Exhibit 99.2

SILVERCORP METALS INC.

Condensed Consolidated Interim Balance Sheets

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


	Notes		June 30, 2013			March 31, 2013
ASSETS
Current Assets
Cash and cash equivalents	21	$	91,581		$	72,283
Short-term investments			20,410			45,623
Trade and other receivables			1,382			1,442
Inventories	3		6,252			7,522
Due from related parties	11		57			123
Prepaids and deposits			6,249			5,118
Assets held for sale	22		18,718			-
			144,649			132,111

Non-current Assets
Long-term prepaids and deposits			2,433			1,877
Investment in an associate	4		6,289			6,523
Other investments	5		11,903			15,516
Plant and equipment	6		103,694			103,517
Mineral rights and properties	7		321,504			316,678
TOTAL ASSETS		$	590,472		$	576,222

LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities		$	40,930		$	29,285
Deposits received			11,161			11,497
Dividends payable			4,062			4,204
Income tax payable			89			1,349
Due to related parties	11		-			1,207
Liabilities held for sale	22		3,185			-
			59,427			47,542
Non-current Liabilities
Deferred income tax liabilities			24,523			24,603
Environmental rehabilitation			5,949			5,974
Total Liabilities			89,899			78,119

Equity
Share capital	8		233,082			233,082
Share option reserve			9,029			8,314
Reserves			24,717			24,717
Accumulated other comprehensive loss	9		(2,969	)		(1,495	)
Retained earnings			156,206			155,817
Total equity attributable to the equity holders of the Company			420,065			420,435

Non-controlling interests	10		80,508			77,668
Total Equity			500,573			498,103

TOTAL LIABILITIES AND EQUITY		$	590,472		$	576,222
Commitments and contingencies	20

Approved on behalf of the Board:

(Signed) David Kong
Director

(Signed) Rui Feng
Director

See accompanying notes to the condensed consolidated interim financial statements

SILVERCORP METALS INC.

Condensed Consolidated Interim Statements of Income

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


			Three Months Ended June 30,
	Notes		2013			2012

Sales		$	39,835		$	44,549
Cost of sales	12		22,482			18,994
Gross profit			17,353			25,555

General and administrative	13		7,501			6,846
General exploration and property investigation			1,048			966
Other taxes	14		595			806
Foreign exchange gain			(1,881	)		(777	)
Loss on disposal of plant and equipment	6		28			20
Share of loss in associate	4		14			7
Loss on investments	5		574			1,286
Other income			(115	)		(75	)
Income from operations			9,589			16,476

Finance income	15		928			991
Finance costs	15		(33	)		(22	)
Income before income taxes			10,484			17,445

Income tax expense	16		4,000			7,927
Net income		$	6,484		$	9,518

Attributable to:
Equity holders of the Company		$	4,562		$	6,114
Non-controlling interests	10		1,922			3,404
		$	6,484		$	9,518

Earnings per share attributable to the equity holders of the Company
Basic earnings per share		$	0.03		$	0.04
Diluted earnings per share		$	0.03		$	0.04
Weighted Average Number of Shares Outstanding - Basic			170,781,058			170,693,325
Weighted Average Number of Shares Outstanding - Diluted			170,839,083			171,082,201

See accompanying notes to the condensed consolidated interim financial statements

SILVERCORP METALS INC.

Condensed Consolidated Interim Statements of Comprehensive Income

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


		Three Months Ended June 30,
		2013			2012

Net income	$	6,484		$	9,518
Other comprehensive loss, net of taxes:
Items that may subsequently be reclassified to net income or loss:
Currency translation adjustment, net of tax of $nil		2,506			(6,193	)
Items that will not subsequently be reclassified to net income or loss:
Unrealized loss on equity investments designated as FVTOCI, net of tax of $nil		(3,062	)		(3,779	)
Other comprehensive loss, net of taxes	$	(556	)	$	(9,972	)
Attributable to:
Equity holders of the Company	$	(1,474	)	$	(9,339	)
Non-controlling interests		918			(633	)
	$	(556	)	$	(9,972	)
Total comprehensive income (loss), net of taxes	$	5,928		$	(454	)

Attributable to:
Equity holders of the Company	$	3,088		$	(3,225	)
Non-controlling interests		2,840			2,771
	$	5,928		$	(454	)

See accompanying notes to the condensed consolidated interim financial statements

SILVERCORP METALS INC.

Condensed Consolidated Interim Statements of Cash Flow

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


			Three Months Ended June 30,
	Notes		2013			2012
Cash provided by
Operating activities
Net income		$	6,484		$	9,518
Add (deduct) items not affecting cash:
Unwinding of discount of environmental rehabilitation			33			22
Depreciation, amortization and depletion			3,932			4,076
Share of loss in associate			14			7
Income tax expense			4,000			7,927
Loss on investments			574			1,286
Loss on disposal of plant and equipment			28			20
Share-based compensation			715			736
Income tax paid			(3,349	)		(8,515	)
Changes in non-cash operating working capital	21		5,194			4,175
Net cash provided by operating activities			17,625			19,252

Investing activities
Mineral rights and properties
Capital expenditures			(13,643	)		(12,316	)
Plant and equipment
Additions			(5,553	)		(9,628	)
Other investments
Acquisition			-			(515	)
Net redemptions (purchases) of short-term investments			24,991			(14,812	)
Deposit received for sale of subsidiaries	22		1,630			-
Net cash provided by (used in) investing activities			7,425			(37,271	)

Financing activities
Related parties
Payments made			(1,410	)		(277	)
Repayments received			270			334
Cash dividends distributed			(4,160	)		(4,305	)
Proceeds from issuance of common shares			-			94
Net cash used in financing activities			(5,300	)		(4,154	)

Effect of exchange rate changes on cash and cash equivalents			(400	)		(4,132	)

Increase (decrease) in cash and cash equivalents			19,350			(26,305	)

Cash and cash equivalents, beginning of the period			72,283			109,960
Cash and cash equivalents included in held for sale assets			(52	)		-

Cash and cash equivalents, end of the period		$	91,581		$	83,655
Supplementary cash flow information	21

See accompanying notes to the condensed consolidated interim financial statements

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

	Notes	Number of shares		Amount		Share option reserve			Reserves		Accumulated other comprehensive income (loss)			Retained earnings			Total equity attributable to the equity holders of the Company			Non- controlling interests			Total equity
Balance, April 1, 2012		170,681,974	$	232,678	$	5,552		$	24,717	$	25,285		$	145,580		$	433,812		$	77,020		$	510,832
Options exercised		99,084		404		(131	)		-		-			-			273			-			273
Share-based compensation		-		-		2,893			-		-			-			2,893			-			2,893
Cash dividends		-		-		-			-		-			(16,974	)		(16,974	)		-			(16,974	)
Distribution to non-controlling interests		-		-		-			-		-			-			-			(15,248	)		(15,248	)
Disposition of non-controlling interests upon sale of a subsidiary		-		-		-			-		-			-			-			173			173
Comprehensive income (loss)		-		-		-			-		(26,780	)		27,211			431			15,723			16,154
Balance, March 31, 2013		170,781,058	$	233,082	$	8,314		$	24,717	$	(1,495	)	$	155,817		$	420,435		$	77,668		$	498,103
Share-based compensation	8(b)	-		-		715			-		-			-			715			-			715
Cash dividends	8(c)	-		-		-			-		-			(4,173	)		(4,173	)		-			(4,173	)
Comprehensive income (loss)		-		-		-			-		(1,474	)		4,562			3,088			2,840			5,928
Balance, June 30, 2013		170,781,058	$	233,082	$	9,029		$	24,717	$	(2,969	)	$	156,206		$	420,065		$	80,508		$	500,573

See accompanying notes to the condensed consolidated interim financial statements

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

(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 are in China, with current exploration and development projects in China and Canada.

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 the New York 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.

The condensed consolidated interim financial statements of the Company as at and for the three months ended June 30, 2013 were authorized for issue in accordance with a resolution of the Board of Directors dated on August 7, 2013.

Operating results for the three months ended June 30, 2013 are not necessarily indicative of the results that may be expected for the year ending March 31, 2014.

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


			Proportion of ownership interest held
Name of subsidiaries	Principal activity	Place of incorporation	June 30, 2013	March 31, 2013	Mineral properties
Silvercorp Metals China Inc.	Holding company	Canada	100%	100%
Silvercorp Metals (China) Inc.	Holding company	China	100%	100%
0875786 B.C. LTD.	Mining	Canada	100%	100%	Silvertip
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	Barbados	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
Henan Found Mining Co. Ltd. ("Henan Found")	Mining	China	77.5%	77.5%	Ying, TLP
Zhongxing Mining Co., Ltd. ("ZX")	Mining	China	69.75%	69.75%	XBG
Songxian Gold Mining Co., Ltd. ("SX Gold")	Mining	China	77.50%	77.50%	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")

Details of the Company’s associate are as follows:


			Proportion of ownership interest held
Name of associate	Principal activity	Place of incorporation	June 30, 2013	March 31, 2013
New Pacific Metals Corp. ("NUX")	Mining	Canada	16.2%	16.1%

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

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


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”) in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). 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, 2013. 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, 2013, and the policies set forth in Note 2(b).

(b)Adoption of new accounting standards

IAS 1 – Presentation of Financial Statements amendment issued by the IASB in June 2011 provides improved consistency and clarity of the presentation of items of other comprehensive income. The main change was a requirement to group items presented in other comprehensive income on the basis of whether they are potentially reclassifiable to profit or loss subsequently. This amendment is effective for annual periods beginning on or after July 1, 2012, with earlier application permitted.

IFRS 10 – Consolidated Financial Statements supersedes SIC 12 – Consolidation – Special Purpose Entities and the requirements relating to consolidated financial statements in IAS 27 – Consolidated and Separate Financial Statements. IFRS 10 establishes the principle and application of control as the basis for an investor to identify whether an investor controls an investee and thereby requiring consolidation. This standard is effective for annual periods beginning on or after January 1, 2013, with earlier application permitted.

IFRS 11 – Joint Arrangements establishes the principle a joint arrangement is classified as joint operations or joint ventures based on the rights and obligations of the parties to the joint arrangement, rather than its legal form. This standard is effective for annual periods beginning on or after January 1, 2013, with earlier application permitted.

IFRS 12 – Disclosure of Interests in Other Entities requires the disclosure of information that enables users of financial statements to evaluate the nature of, and risks associated with, its interests in other entities and the effects of those interests on its financial position, financial performance and cash flows. This standard is effective for annual periods beginning on or after January 1, 2013, with earlier application permitted.

IAS 28 – Investments in Associates and Joint Ventures prescribes the accounting for investments in associates and sets out the requirements for the application of the equity method for investments in associates and joint ventures. This standard is effective for annual periods beginning on or after January 1, 2013, with earlier application permitted.

Effective April 1, 2013, the Company adopted all of the above standards. The adoption of these standards did not have a material impact on the condensed consolidated interim financial statements.

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

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


3.	INVENTORIES

Inventories consist of the following:


		June 30, 2013		March 31, 2013
Direct smelting ore and stockpile ore	$	775	$	1,563
Concentrate inventory		1,378		1,853
Total stockpile and concentrate		2,153		3,416
Material and supplies		4,099		4,106
	$	6,252	$	7,522

The amount of inventories recognized as expenses during the three months ended June 30, 2013 and 2012 were equivalent to the cost of sales.


4.	INVESTMENT IN AN ASSOCIATE

New Pacific Metals Corp. (“NUX”) is a Canadian public company listed on the TSX (symbol: NUX). NUX is a related party of the Company by way of two common directors and officers.

As at June 30, 2013, the Company owned 10,806,300 common shares (March 31, 2013 – 10,806,300) of NUX, representing an ownership interest of 16.2% (March 31, 2013 – 16.1%).

The Company accounts for its investment in NUX common shares using the equity method since it is able to exercise significant influence over the financial and operating policies of NUX. The summary of the investment in NUX common shares and its market value as at the respective balance sheet dates are as follows:


	Number of shares		Amount			Value of NUX's common shares per quoted market price
Balance, April 1, 2012	9,956,300	$	15,872		$	9,367
Acquisition from market	850,000		595
Share of loss			(197	)
Impairment			(9,640	)
Foreign exchange impact			(107	)
Balance, March 31, 2013	10,806,300	$	6,523		$	6,703
Share of loss			(14	)
Foreign exchange impact			(220	)
Balance, June 30, 2013	10,806,300	$	6,289		$	6,065

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

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


5.	OTHER INVESTMENTS


			June 30, 2013		March 31, 2013
Equity investments designated as FVTOCI
Publicly-traded companies	(a)	$	2,078	$	5,236
Yongning Smelting Co. Ltd.	(b)		9,777		9,653
Jinduicheng Xise (Canada) Co. Ltd.	(c)		-		-
Warrants	(a)		48		627
		$	11,903	$	15,516

(a) 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. Common shares are designated as fair value through other comprehensive income (“FVTOCI”) and are measured at fair value on initial recognition and subsequent measurement. As of June 30, 2013, none of the shares held by the Company represented more than 10% of the respective outstanding shares of investees.

Warrants, by their nature, meet the definition of derivatives and are classified as fair value through profit or loss (“FVTPL”). The fair value of the warrants was determined using the Black-Scholes pricing model as at the acquisition date as well as at each period end. For the three months ended June 30, 2013, fair value changes in the amount of $574 are recorded in loss on investments (for the three months ended June 30, 2012 – loss of $1,286).

Common shares:


		Fair value			Accumulated mark-to- market loss included in OCI
Balance as at April 1, 2013	$	5,236		$	(2,403	)
Unrealized loss on equity investments designated as FVTOCI		(3,062	)		(3,062	)
Impact of foreign currency translation		(96	)		-
Balance as at June 30, 2013	$	2,078		$	(5,465	)

Warrants:


		Fair value			Accumulated mark-to-market loss included in net income
Balance as at April 1, 2013	$	627		$	(935	)
Loss on investments		(574	)		(574	)
Impact of foreign currency translation		(5	)		-
Balance as as June 30, 2013	$	48		$	(1,509	)

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

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

(b) Luoyang Yongning Smelting Co. Ltd. (“Yongning Smelting”)

Yongning Smelting is a private company based in China. The Company invested in Yongning Smelting through its subsidiary Henan Found. As at June 30, 2013, the Company’s total investment in Yongning Smelting is $9,777 (RMB 60 million) (March 31, 2013 - $9,653, RMB 60 million), representing 15% (March 31, 2013 - 15%) of Yongning Smelting’s equity interest. The Company determined that there were no significant changes in the fair value of the investment during the period. The investment in Yongning is for long-term investment purposes and consists of common shares of Yongning.

(c) Jinduicheng Xise (Canada) Co. Ltd. (“Jinduicheng”)

Jinduicheng is a private mining company based in Canada. The Company invested in Jinduicheng through a private placement. As at June 30, 2013, the Company’s total investment in Jinduicheng represents 6% (March 31, 2013 - 6%) of Jinduicheng’s total equity interest. The fair value of the investment as at June 30, 2013 was determined to be $nil (CAD$nil) (March 31, 2013 - $nil, CAD$nil), using a market based approach taking into consideration of Jinduicheng’s mineral reserve and resource data and its financial position as at March 31, 2013. The investment in Jinduicheng is for long-term investment purpose and consists of common shares of Jinduicheng.


6.	PLANT AND EQUIPMENT

Plant and equipment consist of:


Cost		Land and building			Office equipment			Machinery			Motor vehicle			Construction in progress			Total
Balance as at April 1, 2012	$	47,250		$	3,051		$	18,167		$	5,570		$	6,580		$	80,618
Additions		7,193			1,619			2,862			887			28,110			40,671
Disposals		(53	)		(108	)		(96	)		(440	)		-			(697	)
Reclassification of asset groups		956			700			(1,177	)		758			(1,237	)		-
Impact of foreign currency translation		660			27			257			84			393			1,421
Balance as at March 31, 2013	$	56,006		$	5,289		$	20,013		$	6,859		$	33,846		$	122,013
Additions		532			210			828			394			3,213			5,177
Disposals		(31	)		(15	)		(4	)		(30	)		-			(80	)
Reclassification of asset groups		534			-			-			2			(536	)		-
Reclassify to assets held for sale		(4,182	)		(57	)		(793	)		(43	)		(49	)		(5,124	)
Impact of foreign currency translation		607			5			249			82			443			1,386
Ending balance as at June 30, 2013	$	53,466		$	5,432		$	20,293		$	7,264		$	36,917		$	123,372

Accumulated depreciation and amortization
Balance as at April 1, 2012	$	(4,370	)	$	(1,355	)	$	(4,193	)	$	(1,912	)	$	-		$	(11,830	)
Disposals		10			74			25			359			-			468
Depreciation and amortization		(2,685	)		(667	)		(2,526	)		(1,065	)		-			(6,943	)
Reclassification of asset groups		2			(253	)		314			(63	)		-			-
Impact of foreign currency translation		(76	)		(5	)		(78	)		(32	)		-			(191	)
Balance as at March 31, 2013	$	(7,119	)	$	(2,206	)	$	(6,458	)	$	(2,713	)	$	-		$	(18,496	)
Disposals		11			12			2			27			-			52
Depreciation and amortization		(608	)		(197	)		(516	)		(272	)		-			(1,593	)
Reclassify to assets held for sale		318			22			181			11			-			532
Impact of foreign currency translation		(72	)		9			(79	)		(31	)		-			(173	)
Ending balance as at June 30, 2013	$	(7,470	)	$	(2,360	)	$	(6,870	)	$	(2,978	)	$	-		$	(19,678	)

Carrying amounts
Balance as at April 1, 2012	$	42,880		$	1,696		$	13,974		$	3,658		$	6,580		$	68,788
Balance as at March 31, 2013	$	48,887		$	3,083		$	13,555		$	4,146		$	33,846		$	103,517
Balance as at June 30, 2013	$	45,996		$	3,072		$	13,423		$	4,286		$	36,917		$	103,694

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

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

During the three months ended June 30, 2013, certain plant and equipment were disposed for proceeds of $nil (for the three months ended June 30, 2012 - $nil) and loss of $28 (for the three months ended June 30, 2012 – loss of $20).


7.	MINERAL RIGHTS AND PROPERTIES

Mineral rights and properties consist of:


Cost		Ying			TLP			HPG			LM			BYP			GC		XBG			XHP			RZY			Silvertip			Total
Balance as at April 1, 2012	$	66,019		$	14,043		$	6,653		$	11,374		$	55,858		$	76,980	$	12,334		$	13,564		$	-		$	27,137		$	283,962
Capitalized expenditures		17,316			4,607			3,017			8,372			5,715			15,763		979			6,094			1,382			2,021			65,266
Mining exploration tax credit		-			-			-			-			-			-		-			-			-			(25	)		(25	)
Environmental rehabiliation		17			886			-			-			496			21		-			-			-			-			1,420
Disposition of mineral property		-			-			-			-			-			-		-			-			(1,167	)		-			(1,167	)
Foreign currecy translation impact		1,074			242			124			248			820			1,195		178			251			14			(469	)		3,677
Balance as at March 31, 2013	$	84,426		$	19,778		$	9,794		$	19,994		$	62,889		$	93,959	$	13,491		$	19,909		$	229		$	28,664		$	353,133
Capitalized expenditures		5,007			1,076			1,134			2,520			1,599			6,207		258			996			-			351			19,148
Reclassify to assets held for sale		-			-			-			-			-			-		(13,922	)		-			-			-			(13,922	)
Foreign currecy translation impact		1,071			257			129			265			813			1,177		173			256			(8	)		(980	)		3,153
Ending balance as at June 30, 2013	$	90,504		$	21,111		$	11,057		$	22,779		$	65,301		$	101,343	$	-		$	21,161		$	221		$	28,035		$	361,512

Accumulated depletion
Balance as at April 1, 2012	$	(18,531	)	$	(1,142	)	$	(1,536	)	$	(2,102	)	$	(2,064	)	$	-	$	-		$	(66	)	$	-		$	-		$	(25,441	)
Depletion		(4,464	)		(760	)		(693	)		(632	)		(3,860	)		-		-			(141	)		-			-			(10,550	)
Foreign currecy translation impact		(301	)		(24	)		(29	)		(36	)		(72	)		-		-			(2	)		-			-			(464	)
Balance as at March 31, 2013	$	(23,296	)	$	(1,926	)	$	(2,258	)	$	(2,770	)	$	(5,996	)	$	-	$	-		$	(209	)	$	-		$	-		$	(36,455	)
Depletion		(1,191	)		(259	)		(220	)		(226	)		(860	)		-		-			(318	)		-			-			(3,074	)
Foreign currecy translation impact		(303	)		(26	)		(30	)		(36	)		(80	)		-		-			(4	)		-			-			(479	)
Ending balance as at June 30, 2013	$	(24,790	)	$	(2,211	)	$	(2,508	)	$	(3,032	)	$	(6,936	)	$	-	$	-		$	(531	)	$	-		$	-		$	(40,008	)

Carrying amounts
Balance as at April 1, 2012	$	47,488		$	12,901		$	5,117		$	9,272		$	53,794		$	76,980	$	12,334		$	13,498		$	-		$	27,137		$	258,521
Balance as at March 31, 2013	$	61,130		$	17,852		$	7,536		$	17,224		$	56,893		$	93,959	$	13,491		$	19,700		$	229		$	28,664		$	316,678
Balance as at June 30, 2013	$	65,714		$	18,900		$	8,549		$	19,747		$	58,365		$	101,343	$	-		$	20,630		$	221		$	28,035		$	321,504

Although the Company has taken steps to verify title to the mineral rights and properties in which it, through its subsidiaries, has an interest, in accordance with industry standards, those procedures do not guarantee the Company’s title. Property title may be subject to unregistered prior agreements and non-compliance with regulatory requirements.


8.	SHARE CAPITAL

(a) Authorized

Unlimited number of common shares without par value. All shares issued as at June 30, 2013 were fully paid.

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

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

(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:


	Number of shares			Weighted average exercise price per share CAD$
Balance, March 31, 2013	4,503,969		$	6.58
Options granted	400,000			3.25
Options expired	(25,000	)		7.54
Balance, June 30, 2013	4,878,969		$	6.31

During the three months ended June 30, 2013, a total of 400,000 options with a life of five years were granted to directors, officers, and employees at an exercise price of CAD$3.25 per share subject to a vesting schedule over a four-year term with 6.25% options vesting every three months from the date of grant.

The fair value of stock options granted during the three months ended June 30, 2013 and 2012 were calculated as of the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions:


		Three months ended June 30,
		2013		2012
Risk free interest rate		1.21%		1.05%
Expected life of option in years		3.12 years		3.12 years
Expected volatility		57%		63%
Expected dividend yield		3.1%		1.5%
Estimated forfeiture rate		10%		10%
Weighted average share price	$	3.25	$	6.53

The weighted average grant date fair value of options granted during the three months ended June 30, 2013 was CAD$1.07 (three months ended June 30, 2012 - CAD$2.58). Volatility was determined based on the historical volatility of the Company’s shares over the estimated life of stock options. For the three months ended June 30, 2013, a total of $715 (three months ended June 30, 2012 - $736) in share-based compensation expenses was recognized and included in the general and administrative expenses on the consolidated statements of income.

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

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

The following table summarizes information about stock options outstanding at June 30, 2013:


Exercise price in CAD$		Number of options outstanding at June 30, 2013	Weighted average remaining contractual life (Years)	Weighted average exercise price in CAD$		Number of options exercisable at June 30, 2013	Weighted average exercise price in CAD$
$	5.99	197,500	0.00	$	5.99	197,500	$	5.99
	3.05	60,000	0.25		3.05	60,000		3.05
	2.65	522,001	0.80		2.65	522,001		2.65
	7.00	305,500	1.52		7.00	305,500		7.00
	7.40	178,250	1.80		7.40	178,250		7.40
	8.23	335,437	2.26		8.23	207,189		8.23
	12.16	208,781	2.51		12.16	117,348		12.16
	14.96	181,500	2.77		14.96	90,750		14.96
	9.20	255,000	2.93		9.20	111,569		9.20
	7.27	296,000	3.40		7.27	111,003		7.27
	6.69	446,000	3.68		6.69	139,383		6.69
	6.53	299,000	3.96		6.53	74,750		6.53
	5.35	397,000	4.11		5.35	74,447		5.35
	5.40	381,000	4.43		5.40	47,628		5.40
	3.91	416,000	4.68		3.91	26,005		3.91
	3.25	400,000	4.92		3.25	-		-
$	2.65-14.96	4,878,969	3.04	$	6.31	2,263,323	$	6.50

(c) Cash dividends declared and distributed

During the three months ended June 30, 2013, dividends of $4,173 (three months ended June 30, 2012 -$4,224) were declared.


9.	ACCUMULATED OTHER COMPREHENSIVE LOSS


		June 30, 2013			March 31, 2013
Unrealized loss on equity investments designated as FVTOCI	$	(27,467	)	$	(24,404	)
Currency translation adjustment		24,498			22,909
Balance, end of the period	$	(2,969	)	$	(1,495	)

The unrealized loss on equity investments designated as FVTOCI and change in currency translation adjustment are net of nil tax for all periods presented.

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

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


10.	NON-CONTROLLING INTERESTS

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


		Henan Found			ZX/CX			Henan Huawei			Yunxiang			Guangdong Found			SX Gold			Qinghai Found			Total
Balance, April 1, 2012	$	44,838		$	5,110		$	3,782		$	15,525		$	2,197		$	5,651		$	(83	)	$	77,020
Share of net income (loss)		12,669			(128	)		2,572			348			(4	)		(535	)		(90	)		14,832
Share of other comprehensive income (loss)		537			63			74			201			37			(21	)		-			891
Distribution		(14,297	)		-			(951	)		-			-			-			-			(15,248	)
Disposition upon sale of a subsidiary		-			-			-			-			-			-			173			173
Balance, March 31, 2013	$	43,747		$	5,045		$	5,477		$	16,074		$	2,230		$	5,095		$	-		$	77,668
Share of net income (loss)		1,807			(21	)		320			(39	)		1			(146	)		-			1,922
Share of other comprehensive income		525			61			79			195			58			-			-			918
Balance, June 30, 2013	$	46,079		$	5,085		$	5,876		$	16,230		$	2,289		$	4,949		$	-		$	80,508

As at June 30, 2013 and March 31, 2013, non-controlling interests in Henan Found, ZX/CX, Henan Huawei, Yunxiang, Guangdong Found and SX Gold were 22.5%, 30.25%, 20%, 30%, 5% and 22.5%, respectively.


11.	RELATED PARTY TRANSACTIONS

Related party transactions not disclosed elsewhere in the financial statements are as follows:


Due from related parties		June 30, 2013		March 31, 2013
NUX (a)	$	39	$	41
Henan Non-ferrous Geology Bureau (b)		18		50
Henan Xinhui Mining Co., Ltd. (g)		-		32
	$	57	$	123

Due to a related party		June 30, 2013		March 31, 2013
GRT (h)	$	-	$	1,207

(a)	According to a services and administrative costs reallocation agreement between the Company and NUX, the Company recovers costs for services rendered to NUX and expenses incurred on behalf of NUX. During the three months ended June 30, 2013, the Company recovered $111 (for the three months ended June 30, 2012 - $126) from NUX for services rendered and expenses incurred on behalf of NUX. The costs recovered from NUX were recorded as a direct reduction of general and administrative expenses on the consolidated statements of income.

(b)	Henan Non-ferrous Geology Bureau (“Henan Geology Bureau”) is a 22.5% equity interest holder of Henan Found.

(c)	For the three months ended June 30, 2013, the Company paid $102 (for the three months ended June 30, 2012 - $93) to McBrighton Consulting Ltd., a private consulting services company controlled by a director of the Company.

(d)	For the three months ended June 30, 2013, the Company paid $102 (for the three months ended June 30, 2012 - $148) to R. Feng Consulting Ltd., a private consulting services company controlled by a director of the Company.

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

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

(e)	For the three months ended June 30, 2013, the Company paid $58 (for the three months ended June 30, 2012 - $nil) to Parkside Management Limited, a private consulting services company controlled by a director of the Company.

(f)	The Company rents an Beijing office (6,700 square feet) from a relative of a director and officer of the Company for $12 (RMB 74,712) per month. During the three months ended June 30, 2013, total rents were $36 (for the three months ended June 30, 2012 - $36).

(g)	Henan Xinhui Mining Co., Ltd. (“Henan Xinhui”) is a 20% equity interest holder of Henan Huawei.

(h)	GRT Mining Investment (Beijing) Co., Ltd. (“GRT”), a private company controlled by a relative of a director and officer, is a 5% equity interest holder of Guangdong Found. During the three months ended June 30, 2013, the Company repaid the payable balance of $1,207 to GRT.

Transactions with related parties are made on normal commercial terms and are considered to be at arms length. The balances with related parties are unsecured, non-interest bearing, and due on demand.


12.	COST OF SALES

Cost of sales consists of:


		Three months ended June 30,
		2013		2012
Direct mining and milling cost	$	18,904	$	15,330
Depreciation, amortization and depletion		3,578		3,664
Cost of sales	$	22,482	$	18,994


13.	GENERAL AND ADMINISTRATIVE

General and administrative expenses consist of:


		Three months ended June 30,
General and administrative		2013		2012
Office and administrative expenses	$	3,191	$	2,949
Amortization and depreciation		354		412
Salaries and benefits		2,244		2,112
Share-based compensation		715		736
Professional fees		997		637
	$	7,501	$	6,846


14.	OTHER TAXES

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.

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

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


15.	FINANCE ITEMS

Finance items consist of:


		Three months ended June 30,
Finance income		2013		2012
Interest income	$	928	$	991

		Three months ended June 30,
Finance costs		2013		2012
Unwinding of discount of environmental rehabilitation provision	$	33	$	22


16.	INCOME TAX EXPENSE

Income tax expense consists of:


		Three months ended June 30,
Income tax expense		2013		2012
Current	$	2,063	$	4,943
Deferred		1,937		2,984
	$	4,000	$	7,927


17.	CAPITAL DISCLOSURES

The Company’s objectives of capital management are intended to safeguard the entity’s ability to support the Company’s normal operating requirement on an ongoing basis, continue the development and exploration of its mineral properties, and support any expansionary plans.

The capital of the Company consists of the items included in equity. Risk and capital management are primarily the responsibility of the Company’s corporate finance function and is monitored by the Board of Directors. The Company manages the capital structure and makes adjustments depending on economic conditions. Funds have been primarily secured through profitable operations and issuances of equity capital. The Company invests all capital that is surplus to its immediate needs in short-term, liquid and highly rated financial instruments, such as cash and other short-term deposits, all held with major financial institutions. Significant risks are monitored and actions are taken, when necessary, according to the Company’s approved policies.


18.	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.

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

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

(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 7, Financial Instruments: Disclosures (“IFRS 7”).

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 table sets forth the Company’s financial assets that are measured at fair value on a recurring basis by level within the fair value hierarchy. As required by IFRS 7, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. As of June 30, 2013 and March 31, 2013, the Company did not have financial liabilities measured at fair value on a recurring basis.


		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	91,581	$	-	$	-	$	91,581
Common shares of publicly traded companies		2,078		-		-		2,078
Yongning Smelting Co. Ltd.		-		-		9,777		9,777
Jinduicheng Xise (Canada) Co. Ltd.⁽¹⁾		-		-		-		-
Warrants		-		48		-		48
⁽¹⁾Level 3 financial instrument

Fair value of the other financial instruments excluded from the table above approximates to their carrying amount as of June 30, 2013 and March 31, 2013, respectively.

Reconciliation of level 3 fair value measurement of financial assets is as follows:


		Fair value through other comprehensive income
		Yongning Smelting		Jinduicheng			Total
Balance at April 1, 2012	$	9,525	$	22,050		$	31,575
Other comprehensive loss arising on revaluation		-		(22,001	)		(22,001	)
Foreign exchange impact		128		(49	)		79
Balance at March 31, 2013	$	9,653	$	-		$	9,653
Foreign exchange impact		124		-			124
Balance at June 30, 2013	$	9,777	$	-		$	9,777

(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.

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

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

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.


		June 30, 2013		March 31, 2013
		Within a year
Accounts payable and accrued liabilities	$	40,930	$	29,285
Dividends payable		4,062		4,204
	$	44,992	$	33,489

(c) Foreign exchange risk

The Company undertakes transactions denominated in foreign currencies and is exposed to foreign exchange risk arising from such transactions.

The Company conducts its mining operations in China; therefore the majority of the Company’s assets, liabilities, revenues and expenses are denominated in RMB, which was tied to a basket of currencies of China’s largest trading partners.r

The Company currently does not engage in foreign currency hedging, and the exposure of the Company’s financial assets and financial liabilities to foreign exchange risk is summarized as follows:


		June 30, 2013		March 31, 2013
Financial assets denominated in U.S. Dollars	$	22,741	$	14,432
Financial assets denominated in Chinese RMB	$	87,927	$	102,294

As at June 30, 2013, with other variables unchanged, a 1% strengthening (weakening) of the RMB against the USD would have increased (decreased) net income by approximately $0.8 million.

As at June 30, 2013, with other variables unchanged, a 1% strengthening (weakening) of the CAD against the USD would have decreased (increased) net income by approximately $0.2 million.

(d)Interest rate risk

Interest risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. The Company’s cash equivalents and short term investments primarily includes highly liquid investments that earn interest at market rates that are fixed to maturity or at variable interest rates. Due to the short-term nature of these financial instruments, fluctuations in market rates do not have significant impact on the fair values of the financial instruments as of June 30, 2013.

(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.

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

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

The Company undertakes credit evaluations on counterparties as necessary and has monitoring processes intended to mitigate credit risks. The Company has trade receivables from its major customers primarily in China engaged in the mining and milling of base and polymetallic metals. The historical level of customer defaults is zero and aging of trade receivables are no more than 180 days, and, as a result, the credit risk associated with trade receivables from customers as at June 30, 2013 is considered to be immaterial. There were no amounts in receivable which were past due at June 30, 2013 (at March 31, 2013 - $nil).

(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 June 30, 2013, 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 $0.2 million.


19.	SEGMENTED INFORMATION

Operating segments are components of the Company whose separate financial information is available and that is evaluated regularly by the Company’s Chief Executive Officer who is the Chief Operating Decision Maker. The format for segment reporting is based on major project segments segregated by significant geographic locations. The project segments are determined based on the Company’s management and internal reporting structure as follows :


Operational Segments	Subsidiaries Included in the Segment	Properties Included in the Segment
China
Henan Luoning	Henan Found and Henan Huawei	Ying, TLP, HPG and LM
Henan Songxian	SX Gold and Zhongxing	XHP and XBG
Hunan	Yunxiang	BYP
Guangdong	Guangdong Found	GC
Other	Silvercorp Metals (China) Inc.	N/A
Canada
Silvertip	0875786 B.C. Ltd.	Silvertip
Head Office	Silvercorp Metals Inc.	N/A
Other Regions	BVI and Barbados' holding companies	RZY

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

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

(a) Geographic information for certain long-term assets are as follows:


June 30, 2013
		China										Canada				Other Regions
Balance sheet items:		Henan Luoning		Henan Songxian		Hunan		Guangdong		Other		Silvertip		Head Office		Other Regions		Total

Plant and equipment	$	42,673	$	9,568	$	5,007	$	42,239	$	1,633	$	1,461	$	1,113	$	-	$	103,694
Mineral rights and properties		112,910		20,630		58,365		101,343		-		28,035		-		221		321,504
Investment in an associate		-		-		-		-		-		-		5,089		1,200		6,289
Other investments		9,777		-		-		-		-		-		1,598		528		11,903

March 31, 2013
		China										Canada				Other Regions
Balance sheet items:		Henan Luoning		Henan Songxian		Hunan		Guangdong		Other		Silvertip		Head Office		Other Regions		Total

Plant and equipment	$	40,597	$	13,914	$	4,823	$	39,884	$	1,641	$	1,560	$	1,098	$	-	$	103,517
Mineral rights and properties		103,742		33,191		56,893		93,959		-		28,664		-		229		316,678
Investment in an associate		-		-		-		-		-		-		5,281		1,242		6,523
Other investments		9,653		-		-		-		-		-		5,030		833		15,516

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


Three months ended June 30, 2013
		China															Canada						Other Regions
Statement of operations:		Henan Luoning			Henan Songxian			Hunan			Guangdong			Other			Silvertip			Head Office			Other Regions			Total
Sales	$	37,013		$	-		$	2,822		$	-		$	-		$	-		$	-		$	-		$	39,835
Cost of sales		(20,192	)		-			(2,290	)		-			-			-			-			-			(22,482	)
Gross profit		16,821			-			532			-			-			-			-			-			17,353

Operating (expenses) income		(3,825	)		(472	)		(472	)		18			(357	)		(8	)		(4,235	)		1,587			(7,764	)
Finance items		767			(10	)		(4	)		8			57			-			2			75			895
Income tax expenses		(3,785	)		(1	)		(213	)		-			(1	)		-			-			-			(4,000	)
Net income (loss)	$	9,978		$	(483	)	$	(157	)	$	26		$	(301	)	$	(8	)	$	(4,233	)	$	1,662		$	6,484

Attributable to:
Equity holders of the Company		7,851			(316	)		(118	)		25			(301	)		(8	)		(4,233	)		1,662			4,562
Non-controlling interests		2,127			(167	)		(39	)		1			-			-			-			-			1,922
Net income (loss)	$	9,978		$	(483	)	$	(157	)	$	26		$	(301	)	$	(8	)	$	(4,233	)	$	1,662		$	6,484

Three months ended June 30, 2012
		China															Canada						Other Regions
Statement of operations:		Henan Luoning			Henan Songxian			Hunan			Guangdong			Other			Silvertip			Head Office			Other Regions			Total
Sales	$	42,296		$	-		$	2,253		$	-		$	-		$	-		$	-		$	-		$	44,549
Cost of sales		(17,190	)		-			(1,804	)		-			-			-			-			-			(18,994	)
Gross profit		25,106			-			449			-			-			-			-			-			25,555

Operating (expenses) income		(3,784	)		(589	)		(454	)		(38	)		69			(12	)		(4,486	)		215			(9,079	)
Finance items		865			(183	)		2			-			209			-			73			3			969
Income tax (expenses) recovery		(6,094	)		(3	)		134			-			(11	)		-			-			(1,953	)		(7,927	)
Net income (loss)	$	16,093		$	(775	)	$	131		$	(38	)	$	267		$	(12	)	$	(4,413	)	$	(1,735	)	$	9,518

Attributable to:
Equity holders of the Company		12,530			(590	)		92			(36	)		278			(12	)		(4,413	)		(1,735	)		6,114
Non-controlling interests		3,563			(185	)		39			(2	)		(11	)		-			-			-			3,404
Net income (loss)	$	16,093		$	(775	)	$	131		$	(38	)	$	267		$	(12	)	$	(4,413	)	$	(1,735	)	$	9,518

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

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

The sales generated for the three months ended June 30, 2013 and 2012 comprise:


		Three months Ended June 30, 2013
		Henan Luoning		Hunan		Total
Silver (Ag)	$	24,091	$	-	$	24,091
Gold (Au)		1,283		2,669		3,952
Lead (Pb)		9,833		-		9,833
Zinc (Zn)		1,806		153		1,959
	$	37,013	$	2,822	$	39,835

		Three months Ended June 30, 2012
		Henan Luoning		Hunan		Total
Silver (Ag)	$	28,129	$	-	$	28,129
Gold (Au)		1,086		2,253		3,339
Lead (Pb)		11,183		-		11,183
Zinc (Zn)		1,898		-		1,898
	$	42,296	$	2,253	$	44,549

(d) Major customers

During the three months ended June 30, 2013, three major customers (three months ended June 30, 2012 - two) accounted for 12% to 37%, (three months ended June 30, 2012 - 18% and 57%, respectively) and collectively 71% (three months ended June 30, 2012 - 75%) of the total sales of the Company.


20.	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	$	7,468	$	592	$	3,875	$	3,001
Commitments	$	8,232	$	1,814	$	-	$	6,418

As of June 30, 2013, the Company has two office rental agreements totaling $7,468 for the next eleven years and commitments of $8,232 related to the GC property.

Due to the size, complexity and nature of the Company’s operations, various legal and tax matters arise in the ordinary course of business. The Company accrues for such items when a liability is both probable and the amount can be reasonably estimated. As at June 30, 2013 and March 31, 2013, no contingent liabilities were accrued.


21.	SUPPLEMENTARY CASH FLOW INFORMATION


		June 30, 2013		March 31, 2013
Cash on hand and at bank	$	37,822	$	40,511
Bank term deposits and GICs		53,759		31,772
Total cash and cash equivalents	$	91,581	$	72,283

SILVERCORP METALS INC.

Notes to Condensed Consolidated Interim Financial Statements

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


		Three Months Ended June 30,
Net change in non-cash working capital		2013			2012
Trade and other receivables	$	61		$	5,031
Inventories		1,373			(655	)
Prepaids and deposits		(1,242	)		660
Accounts payable and accrued liabilities		7,039			2,416
Income tax payable		-			(163	)
Deposits received		(2,037	)		(3,114	)
	$	5,194		$	4,175

Non-cash transactions:
Additions of plant and equipment included in accounts payable and accrued liabilities	$	4,062		$	3,569
Capital expenditures of mineral rights and properties included in accounts payable and accrued liabilities	$	8,149		$	1,969


22.	ASSETS AND LIABILITIES HELD FOR SALE

During the three month ended June 30, 2013, the Company entered into a share transfer agreement (“the Agreement”) with an arm’s length private Chinese company. Pursuant to the Agreement, the Company’s subsidiary, Henan Found will sell its 90% equity interest in ZX for $13.8 million (RMB 84 million). As of August 7, 2013, the Company received a deposit of $4,890 (RMB 30 million) (as at June 30, 2013 – deposit of $1,630 (RMB 10 million)) for the sale. Since the transaction is expected to be completed within 12 months, the Company has classified certain assets, liabilities and equity accounts as held for sale as follows:


Assets		June 30, 2013
Cash and cash equivalents	$	52
Trade and other receivables		10
Inventories		78
Prepaids and deposits		64
Plant and equipment		4,592
Mineral rights and properties		13,922
Assets held for sale	$	18,718

Liabilities
Accounts payable and accrued liabilities	$	705
Deferred income tax liabilities		2,339
Environmental rehabilitation		141
Liabilities held for sale	$	3,185

Equity
Accumulated comprehensive income	$	429
Non-controlling interests		5,084
Amounts recognized directly in equity related to assets classified as held for sale	$	5,513

ZX is part of the Henan Songxian reporting segment. For the three months ended June 30, 2013, net loss incurred by ZX was $70 (three months ended June 30, 2012 – net loss of $139).