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IMPACT Silver Closes Second Tranche of Non- Brokered Private Placement Financing

Financings

IMPACT Silver Closes Second Tranche of Non-

Brokered Private Placement Financing

Vancouver, British Columbia--(Newsfile Corp. - May 3, 2023) - IMPACT Silver Corp. (TSXV: IPT) (OTC

Pink: ISVLF) (FSE: IKL) ("IMPACT" or the "

Company

") is pleased to announce that it has closed the

second tranche of its Non-Brokered financing originally announced on April 6

th

, upsized on April 12

th

,

2023 (the "

Offering

") and closed as a first tranche on April 19, 2023.

The Company received an aggregate proceeds of C$662,604.84 on the issuance of 2,454,092 units

(the "

Units

") of the Company at C$0.27 per unit. Each Unit is comprised of one common share of the

Company (a "

Common Share

") and one full Common Share purchase warrant (each whole warrant, a

"

Warrant

"). Each Warrant is exercisable to acquire one Common Share (a "

Warrant Share

") at a price

of C$0.35 per Warrant Share for a period of 24 months from the closing of the Offering.

Aggregate gross

proceeds from the entire Offering was C$9,006,418.08.

The Company intends to use the net proceeds from the Offering for exploration, development and

general corporate purposes.

In consideration for its services in the second tranche, the Company paid a registered dealer a cash

commission equal to 6.0% of the gross subscription proceeds raised from certain subscribers for total

commissions of $24,016.50.

Additionally, the Company granted an aggregate of 88,950 non-

transferable broker warrants to the registered dealer.

Each broker warrant entitles the holder to acquire

one common share at a price of $0.35 per common share until May 3, 2025.

The securities issued under the second tranche of the Offering are subject to a standard hold period of

four months and one day, expiring on September 4, 2023, all in accordance with applicable securities

laws.

The Offering is subject to the Company's remaining filing requirements with the TSX Venture

Exchange.

The securities described herein have not been, and will not be, registered under the United States

Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and

accordingly, may not be offered or sold within the United States except in compliance with the

registration requirements of the U.S. Securities Act and applicable state securities requirements or

pursuant to exemptions therefrom. This press release does not constitute an offer to sell or a solicitation

to buy any securities in any jurisdiction.

ABOUT IMPACT SILVER

IMPACT Silver Corp. (TSXV: IPT) is a successful producer-explorer with two mining projects in Mexico.

Royal Mines of Zacualpan Silver-Gold District

: IMPACT owns 100% of the 211 km

2

Zacualpan

project where four underground silver mines and one open pit mine feed the central 500 tpd Guadalupe

processing plant. To the south, the Capire Project includes a 200 tpd processing pilot plant adjacent to

an open pit silver mine with an NI 43-101 inferred mineral resource of over 4.5 million oz silver, 48 million

lbs zinc and 21 million lbs lead (see IMPACT news release dated January 18, 2016 for details and QP

statement, and footnote

4

for report reference); Company engineers are reviewing Capire for a potential

restart of operations. Over the past 17 years, IMPACT has placed multiple zones into commercial

production and produced over 12 million ounces of silver, generating revenues over $241 million.

Plomosas Zinc-Lead-Silver District:

IMPACT signed a purchase / sale agreement with Consolidated

Zinc Limited (ASX: CZL) of Australia to purchase the Plomosas property and mining operations for

US$6 million (cash and shares) plus a 12% NPI (net profit interest) and a third party 1% NSR royalty.

Plomosas is a high-grade zinc-lead-silver producer with exceptional exploration potential. Upon closing

of the transaction, IMPACT plans to upgrade the mill and mine with the aim to recommence operations in

the near term followed by plans for expanding operations. Exploration potential at Plomosas is

exceptional with only 600m of the 6 kilometre long structure assessed plus other exploration targets

including untested copper-gold targets. Regionally, Plomosas lies in the same mineral belt as some of

the largest carbonate replacement deposits in the world.

On behalf of IMPACT Silver Corp.

"Frederick W. Davidson"

President & CEO

For more information, please contact:

Jerry Huang

CFO | Investor Relations

(604) 664-7707 or

[email protected]

(778) 887 6489 Direct

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the

policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this

release.

Forward-Looking and Cautionary Statements

This IMPACT News Release may contain certain "forward-looking" statements and information relating

to IMPACT that is based on the beliefs of IMPACT management, as well as assumptions made by and

information currently available to IMPACT management. All statements, other than statements of

historical facts, included herein, including, without limitation, statements relating to future silver prices,

interpretation of drill results, future work plans, the timing of closing of the Offering, proceeds received

and use of funds, the potential of the Company's projects, and potential and plans for the Plomosas

project, are forward looking statements. Forward-looking information is often, but not always, identified

by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project",

"predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes

a "goal", or variation of such words and phrases or state that certain actions, events or results "may",

"should", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements include, but

are not limited to, statements with respect to the expected use of proceeds of the Private Placement.

Such forward-looking information involves known and unknown risks and assumptions, including with

respect to, without limitations, exploration and development risks, expenditure and financing

requirements, title matters, operating hazards, metal prices, political and economic factors, competitive

factors, general economic conditions, relationships with vendors and strategic partners, governmental

regulation and supervision, seasonality, technological change, industry practices, and one-time events.

There are no assurances the Company will close the acquisition of the Plomosas project. Should any

one or more risks or uncertainties materialize or change, or should any underlying assumptions prove

incorrect, actual results and forward-looking statements may vary materially from those described herein.

IMPACT does not assume the obligation to update any forward-looking statement, except as required by

law.

The Company's decision to place a mine into production, expand a mine, make other production related

decisions or otherwise carry out mining and processing operations, is largely based on internal non-

public Company data and reports based on exploration, development and mining work by the

Company's geologists and engineers. The results of this work are evident in the discovery and building

of multiple mines for the Company and in the track record of mineral production and financial returns of

the Company since 2006. Under NI 43-101 the Company is required to disclose that it has not based its

production decisions on NI 43-101 compliant mineral resource or reserve estimates, preliminary

economic assessments or feasibility studies, and historically such projects have increased uncertainty

and risk of failure.

303-543 Granville Street Telephone

(604) 664-7707

Vancouver, BC, Canada V6C 1X8

www.impactsilver.com

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LinkedIn

NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES

OR FOR DISSEMINATION IN THE UNITED STATES

To view the source version of this press release, please visit

https://www.newsfilecorp.com/release/164706