Mr. Frederick Davidson reports

IMPACT SILVER ANNOUNCES C$2.7 MILLION NON-BROKERED PRIVATE PLACEMENT FINANCING

Impact Silver Corp. has arranged a non-brokered private placement financing, pursuant to the listed issuer financing exemption (LIFE) of National Instrument 45-106 -- Prospectus Exemptions, to raise gross proceeds of up to $2.7-million from the sale of up to 15,882,353 units at a price of 17 cents per unit. Each unit will consist of one common share in the capital of the company and one-half of one common share purchase warrant of the company, with each warrant entitling the holder thereof to acquire one common share of the company at a price of 22 cents per warrant share until the date that is 24 months from the closing date of the offering.

The company intends to use the proceeds from the offering to accelerate exploration activity at the recently acquired Plomosas high-grade zinc-lead-silver property located in Chihuahua, Mexico, as well as for working capital requirements and other general corporate purposes, including legal and financing fees related to the offering. Exploration activities include sampling, target definition and drilling, with the intention of expanding the existing JORC (Joint Ore Reserve Committee) mineral resource at Plomosas, where only 600 metres of the six-kilometre-long structure has been tested. The region is known for hosting some of the largest carbonate replacement deposits in the world.

Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 -- Prospectus Exemptions, the offering is being made pursuant to the listed issuer financing exemption under Part 5A of NI 45-106. The securities offered under the listed issuer financing exemption will not be subject to a hold period in accordance with applicable Canadian securities laws. There is an offering document related to the offering that can be accessed under the company's profile at SEDAR+ and on the company's website. Prospective investors should read this offering document before making an investment decision.

The offering is scheduled to close on or about the week of Dec. 15, 2023, and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. The company may pay finder's fees or commissions on a portion of the offering, subject to compliance with the policies of the exchange and applicable securities legislation.

About Impact Silver Corp.

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

Plomosas zinc-lead-silver district: Plomosas is a high-grade zinc producer in northern Mexico with exceptional exploration upside potential. The company recently recommenced operations and has plans for expansion in 2024. Exploration potential at Plomosas is exceptional with only 600 m of the six-kilometre-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 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.

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 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 revenue of more than $256-million.

Qualified person and National Instrument 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.

We seek Safe Harbor.