Mr. Frederick Davidson reports

IMPACT SILVER INTERSECTS 10.22% ZINC OVER 8.6M INCLUDING 30.10% ZINC OVER 1.1M AT THE PLOMOSAS MINE

Impact Silver Corp. has released further results from a continuing drill program at the Tres Amigos zone at its recently acquired Plomosas zinc (-lead-silver) mine in northern Mexico.

Highlights:

• The Tres Amigos drill program continues to confirm the presence of high-grade mineralization in the area of the Plomosas mine:
  • Drill hole TASC-24-28 intersected a wide interval grading 10.22 per cent zinc, 0.50 per cent lead and eight grams per tonne (g/t) silver over 8.6 metres, including 14.67 per cent zinc, 0.66 per cent lead and 11 g/t silver over 5.5 metres, and including 30.10 per cent zinc, 0.86 per cent lead and 14 g/t silver over 1.1 metres.
  • Drill hole TASC-24-29 intersected 10.54 per cent zinc, 5.48 per cent lead and 19 g/t silver over 3.6 metres, including 17.95 per cent zinc, 10.16 per cent lead and 32 g/t silver over 1.85 metres.
  • Drill hole TASC-24-32 intersected a wide 11.7-metre interval averaging 4.16 per cent zinc, 2.43 per cent lead and 13 g/t silver, including a very high-grade section grading 30.10 per cent zinc, 18.05 per cent lead and 84 g/t silver over 0.8 metre.
• The Tres Amigos zone remains open for expansion and drilling is continuing.
• High-priority targets have been identified for drilling elsewhere on the property.

Drilled intervals are interpreted to be approximate true widths. Other holes drilled on the eastern extension of the Tres Amigos zone mining area intersected low grades.

Chief executive officer statement

President and CEO Frederick Davidson commented: "It is very encouraging that we continue to drill high-grade intersections in the Tres Amigos zone at the Plomosas mine. These intersections are located close to current mine workings and represent near-term high-grade mineralization for mining once operations are fully under way. When the near-mine drilling is completed, we will next move the drill to test high-priority targets beyond the immediate mine area."

Plomosas mine geology and mineralization

The Plomosas mine, a historic high-grade zinc producer in northern Mexico, was recently acquired by the company, which has undertaken a surface drill program in the Tres Amigos area of the mine and has conducted an underground sampling program in stopes of the Plomosas mine, which were partially exploited by the previous operator. Mineralization at the Plomosas mine occurs as zinc-rich carbonate replacement zones along certain horizons of the local sedimentary rock sequence. Two main mineralized horizons have provided the bulk of historic production, the Mina Vieja marble and the Juarez limestone, where structural ground preparation along these two units resulted in concentrations of zinc, lead and silver.

The company initiated an exploration drill program on the Juarez limestone in the Tres Amigos area to test mineralization near workings with known mineralization from historic work. Mineralization in the Juarez limestone generally forms pods of high-grade zinc and lead at and near the contact with an overlying shale, and drill results such as reported here indicate potential for a additional high-grade mineralization in this area providing impetus for further exploration.

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 in central Mexico, where three 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-tonne-per-day 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 (oz) silver, 48 million pounds (lb) zinc and 21 million lb lead (see Impact news release dated Jan. 18, 2016, for details and the qualified person statement). Company engineers are reviewing Capire for a potential restart of operations. Over the past 18 years, Impact has placed multiple zones into commercial production and produced nearly 13 million ounces of silver, generating revenues over $260-million, with no long-term debt.

Plomosas zinc-lead-silver district

Impact has begun preliminary mining and processing operations at its 100-per-cent-owned Plomosas high-grade zinc mine in northern Mexico. Exploration upside potential is exceptional where only 600 metres of the six-kilometre-long structure have seen modern exploration. 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.

Quality control/quality assurance

Samples reported in this news release were analyzed by ALS Group, an internationally recognized analytical services provider. Samples analyzed by ALS used a multielement ICP package for silver and base metals. Assays for base metals more than 1 per cent used an overlimit ICP method. For samples with more than 30 per cent zinc, a wet chemical method is used. Certified reference materials and internal control samples are added to the sample stream at regular intervals to track accuracy of assays.

Qualified person and NI 43-101 disclosure

George Gorzynski, PEng, vice-president of exploration and a director of Impact, 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.