Mr. Frederick Davidson reports

IMPACT SILVER PROPOSES EXTENSION OF 2025 SHARE WARRANTS

Impact Silver Corp. has proposed an extension of 33,357,104 share warrants expiring in 2025 by 18 months subject to TSX Venture Exchange approval.

The company intends to extend the expiry date of a total of 30,903,012 share purchase warrants by 18 months, such that they will expire on Oct. 19, 2026. Each of these April warrants originally entitled the holder thereof to acquire one common share of the company at a price of 35 cents per common share until April 19, 2025. All other terms of the April warrants, including exercise price, will remain the same. The April warrants were issued pursuant to a private placement that closed on April 19, 2023.

As part of the same financing in 2023, a second tranche closed May 3, 2023. The company issued 2,454,092 share purchase warrants (the May warrants) with each May warrant originally entitling the holder to purchase one common share of the company at a price of 35 cents until May 3, 2025. These are also extended by 18 months, such that they will expire Nov. 3, 2026.

The extension of the expiry dates of the April warrants and the May warrants is subject to receipt of TSX Venture Exchange approval.

A total of 100,000 April warrants are held by a director of the company. Therefore, the extension of the expiry date of these April warrants constitutes a related party transaction as contemplated by Multilateral Instrument 61-101 -- Protection of Minority Shareholders in Special Transactions, and TSX-V Policy 5.9 -- Protection of Minority Shareholders in Special Transactions. However, the exemptions from formal valuation and minority approval requirements provided for by MI 61-101 can be relied upon as the fair market value of the April warrants held by insiders does not exceed 25 per cent of the market capitalization of the company. Upon receipt of the approval of the TSX-V of the warrant extensions, a material change report in respect of the warrant extension will be filed by the company.

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 four producing 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 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 and QP (qualified person) statement). Company engineers are reviewing Capire for a potential restart of operations to leverage improving commodity prices. Over the past 18 years, Impact has developed multiple exploration zones into commercial production and has produced over 13 million ounces of silver, generating revenue of more than $277-million, with no long-term debt.
• Plomosas zinc-lead-silver district: Plomosas is a high-grade zinc producer in northern Mexico with exceptional exploration upside potential. The company recently restarted mining operations and is ramping up production toward design capacity levels. Exploration potential at Plomosas is exceptional along the six-kilometre-long structure. 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 at surface. 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, a director of Impact Silver, 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.