	Lead ($ per pound)	0.44		0.58		0.47
	Zinc ($ per pound)	0.49		0.64		0.52
	Other ($ per pound)	0.45		-		0.01
+	Total production cost per ounce of Silver, net of by-product credits ($)	(1.87	)	(10.95	)	(3.04	)
+	Total cash cost per ounce of Silver, net of by-product credits ($)	(4.53	)	(15.34	)	(5.92	)
+	All-in sustaining cost per ounce of Silver, net of by-product credits ($)	2.13		(4.52	)	3.16
+	All-in cost per ounce of Silver, net of by-product credits ($)	2.97		(7.23	)	3.50
	Recovery Rates
	Silver (%)	95.8		73.6		92.7
	Lead (%)	96.4		83.9		94.6
	Zinc (%)	57.3		81.3		71.7
	Head Grades
	Silver (gram/tonne)	315		97		240
	Lead (%)	4.5		1.4		3.4
	Zinc (%)	1.0		2.8		1.6
Concentrate in stock
	Lead concentrate (tonne)	6,200		34		6,234
	Zinc concentate (tonne)	230		60		290
Sales Data
Metal Sales
	Silver (in thousands of ounces)	1,322		196		1,518
	Gold (in thousands of ounces)	0.7		-		0.7
	Lead (in thousands of pounds)	13,487		2,263		15,750
	Zinc (in thousands of pounds)	2,006		4,399		6,405
Metal Sales
	Silver (in thousands of $)	17,718		2,088		19,806
	Gold (in thousands of $)	632		-		632
	Lead (in thousands of $)	14,045		2,378		16,423
	Zinc (in thousands of $)	2,337		5,048		7,385
	Other (in thousands of $)	100		6		106
		34,832		9,520		44,352
Average Selling Price, Net of Value Added Tax and Smelter Charges
	Silver ($ per ounce)	13.40		10.65		13.05
	Gold ($ per ounce)	903		-		903
	Lead ($ per pound)	1.04		1.05		1.04
	Zinc ($ per pound)	1.17		1.15		1.15

1 Ying Mining District includes mines: SGX, TLP, HPG,LM, BCG and HZG.
2 GC Silver recovery rate consis ts of 52.5% from lead concentrates and 21.1% from zinc concentrates.
2 GC Silver sold in zinc concentrates is subjected to higher smelter and refining charges which lower the net silver selling price.
+ Non-IFRS measures, see section 10 for reconciliation

Management’s Discussion and Analysis Page 3

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

The following table summarizes consolidated and each mining district’s operational information for the three months ended December 31, 2016:

		Three months ended December 31, 2016
		Ying Mining
		District1		GC2		Total
Production Data
Mine Data
	Ore Mined (tonne)	171,303		81,481		252,784
	Ore Milled (tonne)	182,259		81,080		263,339
+	Mining cost per tonne of ore mined ($)	80.53		38.90		67.12
	Cash mining cost per tonne of ore mined ($)	55.21		31.34		47.52
	Non cash mining cost per tonne of ore mined ($)	25.32		7.56		19.60
+	Unit shipping costs($)	3.92		-		2.67
+	Milling cost per tonne of ore milled ($)	11.03		15.50		12.40
	Cash milling cost per tonne of ore milled ($)	9.09		13.09		10.32
	Non cash milling cost per tonne of ore milled ($)	1.94		2.41		2.08
+	Average Production Cost
	Silver ($ per ounce)	5.41		5.68		5.67
	Gold ($ per ounce)	401		-		434
	Lead ($ per pound)	0.37		0.55		0.40
	Zinc ($ per pound)	0.32		0.49		0.35
	Other ($ per pound)	-		3.99		2.88
+	Total production cost per ounce of Silver, net of by-product credits ($)	(1.81	)	(8.45	)	(2.50	)
+	Total cash cost per ounce of Silver, net of by-product credits ($)	(4.60	)	(13.11	)	(5.48	)
+	All-in sustaining cost per ounce of Silver, net of by-product credits ($)	1.34		(6.12	)	1.87
+	All-in cost per ounce of Silver, net of by-product credits ($)	1.46		(4.77	)	2.12
	Recovery Rates
	Silver (%)	95.1		75.4		92.8
	Lead (%)	96.7		85.5		95.4
	Zinc (%)	47.5		86.5		70.9
	Head Grades
	Silver (gram/tonne)	303		89		237
	Lead (%)	4.8		1.4		3.7
	Zinc (%)	0.8		2.8		1.5
Concentrate in stock
	Lead concentrate (tonne)	4,656		10		4,666
	Zinc concentate (tonne)	670		29		699
Sales Data
Metal Sales
	Silver (in thousands of ounces)	1,555		179		1,734
	Gold (in thousands of ounces)	0.7		-		0.7
	Lead (in thousands of pounds)	17,269		2,214		19,483
	Zinc (in thousands of pounds)	1,210		4,478		5,688
	Other (in thousands of pound)	-		28		28
Metal Sales
	Silver (in thousands of $)	21,664		1,746		23,410
	Gold (in thousands of $)	723		-		723
	Lead (in thousands of $)	16,658		2,085		18,743
	Zinc (in thousands of $)	995		3,775		4,770
	Other (in thousands of $)	-		192		192
		40,040		7,798		47,838
Average Selling Price, Net of Value Added Tax and Smelter Charges
	Silver ($ per ounce)	13.93		9.75		13.50
	Gold ($ per ounce)	1,033		-		1,033
	Lead ($ per pound)	0.96		0.94		0.96
	Zinc ($ per pound)	0.82		0.84		0.84

¹ Ying Mining District includes mines: SGX, TLP, HPG,LM, BCG and HZG.
² GC Silver recovery rate consists of 51.0% from lead concentrates and 24.4% from zinc concentrates .
² GC Silver sold in zinc concentrates is subjected to higher smelter and refining charges which lower the net silver selling price.
+ Non-IFRS measures , see section 10 for reconciliation

Management’s Discussion and Analysis Page 4

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

The following table summarizes consolidated and each mining district’s operational information for the nine months ended December 31, 2017:

		Nine months ended December 31, 2017
		Ying Mining
		District1		GC2		Consolidated
Production Data
Mine Data
	Ore Mined (tonne)	500,321		216,341		716,662
	Ore Milled (tonne)	506,448		218,086		724,534
+	Mining cost per tonne of ore mined ($)	82.72		44.12		71.07
	Cash mining cost per tonne of ore mined ($)	60.45		36.33		53.17
	Non cash mining cost per tonne of ore mined ($)	22.27		7.79		17.90
+	Unit shipping costs($)	3.93		-		2.75
+	Milling cost per tonne of ore milled ($)	10.80		17.46		12.81
	Cash milling cost per tonne of ore milled ($)	8.80		14.60		10.55
	Non cash milling cost per tonne of ore milled ($)	2.00		2.86		2.26
+	Average Production Cost
	Silver ($ per ounce)	5.74		6.35		6.04
	Gold ($ per ounce)	424		-		458
	Lead ($ per pound)	0.41		0.59		0.44
	Zinc ($ per pound)	0.46		0.63		0.48
	Other ($ per pound)	0.39		0.01		0.02
+	Total production cost per ounce of Silver, net of by-product credits ($)	(1.40	)	(7.60	)	(2.12	)
+	Total cash cost per ounce of Silver, net of by-product credits ($)	(4.03	)	(12.19	)	(4.97	)
+	All-in sustaining cost per ounce of Silver, net of by-product credits ($)	2.25		(3.59	)	3.35
+	All-in cost per ounce of Silver, net of by-product credits ($)	2.69		(3.53	)	3.75
	Recovery Rates
	Silver (%)	95.7		76.1		93.3
	Lead (%)	96.3		85.2		94.9
	Zinc (%)	51.7		81.2		68.9
	Head Grades
	Silver (gram/tonne)	304		99		242
	Lead (%)	4.5		1.5		3.6
	Zinc (%)	0.9		2.8		1.4
Concentrate in stock
	Lead concentrate (tonne)	6,200		34		6,234
	Zinc concentate (tonne)	230		60		290
Sales Data
Metal Sales
	Silver (in thousands of ounces)	4,118		540		4,658
	Gold (in thousands of ounces)	2.4		-		2.4
	Lead (in thousands of pounds)	42,531		6,066		48,597
	Zinc (in thousands of pounds)	5,030		11,954		16,984
	Other (in thousands of pounds)	524		16,190		16,714
Metal Sales
	Silver (in thousands of $)	56,850		5,735		62,585
	Gold (in thousands of $)	2,448		-		2,448
	Lead (in thousands of $)	41,728		5,948		47,676
	Zinc (in thousands of $)	5,604		12,548		18,152
	Other (in thousands of $)	495		234		729
		107,125		24,465		131,590
Average Selling Price, Net of Value Added Tax and Smelter Charges
	Silver ($ per ounce)	13.81		10.62		13.44
	Gold ($ per ounce)	1,020		-		1,020
	Lead ($ per pound)	0.98		0.98		0.98
	Zinc ($ per pound)	1.11		1.05		1.07

1 Ying Mining District includes mines: SGX, TLP, HPG,LM, BCG a nd HZG.
2 GC Silver recovery rate consists of 55.4% from lead concentrates and 20.7% from zinc concentrates .
2 GC Silver sold in zinc concentrates is subjected to higher smelter a nd refining charges which lowers the net silver selling price.
+ Non-IFRS measures, see section 10 for reconciliation

Management’s Discussion and Analysis Page 5

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

The following table summarizes consolidated and each mining district’s operational information for the nine months ended December 31, 2016:

		Nine months ended December 31, 2016
		Ying Mining
		District1		GC2		Total
Production Data
Mine Data
	Ore Mined (tonne)	524,005		220,522		744,527
	Ore Milled (tonne)	530,160		220,767		750,927
+	Mining cost per tonne of ore mined ($)	78.46		39.05		66.79
	Cash mining cost per tonne of ore mined ($)	52.18		31.04		45.92
	Non cash mining cost per tonne of ore mined ($)	26.28		8.01		20.87
+	Unit shipping costs($)	3.86		-		2.72
+	Milling cost per tonne of ore milled ($)	11.35		16.47		12.86
	Cash milling cost per tonne of ore milled ($)	9.31		13.76		10.62
	Non cash milling cost per tonne of ore milled ($)	2.04		2.71		2.24
+	Average Production Cost
	Silver ($ per ounce)	5.93		6.70		6.23
	Gold ($ per ounce)	434		-		468
	Lead ($ per pound)	0.33		0.49		0.35
	Zinc ($ per pound)	0.29		0.46		0.32
	Other ($ per pound)	-		0.02		0.02
+	Total production cost per ounce of Silver, net of by-product credits ($)	0.39		(2.52	)	0.10
+	Total cash cost per ounce of Silver, net of by-product credits ($)	(2.50	)	(7.15	)	(2.95	)
+	All-in sustaining cost per ounce of Silver, net of by-product credits ($)	3.11		(1.29	)	3.96
+	All-in cost per ounce of Silver, net of by-product credits ($)	3.81		(0.63	)	4.65
	Recovery Rates
	Silver (%)	95.4		76.2		93.2
	Lead (%)	96.4		86.3		95.2
	Zinc (%)	46.0		86.3		68.0
	Head Grades
	Silver (gram/tonne)	305		94		243
	Lead (%)	4.7		1.5		3.7
	Zinc (%)	1.0		2.9		1.5
Concentrate in stock
	Lead concentrate (tonne)	4,656		10		4,666
	Zinc concentate (tonne)	670		29		699
Sales Data
Metal Sales
	Silver (in thousands of ounces)	4,675		511		5,186
	Gold (in thousands of ounces)	2.6		-		2.6
	Lead (in thousands of pounds)	49,898		6,237		56,135
	Zinc (in thousands of pounds)	4,815		11,991		16,806
	Other (in thousands of pound)	-		8,579		8,579
Metal Sales
	Silver (in thousands of $)	65,953		5,268		71,221
	Gold (in thousands of $)	2,682		-		2,682
	Lead (in thousands of $)	38,723		4,656		43,379
	Zinc (in thousands of $)	3,308		8,514		11,822
	Other (in thousands of $)	-		303		303
		110,666		18,741		129,407
Average Selling Price, Net of Value Added Tax and Smelter Charges
	Silver ($ per ounce)	14.11		10.31		13.73
	Gold ($ per ounce)	1,032		-		1,032
	Lead ($ per pound)	0.78		0.75		0.77
	Zinc ($ per pound)	0.69		0.71		0.70

¹ Ying Mining District includes mines: SGX, TLP, HPG,LM, BCG and HZG.
² GC Silver recovery rate consists of 54.2% from lead concentrates and 22.0% from zinc concentrates.
² GC Silver sold in zinc concentrates is subjected to higher s melter and refining charges which l ower the net silver selling price.
+ Non-IFRS measures, see section 10 for reconciliati on

Management’s Discussion and Analysis Page 6

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

(a) Mine and Milling Production

For the three months ended December 31, 2017 (“Q3 Fiscal 2018”), on a consolidated basis, the Company mined 252,284 tonnes of ore in Q3 Fiscal 2018, comparable to 252,784 tonnes in the three months ended December 31, 2016 (“Q3 Fiscal 2017”). Ore milled were 256,037 tonnes, compared to 263,339 tonnes of ore milled in Q3 Fiscal 2017.

For the nine months ended December 31, 2017, on a consolidated basis, the Company mined 716,662 tonnes of ore, a decrease of 4% or 27,865 tonnes, compared to 744,527 tonnes mined in the same prior year period. Correspondingly, ore milled decreased 4% to 724,534 tonnes compared to 750,927 tonnes. Ore mined at the Ying Mining District decreased by 5% or 23,684 tonnes to 500,321 tonnes from 524,005 tonnes. For the nine months ended December 31, 2017, at the Ying Mining District, approximately 5,000 tonnes of ore production were affected by the power downtime arising from power grid update work by the State Grid Corporation of China and approximately 15,000 tonnes of ore production were affected by the public safety measures, such as explosive supply limitation and temporary suspension of mining activities, brought by the local governments for the 19^th National Congress of Communist Party of China.

(b) Metal Sales

In Q3 Fiscal 2018, the Company sold approximately 1.5 million ounces of silver, 700 ounces of gold, 15.8 million pounds of lead, and 6.4 million pounds of zinc, compared to 1.7 million ounces of silver, 700 ounces of gold, 19.5 million pounds of lead, and 5.7 million pounds of zinc, respectively, in Q3 Fiscal 2017. The decrease of silver and lead sold was mainly due to silver-lead concentrate inventory built up.

As at December 31, 2017, silver-lead concentrate inventories were 6,234 tonnes containing approximately 0.7 million ounces of silver and 6.9 million pounds of lead, an increase of 34% or 1,568 tonnes, compared to 4,666 tonnes silver-lead concentrate inventories containing approximately 0.5 million ounces of silver and 5.4 million pounds of lead held as at December 31, 2016.

For the nine months ended December 31, 2017, the Company sold approximately 4.7 million ounces of silver, 2,400 ounces of gold, 48.6 million pounds of lead, and 17.0 million pounds of zinc, compared to 5.2 million ounces of silver, 2,600 ounces of gold, 56.1 million of lead, and 16.8 million pounds of zinc sold in the same prior year period.

(c) Mining and Milling Costs

In Q3 Fiscal 2018, the consolidated total mining costs and cash mining costs were $74.16 and $56.11 per tonne, compared to $67.12 and $47.52 per tonne, respectively, in Q3 Fiscal 2017. The increase in cash mining costs were mainly due to: i) a $0.9 million increase in raw material supply costs, ii) a $0.4 million increase in mining preparation costs resulting from more underground tunnelling expensed in the current quarter, and iii) a $0.5 million increase in mining labor costs due to additional bonus accrued as per the Company’s profit sharing plan in China.

The consolidated total milling costs and cash milling costs in Q3 Fiscal 2018 were $13.45 and $11.31 per tonne, compared to $12.40 and $10.32 per tonne, respectively, in Q3 Fiscal 2017. The increase in cash milling costs were mainly due to $0.2 million increase in raw material supply costs.

Correspondingly, the consolidated cash production costs per tonne of ore processed in Q3 Fiscal 2018 increased by 16% to $70.11 from $60.51 in the prior year quarter.

For the nine months ended December 31, 2017, the consolidated total mining and cash mining costs were $71.07 and $53.17 per tonne, an increase of 6% and 16%, compared to $66.79 and $45.92 per tonne in the same prior year period. The increase in cash mining costs were mainly due to i) a $1.8 million increase in raw material supply costs, and ii) a $2.1 million increase in mining preparation costs resulting from more underground drilling and tunnelling expensed in the current period.

The consolidated total milling and cash milling cost were $12.81 and $10.55, comparable to $12.86 and

Management’s Discussion and Analysis Page 7

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

$10.62 per tonne in the same prior year period.

Correspondingly, the consolidated cash production costs per tonne of ore processed for the nine months ended December 31, 2017 was $66.47, an increase of 12%, compared to $59.26 in the same prior year period.

(d) Total and Cash Costs per Ounce of Silver, Net of By-Product Credits

In Q3 Fiscal 2018, the consolidated total production costs and cash costs per ounce of silver, net of byproduct credits, were negative $3.04 and negative $5.92 compared to negative $2.50 and negative $5.48 respectively, in the prior year quarter. The overall decrease in cash cost per ounce of silver, net of by-product credits, is mainly due to a 1% increase in by-product credits, mainly arising from 8% and 37% increase in lead and zinc net realized selling prices. Sales from lead and zinc accounted for 54% of the total sales and amounted to $23.8 million, an increase of $0.3 million, compared to $23.5 million in the prior year quarter.

For the nine months ended December 31, 2017, the consolidated total production costs and cash costs per ounce of silver, net of by-product credits, were negative $2.12 and negative $4.97 compared to $0.10 and negative $2.95 respectively, in the same prior year period. The overall decrease in cash cost per ounce of silver, net of by-product credits, is mainly due to a 19% increase in by-product credits, mainly arising from 27% and 53% increase in lead and zinc net realized selling prices, offset by 13% decrease in lead metals sold. Sales from lead and zinc accounted for 50% of the total sales and amounted to $65.8 million, an increase of $10.6 million, compared to $55.2 million in the prior year period.

(e) All-in Sustaining Costs per Ounce of Silver, Net of By-Product Credits

In Q3 Fiscal 2018, the consolidated all-in sustaining costs per ounce of silver, net of by-product credits, was $3.16 compared to $1.87 in Q3 Fiscal 2017. The increase was mainly due to: i) higher per tonne cash production costs as discussed above, ii) a $1.0 million increase in general and administrative expenditures, iii) a $0.4 million increase in sustaining capital expenditures, and iv) less silver sold resulting in higher unit costs allocation.

For the nine months ended December 31, 2017, the consolidated all-in sustaining costs per ounce of silver, net of by-product credits was $3.35 compared to $3.96 in the same prior year period. The improvement was mainly due to a $10.6 million increase in by-product credits offset by a $1.5 million increase in general and administrative expenditures and a $1.5 million increase in sustaining capital expenditures.

Management’s Discussion and Analysis Page 8

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

(f) Operation Review

(i) Ying Mining District

The Ying Mining District consists of several mines, including SGX, HPG, TLP, LM, BCG, and HZG mines, and is the Company’s primary source of production. The operational results at the Ying Mining District for the past five quarters are summarized in the table below:

Operational results - Ying Mining District
	Q3 2018		Q2 2018		Q1 2018		Q4 2017		Q3 2017		Nine months ended December 31,
	December 31, 2017		September 30, 2017		June 30, 2017		March 31, 2017		December 31, 2016		2017		2016
Ore Mined (tonne)	166,619		173,294		160,408		112,755		171,303		500,321		524,005
Ore Milled (tonne)	167,543		173,946		164,959		108,051		182,259		506,448		530,160
Head Grades
Silver (gram/tonne)	315		294		304		298		303		304		305
Lead (%)	4.5		4.3		4.6		4.8		4.8		4.5		4.7
Zinc (%)	1.0		0.8		0.8		0.8		0.8		0.9		1.0
Recoveries
Silver (%)	95.8		95.6		95.8		96.6		95.1		95.7		95.4
Lead (%)	96.4		96.2		96.3		95.6		96.7		96.3		96.4
Zinc (%)	57.3		50.7		45.8		46.2		47.5		51.7		46.0
Metal Sales
Silver (in thousands of ounce)	1,322		1,472		1,324		1,255		1,555		4,118		4,675
Gold (in thousands of ounce)	0.7		0.8		0.9		0.7		0.7		2.4		2.6
Lead (in thousands of pound)	13,487		15,279		13,765		13,520		17,269		42,531		49,898
Zinc (in thousands of pound)	2,006		2,269		755		1,033		1,210		5,030		4,815
Cash mining cost ($ per tonne)	66.71		59.67		54.78		49.99		55.21		60.45		52.18
Total mining cost ($ per tonne)	90.12		81.20		76.67		53.50		80.53		82.72		78.46
Cash milling cost ($ per tonne)	9.84		8.50		8.07		10.43		9.09		8.80		9.31
Total milling cost ($ per tonne)	11.87		10.45		10.10		13.60		11.03		10.80		11.35
Cash production cost ($ per tonne)	80.60		71.85		66.93		64.34		68.22		73.18		65.35
Cash cost per ounce of silver ($)	(4.53	)	(4.27	)	(2.97	)	(3.73	)	(4.60	)	(4.03	)	(2.50	)
All-in sustaining cost per ounce of silver ($)	2.13		1.08		3.66		0.74		1.34		2.25		3.11
* Figures may not add due to rounding

i) Q3 Fiscal 2018 vs. Q3 Fiscal 2017

In Q3 Fiscal 2018, the total ore mined at the Ying Mining District was 166,619 tonnes, a decrease of 3% or 4,684 tonnes, compared to 171,303 tonnes mined in the prior year quarter. Correspondingly, ore milled in Q3 Fiscal 2018 decreased by 8% to 167,543 tonnes from 182,259 tonnes in the prior year quarter.

Head grades were 315 grams per ton (“g/t”) for silver, 4.5% for lead, and 1.0% for zinc, compared to 303 g/t for silver, 4.8% for lead and 0.8% for zinc in the prior year quarter. The Company continues to achieve improvements in dilution control using its “Enterprise Blog” to assist manage daily operations.

In Q3 Fiscal 2018, the Ying Mining District sold approximately 1.3 million ounces silver, 13.5 million pounds lead, and 2.0 million pounds zinc, compared to 1.6 million ounces silver, 17.3 million pounds lead, and 1.2 million pounds of zinc in the prior year quarter. The decrease of silver and lead sold was mainly due to silver-lead concentrate inventory built up.

As at December 31, 2017, silver-lead concentrate inventories were 6,200 tonnes containing approximately 0.7 million ounces of silver and 6.8 million pounds of lead, an increase of 33% or 1,544 tonnes, compared to 4,656 tonnes silver-lead concentrate inventories containing approximately 0.5 million ounces of silver and 5.3 million pounds of lead held as at December 31, 2016.

Total and cash mining costs per tonne at the Ying Mining District in Q3 Fiscal 2018 were $90.12 and $66.71 per tonne, respectively, compared to $80.53 and $55.21 per tonne in the prior year quarter. The increase in cash mining costs were mainly due to: i) a $0.9 million increase in raw material supply costs, ii) a $0.2 million increase in mining preparation costs resulting from more underground tunnelling expensed in the current quarter, and iii) a $0.4 million increase in mining labor costs due to additional bonus accrued as per the Company’s profit sharing plan in China.

Total and cash milling costs per tonne at the Ying Mining District in Q3 Fiscal 2018 were $11.87 and $9.84, compared to $11.03 and $9.09 in Q3 Fiscal 2017. The increase in cash milling costs was mainly due to a 15% increase in per tonne raw material supply costs.

Management’s Discussion and Analysis Page 9

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

Correspondingly, cash production cost per tonne of ore processed in Q3 Fiscal 2018 at the Ying Mining District was $80.60, an increase of 18% compared to $68.22 in the prior year quarter.

Cash cost per ounce of silver, net of by-product credits, in Q3 Fiscal 2018 at the Ying Mining District, was negative $4.53, comparable to negative $4.60 in the prior year quarter.

All in sustaining costs per ounce of silver, net of by-product credits, in Q3 Fiscal 2018 at the Ying Mining District was $2.13 compared to $1.34 in the prior year quarter. The increase was mainly due to higher cash production costs as discussed above and less by-product credits mainly arising from less lead sold.

In Q3 Fiscal 2018, approximately 25,109 m or $0.4 million of underground diamond drilling (Fiscal Q3 2017 – 36,756 m or $0.6 million) and 5,187 m or $1.6 million of preparation tunnelling (Fiscal Q3 2017 –4,900 m or $1.4 million) were completed and expensed as mining preparation costs at the Ying Mining District. In addition, approximately 16,326 m or $6.0 million of horizontal tunnel, raises and declines (Q3 Fiscal 2017 – 17,823 m or $5.5 million) were completed and capitalized. ii) Nine months ended December 31, 2017 vs Nine months ended December 31, 2016

For the nine months ended December 31, 2017, a total of 500,321 tonnes of ore were mined and 506,448 tonnes milled at the Ying Mining District, down by 5% and 4%, compared to 524,005 tonnes mined and 530,160 tonnes milled in the same prior year period.

Average head grades were 304 g/t for silver, 4.5% for lead, and 0.9% for zinc compared to 305 g/t for silver, 4.7% for lead, and 1.0% for zinc, respectively, in the same prior year period.

Metals sold were approximately 4.1 million ounces of silver, 2,400 ounces of gold, 42.5 million pounds of lead, and 5.0 million pounds of zinc, compared to 4.7 million ounces of silver, 2,600 ounces of gold, 49.9 million pounds of lead, and 4.8 million pounds of zinc in prior year period.

The cash mining costs at the Ying Mining District was $60.45 per tonne, an increase of 16% compared to $52.18 in the same prior year period. The increase was mainly due to more underground drilling and tunneling being expensed as mining preparation costs as well as the increase of raw material supply prices.

The cash milling cost was $8.80 per tonne, a decrease of 5% compared to $9.31 in the same prior year period.

Cash cost per ounce of silver and all in sustaining costs per ounce of silver, net of by product credits, at the Ying Mining District, for the nine months ended December 31, 2017, were negative $4.03 and $2.25 respectively, compared to negative $2.50 and $3.11 in the same prior year period.

For the nine months ended December 31, 2017, approximately 86,007 m or $1.7 million of underground diamond drilling (same prior year period – 71,794 m or $1.7 million) and 16,914 or $4.9 million of preparation tunnelling (same prior year period – 15,069 m or $4.2 million) were completed and expensed as mining preparation costs at the Ying Mining District. In addition, approximately 52,174 m or $16.2 million of horizontal tunnel, raises, and declines (same prior year period – 50,500 m or $15.2 million) were completed and capitalized.

Management’s Discussion and Analysis Page 10

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

(ii) GC Mine

The operational results at the GC Mine for the past five quarters are summarized in the table below:

Operational results - GC Mine	Q3 2018		Q2 2018		Q1 2018		Q4 2017		Q3 2017		Nine months ended December 31,
	December 31, 2017		September 30, 2017		June 30, 2017		March 31, 2017		December 31, 2016		2017		2016
Ore Mined (tonne)	85,665		65,812		64,865		40,224		81,481		216,341		220,522
Ore Milled (tonne)	88,494		63,648		65,944		39,929		81,080		218,086		220,767
Head Grades
Silver (gram/tonne)	97		102		98		91		89		99		94
Lead (%)	1.4		1.4		1.6		1.3		1.4		1.5		1.5
Zinc (%)	2.8		2.8		2.7		2.6		2.8		2.8		2.9
Recovery Rates
Silver (%)	73.6		74.4		81.2		72.8		75.4		76.1		76.2
Lead (%)	83.9		82.8		88.8		82.4		85.5		85.2		86.3
Zinc (%)	81.3		81.6		80.9		74.8		86.5		81.2		86.3
Metal Sales
Silver (in thousands of ounce)	196		155		189		53		179		540		511
Lead (in thousands of pound)	2,263		1,656		2,147		818		2,214		6,066		6,237
Zinc (in thousands of pound)	4,399		3,311		4,244		455		4,478		11,954		11,991
Cash mining cost ($ per tonne)	35.48		34.60		39.20		37.91		31.34		36.33		31.04
Total mining cost ($ per tonne)	43.10		42.62		46.99		45.37		38.90		44.12		39.05
Cash milling cost ($ per tonne)	14.09		14.63		16.73		20.06		13.09		14.60		13.76
Total milling cost ($ per tonne)	16.45		17.90		19.85		24.99		15.50		17.46		16.47
Cash production cost ($ per tonne)	49.57		49.23		55.93		57.97		44.43		50.93		44.80
Cash cost per ounce of silver ($)	(15.34	)	(13.56	)	(7.80	)	(1.72	)	(13.11	)	(12.19	)	(7.15	)
All-in sustaining cost per ounce of silver ($)	(4.52	)	(3.77	)	(2.48	)	14.55		(6.12	)	(3.59	)	(1.29	)
* Figures may not add due to rounding

i) Q3 Fiscal 2018 vs. Q3 Fiscal 2017

In Q3 Fiscal 2018, the total ore mined at the GC Mine was 85,665 tonnes, an increase of 4,184 tonnes or 5%, compared to 81,481 tonnes mined in Q3 Fiscal 2017, while ore milled increased by 9% to 88,494 tonnes from 81,080 tonnes in the prior year quarter.

Head grades were 97 g/t for silver, 1.4% for lead, and 2.8% for zinc compared to 89 g/t for silver, 1.4% for lead, and 2.8% for zinc in the prior year quarter.

In Q3 Fiscal 2018, the GC Mine sold 196 thousand ounces of silver, 2.3 million pounds of lead, 4.4 million pounds of zinc, compared to 179 thousand ounces of silver, 2.2 million pounds of lead, and 4.5 million pounds of zinc sold in the prior year quarter.

Total and cash mining costs per tonne at the GC Mine in Q3 Fiscal 2018 were $43.10 and $35.48 per tonne, compared to $38.90 and $31.34 per tonne in Q3 Fiscal 2017. The increase in cash mining costs was mainly due to: i) a $0.2 million increase in mining preparation costs resulting from more underground drilling expensed in the current quarter, and ii) a $0.2 million increase in mining contractor fees.

Total and cash milling costs per tonne at the GC Mine in Q3 Fiscal 2018 were $16.45 and $14.09, compared to $15.50 and $13.09, respectively, in Q3 Fiscal 2017. The increase in milling costs was mainly due to $0.2 million increases in raw material supply costs.

Correspondingly, the cash production costs per tonne of ore processed in Q3 Fiscal 2018 at the GC Mine increased to $49.57 from $44.43 in the prior year quarter.

Cash costs per ounce of silver, net of by-product credits, at the GC Mine, was negative $15.34 compared to negative $13.11 in the prior year quarter. The improvement was mainly due to a $1.4 million or 23% increase in by-product credits resulting from a 12% and 37% increase in net realized lead and zinc selling prices at the GC Mine.

All in sustaining costs per ounce of silver, net of by-product credits, in Q3 Fiscal 2018 at the GC Mine was negative $4.52 compared to negative $6.12 in the prior year quarter. The increase is mainly due to: i) higher cash production costs per tonne as discussed above, ii) a $0.2 million increase in general and administrative expenditures, and iii) a $0.6 million increase in sustaining capital expenditures.

Approximately 7,770 m or $0.4 million of underground diamond drilling (Q3 Fiscal 2017 – 3,935 m or

Management’s Discussion and Analysis Page 11

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

$0.2 million) and 5,053 m or $1.2 million of tunnelling (Q3 Fiscal 2017 – 4,640 m or $1.3 million) were completed and expensed as mining preparation costs at the GC Mine. In addition, approximately 17 m or $0.1 million of horizontal tunnel, raises and declines (Q3 Fiscal 2017 – 554 m or $0.3 million) were completed and capitalized. ii) Nine months ended December 31, 2017 vs Nine months ended December 31, 2016

For the nine months ended December 31, 2017, a total of 216,341 tonnes of ore were mined and 218,086 tonnes were milled at the GC Mine compared to 220,522 tonnes mined and 220,767 tonnes milled in the same prior year period.

Average head grades were 99 g/t for silver, 1.5% for lead, and 2.8% for zinc compared to 94 g/t for silver, 1.5% for lead, and 2.9% for zinc, respectively, in the same prior year period.

Metals sold were approximately 540 thousand ounces of silver, 6.1 million pounds of lead, and 12.0 million pounds of zinc, compared to 511 thousand ounces of silver, 6.2 million pounds of lead, and 12.0 million pounds of zinc in the same prior year period.

The cash mining costs at the GC Mine was $36.33 per tonne, an increase of 17% compared to $31.04 per tonne in the same prior year period. The increase in cash mining costs was mainly due to a $0.9 million increase in mining preparation costs as more underground drilling and tunnelling was expensed in the current period.

The cash milling costs was $14.60 per tonne, an increase of 6% compared to $13.76 in the same prior year period.

Cash costs per ounce of silver and all in sustaining costs per ounce of silver, net of by product credits, at the GC Mine, for the nine months ended December 31, 2017, were negative $12.19 and negative $3.59 respectively, compared to negative $7.15 and $1.29 in the same prior year period. The improvement is mainly due to higher by-product credits achieved arising from a 12% and 37% increase, respectively, in lead and zinc realized selling prices.

For the nine months ended December 31, 2017, approximately 18,253 m or $0.9 million of underground diamond drilling (same prior year period – 9,489 m or $0.6 million) and 14,285 m or $3.8 million of tunnelling (same prior year period – 11,976 m or $3.2 million) were completed and expensed as mining preparation costs at the GC Mine. In addition, approximately 280 m or $0.2 million of horizontal tunnel, raises, and declines (same prior year period – 1,685 m or $0.7 million) were completed and capitalized.

(iii) BYP Mine

The BYP mine was placed on care and maintenance in August 2014 in consideration of the required capital upgrades to sustain its ongoing production and the current market environment. The Company continues to review alternatives for this project and is also carrying out activities to renew its mining license.

(iv) XHP Project

Activities at the XHP project, a development stage project, were suspended in Fiscal 2014. In light of the recent increase of lead and zinc metal prices, the Company has resumed activities at the XHP project to review and evaluate alternatives for this project.

4. Investment in New Pacific Metals Corp. (“NUAG”)

New Pacific Metals Corp. (“NUAG”) is a Canadian public company listed on the TSX Venture Exchange (symbol: NUAG). NUAG is a related party of the Company by way of two common directors and officers, and the Company accounts for its investment in NUAG using the equity method as it is able to exercise significant influence over the financial and operating policies of NUAG.

Management’s Discussion and Analysis Page 12

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

In July 2017, the Company participated in NUAG’s private placement and subscribed 25,000,000 common shares of NUAG for $20.0 million and acquired additional 474,600 shares from the public market for $0.5 million during the nine months ended December 31, 2017.

In November 2017, the Company participated in NUAG’s strategic private placement. The placement was for 19,000,000 million units, and the Company subscribed 3,000,000 units while Pan American Silver Corp. subscribed 16,000,000 units, at a price of CAD$1.42 per unit. Each unit is comprised of one common share of NUAG and one half of one common share purchase warrant. Arising from this strategic private placement, the Company’s ownership in NUAG was diluted from 32.2% to 29.8% and a dilution gain of $0.8 million was recorded.

As at December 31, 2017, the Company owned 39,280,900 common shares (March 31, 2017 –10,806,300) of NUAG, representing an ownership interest of 29.8% (March 31, 2017 – 16.1%). The summary of the investment in NUAG common shares and its market value as at the respective balance sheet dates are as follows:

						Value of NUAG's
	Number of					common shares per
	shares		Amount			quoted market price
Balance, April 1, 2016	10,806,300	$	3,133		$	2,333
Share of net income			282
Share of other comprehensive loss			(12	)
Impairment recovery			5,278
Foreign exchange impact			(164	)
Balance, March 31, 2017	10,806,300		8,517			8,517
Participate in Private placement	28,000,000		23,352
Purchase from open market	474,600		509
Share of net loss			(511	)
Share of other comprehensive loss			(51	)
Dilution gain			822
Foreign exchange impact			1,264
Balance December 31, 2017	39,280,900	$	33,902		$	46,029

NUAG acquired a 100% interest in the Silver Sand Property, an early-stage exploration projects in the Potosi Department of Bolivia, in July 2017 and commenced a 30,000 meters exploration drilling program in October 2017. Exploration results of this drilling program have not yet been released by NUAG as of the date of this MD&A.

Management’s Discussion and Analysis Page 13

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

5. Third Quarter Fiscal 2018 Financial Results

(a) Summary of Quarterly Results

The tables below set out selected quarterly results for the past eight quarters:

		Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017
Sales	$	44,352		$	47,541		$	39,697		$	34,064
Gross Profit		23,166			25,606			20,005			20,304
Expenses and foreigh exchange		(5,580	)		(6,274	)		(7,026	)		(5,083	)
Impairment recovery (charges)								-			5,278
Dilution gain on investment in associate		822
Gain on disposal of mineral rights and properties								4,319			-
Other Items		1,979			533			236			981
Net (loss) income		16,067			14,602			13,514			16,334
Net (loss) income, attributable to the shareholders of the Company		12,718			11,145			10,937			13,507
Basic (loss) earnings per share		0.08			0.07			0.07			0.08
Diluted (loss) earnings per share		0.07			0.07			0.06			0.08
Cash dividend declared		-			-			1,679			-
Cash dividended declared per share		0.01			-			0.01			-
		Dec 31, 2016 *			Sep 30, 2016 *			Jun 30, 2016			Mar 31, 2016
Sales	$	47,838		$	46,298		$	35,271		$	19,426
Gross Profit		25,019			25,759			15,744			6,193
Expenses and foreigh exchange		(3,197	)		(4,643	)		(6,203	)		(7,189	)
Impairment recovery (charges)					-			(181	)		-
Other Items		169			827			(39	)		(219	)
Net Income (Loss)		16,638			16,006			6,520			(727	)
Net income (Loss), attributable to the shareholders of the Company		13,115			12,378			4,674			(1,520	)
Basic earnings (loss) per share		0.08			0.07			0.03			(0.01	)
Diluted earnings (loss) per share		0.08			0.07			0.03			(0.01	)
Cash dividend declared		1,585			-			-			-
Cash dividended declared per share (CAD)		0.01			-			-			-

*Mineral resources tax has been excluded from expenses but included as part of cost of sales

Financial results including sales, gross profit, net income, basic earnings per share, and diluted earnings per share are heavily influenced by changes in commodity prices, particularly, the silver and lead price. (b) Financial Results – Q3 Fiscal 2018

Net income attributable to equity shareholders of the Company in Q3 Fiscal 2018 was $12.7 million, or basic earnings per share of $0.08, compared to $13.1 million, or $0.08 per share in Q3 Fiscal 2017.

Net income attributable to equity shareholders of the Company for nine months ended December 31, 2017 was $34.8 million, or basic earnings per share of $0.21, up 15% compared to $30.2 million, or $0.18 per share in the same period prior year.

Sales in Q3 Fiscal 2018 were $44.4 million, down $3.4 million or 7%, compared to $47.8 million in the same quarter last year. Silver and gold sales represented $19.8 million and $0.6 million, respectively, while base metals represented $23.9 million of total sales, compared to silver, gold and base metals sales of $23.4 million, $0.7 million, and $23.7 million, respectively, in the prior year quarter.

The Company’s financial results in Q3 Fiscal 2018 were mainly impacted by the following: i) an increase of 8% and 37% in the realized selling prices for lead and zinc, compared to the prior year quarter, ii) a 3%

Management’s Discussion and Analysis Page 14

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

decrease in the realized selling price for silver, iii) less metals sold as inventory built up; and iv) higher per tonne production costs.

For nine months ended December 31, 2017, sales were $131.6 million, up 2% from $129.4 million in the same prior year period. Silver and gold sales were $62.6 million and $2.4 million, respectively, while base metals represented $66.6 million of total sales, compared to silver, gold, and base metals sales of $71.2, $2.7 million and $55.5 million, respectively, in the same prior year period.

Fluctuation in sales revenue is mainly dependent on metal sales and the realized metal price. The net realized selling price is calculated using Shanghai Metal Exchange (“SME”) price, less smelter charges, recovery, and value added tax (“VAT”) at a rate of 17% (VAT is not applied to gold sales). The following table is a reconciliation of the Company’s net realized selling prices in Q3 Fiscal 2018, including a comparison with London Metal Exchange (“LME”) prices:

		Silver (in US$/ounce)				Gold (in US$/ounce)				Lead (in US$/pound)				Zinc (in US$/pound)
		Q3 2018		Q3 2017		Q3 2018		Q3 2017		Q3 2018		Q3 2017		Q3 2018		Q3 2017
Net realized selling prices	$	13.05	$	13.50	$	903	$	1,033	$	1.04	$	0.96	$	1.15	$	0.84
Add back: Value added taxes		2.22		2.30		-		-		0.18		0.16		0.20		0.14
Add back: Smelter charges and recovery		2.37		2.83		383		229		0.10		0.09		0.42		0.43
SME	$	17.64	$	18.63	$	1,286	$	1,262	$	1.32	$	1.22	$	1.77	$	1.41
LME	$	16.74	$	17.35	$	1,276	$	1,229	$	1.13	$	0.98	$	1.47	$	1.14

Cost of sales in Q3 Fiscal 2018 was $21.2 million, comparable to $21.5 million in Q3 Fiscal 2017. The cost of sales included $15.6 million (Q3 Fiscal 2017 - $14.9 million) cash production costs, $1.3 million mineral resources tax (Q3 Fiscal 2017 - $1.4 million), and $4.4 million (Q3 Fiscal 2017 - $5.2 million) depreciation and amortization charges.

For the nine months ended December 31, 2017, cost of sales was $62.8 million compared to $61.5 million in the same prior year period. The cost of sales included $45.8 million cash production costs, $3.7 million mineral resources taxes and $13.3 million depreciation and amortization compared to $42.9 million production costs, $2.8 million mineral resources taxes and $15.9 million depreciation and amortization respectively, in the same prior year period.

Gross profit margin in Q3 Fiscal 2018 was 52%, compared to 55% in Q3 Fiscal 2017. Ying Mining District’s gross margin was 55% compared to a 58% gross profit margin in the prior year quarter. GC Mine’s profit margin was 41% compared to a 39% gross profit margin in the prior year quarter.

For the nine months ended December 31, 2017, gross profit margin was 52% compare to 52% in the same prior year period. Ying Mining District’s gross margin was 56% compared to a 55% gross profit margin in the same prior year period. GC Mine’s profit margin was 37% compared to a 32% gross profit margin in the same prior year period.

General and administrative expenses in Q3 Fiscal 2018 and the nine months ended December 31, 2017 were $4.9 million and $14.0 million (Q3 Fiscal 2018 - $4.0 million, nine months ended December 31, 2016 - $12.5 million). The increase was mainly due to the resumption of activities at the XHP Project to review alternatives and activities carried at the BYP Mine to renew its mining license, resulting in additional office and administrative expenses and labour costs. Items included in general and administrative expenses are as follows:

(i)	Amortization expenses of $0.3 million and $0.9 million (Q3 Fiscal 2017 - $0.3 million, nine months ended December 31, 2016 – $1.0 million);
(ii)	Office and administrative expenses of $1.9 million and $4.9 million (Q3 Fiscal 2017 - $1.4 million, nine months ended December 31, 2016 – $4.1 million);
(iii)	Salaries and benefits of $2.2 million and $6.3 million (Q3 Fiscal 2017 - $1.8 million, nine months ended December 31, 2016 – $5.3 million);
(iv)	Stock based compensation expense of $0.5 million and $1.1 million (Q3 Fiscal 2017 - $0.2

Management’s Discussion and Analysis Page 15

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

	million, nine months ended December 31, 2016 – $0.7 million); and
(v)	Professional fees of $0.1 million and $0.7 million (Q3 Fiscal 2017 - $0.2 million, nine months ended December 31, 2016 – $1.5 million).

Government fees and other taxes in Q3 Fiscal 2018 and nine months ended December 31, 2017 were $0.9 million and $2.4 million (Q3 Fiscal 2017 - $1.1 million, nine months ended December 31, 2016 –$3.5 million). Government fees include environmental protection fee and mineral resources compensation fee. Other taxes were composed of surtax on value-added tax, land usage levy, stamp duty and other miscellaneous levies, duties and taxes imposed by the state and local Chinese government.

Foreign exchange gain in Q3 Fiscal 2018 was $0.2 million (Q3 Fiscal 2017 - $0.4 million). For the nine months ended, foreign exchange loss was $2.5 million (nine months ended December 31, 2016 – gain of $0.5 million). The foreign exchange gain or loss is mainly driven by the fluctuation of the RMB and US dollar against the functional currency of the entities.

Loss on disposal of plant and equipment in Q3 Fiscal 2018 and nine months ended December 31, 2017 were $0.1 million and $0.3 million (Q3 Fiscal 2017 - $0.4 million, nine months ended December 31, 2016 – $0.5 million). The loss was related to the disposal of obsolete equipment.

Gain on disposal of mineral rights and properties in Q3 Fiscal 2018 was $nil (Q3 Fiscal 2017 - $nil). For the nine months ended December 31, 2017, the Company recorded a gain of $4.3 million on the disposal of mineral rights and properties (nine months ended December 31, 2016 - $nil). On April 5, 2017, the Company entered into a royalty purchase and sale agreement (the “Agreement”) with Maverix Metals Inc. (“Maverix”), a publicly traded (TSX-V: MMX) Canadian precious metals royalty and streaming company, to sell its 2.5% net smelter return (“NSR”) on the Silvertip Mine for consideration of up to 6,600,000 of Maverix’s common shares payable as follows:

• 3,800,000 common shares of Maverix on closing of the transaction; and

• 2,800,000 common shares of Maverix when the Silvertip Mine achieves: (i) commercial production, and (ii) a cumulative throughput of 400,000 tonnes of ore through the processing plant.

On April 19, 2017, the transaction was closed and the Company received a total of 3,800,000 Maverix common shares valued at $4,319 (CAD$5.8 million) and recognized a gain of $4,319 on the disposal of the NSR.

Share of loss in an associate in Q3 Fiscal 2018 and nine months ended December 31, 2017 were $0.1 million and $0.5 million (Q3 Fiscal 2017 – $0.1 million, nine months ended December 31, 2016 – gain of $0.2 million), representing the Company’s equity pickup in NUAG.

Dilution gain on investment in an associate in Q3 Fiscal 2018 and nine months ended December 31, 2017 was $0.8 million (Q3 Fiscal 2017 and nine months ended December 31, 2016 – $nil). In the current quarter, the Company’s equity interest in NUAG was diluted to 29.8% from 32.2% in the prior quarter, resulting in a dilution gain of $0.8 million.

Finance income in Q3 Fiscal 2018 and nine months ended December 31, 2017 were $0.8 million and $2.0 million (Q3 Fiscal 2017 - $0.6 million, nine months ended December 31, 2016 – $1.6 million). The Company invests in high yield short-term investments as well as long term corporate bonds.

Finance costs in Q3 Fiscal 2018 and nine months ended December 31, 2017 were $0.1 million and $0.3 million (Q3 Fiscal 2017 - $0.2 million, nine months ended December 31, 2016 – $0.9 million). The finance costs in the current period were related to the unwinding of discount of environmental rehabilitation provision.

Income tax expenses in Q3 Fiscal 2018 were $4.3 million compared to $5.4 million in Q3 Fiscal 2017. The income tax expense recorded in Q3 Fiscal 2017 included current income tax expense of $3.7

Management’s Discussion and Analysis Page 16

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

million (Q3 Fiscal 2016 – $4.7 million) and deferred income tax expense of $0.6 million (Q3 Fiscal 2016 –$0.6 million).

For the nine months ended December 31, 2017, income tax expenses were $13.6 million (same prior year period – $14.1 million), which included current income tax expense of $11.5 million (same prior year period – $10.3 million) and deferred income tax expenses of $2.1 million (same prior year period –$3.7 million).

6. Liquidity and Capital Resources

Cash and cash equivalents and short-term investments as at December 31, 2017 were $113.3 million, an increase of $16.8 million or 17%, compared to $96.5 million cash and cash equivalents and short-term investment as at March 31, 2017.

Working capital as at December 31, 2017 was $84.9 million, an increase of $14.2 million or 20%, compared to $70.7 million working capital as at March 31, 2017.

Cash flows provided by operating activities in Q3 Fiscal 2018 were $27.5 million, compared to $28.3 million in the prior year quarter. Before changes in non-cash operating working capital, cash flows provided by operating activities in Q3 Fiscal 2018 were $23.0 million, a decrease of $3.4 million or 13%, compared to $26.4 million in the prior year quarter.

For the nine months ended December 31, 2017, cash flows provided by operating activities were $65.1 million, compared to $75.6 million in the same prior year period. Before changes in non-cash operating working capital, cash flows provided by operating activities for the nine months ended December 31, 2017 were $59.5 million, a decrease of $7.4 million or 11%, compared to $66.9 million in the same prior year period.

Cash flows used in investing activities in Q3 Fiscal 2018 were $0.9 million (Q3 Fiscal 2017 - $24.4 million), comprising mainly of payment of $5.7 million for capital mineral exploration and development expenditures (Q3 Fiscal 2017 - $14.9 million), $1.7 million for acquisition of plant and equipment (Q3 Fiscal 2017 - $1.4 million), $3.8 million for the investment in NUAG (Q3 Fiscal 2017 - $nil) offset by net redemption of short-term investment of $10.4 million (Q3 Fiscal 2017 – net purchase of $5.5 million).

For the nine months ended December 31, 2017, cash flows used in investing activities were $66.3 million, comprising mainly of payment of $16.6 million for capital mineral exploration and development, $4.5 million for acquisition of plant and equipment, $23.9 million for the investment in NUAG, and net purchase of short-term investment of $21.3 million. For the nine months ended December 31, 2016, cash flows used in investing activities were $44.5 million comprising mainly of payment of $25.6 million for capital exploration and development, $4.6 million for plant and equipment, and net purchase of short-term investment of $11.5 million.

Cash flows used in financing activities in Q3 Fiscal 2018 were $3.3 million, comprising mainly of $1.7 million cash dividend to equity shareholders of the Company (Q3 Fiscal 2017 - $1.6 million), $1.8 million used to repurchase common shares of the Company as part of the Company’s normal issuer bid (Q3 Fiscal 2017 - $nil), and offset by $0.2 million cash from the issuance of common shares of the Company arising from exercised stock options (Q3 Fiscal 2017 - $0.2 million).

For the nine months ended December 31, 2017, cash flow used in financing activities were $9.7 million, comprising mainly of $4.9 million distributions to non-control interest, $3.4 million cash dividend to the equity shareholders of the Company, $1.8 million used to repurchase common shares of the Company offset by $0.3 million from the issuance of common shares of the Company arising from exercised stock options. In the same prior year period, cash used in financing activities were $2.6 million, comprising mainly of $1.5 million cash distributed to non-controlling shareholders, $1.6 million cash dividend to equity shareholders’ of the Company offset by $0.5 million cash from the issuance of the common shares of the Company arising from exercised stock options.

Management’s Discussion and Analysis Page 17

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

Contractual commitments and contingencies not disclosed elsewhere in this Management’s Discussion and Analysis are as follows:

		Total		Less than 1 year		1-5 years		After 5 years
Operating leases	$	3,791	$	707	$	3,084	$	-
Commitments	$	6,418	$	-	$	-	$	6,418

As of December 31, 2017, the Company has two office rental agreements totaling $3,264 for the next five years and commitments of $6,418 related to the GC property. During the three and nine months ended December 31, 2017, the Company incurred rental expenses of $165 and $490, respectively (three and nine months ended December 31, 2016 - $93 and $393, respectively), which were included in office and administrative expenses on the condensed consolidated interim statement of income.

Although the Company has taken steps to verify title to properties in which it has an interest, these procedures do not guarantee the Company's title. Property title may be subject to, among other things, unregistered prior agreements or transfers and may be affected by undetected defects.

Due to the size, complexity and nature of the Company’s operations, the Company is subject to various claims, legal and tax matters arising in the ordinary course of business. Each of these matters is subject to various uncertainties and it is possible that some of these matters may be resolved unfavorably to the Company. The Company accrues for such items when a liability is both probable and the amount can be reasonably estimated.

In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company and its legal counsel evaluate the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. Major legal proceedings against the Company are summarized as follows:

• On August 19, 2014, an action was commenced against the Company in the Supreme Court of British Columbia seeking an unspecified amount of damages for a claim of false imprisonment and defamation (the “Huang Action”). The case was scheduled for a 60 day jury trial, commencing February 2018. The Company also commenced third party proceedings against other parties (the “Third Parties”), claiming contribution and indemnity. On August 22, 2016, the Company commenced an action against the parties to Huang Action and others seeking damages (the “Silvercorp Action”). Subsequent to the period end, the parties to the Huang Action and Silvercorp Action, have reached a confidential settlement agreement. The settlement resolves all claims between the Company, Mr. Huang, and the Third Parties in all actions, including the Huang Action and the Silvercorp Action, which will both be dismissed by consent. Nothing contained in this settlement represents an admission of liability, fault, or wrongdoing on the part of any of the parties.

• During the year ended March 31, 2016, an action was initiated by Luoyang Mining Group Co., Ltd. (“Luoyang Mining”) against Henan Found seeking payment of $1.6 million (RMB10.0 million) plus interest related to the acquisition agreements Henan Found entered into in August 2012 to acquire the XHP Project. The $1.6 million has been included into the accounts payable and accrued liabilities on the condensed consolidated interim statements of financial position of the Company.
  Henan Found did not make the final payment as certain commercial conditions were not fulfilled by Luoyang Mining. In April 2016, Henan Found filed a counter claim in Luoyang People’s Court against Luoyang Mining to have the original acquisition agreements nullified and is seeking repayment of the amount paid to date of $9.7 million (RMB62.8 million) plus compensation of direct loss of $2.5 million (RMB16.5 million) arising from the XHP Project. A trial was heard in March 2017, but a court decision has not yet been made. The acquisition costs of the XHP Project was impaired to $nil in fiscal year 2015.

Management’s Discussion and Analysis Page 18

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

• During the year ended March 31, 2016, SX Gold, a 100% owned subsidiary of Henan Found, commenced a legal action against Luoyang HA Mining Co. Ltd. (“HA Mining”) to seek payment of $4.0 million (RMB26.0 million) plus interest related to a share transfer agreement that SX Gold entered into with HA Mining in September 2013. Pursuant to the agreement, SX Gold was to transfer all shares it held in Songxian Zhongxin Mining Co. Ltd. to HA Mining for $11.8 million (RMB76.0 million). SX Gold fulfilled its responsibilities and the title of the shares was transferred to HA Mining, who paid $7.8 million (RMB50.0 million). The remaining $4.0 million (RMB26.0 million) was not paid and was written off by the Company in prior years. In April 2016, HA Mining filed a counter claim for $2.2 million (RMB14.0 million). On June 17, 2016, the court issued an order in favor of SX Gold. The Luoyang Intermediate People’s Court, Henan, China issued a court order demanding HA Mining to pay $3.4 million (RMB22.75 million) to SX Gold. On July 1, 2016, HA Mining filed an appeal to the Henan High People’s Count, China. A trial was heard in April 2017 and on June 16, 2017, the Henan High People’s Court, China dismissed HA Mining’s appeal and upheld the rulings made by the Luoyang Intermediate People’s Court, Henan, China. On August 4, 2017, HA Mining submitted an application to the Supreme People’s Court of China (the “Supreme Court”) to rehear the case, and the application was rejected by the Supreme Court on November 24, 2017. On December 6, 2017, SX Gold and HA Mining reached a mutual settlement agreement that HA Mining would pay $2.3 million (RMB15.0 million) to SX Gold. As of December 31, 2017, HA Mining paid $2.3 million (RMB15.0 million) to the Company, and the case was closed.

Available sources of funding

The Company does not have unlimited resources and its future capital requirements will depend on many factors, including, among others, cash flow from operations. To the extent that its existing resources and the funds generated by future income are insufficient to fund the Company’s operations, the Company may need to raise additional funds through public or private debt or equity financing. If additional funds are raised through the issuance of equity securities, the percentage ownership of current shareholders will be reduced, and such equity securities may have rights, preferences or privileges senior to those of the holders of the Company’s common stock. No assurance can be given that additional financing will be available or that, if available, can be obtained on terms favourable to the Company and its shareholders. If adequate funds are not available, the Company may be required to delay, limit or eliminate some or all of its proposed operations. The Company believes it has sufficient capital to meet its cash needs for the next 12 months, including the costs of compliance with continuing reporting requirements.

7. Financial Instruments and Related Risks

The Company manages its exposure to financial risks, including liquidity risk, foreign exchange risk, interest rate risk, credit risk and equity price risk in accordance with its risk management framework. The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework and reviews the Company’s policies on an ongoing basis.

(a) Fair value

The Company classifies its fair value measurements within a fair value hierarchy, which reflects the significance of the inputs used in making the measurements as defined in IFRS 13, Fair Value Measurement (“IFRS 13”).

Level 1 – Unadjusted quoted prices at the measurement date for identical assets or liabilities in active markets.

Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Management’s Discussion and Analysis Page 19

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

Level 3 – Unobservable inputs which are supported by little or no market activity.

The following tables set forth the Company’s financial assets and liabilities that are measured at fair value level on a recurring basis within the fair value hierarchy at December 31, 2017 and March 31, 2017 that are not otherwise disclosed. As required by IFRS 13, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

		Fair value as at December 31, 2017
Recurring measurements		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	66,274	$	-	$	-	$	66,274
Investments in publicly traded companies		6,800		-		-		6,800
		Fair value as at March 31, 2017
Recurring measurements		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	73,003	$	-	$	-	$	73,003
Investments in publicly traded companies		1,207		-		-		1,207

Fair value of the other financial instruments excluded from the table above approximates their carrying amount as of December 31, 2017 and March 31, 2017, respectively, due to the short-term nature of these instruments.

There were no transfers into or out of level 3 during the three and nine months ended December 31, 2017 and 2016.

(b) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its short-term business requirements. The Company has in place a planning and budgeting process to help determine the funds required to support the Company’s normal operating requirements on an ongoing basis and its expansion plans.

In the normal course of business, the Company enters into contracts that give rise to commitments for future minimum payments. The following summarizes the remaining contractual maturities of the Company’s financial liabilities.

				December 31, 2017						March 31, 2017
		Within a year		2-3 years		4-5 years		Total		Total
Accounts payable and accrued liabilities	$	34,799	$	-	$	-	$	34,799	$	30,374

(c) Foreign exchange risk

The Company reports its financial statements in US dollars. The functional currency of the head office, Canadian subsidiaries and all intermediate holding companies is CAD and the functional currency of all Chinese subsidiaries is RMB. The Company is exposed to foreign exchange risk when the Company undertakes transactions and holds assets and liabilities in currencies other than its functional currencies.

The Company currently does not engage in foreign exchange currency hedging. The Company's exposure to currency risk affect net income is summarized as follow:

		December 31, 2017		March 31, 2017
Financial assets denominated in U.S. Dollars	$	21,830	$	29,093
Financial assets denominated in Chinese RMB	$	1	$	7,115

As at December 31, 2017, with other variables unchanged, a 10% strengthening (weakening) of the CAD against the USD would have decreased (increased) net income by approximately $2.2 million.

(d) Interest rate risk

Management’s Discussion and Analysis Page 20

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

The Company is exposed to interest rate risk on its cash equivalents and short-term investments. As at December 31, 2017, all interest-bearing cash equivalents and short-term investments earn interest at market rates that are fixed to maturity or at variable interest rate with terms of less than one year. The Company monitors its exposure to changes in interest rates on cash equivalents and short-term investments. Due to the short-term nature of the financial instruments, fluctuations in interest rates would not have a significant impact on the Company’s after-tax net income.

(e) Credit risk

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company is exposed to credit risk primarily associated to accounts receivable, due from related parties, cash and cash equivalents and short-term investments. The carrying amount of assets included on the balance sheet represents the maximum credit exposure.

The Company undertakes credit evaluations on counterparties as necessary, requests deposits from customers prior to delivery, and has monitoring processes intended to mitigate credit risks. The Company has no trade receivables from customers as at December 31, 2017. There were no amounts in other receivables which were past due at December 31, 2017 (at March 31, 2017 - $nil) for which no provision is recognized.

(f) Equity price risk

The Company holds certain marketable securities that will fluctuate in value as a result of trading on Canadian financial markets. As the Company’s marketable securities holding are mainly in mining companies, the value will also fluctuate based on commodity prices. Based upon the Company’s portfolio at December 31, 2017, a 10% increase (decrease) in the market price of the securities held, ignoring any foreign currency effects would have resulted in an increase (decrease) to comprehensive income of approximately $0.68 million.

8. Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements.

9. Transactions with Related Parties

Related party transactions are made on terms agreed upon by the related parties. The balances with related parties are unsecured, non-interest bearing, and due on demand. Related party transactions not disclosed elsewhere in the condensed consolidated interim financial statements are as follows:

(a) Transactions with NUAG

Due from related parties		December 31, 2017		March 31, 2017
NUAG	$	25	$	92

According to a services and administrative costs reallocation agreement between the Company and NUAG, the Company recovers costs for services rendered to NUAG and expenses incurred on behalf of NUAG. During the three and nine months ended December 31, 2017, the Company recovered $137 and $387, respectively (three and nine months ended December 31, 2016 - $46 and $139, respectively) from NUAG for services rendered and expenses incurred on behalf of NUAG. The costs recovered from NUAG were recorded as a direct reduction of general and administrative expenses on the condensed consolidated interim statements of income.

(b) Transactions with key management personnel

The Company has identified its directors and senior officers as its key management personnel as they have authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly. The compensation costs for key management personnel, including the grant date fair value for options granted to key management personnel and fees paid or payable to company

Management’s Discussion and Analysis Page 21

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

controlled by key management personnel, were as follows:

		Three Month ended December 31, 2017				Nine Month ended December 31,
		2017		2016		2017		2016
Salaries and bonuses	$	376	$	357	$	1,908	$	1,094
Share-based compensation		433		-		433		134
	$	809	$	357	$	2,341	$	1,228

10. Alternative Performance (Non-IFRS) Measures

The following alternative performance measures are used by the Company to manage and evaluate operating performance of the Company’s mines and are widely reported in the silver mining industry as benchmarks for performance, but do not have standardized meaning. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. To facilitate a better understanding of these measures, the following tables provides the reconciliation of these measures to the financial statements for the three and nine months ended December 31, 2017 and 2016: (a) Cash and Total Costs per Ounce Cash and total costs per ounce of silver are used by the Company to manage and evaluate operating performance at each of the Company’s operating mining units and are widely reported in the mining industry as benchmarks for performance. The Company believes these measures provide investors and analysts with useful information about the Company’s underlying cash costs of operations and the impact of by-product credits on the Company’s cost structure, operating profitability and ability to generate cash flows. Cash and total costs on a by-product basis are calculated by deducting revenue from the sales of by-product metals from the Company’s cash and total cost of sales.

The following table provides a reconciliation of cash and total costs per ounce of silver, net of byproduct credits.

Three months ended December 31, 2017
			Ying Mining
			District			GC			Total
Cost of sales		$	15,616		$	5,570		$	21,186
Less: mineral resources tax			(970	)		(285	)		(1,255	)
Total production costs expensed into cost of sales	A		14,646			5,285			19,931
Less: Amortization and depletion			(3,518	)		(860	)		(4,378	)
Total cash production cost expensed into cost of sales	B		11,128			4,425			15,553
By-product sales
Gold			(632	)		-			(632	)
Lead			(14,045	)		(2,378	)		(16,423	)
Zinc			(2,337	)		(5,048	)		(7,385	)
Other			(100	)		(6	)		(106	)
Total by-product sales	C		(17,114	)		(7,432	)		(24,546	)
Silver ounces sold ('000s)	D		1,322			196			1,518
Total production cost per ounce of silver, net of by-product credits	(A+C)/D	$	(1.87	)	$	(10.95	)	$	(3.04	)
Total cash cost per ounce of silver, net of by-product credits	(B+C)/D	$	(4.53	)	$	(15.34	)	$	(5.92	)
Total production cost per ounce of silver, before by-product credits	A/D	$	11.08		$	26.96		$	13.13
Total cash cost per ounce of silver, before by-product credits	B/D	$	8.42		$	22.58		$	10.25
By-product credits per ounce of silver
Gold		$	(0.48	)	$	-		$	(0.42	)
Lead			(10.62	)		(12.13	)		(10.82	)
Zinc			(1.77	)		(25.76	)		(4.86	)
Other			(0.08	)		(0.03	)		(0.07	)
Total by-product credits per ounce of silver		$	(12.95	)	$	(37.92	)	$	(16.17	)

Management’s Discussion and Analysis Page 22

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

Three months ended December 31, 2016
			Ying Mining
			District			GC			Total
Cost of sales		$	16,685		$	4,775		$	21,460
Less: mineral resources tax			(1,125	)		(236	)		(1,361	)
Total production costs expensed into cost of sales	A		15,560			4,539			20,099
Amortization and depletion			(4,344	)		(834	)		(5,178	)
Total cash cost	B		11,216			3,705			14,921
By-product sales
Gold			(723	)		-			(723	)
Lead			(16,658	)		(2,085	)		(18,743	)
Zinc			(995	)		(3,775	)		(4,770	)
Other			-			(192	)		(192	)
Total by-product sales	C		(18,376	)		(6,052	)		(24,428	)
Silver ounces sold ('000s)	D		1,555			179			1,734
Total production cost per ounce of silver, net of by-product credit	(A+C)/D	$	(1.81	)	$	(8.45	)	$	(2.50	)
Total cash cost per ounce of silver, net of by-product credits	(B+C)/D	$	(4.60	)	$	(13.11	)	$	(5.48	)
Total production cost per ounce of silver, before by-product credi	A/D	$	10.01		$	25.36		$	11.59
Total cash cost per ounce of silver, before by-product credits	B/D	$	7.21		$	20.70		$	8.60
By-product credits per ounce of silver
Gold		$	(0.46	)	$	-		$	(0.42	)
Lead			(10.71	)		(11.65	)		(10.81	)
Zinc			(0.64	)		(21.09	)		(2.75	)
Other			-			(1.07	)		(0.11	)
Total by-product credits per ounce of silver		$	(11.81	)	$	(33.81	)	$	(14.09	)
Nine months ended December 31, 2017
			Ying Mining
			District			GC			Total
Cost of sales		$	47,454		$	15,359		$	62,813
Less: mineral resources tax			(2,950	)		(733	)		(3,683	)
Total production costs expensed into cost of sales	A		44,504			14,626			59,130
Less: Amortization and depletion			(10,813	)		(2,478	)		(13,291	)
Total cash production cost expensed into cost of sales	B		33,691			12,148			45,839
By-product sales
Gold			(2,448	)		-			(2,448	)
Lead			(41,728	)		(5,948	)		(47,676	)
Zinc			(5,604	)		(12,548	)		(18,152	)
Other			(495	)		(234	)		(729	)
Total by-product sales	C		(50,275	)		(18,730	)		(69,005	)
Silver ounces sold ('000s)	D		4,118			540			4,658
Total production cost per ounce of silver, net of by-product credits	(A+C)/D	$	(1.40	)	$	(7.60	)	$	(2.12	)
Total cash cost per ounce of silver, net of by-product credits	(B+C)/D	$	(4.03	)	$	(12.19	)	$	(4.97	)
Total production cost per ounce of silver, before by-product credits	A/D	$	10.81		$	27.09		$	12.69
Total cash cost per ounce of silver, before by-product credits	B/D	$	8.18		$	22.50		$	9.84
By-product credits per ounce of silver
Gold		$	(0.59	)	$	-		$	(0.53	)
Lead			(10.13	)		(11.01	)		(10.24	)
Zinc			(1.36	)		(23.24	)		(3.90	)
Other			(0.12	)		(0.43	)		(0.16	)
Total by-product credits per ounce of silver		$	(12.20	)	$	(34.68	)	$	(14.83	)

Management’s Discussion and Analysis Page 23

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

Nine months ended December 31, 2016
			Ying Mining
			District			GC			Total
Cost of sales		$	48,819		$	12,707		$	61,526
Less: mineral resources tax			(2,282	)		(520	)		(2,802	)
Total production costs expensed into cost of sales	A		46,537			12,187			58,724
Amortization and depletion			(13,491	)		(2,370	)		(15,861	)
Total cash cost	B		33,046			9,817			42,863
By-product sales
Gold			(2,682	)		-			(2,682	)
Lead			(38,723	)		(4,656	)		(43,379	)
Zinc			(3,308	)		(8,514	)		(11,822	)
Other			-			(303	)		(303	)
Total by-product sales	C		(44,713	)		(13,473	)		(58,186	)
Silver ounces sold ('000s)	D		4,675			511			5,186
Total production cost per ounce of silver, net of by-product credit	(A+C)/D	$	0.39		$	(2.52	)	$	0.10
Total cash cost per ounce of silver, net of by-product credits	(B+C)/D	$	(2.50	)	$	(7.15	)	$	(2.95	)
Total production cost per ounce of silver, before by-product credi	A/D	$	9.95		$	23.85		$	11.32
Total cash cost per ounce of silver, before by-product credits	B/D	$	7.07		$	19.21		$	8.27
By-product credits per ounce of silver
Gold		$	(0.57	)	$	-		$	(0.52	)
Lead			(8.28	)		(9.11	)		(8.36	)
Zinc			(0.71	)		(16.66	)		(2.28	)
Other			-			(0.59	)		(0.06	)
Total by-product credits per ounce of silver		$	(9.56	)	$	(26.36	)	$	(11.22	)

*Mineral resources tax has been excluded from production costs

(b) All-in & All-in Sustaining Costs per Ounce of Silver

All-in sustaining costs (“AISC”) per ounce and all-in costs (“AIC”) per ounce of silver are non-IFRS measures calculated based on guidance developed by the World Gold Council in an effort to provide a comparable standard within the precious metal industry. The measures do not have standardized meaning and should not be considered in isolation or as a substitute for measures of performance prepared in accordance to IFRS. These measures are used by the Company to manage and evaluate operating performance at each of the Company’s mining units and consolidated group, and are widely reported in the silver mining industry as a benchmark for performance.

AISC is an extension of the “cash costs” metric and provides a comprehensive measure of the Company’s operating performance and ability to generate cash flows. AISC is based on the Company’s cash production costs, net of by-product sales, and further include corporate general and administrative expense, government fee and other taxes, reclamation cost accretion, and sustaining capital expenditures. The Company believes that this measure represents the total sustainable costs of producing silver from current operations.

AIC further extends the AISC metric by including non-sustaining expenditures, mainly investment capital expenditures, which are deemed expansionary in nature that result in an increase in asset life, expanded mineral resources and reserves, or higher capacity and productivity.

The following tables provide a detailed reconciliation of these measures for the periods presented:

Management’s Discussion and Analysis Page 24

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

			Ying Mining									Developing
Three month ended December 31, 2017			District			BYP			GC			Projects			Corporate			Total
Cost of sales (as reported)		$	15,616		$	-		$	5,570		$	-		$	-		$	21,186
Depreciation, amortization and depletion			(3,518	)		-			(860	)		-			-			(4,378	)
By-products credits			(17,114	)		-			(7,432	)		-			-			(24,546	)
Total cash cost, net of by-product credits			(5,016	)		-			(2,722	)		-			-			(7,738	)
General & administrative			1,557			414			667			169			2,108			4,915
Amortization included in general & administrative			(107	)		(72	)		(73	)		-			(53	)		(305	)
Government fees and other taxes			560			1			324			(1	)		18			902
Reclamation accretion			94			9			7			2			-			112
Sustaining capital			5,734			-			911			244			17			6,906
All-in sustaining cost, net of by-product credits	A	$	2,822		$	352		$	(886	)	$	414		$	2,090		$	4,792
Non-sustaining expenditures			1,105			-			(531	)		(49	)		-			525
All-in cost, net of by-product credits	B	$	3,927		$	352		$	(1,417	)	$	365		$	2,090		$	5,317
Ounces of silver sold	C		1,322			-			196			-			-			1,518
All-in sustaining cost per ounce of silver, net of by-product credits	A/C	$	2.13		$	-		$	(4.52	)	$	-		$	-		$	3.16
All-in cost per ounce of silver, net of by-product credits	B/C	$	2.97		$	-		$	(7.23	)	$	-		$	-		$	3.50
			Ying Mining									Developing
Three months ended December 31, 2016			District			BYP			GC			Projects			Corporate			Total
Cost of sales (as reported)		$	16,685		$	-		$	4,775		$	-		$	-		$	21,460
Depreciation, amortization and depletion			(4,344	)		-			(834	)		-			-			(5,178	)
By-products credits			(18,376	)		-			(6,052	)		-			-			(24,428	)
Total cash cost, net of by-product credits			(6,035	)		-			(2,111	)		-			-			(8,146	)
General & administrative			1,202			455			455			81			1,757			3,950
Amortization included in general & administrative			(101	)		(92	)		(49	)		-			(43	)		(285	)
Government fees and other taxes			780			-			270			1			(1	)		1,050
Reclamation accretion			85			9			6			2			-			102
Sustaining capital			6,155			71			334			-			5			6,565
All-in sustaining cost, net of by-product credits	A	$	2,086		$	443		$	(1,095	)	$	84		$	1,718		$	3,236
Non-sustaining expenditures			190			-			242			-			-			432
All-in cost, net of by-product credits	B	$	2,276		$	443		$	(853	)	$	84		$	1,718		$	3,668
Ounces of silver sold	C		1,555			-			179			-			-			1,734
All-in sustaining cost per ounce of silver, net of by-product credits	A/C	$	1.34		$	-		$	(6.12	)	$	-		$	-		$	1.87
All-in cost per ounce of silver, net of by-product credits	B/C	$	1.46		$	-		$	(4.77	)	$	-		$	-		$	2.12
			Ying Mining									Developing
Nine months ended December 31, 2017			District			BYP			GC			Projects			Corporate			Total
Cost of sales (as reported)		$	47,454		$	-		$	15,359		$	-		$	-		$	62,813
Depreciation, amortization and depletion			(10,813	)		-			(2,478	)		-			-			(13,291	)
By-products credits			(50,275	)		-			(18,730	)		-			-			(69,005	)
Total cash cost, net of by-product credits			(13,634	)		-			(5,849	)		-			-			(19,483	)
General & administrative			4,182			941			1,663			457			6,715			13,958
Amortization included in general & administrative			(304	)		(235	)		(188	)		-			(158	)		(885	)
Government fees and other taxes			1,843			6			550			1			33			2,433
Reclamation accretion			275			25			22			7			-			329
Sustaining capital			16,904			38			1,863			244			181			19,230
All-in sustaining cost, net of by-product credits	A	$	9,266		$	775		$	(1,939	)	$	709		$	6,771		$	15,582
Non-sustaining expenditures			1,830			-			35			-			-			1,865
All-in cost, net of by-product credits	B	$	11,096		$	775		$	(1,904	)	$	709		$	6,771		$	17,447
Ounces of silver sold	C		4,118			-			540			-			-			4,658
All-in sustaining cost per ounce of silver, net of by-product credits	A/C	$	2.25		$	-		$	(3.59	)	$	-		$	-		$	3.35
All-in cost per ounce of silver, net of by-product credits	B/C	$	2.69		$	-		$	(3.53	)	$	-		$	-		$	3.75

Management’s Discussion and Analysis Page 25

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

			Ying Mining									Developing
Nine months ended December 31, 2016			District			BYP			GC			Projects		Corporate			Total
Cost of sales (as reported)		$	48,819		$	-		$	12,707		$	-	$	-		$	61,526
Depreciation, amortization and depletion			(13,491	)		-			(2,370	)		-		-			(15,861	)
By-products credits			(44,713	)		-			(13,473	)		-		-			(58,186	)
Total cash cost, net of by-product credits			(9,385	)		-			(3,136	)		-		-			(12,521	)
General & administrative			4,106			905			1,417			180		5,854			12,462
Amortization included in general & administrative			(366	)		(291	)		(161	)		-		(133	)		(951	)
Government fees and other taxes			2,989			-			456			2		29			3,476
Reclamation accretion			260			24			19			7		-			310
Sustaining capital			16,932			76			747			-		7			17,762
All-in sustaining cost, net of by-product credits	A	$	14,536		$	714		$	(658	)	$	189	$	5,757		$	20,538
Non-sustaining expenditures			3,260			-			336			-		-			3,596
All-in cost, net of by-product credits	B	$	17,796		$	714		$	(322	)	$	189	$	5,757		$	24,134
Ounces of silver sold	C		4,675			-			511			-		-			5,186
All-in sustaining cost per ounce of silver, net of by-product
All-in sustaining cost per ounce of silver, net of by-product credits	A/C	$	3.11		$	-		$	(1.29	)	$	-	$	-		$	3.96
All-in cost per ounce of silver, net of by-product credits	B/C	$	3.81		$	-		$	(0.63	)	$	-	$	-		$	4.65

(c) Average Production Costs

The Company assesses average production costs as the total production costs on a co-product basis. This is calculated by allocating the Company’s total cost of sales to each co-product based on the ratio of actual sales volumes multiplied by realized sales prices. The following table provides a reconciliation of average production costs for the periods presented:

Three months ended December 31, 2017
			Ying Mining
			District			GC			Total
Cost of slaes		$	15,616		$	5,570		$	21,186
Less: mineral resources tax			(970	)		(285	)		(1,255	)
Production costs expensed in cost of sales	A		14,646			5,285			19,931
Metals revenue ( in thousands of US$)
Silver	B		17,718			2,088			19,806
Gold	C		632			-			632
Lead	D		14,045			2,378			16,423
Zinc	E		2,337			5,048			7,385
Other	F		100			6			106
	G		34,832			9,520			44,352
Metals sold
Silver (in thousands of ounces)	H		1,322			196			1,518
Gold (in thousands of ounces)	I		0.7			-			0.7
Lead (in thousands of pounds)	J		13,487			2,263			15,750
Zinc (in thousands of pounds)	K		2,006			4,399			6,405
Other (in thousands of pounds)	L		94			4,054			4,148
Average production cost ($/unit)
Silver	B/G*A/H	$	5.64		$	5.91		$	5.86
Gold	C/G*A/I	$	380		$	-		$	406
Lead	D/G*A/J	$	0.44		$	0.58		$	0.47
Zinc	E/G*A/K	$	0.49		$	0.64		$	0.52
Other	F/G*A/L	$	0.45		$	-		$	0.01

Management’s Discussion and Analysis Page 26

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

Three months ended December 31, 2016
		Ying Mining
		District			GC		Total
Cost of slaes		$	16,685	$	4,775	$	21,460
Less: mineral resources tax			(1,125	)	(236	)	(1,361	)
Production costs expensed in cost of sales	A		15,560		4,539		20,099
Metals revenue ( in thousands of US$)
Silver	B		21,664		1,746		23,410
Gold	C		723		-		723
Lead	D		16,658		2,085		18,743
Zinc	E		995		3,775		4,770
Other	F		-		192		192
	G		40,040		7,798		47,838
Metals sold
Silver (in thousands of ounces)	H		1,555		179		1,734
Gold (in thousands of ounces)	I		0.7		-		0.7
Lead (in thousands of pounds)	J		17,269		2,214		19,483
Zinc (in thousands of pounds)	K		1,210		4,478		5,688
Other (in thousands of pounds)	L		-		28		28
Average production cost ($/unit)
Silver	B/G*A/H	$	5.41	$	5.68	$	5.67
Gold	C/G*A/I	$	401	$	-	$	434
Lead	D/G*A/J	$	0.37	$	0.55	$	0.40
Zinc	E/G*A/K	$	0.32	$	0.49	$	0.35
Other	F/G*A/L	$	-	$	3.99	$	2.88
Nine months ended December 31, 2017
		Ying Mining
			District				Total
Cost of slaes		$	47,454	$	15,359	$	62,813
Less: mineral resources tax			(2,950	)	(733	)	(3,683	)
Production costs expensed in cost of sales	A		44,504		14,626		59,130
Metals revenue ( in thousands of US$)
Silver	B		56,850		5,735		62,585
Gold	C		2,448		-		2,448
Lead	D		41,728		5,948		47,676
Zinc	E		5,604		12,548		18,152
Other	F		495		234		729
	G		107,125		24,465		131,590
Metals sold
Silver (in thousands of ounces)	H		4,118		540		4,658
Gold (in thousands of ounces)	I		2.4		-		2.4
Lead (in thousands of pounds)	J		42,531		6,066		48,597
Zinc (in thousands of pounds)	K		5,030		11,954		16,984
Other (in thousands of pounds)	L		524		16,190		16,714
Average production cost ($/unit)
Silver	B/G*A/H	$	5.74	$	6.35	$	6.04
Gold	C/G*A/I	$	424	$	-	$	458
Lead	D/G*A/J	$	0.41	$	0.59	$	0.44
Zinc	E/G*A/K	$	0.46	$	0.63	$	0.48
Other	F/G*A/L	$	0.39	$	0.01	$	0.02

Management’s Discussion and Analysis Page 27

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

Nine months ended December 31, 2016
			Ying Mining
			District			GC			Total
Cost of slaes		$	48,819		$	12,707		$	61,526
Less: mineral resources tax			(2,282	)		(520	)		(2,802	)
Production costs expensed in cost of sales	A		46,537			12,187			58,724
Metals revenue ( in thousands of US$)
Silver	B		65,953			5,268			71,221
Gold	C		2,682			-			2,682
Lead	D		38,723			4,656			43,379
Zinc	E		3,308			8,514			11,822
Other	F		-			303			303
	G		110,666			18,741			129,407
Metals sold
Silver (in thousands of ounces)	H		4,675			511			5,186
Gold (in thousands of ounces)	I		2.6			-			2.6
Lead (in thousands of pounds)	J		49,898			6,237			56,135
Zinc (in thousands of pounds)	K		4,815			11,991			16,806
Other (in thousands of pounds)	L		-			8,579			8,579
Average production cost ($/unit)
Silver	B/G*A/H	$	5.93		$	6.70		$	6.23
Gold	C/G*A/I	$	434		$	-		$	468
Lead	D/G*A/J	$	0.33		$	0.49		$	0.35
Zinc	E/G*A/K	$	0.29		$	0.46		$	0.32
Other	F/G*A/L	$	-		$	0.02		$	0.02

(d)      Production Costs per Tonne

Three months ended December 31, 2017			Ying Mining
			District			GC			Other			Consolidated
Cost of sales		$	15,616			5,570		$	-		$	21,186
Less: mineral resources tax			(970	)		(285	)					(1,255	)
Less: stockpile and concentrate inventory - Beginning			(4,971	)		(235	)		(842	)		(6,048	)
Add: stockpile and concentrate inventory - Ending			8,223			109			861			9,193
Adjustment for foreign exchange movement			(210	)		(10	)		(19	)		(239	)
Total production costs		$	17,688		$	5,149		$	-		$	22,837
Non-cash mining costs	A		3,900			653			-			4,553
Non-cash milling costs	B		340			209			-			549
Total non-cash production costs		$	4,240		$	862		$	-		$	5,102
Cash mining costs	C		11,116			3,039			-			14,155
Shipping costs	D		684			-			-			684
Cash milling costs	E		1,648			1,247			-			2,895
Total cash production costs		$	13,448		$	4,286		$	-		$	17,734
Ore mined ('000s)	F		166.619			85.665			-			252.284
Ore shipped ('000s)	G		168.908			85.665			-			254.572
Ore milled ('000s)	H		167.543			88.494			-			256.037
Per tonne Production costs
Non-cash mining costs ($/tonne)	I=A/F		23.41			7.62			-			18.05
Non-cash milling costs ($/tonne)	J=B/H		2.03			2.36			-			2.14
Non-cash production costs ($/tonne)	K=I+J	$	25.44		$	9.98		$	-		$	20.19
Cash mining costs ($/tonne)	L=C/F		66.71			35.48			-			56.11
Shipping costs ($/tonne)	M=D/G		4.05			-			-			2.69
Cash milling costs ($/tonne)	N=E/H		9.84			14.09			-			11.31
Cash production costs ($/tonne)	0=L+M+N	$	80.60		$	49.57		$	-		$	70.11
Total production costs ($/tonne)	P=K+O	$	106.04		$	59.55		$	-		$	90.30

Management’s Discussion and Analysis Page 28

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

Three months ended December 31, 2016			Ying Mining
			District			GC			Other			Consolidated
Cost of sales		$	16,685		$	4,775		$	-		$	21,460
Less: mineral resources tax			(1,125	)		(236	)		-			(1,361	)
Less: stockpile and concentrate inventory - Beginning			(5,982	)		(208	)		(840	)		(7,030	)
Add: stockpile and concentrate inventory - Ending			6,648			89			805			7,542
Adjustment for foreign exchange movement			260			6			35			301
Total production costs		$	16,486		$	4,426		$	-		$	20,912
Non-cash mining costs	A		4,338			616			-			4,954
Non-cash milling costs	B		353			195			-			548
Total non-cash production costs		$	4,691		$	811		$	-		$	5,502
Cash mining costs	C		9,458			2,554			-			12,012
Shipping costs	D		680			-			-			680
Cash milling costs	E		1,657			1,061			-			2,718
Total cash production costs		$	11,795		$	3,615		$	-		$	15,410
Ore mined ('000s)	F		171.303			81.481			-			252.784
Ore shipped ('000s)	G		173.521			81.481			-			255.002
Ore milled ('000s)	H		182.259			81.080			-			263.339
Per tonne Production costs
Non-cash mining costs ($/tonne)	I=A/F		25.32			7.56			-			19.60
Non-cash milling costs ($/tonne)	J=B/H		1.94			2.41			-			2.08
Non-cash production costs ($/tonne)	K=I+J	$	27.26		$	9.97		$	-		$	21.68
Cash mining costs ($/tonne)	L=C/F		55.21			31.34			-			47.52
Shipping costs ($/tonne)	M=D/G		3.92			-			-			2.67
Cash milling costs ($/tonne)	N=E/H		9.09			13.09			-			10.32
Cash production costs ($/tonne)	0=L+M+N	$	68.22		$	44.43		$	-		$	60.51
Total production costs ($/tonne)	P=K+O	$	95.48		$	54.40		$	-		$	82.19

Nine months ended December 31, 2017			Ying Mining
			District			GC			Other			Consolidated
Cost of sales		$	47,454		$	15,359		$	-		$	62,813
Less: mineral resources tax			(2,950	)		(733	)		-			(3,683	)
Less: stockpile and concentrate inventory - Beginning			(3,514	)		(1,358	)		(805	)		(5,677	)
Add: stockpile and concentrate inventory - Ending			8,223			109			861			9,193
Adjustment for foreign exchange movement			(374	)		(24	)		(56	)		(454	)
Total production costs		$	48,839		$	13,353		$	-		$	62,192
Non-cash mining costs	A		11,144			1,686			-			12,830
Non-cash milling costs	B		1,014			623			-			1,637
Total non-cash production costs		$	12,158		$	2,309		$	-		$	14,467
Cash mining costs	C		30,244			7,859			-			38,103
Shipping costs	D		1,981			-			-			1,981
Cash milling costs	E		4,457			3,184			-			7,641
Total cash production costs		$	36,682		$	11,043		$	-		$	47,725
Ore mined ('000s)	F		500.321			216.341			-			716.662
Ore shipped ('000s)	G		504.387			216.341			-			720.728
Ore milled ('000s)	H		506.448			218.086			-			724.534
Per tonne Production costs
Non-cash mining costs ($/tonne)	I=A/F		22.27			7.79			-			17.90
Non-cash milling costs ($/tonne)	J=B/H		2.00			2.86			-			2.26
Non-cash production costs ($/tonne)	K=I+J	$	24.27		$	10.65		$	-		$	20.16
Cash mining costs ($/tonne)	L=C/F		60.45			36.33			-			53.17
Shipping costs ($/tonne)	M=D/G		3.93			-			-			2.75
Cash milling costs ($/tonne)	N=E/H		8.80			14.60			-			10.55
Cash production costs ($/tonne)	0=L+M+N	$	73.18		$	50.93		$	-		$	66.47
Total production costs ($/tonne)	P=K+O	$	97.45		$	61.58		$	-		$	86.63

Management’s Discussion and Analysis Page 29

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

Nine months ended December 31, 2016			Ying Mining
			District			GC			Other			Consolidated
Cost of sales		$	48,819		$	12,707		$	-		$	61,526
Less: mineral resources tax			(2,282	)		(520	)		-			(2,802	)
Less: stockpile and concentrate inventory - Beginning			(4,729	)		(135	)		(869	)		(5,733	)
Add: stockpile and concentrate inventory - Ending			6,648			89			805			7,542
Adjustment for foreign exchange movement			707			108			64			879
Total production costs		$	49,163		$	12,249		$	-		$	61,412
Non-cash mining costs	A		13,770			1,767			-			15,537
Non-cash milling costs	B		1,081			599			-			1,680
Total non-cash production costs		$	14,851		$	2,366		$	-		$	17,217
Cash mining costs	C		27,341			6,846			-			34,187
Shipping costs	D		2,033			-			-			2,033
Cash milling costs	E		4,938			3,037			-			7,975
Total cash production costs		$	34,312		$	9,883		$	-		$	44,195
Ore mined ('000s)	F		524.005			220.522			-			744.527
Ore shipped ('000s)	G		526.049			220.522			-			746.571
Ore milled ('000s)	H		530.160			220.767			-			750.927
Per tonne Production costs
Non-cash mining costs ($/tonne)	I=A/F		26.28			8.01			-			20.87
Non-cash milling costs ($/tonne)	J=B/H		2.04			2.71			-			2.24
Non-cash production costs ($/tonne)	K=I+J	$	28.32		$	10.72		$	-		$	23.11
Cash mining costs ($/tonne)	L=C/F		52.18			31.04			-			45.92
Shipping costs ($/tonne)	M=D/G		3.86			-			-			2.72
Cash milling costs ($/tonne)	N=E/H		9.31			13.76			-			10.62
Cash production costs ($/tonne)	0=L+M+N	$	65.35		$	44.80		$	-		$	59.26
Total production costs ($/tonne)	P=K+O	$	93.67		$	55.52		$	-		$	82.37

11. Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the amounts reported on the consolidated financial statements. These critical accounting estimates represent management estimates that are uncertain and any changes in these estimates could materially impact the Company’s consolidated financial statements. Management continuously reviews its estimates and assumptions using the most current information available. The Company’s critical accounting policies and estimates are described in Note 2 of the unaudited condensed consolidated financial statements as of and ended December 31, 2017, as well as the audited consolidated financial statements for the year ended March 31, 2017.

(i) Ore reserve and mineral resource estimates

Ore reserves are estimates of the amount of ore that can be economically and legally extracted from the Company’s mining properties. The Company estimates its ore reserves and mineral resources based on information compiled by appropriately qualified persons relating to the geological and technical data on the size, depth, shape and grade of the ore body and suitable production techniques and recovery rates. Such an analysis requires complex engineering and geological judgements to interpret the data. The estimation of recoverable reserves is based upon factors such as estimates of foreign exchange rates, commodity prices, future capital requirements, and production costs along with engineering and geological assumptions and judgements made in estimating the size and grade of the ore body.

The Company estimates ore reserves in accordance with National Instrument 43-101, “Standards of Disclosure for Mineral Projects”, issued by the Canadian Securities Administrators. There are numerous assumptions including:

• Future production estimates – which include proved and probable reserves, resource estimates and committed expansions;

• Expected future commodity prices, based on current market price, forward prices and the Company’s assessment of the long-term average price; and

• Future cash costs of production, capital expenditure and rehabilitation obligations.

Management’s Discussion and Analysis Page 30

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

As the economic assumptions change and as additional geological information is produced during the operation of a mine, estimates of reserves may change. Such changes may impact the Company’s reported financial position and results which include:

• The carrying value of mineral rights and properties and plant and equipment may be affected due to changes in estimated future cash flows;

• Depreciation and depletion charges in net income may change where such charges are determined using the units of production method, or where the useful life of the related assets change; and

• The recognition and carrying value of deferred income tax assets may change due to changes in the judgements regarding the existence of such assets and in estimates of the likely recovery of such assets.

(ii) Impairment of assets

Where an indicator of impairment exists, a formal estimate of the recoverable amount is made, which is determined as the higher of the fair value less costs to sell and value in use. These assessments require the use of estimates and assumptions such as long-term commodity prices (considering current and historical prices, price trends and related factors), discount rates, operating costs, future capital requirements, closure and rehabilitation costs, exploration potential, reserves and operating performance (which includes production and sales volumes). These estimates and assumptions are subject to risk and uncertainty. Therefore, there is a possibility that changes in circumstances will impact these projections, which may impact the recoverable amount of assets and/or CGUs. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s length transaction between knowledgeable and willing parties. Fair value for mineral assets is generally determined as the present value of estimated future cash flows arising from the continued use of the asset, which includes estimates such as the costs of future expansion plans and eventual disposal, using assumptions that an independent market participant may take into account. Cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

12. New Accounting Standards

IFRS 15 – Revenue from contracts with customers, the standard on revenue from contacts with customers was issued in September 2015 and may be effective for annual reporting periods beginning on or after January 1, 2018 for public entities with early adoption permitted. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt the guidance. In April 2016, the IASB issued targeted amendments to IFRS 15 related to identifying performance obligations, principal vs agent consideration, licensing and transitional relief for modified contracts and completed contracts. The Company has reviewed its revenue streams and underlying contracts with customers to determine the impact that the adoption of IFRS 15 will have on its financial statements. The Company plans to apply IFRS 15 at the date it becomes effective but has not yet selected a transition approach and does not anticipate that there will be any significant recognition or measurement impact subsequent to adoption. The Company continues to evaluate the impact that the adoption will have on disclosure in the consolidated financial statements.

IFRS 9 (2014) – Financial Instruments (amended 2014): In July 2014, the IASB issued the final version of IFRS 9 – Financial Instruments (“IFRS 9”). The Company adopted IFRS 9 (2010) – Financial Instruments effective April 1, 2011. The Company has reviewed its financial instruments to determine the impact that the adoption of IFRS 9 will have on its financial statements. The Company does not anticipate that there will be any changes to the classification or the carrying values of the Company’s financial instruments as a result of the adoption. The Company does not currently apply hedge accounting to its risk management contracts and does not intend to apply hedge accounting to any of its existing risk management contracts on adoption of IFRS 9. The Company continues to evaluate the impact that the adoption will have on disclosure in the consolidated financial statements.

Management’s Discussion and Analysis Page 31

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

IFRS 16 - Leases was issued by the IASB and will replace Leases (“IAS 17”). IFRS 16 requires most leases to be reported on a company’s balance sheet as assets and liabilities. IFRS 16 is effective for annual periods beginning on or after January 1, 2019 with early application permitted for companies that also apply IFRS 15 - Revenue from Contracts with Customers. The Company has developed a project plan and is gathering data to assess the impact that the adoption of IFRS 16 will have on its consolidated financial statements by cataloging and reviewing all existing leases.

Amendments to IFRS 2 - Share-based payment. On June 20, 2016, the IASB issued amendments to IFRS 2, Share-based Payment, regarding accounting for cash-settled share-based payment transactions that include a performance condition, classification of share-based payment transactions with net settlement features and accounting for modifications of share-based payment transactions from cash-settled to equity-settled. The amendments are effective for annual periods beginning on or after January 1, 2018 with early adoption permitted. The Company is assessing the impact of this amendment.

IFRIC 22 - Foreign currency transactions and advance consideration. On December 8, 2016, the IASB published IFRIC 22, Foreign Currency Transactions and Advance Consideration to clarify the exchange rate that should be used for transactions that include the receipt or payment of advance consideration in a foreign currency. IFRIC 22 is effective for annual periods beginning on or after January 1, 2018 with early adoption permitted. The Company is assessing the impact of this standard.

13. Other MD&A Requirements

Additional information relating to the Company: (a) may be found on SEDAR at www.sedar.com;

(b) may be found at the Company’s web-site www.silvercorpmetals.com; (c) may be found in the Company’s Annual Information Form; and,

(d) is also provided in the Company’s annual audited consolidated financial statements as of March 31, 2017.

14. Outstanding Share Data

As at the date of this MD&A, the following securities were outstanding: (a) Share Capital Authorized - unlimited number of common shares without par value

Issued and outstanding – 167,768,022 common shares with a recorded value of $231.0 million Shares subject to escrow or pooling agreements - $nil.

(b) Options

As at the date of this report, the outstanding options comprise the following:

Management’s Discussion and Analysis Page 32

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

Number of Options	Exercise Price (CAD$)	Expiry Date
30,000	5.58	2/24/2020
143,000	4.34	9/18/2019
167,562	3.91	3/7/2018
910,000	3.63	2/18/2020
266,124	3.41	9/12/2018
1,070,000	3.36	10/2/2020
168,375	3.25	6/2/2018
126,437	2.98	1/21/2019
352,125	1.75	5/29/2019
236,571	1.76	10/14/2019
1,427,257	1.43	6/2/2020
2,548,794	0.66	12/30/2018
7,446,245

15. Risks and Uncertainties

The Company is exposed to many risks in conducting its business, including but not limit to: metal price risk as the Company derives its revenue from the sale of silver, lead, zinc, and gold; credit risk in the normal course of dealing with other companies and financial institutions; foreign exchange risk as the Company reports its financial statements in USD whereas the Company operates in jurisdictions that utilize other currencies; equity price risk and interest rate risk as the Company has investments in marketable securities that are traded in the open market or earn interest at market rates that are fixed to maturity or at variable interest rates; inherent risk of uncertainties in estimating mineral reserves and mineral resources; political risks; and environmental risk.

Management and the Board of Directors continuously assess risks that the Company is exposed to, and attempt to mitigate these risks where practical through a range of risk management strategies.

These and other risks are described in the Company’s Annual Information Form and NI 43-101 technical reports, which are available on SEDAR at www.sedar.com; Form 40-F; Audited Consolidated Financial Statements; and Management’s Discussion and Analysis for the year ended March 31, 2017. Readers are encouraged to refer to these documents for a more detailed description of some of the risks and uncertainties inherent to Silvercorp’s business.

· Metal Price Risk

The Company’s sales prices for lead and zinc pounds are fixed against the Shanghai Metals Exchange as quoted at www.shmet.com; gold ounces are fixed against the Shanghai Gold Exchange as quoted at www.sge.com.cn and silver ounces are fixed against the Shanghai White Platinum & Silver Exchange as quoted at www.ex-silver.com.

The Company’s revenues, if any, are expected to be in large part derived from the mining and sale of silver, lead, zinc, and gold contained in metal concentrates. The prices of those commodities have fluctuated widely, particularly in recent years, and are affected by numerous factors beyond the Company’s control including international and regional economic and political conditions; expectations of inflation; currency exchange fluctuations; interest rates; global or regional supply and demand for jewellery and industrial products containing silver and other metals; sale of silver and other metals by central banks and other holders, speculators and producers of silver and other metals; availability and costs of metal substitutes; and increased production due to new mine developments and improved mining and production methods. The price of base and precious metals may have a significant influence on the market price of the Company’s shares and the value of the project. The effect of these factors on the price of base and precious metals, and therefore the viability of the Company’s exploration projects and mining operations, cannot be accurately predicted.

Management’s Discussion and Analysis Page 33

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

If silver and other metals prices were to decline significantly or for an extended period of time, the Company may be unable to continue operations, develop its projects, or fulfil obligations under agreements with the Company’s joint venture partners or under its permits or licenses.

· Permits and licenses

All mineral resources and mineral reserves of the Company’s subsidiaries are owned by their respective governments, and mineral exploration and mining activities may only be conducted by entities that have obtained or renewed exploration or mining permits and licenses in accordance with the relevant mining laws and regulations. No guarantee can be given that the necessary exploration and mining permits and licenses will be issued to the Company or, if they are issued, that they will be renewed, or if renewed under reasonable operational and/or financial terms, or in a timely manner, or that the Company will be in a position to comply with all conditions that are imposed.

Nearly all mining projects require government approval. There can be no certainty that approvals necessary to develop and operate mines on the Company’s properties will be granted or renewed in a timely and/or economical manner, or at all.

· Title to properties

With respect to the Company’s Chinese properties, while the Company has investigated title to all of its mineral claims and to the best of its knowledge, title to all of its properties is in good standing, the properties may be subject to prior unregistered agreements or transfers and title may be affected by undetected defects. There may be valid challenges to the title of the Company’s properties which, if successful, could impair development and/or operations. The Company cannot give any assurance that title to its properties will not be challenged. Title insurance is generally not available for mineral properties and the Company’s ability to ensure that it has obtained secure claim to individual mineral properties or mining concessions may be severely constrained. The Company’s mineral properties in China have not been surveyed, and the precise location and extent thereof may be in doubt.

· Operations and political conditions

All the properties in which the Company has an interest are located in China, which has different regulatory and legal standards than those in North America. Even when the Company’s mineral properties are proven to host economic reserves of metals, factors such as political instability, terrorism, opposition and harassment from local miners, or governmental expropriation or regulation may prevent or restrict mining of any such deposits or repatriation of profits.

All the Company’s operations are located in China. These operations are subject to the risks normally associated with conducting business in China. Some of these risks are more prevalent in countries which are less developed or have emerging economies, including uncertain political and economic environments, as well as risks of war and civil disturbances or other risks which may limit or disrupt a project, restrict the movement of funds or result in the deprivation of contractual rights or the taking of property by nationalization or expropriation without fair compensation, risk of adverse changes in laws or policies, increases in foreign taxation or royalty obligations, license fees, permit fees, delays in obtaining or the inability to obtain necessary governmental permits, limitations on ownership and repatriation of earnings, and foreign exchange controls and currency devaluations.

In addition, the Company may face import and export regulations, including export restrictions, disadvantages of competing against companies from countries that are not subject to similar laws, restrictions on the ability to pay dividends offshore, and risk of loss due to disease and other potential endemic health issues. Although the Company is not currently experiencing any significant or extraordinary problems in China arising from such risks, there can be no assurance that such problems will not arise in the future. The Company currently does not carry political risk insurance coverage.

The Company’s interests in its mineral properties are held through joint venture companies established

Management’s Discussion and Analysis Page 34

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

under and governed by the laws of China. The Company’s joint venture partners in China include state-sector entities and, like other state-sector entities, their actions and priorities may be dictated by government policies instead of purely commercial considerations. Additionally, companies with a foreign ownership component operating in China may be required to work within a framework which is different from that imposed on domestic Chinese companies. The Chinese government currently allows foreign investment in certain mining projects under central government guidelines. There can be no assurance that these guidelines will not change in the future.

· Regulatory environment in China

The Company conducts operations in China. The laws of China differ significantly from those of Canada and all such laws are subject to change. Mining is subject to potential risks and liabilities associated with pollution of the environment and disposal of waste products occurring as a result of mineral exploration and production.

Failure to comply with applicable laws and regulations may result in enforcement actions and may also include corrective measures requiring capital expenditures, installation of additional equipment or remedial actions. Parties engaged in mining operations may be required to compensate those suffering loss or damage by reason of mining activities and may have civil or criminal fines or penalties imposed for violations of applicable laws and regulations.

New laws and regulations, amendments to existing laws and regulations, administrative interpretation of existing laws and regulations, or more stringent enforcement of existing laws and regulations could have a material adverse impact on future cash flow, results of operations and the financial condition of the Company.

· Environmental risks

The Company’s activities are subject to extensive laws and regulations governing environmental protection and employee health and safety, including environmental laws and regulations in China. These laws address emissions into the air, discharges into water, management of waste, management of hazardous substances, protection of natural resources, antiquities and endangered species, and reclamation of lands disturbed by mining operations.

There are also laws and regulations prescribing reclamation activities on some mining properties. Environmental legislation in many countries including China is evolving and the trend has been toward stricter standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments of proposed projects and increasing responsibility for companies and their officers, directors and employees. Compliance with environmental laws and regulations may require significant capital outlays on behalf of the Company and may cause material changes or delays in the Company’s intended activities. There can be no assurance that the Company has been or will be at all times in complete compliance with current and future environmental and health and safety laws and permits will not materially adversely affect the Company’s business, results of operations or financial condition. It is possible that future changes in these laws or regulations could have a significant adverse impact on some portion of the Company’s business, causing the Company to re-evaluate those activities at that time. The Company’s compliance with environmental laws and regulations entail uncertain costs.

· Risks and hazards of mining operations

Mining is inherently dangerous and the Company’s operations are subject to a number of risks and hazards including, without limitation:

(i) environmental hazards;

(ii) discharge of pollutants or hazardous chemicals;

Management’s Discussion and Analysis Page 35

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

(iii) industrial accidents;

(iv) failure of processing and mining equipment;

(v) labour disputes;

(vi) supply problems and delays;

(vii) encountering unusual or unexpected geologic formations or other geological or grade problems;

(viii)encountering unanticipated ground or water conditions;

(ix) cave-ins, pit wall failures, flooding, rock bursts and fire;

(x) periodic interruptions due to inclement or hazardous weather conditions;

(xi) equipment breakdown;

(xii) other unanticipated difficulties or interruptions in development, construction or production; and

(xiii) other acts of God or unfavourable operating conditions.

Such risks could result in damage to, or destruction of, mineral properties or processing facilities, personal injury or death, loss of key employees, environmental damage, delays in mining, monetary losses and possible legal liability. Satisfying such liabilities may be very costly and could have a material adverse effect on the Company’s future cash flow, results of operations and financial condition.

16. Disclosure Controls and Procedures

Disclosure controls and procedures are designed to provide reasonable assurance that material information is gathered and reported to senior management, including the Chief Executive Officer (“CEO”) and the Chief Financial Officer (“CFO”), as appropriate to allow for timely decision about public disclosure.

Management, including the CEO and CFO, has evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures as at December 31, 2017, as defined in the rules of the U.S. Securities and Exchange Commission and Canadian Securities Administration. The evaluation included documentation review, enquiries and other procedures considered by management to be appropriate in the circumstances. Based on this evaluation, management concluded that the disclosure controls and procedures (as defined in Rule 13a-15(e) under Securities Exchange Act of 1934) are effective in providing reasonable assurance that the information required to be disclosed in annual filings, interim filings, and other reports we filed or submitted under United States and Canadian securities legislation was recorded, processed, summarized and reported within the time periods specified in those rules.

17. Changes in Internal Control over Financial Reporting

There was no change in the Company’s internal control over financial reporting that occurred during the quarter that has materially affected or is reasonably likely to materially affect, its internal control over financial reporting.

18. Directors and Officers

As at the date of this report, the Company’s Directors and Officers are as follows:

Directors	Officers
Dr. Rui Feng, Director, Chairman	Rui Feng, Chief Executive Officer
Yikang Liu, Director	Derek Liu, Chief Financial Officer

Management’s Discussion and Analysis Page 36

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

Paul Simpson, Director	Lorne Waldman, Senior Vice President, Corporate Secretary & General Counsel
David Kong, Director	Luke Liu, Vice President, China Operations
Marina A. Katusa, Director

Mr. JianZhao Ying, P.Geo., is a Qualified Person for Silvercorp under NI 43-101 and has reviewed and given consent to the technical information contained in this MD&A.

Forward Looking Statements

Certain of the statements and information in this MD&A constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian provincial securities laws. Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”, “forecasts”, “objectives”, “budgets”, “schedules”, “potential” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information. Forward-looking statements or information relate to, among other things:

• the price of silver and other metals;

• estimates of the Company’s revenues and capital expenditures;

• estimated ore production and grades from the Company’s mines in the Ying Mining District; and;

• timing of receipt of permits and regulatory approvals.

Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to,

• fluctuating commodity prices;

• fluctuating currency exchange rates;

• increasing labour costs;

• exploration and development programs;

• feasibility and engineering reports;

• permits and licenses;

• operations and political conditions;

• regulatory environment in China and Canada;

• environmental risks; and

• risks and hazards of mining operations.

This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements or information. Forward-looking statements or information are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements or information due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in this MD&A under the heading “Risks and Uncertainties” and elsewhere. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information.

The Company’s forward-looking statements and information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this MD&A, and other than as required by applicable securities laws,

Management’s Discussion and Analysis Page 37

SILVERCORP METALS INC.

Management’s Discussion and Analysis

For the Three and Nine Months Ended December 31, 2017

(Expressed in thousands of U.S. dollars, unless otherwise stated)

the Company does not assume any obligation to update forward-looking statements and information if circumstances or management’s assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking statements and information.

Management’s Discussion and Analysis Page 38