Mr. Frederick Davidson reports

IMPACT SILVER PROVIDES UPDATE ON THE RECENTLY ACQUIRED PLOMOSAS HIGH-GRADE ZINC MINE

Impact Silver Corp. has provided a corporate update on the company's recently acquired, high-grade Plomosas zinc-lead-silver mine located in Chihuahua state, Mexico.

Following the completion of the Plomosas mine acquisition (see the Impact Silver news release dated April 3, 2023), the company immediately commenced an extensive program at site to revitalize and upgrade operations and equipment, and bring on new technical and supervisory staff. Planned upgrades will allow for an expansion of production, and an aggressive exploration program has been prepared to potentially increase the size of the existing resource.

Mine, mill and plant:

• The company expects to initially restart production in second half 2023 at levels that allow management to consider further modifications and efficiencies, where required. More meaningful production levels approaching design capacity, as well as associated revenue, are expected in first half 2024.
• Mine planning and rehabilitation have been continuing while the company replaces and repairs underground equipment, including scooptrams and underground trucks.
• The company is in the process of replacing mill foundations while upgrading the ball mill, conveyor and crushing systems, and flotation cells. Design capacity of the mill is 150 tonnes per day with plans to expand.
• Plans are in place to expand the existing tailings pond, and concurrently, a new larger tailings pond is in the design and permitting stages. These efforts will provide some additional capacity to re-establish and grow output at the mill in the near term, while providing the company with substantial tailings capacity for future production increases.
• Substantial cost saving options are potentially available to the company as management considers alternative electric power options, as well as various changes in mining methods and mineral processing technologies.

Exploration:

• The company is preparing stations for an underground drill program in the mine, and drilling permits have been submitted for the coming surface program. One company-owned surface drill rig has arrived on site, and a second (underground) rig is currently being manufactured and is expected to be delivered midsummer.
• In addition to the high-grade resource already established at Plomosas, substantial exploration potential exists across the six-kilometre-long structure on the property with just 600 metres having been explored to date. The current Joint Ore Reserves Committee mineral resource by the previous operator totals 215,000 tonnes grading 13.5 per cent zinc, 6.3 per cent lead and 34.0 grams per tonne silver (indicated), and 772,000 tonnes grading 13.1 per cent zinc, 3.0 per cent lead and 19.0 g/t silver (inferred), at a 3-per-cent zinc cut-off at December, 2021.
• In recent years, a significant amount of the mill feed came from outside of the known resource, providing encouragement that exploration drilling may substantially increase Plomosas's resource over time.
• The company expects to deliver drill results later on in 2023 and early 2024 from its maiden exploration programs.
• Other exploration targets on the property include untested intrusion-related gold-copper targets with historical high-grade grab samples from surface prospecting.

About Impact Silver Corp.

Impact Silver (TSX Venture Exchange: IPT) is a successful intermediate mineral producer and explorer with multiple mining projects in Mexico.

Qualified person and National Instrument 43-101 disclosure

George Gorzynski, PEng, a director and officer of Impact Silver, is a qualified person within the meaning of NI 43-101, and has approved the technical information contained in this news release.

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