VANCOUVER, BC — January 20, 2026 — Leads & Copy — Silvercorp Metals Inc. (TSX: SVM) has signed a Share Purchase Agreement with Chaarat Gold Holdings Limited and a Cooperation Agreement with the National Investment Agency under the President of the Kyrgyz Republic (NIA). Per these agreements, Silvercorp will acquire a 70% interest in Chaarat ZAAV CJSC, which holds a 100% interest in the mining license hosting the Tulkubash/Kyzyltash gold projects and surrounding exploration licenses hosting the Karator and Ishakuld gold zones in the Kyrgyz Republic, for US$162 million.
The company, through its subsidiaries, also entered into a Share Purchase and Shareholders Agreement with Kyrgyzaltyn, a subsidiary of the Kyrgyz Republic. Upon completion of the acquisition of ZAAV, it will be converted into a joint venture company (JVC) between Silvercorp and Kyrgyzaltyn. Silvercorp will hold a 70% interest and operate the JVC, while Kyrgyzaltyn will hold a 30% free-carried interest.
As part of the Cooperation Agreement, NIA will receive $70 million in two staged payments: $60 million upon the Kyrgyz Government issuing a waiver of its statutory pre-emptive right on the Projects and an extension of the validity period of the JVC’s mining license from June 25, 2032, to June 25, 2062, and $10 million after certain milestones are achieved. Chaarat will receive a $92 million payment from Silvercorp, conditional upon receipt of the Kyrgyz Government waiver. With the waiver issued, Silvercorp will proceed with the payment to Chaarat for closing.
The JVC development plan for the Tulkubash/Kyzyltash gold projects includes two phases. Phase 1 (2026-2028) involves a US$150 million investment by Silvercorp for construction of a 4 million tonnes of ore per year open-pit mine/heap leach operation for the oxidized gold ore from the Tulkubash field. Once in production in 2027-2028, the Tulkubash field is expected to produce approximately 110,000 oz of gold annually for 3-4 years. The open pit/heap leach operation could be extended for at least 2 years if the Karator exploration license is converted into a mining license in 2026.
Phase 2 (2028-2031) entails approximately US$400 million in investment to develop the Kyzyltash sulfide deposit into a 3 to 4 million tonnes per year open pit/underground mine, plus flotation, bacterial oxidization (BIOX) and carbon in leach (CIL). Once in production, the Kyzyltash sulfide deposit could produce approximately 190,000 to 230,000 oz of gold annually for over 18 years, starting from 2031.
Silvercorp Chair and CEO Dr. Rui Feng said the company is pleased to develop the Projects and that they align with Silvercorp’s strategic objectives of diversifying and growing its asset base by adding a third jurisdiction. Silvercorp will use its cash and short-term investments to make the payment for the acquisition. Remaining cash on hand after the acquisition, as well as cash flow from current operations and financing capacity, will be sufficient to advance the Tulkubash/Kyzyltash projects through the Phase 1 Development.
The Tulkubash/Kyzyltash Gold Projects are located approximately 490 km by road southwest of Bishkek. Antimony-gold mineralization was identified by Soviet era geologists in the early 1970s. Since 2002, Chaarat has spent $174 million on the Projects. A total of 188,000 metres of drilling has been performed on the Tulkubash/Kyzyltash Gold Projects.
Silvercorp has prepared an internal mineral resource estimate in accordance with National Instrument 43-101 for both Tulkubash and Kyzyltash.
Historical Mineral Resource Estimates include estimates completed at different times for Tulkubash, Kyzyltash and Karator, including reports from SRK Consulting (South Africa), Wardell Armstrong International (UK), GeoSystem International (Florida), Tetra Tech (UK), LogiProc (South Africa), and Dimitar Dimitrov.
Extensive metallurgical studies were completed on the Tulkubash/Kyzyltash Gold Projects, as well as Pre-Feasibilty and Feasibility Studies.
Upon completion of the acquisition, the Company will engage the independent engineering firm to update the 2021 feasibility study report in accordance with NI 43-101 on the Tulkubash Open Pit/Heap Leach Operation, pursue Local Adaptation and Expertization of the 2021 LogiProc Bankable Feasibility Study to Kyrgyz National Standards and obtain other necessary permits for construction based on the most recent designs, local team building, and engage experienced mining and construction contractors for the development of the Tulkubash Open Pit/Heap Leach Operation. Meanwhile, Silvercorp will engage independent engineering firms to work on a preliminary economic assessment study for Kyzyltash and to carry out more definitive drilling in preparation for a feasibility study.
Guoliang Ma, P. Geo., Manager of Exploration and Resource of the Company is the designated qualified person for the Company.
Lon Shaver, President, Phone: (604) 669-9397, Toll Free 1(888) 224-1881, Email: investor@silvercorp.ca
Source: Silvercorp Metals Inc.
