Mr. Frederick Davidson reports

IMPACT SILVER ANNOUNCES CLOSING OF $3.5 MILLION NON-BROKERED PRIVATE PLACEMENT FINANCING

IMPACT Silver Corp. has closed the non-brokered private placement financing of $3.5-million previously announced on Dec. 6, and increased on Dec. 8, 2023, to $3.5-million.

The company received aggregate proceeds of $3.5-million from the issuance of 20,588,235 units of the company at 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 full warrant entitles 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 net proceeds from the offering for exploration and development of its projects in Mexico, working capital requirements, and other general corporate purposes including legal and financing fees related to the offering.

Frederick Davidson, chief executive officer and president of the company, comments: "I would like to thank all our investors and stakeholders for their support in this financing as we close out the year. We anticipate a robust and expanding exploration program in 2024 as we ramp up operational cash flow. Meanwhile, precious and base metal prices have recently benefited from lower forecasted interest rates and strong anticipated growth emanating from the green energy economy which will command substantial amounts of silver and zinc going forward."

The offering was made pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 -- Prospectus Exemptions. The securities sold under the LIFE exemption are not subject to a hold period in accordance with applicable Canadian securities laws. A copy of the offering document under the LIFE exemption dated Dec. 6, 2023, as amended Dec. 8, 2023, is available electronically on SEDAR+ under the company's issuer profile. The offering remains subject to final acceptance by the TSX Venture Exchange.

In connection with the offering, the company paid an aggregate of $58,000 in finders' fees and issued 341,298 finders' warrants to certain finders. Each finder's warrant entitles the holder thereof to purchase one common share of the company at a price of 22 cents per share for a period of 24 months from its date of issue.

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.

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.