Mr. Frederick Davidson reports

IMPACT SILVER ANNOUNCES THIRD QUARTER 2014 FINANCIAL AND PRODUCTION RESULTS

Impact Silver Corp. has released its financial results for the nine months ended Sept. 30, 2014. The information in this news release should be read in conjunction with the company's unaudited condensed consolidated interim financial statements and management discussion and analysis, which are available on the company's website and on SEDAR. All amounts are stated in Canadian dollars, unless otherwise specified.

Fred Davidson, president and chief executive officer, stated: "Our production performance during the third quarter was very positive compared to the second quarter. We generated higher production ounces and overall grades, which, combined with stringent cost controls, enabled us to achieve significantly improved operating results despite the 14-per-cent drop in silver prices in 2014. Our near-term strategy in this low-pricing environment is to continue to focus on higher-grade zones of silver and gold close to active mining operations such as Cuchara-Oscar and San Ramon to ensure Impact continues to generate solid cash flow as the market stabilizes. While we remain focused on efficient operations, if the price for silver remains at current levels, the company will be looking at opportunities to improve its balance sheet and to fund future development through possible financing and/or acquisition or merger."

Overview for the quarter ended Sept. 30, 2014

Financial overview

• Revenues for the third quarter were $3.4-million, an approximately 32-per-cent increase from $2.6-million in the second quarter, resulting primarily from an increase in production and grade.
• Net loss was $600,000 for the third quarter, of which non-cash items included $600,000 in depreciation and amortization and $200,000 in share-based payments (stock option grants).
• Mine operating earnings before amortization and depreciation were $500,000, compared with $400,000 in earnings in the third quarter of 2013.
• Capital expenditures during the quarter included mineral property expenditures of $500,000, which reduced cash to $1-million; the company continues to be free of long-term debt.
• Net working capital decreased to $4.1-million on Sept. 30, 2014, compared to $6.9-million on Dec. 31, 2013.

Production overview

• Silver production increased to 210,513 ounces for the third quarter of 2014, up 19 per cent from 177,366 ounces in the same period of 2013 and up 38 per cent from the second quarter of 2014.
• Average mill feed grade for silver in the third quarter of 2014 increased to 179 grams per tonne from 171 grams per tonne in the third quarter of 2013 and from 142 grams per tonne in the second quarter of 2014.
• Total tonnes milled during the third quarter of 2014 increased 8 per cent to 41,673 tonnes from 38,520 tonnes in the third quarter of 2013.
• The Cuchara-Oscar mine was put into production in February, 2013; during 2013, the mine contributed 23 per cent of the total mill feed; by the third quarter of of 2014, it provided 53 per cent.
• The higher-grade Mirasol mine was put into production in July, 2014, and accounted for 4 per cent of third quarter production.

The company experienced a positive trend in operations as tonnes processed in the third quarter of 2014 increased to 41,673 tonnes from 39,015 tonnes in the second quarter of 2014. This increase has been a result of additional feed from the company's principal producer, the Cuchara-Oscar mine, as well as strong contributions from the La Gallega and San Ramon mines. During the quarter, the Mirasol mine was also brought into production. With production materials being drawn from several mines with different feed grades, mine production can vary from quarter to quarter. However, with the San Ramon and Mirasol mines developing into higher-grade mineralization, average silver grades were higher in the third quarter of 2014 at 179 grams per tonne, compared to 142 grams per tonne for the previous quarter, and are expected to continue at similar grades.

A recorded conference call reviewing the financial and production results of the three months ended Sept. 30, 2014, will be available on the company's website on Nov. 26, 2014.

We seek Safe Harbor.