Mr. Frederick Davidson reports

IMPACT SILVER AMENDS C$2.7 MILLION NON-BROKERED PRIVATE PLACEMENT FINANCING TO $3.5 MILLION

Impact Silver Corp. has upsized the non-brokered private placement financing, pursuant to the listed issuer financing exemption (LIFE) of National Instrument 45-106 -- Prospectus Exemptions, originally for proceeds of up to $2.7-million, to $3.5-million due to increased investor demand. The company will issue up to 20,588,235 units at a price of 17 cents per unit.

Each unit will consist of one common share of the company and one-half of one common share purchase warrant, each warrant entitling the holder thereof to acquire one share from the company at a price of 22 cents per share for a period of 24 months from its date of issue.

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 mineral resource at Plomosas, where only 600 metres of the six-kilometre-long structure have been tested. The region is known for hosting some of the largest carbonate replacement deposits in the world.

The securities to be issued under the offering will be offered by way of private placement in each of the provinces of Canada and such other jurisdictions as may be determined by the company, in each case pursuant to applicable exemptions from the prospectus requirements under applicable securities laws.

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 on 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. 18, 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-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 an NI 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 NSR (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 m 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.