Mr. Frederick Davidson reports

IMPACT SILVER CLOSES SECOND TRANCHE OF NON-BROKERED PRIVATE PLACEMENT FINANCING

Impact Silver Corp. has closed the second tranche of its non-brokered financing originally announced on April 6, upsized on April 12, 2023, and closed as a first tranche on April 19, 2023.

The company received an aggregate proceeds of $662,604.84 on the issuance of 2,454,092 units of the company at 27 cents per unit. Each unit comprises one common share of the company and one full common share purchase warrant. Each warrant is exercisable to acquire one common share at a price of 35 cents per warrant share for a period of 24 months from the closing of the offering. Aggregate gross proceeds from the entire offering were $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 per cent 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 35 cents 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 Sept. 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.

About Impact Silver Corp.

Impact Silver is a successful producer-explorer with two mining projects in Mexico.

• Royal Mines of Zacualpan silver-gold district: Impact owns 100 per cent of the 211-square-kilometre Zacualpan project where four underground silver mines and one open-pit mine feed the central 500-tonne-per-day Guadalupe processing plant. To the south, the Capire project includes a 200 tpd processing pilot plant adjacent to an open-pit silver mine with a National Instrument 43-101 inferred mineral resource of over 4.5 million ounces silver, 48 million pounds zinc and 21 million lb lead (see Impact news release dated Jan. 18, 2016, for details and qualified person statement); 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 Ltd. of Australia to purchase the Plomosas property and mining operations for $6-million (U.S.) (cash and shares) plus a 12-per-cent NPI (net profit interest) and a third party 1-per-cent net smelter return 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 600 metres of the six-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.

We seek Safe Harbor.