Mr. Fred Davidson reports

IMPACT SILVER ANNOUNCES PRODUCTION RESTART AT THE RECENTLY ACQUIRED PLOMOSAS HIGH-GRADE ZINC MINE

Impact Silver Corp. has begun first production under the company's ownership at the recently acquired high-grade Plomosas zinc deposit located in the state of Chihuahua in northern Mexico.

Following the acquisition of the Plomosas mine in April, 2023 (see Impact news release dated April 3, 2023), the company embarked on an extensive rehabilitation and upgrade program at the site, including inside the mine, at the mill, and on all associated mobile equipment and infrastructure. As well, new technical and supervisory staff were added to restart production which had been halted since late 2022 under the previous owner.

Fred Davidson, president and chief executive officer, stated: "This is a tremendous milestone for our company as we embark on our next phase of growth. When we bought the Plomosas mine earlier this year, we remained steadfast in our ability that we could bring the asset back into production on time and on budget. I would like to thank our exceptional technical team for a job well done. Our shareholders can now look forward to a diversified mix of high-grade zinc at Plomosas in addition to our legacy silver producing assets at the Royal mines of Zacualpan, which are now in their 17th year of continuous production and revenue generation."

The company has reached a significant milestone in shipping the first concentrate to the smelter after restarting production following an intensive effort initiated just five months ago. Mine planning and rehabilitation have been continuing over the summer including replacing underground equipment and dewatering activities inside the mine. Scoop trams and underground trucks have been actively extracting material with volume increasing on a regular basis as initial processing levels have been achieved at the mill. Management will make modifications and adjustments as needed as it targets design processing capacity of approximately 200 tonnes per day (tpd) in H1 2024 with plans to then further expand production.

About Impact Silver Corp.

Impact Silver is a successful intermediate mineral producer and explorer with three mining projects in Mexico.

Royal mines of Zacualpan silver-gold district: Impact owns 100 per cent of the 211-square-kilometre Zacualpan project in central Mexico 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 zinc and 21 million lb lead (see Impact news release dated Jan. 18, 2016, for details). Company engineers are reviewing Capire for a potential restart of operations. Over the past 17 years, Impact has developed multiple exploration zones into commercial production and has produced over 12 million ounces of silver, generating revenue of more than $241-million.

Plomosas zinc-lead-silver district: Plomosas is a high-grade zinc-lead-silver producer in northern Mexico with exceptional exploration upside potential where only 600 metres of the six km long structure have been explored to date. This is in addition to other exploration targets on the 3,019-hectare property including untested copper-gold targets with indications of high-grade material from surface. 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, 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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