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IMPACT Silver Provides Construction Update at the High-Grade Zinc-Silver Plomosas Property, Mexico

Mine Development & Operations Mergers & Acquisitions

IMPACT Silver Provides Construction Update

at the High-Grade Zinc-Silver Plomosas

Property, Mexico

Vancouver, British Columbia--(Newsfile Corp. - August 1, 2023) -

IMPACT Silver Corp. (TSXV: IPT)

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

is pleased to provide an update from

the recently acquired Plomosas high-grade zinc-silver mine in Chihuahua State, Mexico.

"

Significant progress has been made at Plomosas as the team nears operational status at the mine.

Since closing the acquisition of Plomosas, our experienced team is nearing a major milestone with all

rehabilitation efforts in the final stages both on time and within budget. We are excited to bring the

mine and plant back online after a near one year hiatus

". said IMPACT Silver President & CEO Fred

Davidson.

The Company expects the Plomosas mine to contribute to the Company's existing silver production

located to the south, in Zacualpan, Mexico. By diversifying the Company to include a meaningful zinc

component against the backdrop of strong medium and long term fundamentals, management is

transforming IMPACT into a diversified and growing production company with significant exploration

potential.

Rehabilitation Update

Plant:

All necessary components of the mill have arrived on site or have been refurbished with

assembly currently in the final stages. Testing and modification of the plant is expected to start in

late summer, with ramp up to design capacity of nearly 200 tpd expected over the coming months.

Construction is now approximately 85% complete.

Figure 1.

Plant Rehabilitation

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Figure 2.

Ball Mill & Flotation Cells

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Tailings Pond

: The Company has applied for the expansion of the current tailings pond which is

expected to add at least an additional two years capacity. Meanwhile, an additional tailings pond

is in the planning stages to accommodate years of future production and growth.

Figure 3. Power Infrastructure Improvements

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Underground Mine

: Refurbishments to ventilation, electrical and lighting systems are ongoing as

activity increases underground. Mining has begun and is expected to ramp up as the Company

deploys additional equipment to the mine including scoop trams and underground trucks.

Underground drilling to better define and expand resources has begun and drill permits for surface

brownfield and greenfield exploration targets have been received.

Figure 4. Underground Activity

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Mine Planning

: The exploration team has initiated its first phase of the 2023-2024 mine plan. This

includes extraction of high-grade material in line with previous grades in excess of 13% Zn.

Workforce & Personnel

: There are currently 70 Company employees on site and another 25

contract workers. The Company is fortunate to have inherited a strong workforce after the

acquisition closed and is adding positions in specific areas centred around engineering,

exploration and day-to-day operations.

ESG

: While generally remote, the Company engages with the nearest communities to ensure

ongoing support and coordination. The State of Chihuahua provides the mine with a strong and

experienced labour force from which to draw talent. The Company is currently studying proposals

to reduce its reliance on fossil fuels with plans to be an industry leader in decarbonization in the

mining sector.

Figure 5. Mill Feed Management

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ABOUT IMPACT SILVER

IMPACT Silver Corp. (TSXV: IPT) is a successful intermediate mineral producer and explorer with

multiple 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 2 for report reference). Company engineers are reviewing Capire for a

potential restart of operations to leverage improving commodity prices. Over the past 17 years, IMPACT

has developed multiple exploration zones into commercial production and has produced over 12 million

ounces of silver, generating revenues of more than $241 million.

Plomosas Zinc-Lead-Silver District:

Plomosas is a high-grade zinc-lead-silver producer with

exceptional exploration upside potential. The Company is working 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 km-long structure having been explored to date. This is in addition to other

exploration targets on the 3,019-hectare property including untested copper-gold targets with high-grade

surface prospecting sampling

1

. Regionally, Plomosas lies in the same mineral belt as some of the

largest carbonate replacement deposits in the world.

Additional information about IMPACT and its operations can be found on the Company website at

www.impactsilver.com

. Follow us on Twitter

@IMPACT_Silver

and LinkedIn at

https://www.linkedin.com/company/impactsilver

.

Qualified Person and NI 43-101 Disclosure

George Gorzynski, P.Eng., a Director and officer of IMPACT Silver Corp., is a "Qualified Person" within

the meaning of NI 43-101 and has approved the technical information contained in this news release.

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.

Footnotes:

1

.

Reference: Alexandri, A. Gonzalez, H., & Salas, H. (2022). Plomosas Project (CZL), Field Visit Report. IMPACT Silver Corp. private report on

field visits and compilation of historic and recent data, 56 pages.

2

.

Reference: Ristorcelli, S.J. & Gorzynski, G. (2016). Technical Report on Mineral Resources for the Capire Silver-Lead-Zinc Project, Pedro

Ascencio Alquisiras Municipality, Guerrero, Mexico. Prepared for IMPACT Silver Corp. by Mine Development Associates, Reno, Nevada. 82

pages. Available on

www.sedar.com

.

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. 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 regarding the potential for defining and extending

the known mineralization at Plomosas and plans for drilling and future operations at the Company's

projects.

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.

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.

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.

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

https://www.newsfilecorp.com/release/175628