Mr. Fred Davidson reports

IMPACT SILVER PROVIDES CONSTRUCTION UPDATE AT THE HIGH-GRADE ZINC-SILVER PLOMOSAS PROPERTY, MEXICO

Impact Silver Corp. has provided 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 on-line after a near-one-year hiatus," said Fred Davidson, Impact Silver president and chief executive officer.

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 are expected to start in late summer, with ramp-up to design capacity of nearly 200 tpd (tonnes per day) expected over the coming months. Construction is now approximately 85 per cent complete.
• 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 of capacity. Meanwhile, an additional tailings pond is in the planning stages to accommodate years of future production and growth.
• Underground mine: Refurbishments to ventilation, electrical and lighting systems are continuing 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.
• 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 per cent zinc (Zn).
• Work force and personnel: There are currently 70 company employees on site and another 25 contract workers. The company is fortunate to have inherited a strong work force after the acquisition closed, and is adding positions in specific areas centred around engineering, exploration and day-to-day operations.
• Environmental, social and governance (ESG): While generally remote, the company engages with the nearest communities to ensure continuing support and co-ordination. 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.

About Impact Silver Corp.

Impact Silver is a successful intermediate mineral producer and explorer with multiple 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 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 a National Instrument 43-101 inferred mineral resource of over 4.5 million ounces silver, 48 million pounds (Mlb) zinc and 21 Mlb 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 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 600 m of the six 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. Regionally, Plomosas lies in the same mineral belt as some of the largest carbonate replacement deposits in the world.

Qualified person and NI 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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