IPT.V · 2023-02-09 12:00:00

IMPACT Silver Signs Binding Conditional Agreement to Purchase Plomosas Zinc-Lead- Silver Mine in Mexico

Mergers & Acquisitions

IMPACT Silver Signs Binding Conditional

Agreement to Purchase Plomosas Zinc-Lead-

Silver Mine in Mexico

Vancouver, British Columbia--(Newsfile Corp. - February 9, 2023) - IMPACT Silver Corp. (TSXV: IPT)

(OTC Pink: ISVLF) (FSE: IKL) ("IMPACT" or the "Company") is pleased to announce it has signed a

Share Purchase and Sale Agreement (the "Sale Agreement") with Consolidated Zinc Limited (ASX:

CZL) ("CZL") of Australia dated February 9, 2023 to purchase all of the outstanding shares of its

subsidiary, Minera Latin America Zinc S.A.P.I de C.V. ("MLAZ"), which holds a 100% interest in the

Plomosas zinc-lead-silver mine in the state of Chihuahua, northern Mexico.

HIGHLIGHTS

The acquisition will expand IMPACT's production profile from one to two producing operations –

the Plomosas zinc-lead-silver district in northern Mexico and the Royal Mines of Zacualpan silver-

lead-zinc(-gold) district in central Mexico.

The purchase price is US$6 million consisting of a minimum US$3 million cash and the balance in

IMPACT shares plus a 12% net profit interest royalty to CZL. Completion of the transaction is

anticipated on or before April 7, 2023.

CZL reported Plomosas JORC mineral resources

of 215,000 tonnes grading 13.5% zinc, 6.3%

lead and 34.0 g/t silver indicated, and 772,000 tonnes grading 13.1% zinc, 3.0% lead and 19.0 g/t

silver inferred, at a 3% zinc cutoff at December 2021. IMPACT plans a drill program in 2023 to infill

and test extensions of the known mineralization.

Plomosas is host to high grade mineralization. Historical mining is in the global upper quartile for

zinc grade with approximately 2.5MT mined since 1943 grading 15-25% zinc, 2-7% lead and 40-

60 g/t silver with low deleterious elements

CZL has been mining Plomosas since September 2018 except for some temporary short

suspensions during Christmas. IMPACT plans to upgrade the mill and mine with the aim to

continue mining followed by plans for expanding operations.

IMPACT's highly skilled operations team has 17 years of underground mining and flotation milling

experience at Zacualpan which it will bring to advance the Plomosas operations.

Exploration potential at Plomosas is exceptional with only 600m of the 6 kilometre long structure

assessed plus other exploration targets on the 3,019 hectare property including untested copper-

gold targets. Regionally, Plomosas lies in the same mineral belt as some of the largest silver-lead-

zinc carbonate replacement deposits ("CRD") in the world

CEO STATEMENT

Chairman and CEO Frederick Davidson commented, "We are truly pleased to acquire a second mining

district after evaluating hundreds of projects over the years in an effort to grow IMPACT. Currently

Plomosas is a relatively small mining operation on a large mineral system. Our goal is to upgrade and

expand operations to optimize production from the large mineral system. Our Mexican technical team is

exceptionally skilled in building and efficiently operating mines like this and we will bring our 17 years of

underground operating experience at the Royal Mines of Zacualpan to hone and grow the Plomosas

operations. The technical and management overlap with similarity of asset and operations provides

great synergy for the transaction and represents near term growth of our production levels and value to

shareholders."

PLOMOSAS PROJECT OVERVIEW

The Plomosas project is located 110 km by road from Chihuahua City, the state capital, which is a two-

hour flight from Dallas, Texas, USA. The district was discovered in 1832 and has seen small scale

mining since 1868. Historical mining is in the global upper quartile for zinc grade with approximately

2.5MT mined since 1943 grading 15-25% zinc, 2-7% lead and 40-60 g/t silver with low deleterious

elements

The mine and mill are fully permitted, have an offtake smelter contract

and have been in production by

CZL since September 2018 except for some temporary short suspensions during Christmas. In 2021

CZL processed 31,695 tonnes producing 2,442 tonnes of zinc concentrate and 599 tonnes of lead

concentrate. Mine access is by 3 portals reaching a depth of 250m below surface and an old shaft that

can be refurbished

. Mineral is processed in a 200 tonne per day conventional flotation mill (recently

operating under capacity) with plans to expand. IMPACT plans to upgrade the mill and mine with the aim

to continue mining in the near term followed by plans for expanding operations. The Plomosas Property

is subject to an underlying 1% Net Smelter Royalty.

The 3,019 hectare property covers extensive carbonate replacement deposit-type ("CRD") zinc-lead-

silver mantos (beds) mainly hosted in carbonates (limestones, marbles). CZL reported Australian JORC

mineral resources

of 215,000 tonnes grading 13.5% zinc, 6.3% lead and 34.0 g/t silver indicated, and

772,000 tonnes grading 13.1% zinc, 3.0% lead and 19.0 g/t silver inferred, at a 3% zinc cutoff at

December 2021. IMPACT plans a drill program in 2023 to infill and test extensions of the known

mineralization.

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 CRD deposits in the world (see Map 1)

. The historic

Santa Eulalia Mine is the world's largest historic CRD deposit and is located 100km west of Plomosas

(see Map 1). Historic production at Santa Eulalia was over 450Moz silver from 51MT averaging 350 g/t

silver, 8.2% lead and 7.8% zinc and mined over 300 years. Reference to this nearby project is for

information purposes only and there are no assurances that Plomosas will achieve similar results.

TERMS OF THE TRANSACTION

The material terms of the transaction are as follows.

IMPACT will pay the following consideration to CZL for a 100% interest in MLAZ, the Mexican subsidiary

of CZL that owns a 100% interest in the Plomosas Project:

US$6 million consisting of a minimum US$3 million cash and the balance in IMPACT common

shares (the "IMPACT Shares"). Closing adjustments based on working capital at closing are

provided in the Sale Agreement;

Contractual restrictions on transfer will be applied to 75% of the IMPACT Shares, such that

IMPACT Shares will be released from restriction in three equal tranches of 25% every 6 months

over 18 months from closing. 25% of the IMPACT Shares will be immediately held by CZL (subject

to a statutory 4 month hold period from the date of issuance of the IMPACT Shares); and

a 12% net profit interest ("NPI") royalty on production from the Plomosas project to CZL.

It is anticipated that upon closing and assuming US$3 million payment made in IMPACT Shares, CZL

will hold approximately 6% of the issued capital in IMPACT.

The deemed per share price will be

determined in accordance with the Sale Agreement and will be the 20 day VWAP before the date of the

Sale Agreement or an equivalent price to an IMPACT financing, should one be conducted before

closing.

Completion of the Sale Agreement is subject to certain industry standard closing conditions for a

transaction of this kind (the "Conditions") being satisfied or waived by March 31, 2023. Completion is

expected to occur within 7 days of the Conditions being satisfied or waived.

Conditions include, among

others, TSX Venture Exchange approval of the purchase of MLAZ and the issuance of IMPACT Shares

as partial consideration.

IMPACT has cash on hand to close the Sale Agreement, but may conduct a financing in the near-term for

additional working capital.

ABOUT CONSOLIDATED ZINC LIMITED

Consolidated Zinc Limited is an Australian junior exploration company listed on the Australian Stock

Exchange (ASX: CZL). It owns 100% interests in the Pilbara Lithium and Wandagee Projects, which

comprise approximately 1,400km

in 5 granted exploration licences (plus 1 EL Application), located in

the Pilbara and Gascoyne regions of Western Australia. The Pilbara Projects are highly prospective for

lithium and situated near two of the world's largest hard rock lithium deposits/mines (PLS – Pilgangoora

& MIN – Wodgina) and other deposits and occurrences near Marble Bar (GL1's Archer Project).

Consolidated Zinc also owns the Plomosas Mine (Mexico) where, as described in this news release,

Consolidated Zinc has signed a binding conditional sale agreement with IMPACT Silver for the sale of

the Plomosas project for US$6 million (cash and shares) plus a 12% NPI royalty.

Jett Capital Advisors, LLC are acting as advisor to Consolidated Zinc Limited.

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

Zacualpan

project where three 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 3 below 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 11.5

million ounces of silver, generating revenues over $230 million, with no long-term debt.

Plomosas Zinc-Lead-Silver District:

IMPACT signed the sale agreement with Consolidated

Zinc Limited (ASX: CZL) of Australia to purchase the 30 km

Plomosas property and mining

operations for US$6 million (cash and shares) plus a 12% net profits interest. Plomosas is a high

grade zinc-lead-silver producer with exceptional exploration potential. Upon closing of the

purchase / sale 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 ("CRD") 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., is a "qualified person" within the meaning of NI 43-101 and has approved the

technical information contained in this news release.

Mr. Gorzynski is Vice-President, Exploration and a

director of IMPACT.

On behalf of IMPACT Silver Corp.

"Frederick W. Davidson"

President & CEO

For more information, please contact:

Jerry Huang

CFO | Investor Relations

O: (604) 681 0172 or

[email protected]

C: (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. Plomosas mineral resources are reported by Consolidated Zinc Ltd. (ASX: CZL) on their website

(

https://www.consolidatedzinc.com.au

) under the Australian JORC (2012) Code as mineral resources

"depleted as at December 2021".

IMPACT's Qualified Person has reviewed but not verified in detail

these current reported mineral resources and is only reporting them as material recent mineral resources

reported by CZL and available in the public record. IMPACT believes the estimates are relevant and

reliable, given they are reported to Australian JORC standards; however, IMPACT's Qualified Person

has not done sufficient work to classify them as current Canadian NI 43-101 mineral resources.

2. 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.

3. 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 completion of the Plomosas agreement

and estimated timing thereof, the potential for defining and extending the known mineralization, and

plans for drilling and future operations at the Company's projects or plans for financing.

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

respect to, without limitation, 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, pandemics 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 or beliefs, opinions, projections or other factors, except as required by law.

At Zacualpan, 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 Zacualpan production decisions on NI 43-101 mineral resources or reserve estimates,

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

uncertainty and risk of failure.

303-543 Granville Street

Vancouver, BC, Canada V6C 1X8

Telephone 604 664-7707

www.impactsilver.com

Twitter

Figure 1: Location map of Plomosas Mine and nearby mines and infrastructure. References to nearby

projects are for information purposes only and there are no assurances that Plomosas will achieve