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VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 30, 2006) - Silvercorp Metals Inc. ("Silvercorp) (TSX:SVM - News) is pleased to report the completion of an update of the mineral resources at the Ying mine. The National Instrument ("NI") 43-101 Technical Update Report (the "Resource Report") dated May 26, 2006 supplements the Scoping Report completed April 18, 2006. This Resource Report almost doubles the Measured + Indicated mineral resources and more than doubles the Inferred mineral resources previously reported.

The Resource Report estimate is summarized below:

The current estimated mineral resources of Silver (Ag), Lead (Pb) and Zinc (Zn) in parts of 14 veins explored to date at the Ying mine in grams per tonne (g/t) and Troy ounces per metric tonne (oz/t) are as follows:

Summary of mineral resource estimates at the Ying mine - 26 May 2006

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                                                                  Ag
Resource   Thickness                Ag     Ag     Pb    Zn   Equiv(i)
Category          (m)    Tonnes   (g/t) (oz/t)    (%)   (%)     (g/t)
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Measured        0.49    350,765  1,397  44.92  24.34  9.69     2,884
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Indicated       0.37    460,854  1,639  52.70  28.11  7.79     3,195
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Measured +
Indicated       0.42    811,620  1,535  49.34  26.48  8.61     3,061
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Inferred        0.45  1,246,013  1,426  45.86  25.47  9.38     2,946
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                                     Contained Metal Resource
                           -----------------------------------------
                                                                  Ag
Resource                                                     Equiv(i)
Category                       Ag (oz)   Pb (t)   Zn (t)         (oz)
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Measured                   15,755,537   85,381   34,001   32,524,723
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Indicated                  24,288,513  129,557   35,894   47,338,594
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Measured +
Indicated                  40,044,051  214,938   69,896   79,863,316
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Inferred                   57,143,860  317,362  116,914  118,030,208
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(i) Ag Equivalent is calculated using US$6.50/oz Ag, US$0.40/lb Pb,
and US$0.45/lb Zn
Calculations reflect gross metal content and have not been adjusted
for metallurgical recoveries.

Using the Measured+Indicated Resources in the Resource Report, a 100% dilution factor and 95% mining recovery rate for the high grade resources, a potentially mineable measured plus indicated resource is calculated to be (mineable 2005 Resource estimates in brackets): 1,542,078 tonnes (756,815 tonnes) grading 767 g/t or 24.68 oz/t Ag (696 g/t or 22.3 oz/t Ag); 13.24% Pb (16.36% Pb); and 4.31% Zn (4.99% Zn). Assuming a mining rate of 140,000 tonnes for 2006/2007 fiscal year and 300,000 tonnes per year thereafter, the resources at Ying could sustain mine production for about six years. With geological interpretation and understanding of the Ying property and considering its similarity to the Coeur d'Alene district in Idaho, the aggressive tunneling and drilling program recommended in this report for 2006/2007 could extend the mine life far beyond six years. The Resource Report determined it is reasonable to assume Silvercorp can reach its production goal without incurring substantial capital cost.

Based on after-smelter net metal prices of US$7.50/oz Ag, US$0.38/lb Pb, and US$0.71 lb Zn, and assuming production cost of US$40.94 per tonne mined for the first year and US$36.73 per tonne mined thereafter, with mineral processing recovery rates of 95% for Pb, 90% for Ag, and 75% for Zn, Silvercorp's share (77.5%) of projected net profit is anticipated to be US$26.2 million for the 1st year, US$64.6 million for the 2nd year, and US$54.9 million for each of the 3rd, 4th years, and 5th year, and US$45.2 million for the 6th year. The capital payback period is projected to be zero as all the capital expenditures are projected to be financed from the first year's cash flow. For foreign invested companies such as the joint venture company holding the Ying, income is tax-free for the first two years, taxable at 15% in years 3 to 5, and taxable at 30% thereafter. This projection, however, is based on mineral resources which are not mineral reserves, and therefore do not have demonstrated economic viability.

If revenue from lead and zinc is used to cover production cost, then unit silver production cost adjusted for lead and zinc credit is projected to be negative US$5.02 to negative US$4.72 per ounce. If lead and zinc are treated as free credits and only silver revenue is used to cover the production cost, then the unit silver production cost is projected to be US$1.62 per ounce.

Of 27,574 m of tunnels completed since August 2004, about 17,300 m are mining development tunnels. The mine development is sufficiently advanced so that preliminary production commenced upon receipt of the mining permit. Currently sixteen stopes developed from various elevation levels on seven different veins are under production. An additional four stopes are expected to be mined in three months, reaching a phase one mining capacity of 600 tonnes per day ("tpd").

During the past two-year period, the Ying Project has rapidly expanded the silver-lead-zinc resource. This is due to tunneling along the veins, declines and raises along the veins, and crosscuts intersecting new veins. By continuing a similar level of exploration, the Resource Report concluded that existing veins will likely be expanded and new veins discovered.

Just because I have not talked about Silvercorp in recent times isn't because I don't like it anymore. Far from that. I still think it is a low risk way to play the silver market.

With this piece of news, Silvercorp hits goal #2 of the 3 they gave themselves at the beginning of the year:

1. Mining Permit

2. Resource Upgrade

3. Amex Listing

The Amex listing is in the works and it should be granted sometime in the summer months.

Any success guru will tell you that to be a succesful person, you have to set realistic goals and do your best to attain them.

Why should it be any different for corporations? I don't think it should and Silvercorp is a great success story of setting goals, working towards them and achieving success.

Success has been in the form of one of the top performing stocks over the first 4 months of the year. Please don't expect huge gains like this forever. However, for the stock to appreciate 50-100% (per year) for the next 3-4 years minimum is my target.

Never forget that management is the most important factor in any corporation and Silvercorp has some of the best in the business.

For this reason, make sure you put NUX.V on your watch list. No, I didn't say buy it because it's just a shell right now. But they have money in the bank from recent financings and Rui Feng is shopping around for good properties in China to buy. Could it turn out to be Silvercorp Jr?

It's too early to tell because they don't even have a property for me to evaluate them with but rest assured that the management will do their best to maximize shareholder returns!