Mr. Frederick Davidson reports

IMPACT SILVER ANNOUNCES $3.5 MILLION NON-BROKERED FINANCING WITH A LEAD ORDER FROM STRATEGICS TRAFIGURA PTE LTD. AND PALISADES GOLDCORP LTD.

Impact Silver Corp. has arranged a non-brokered private placement of $3.5-million of the company with lead orders from strategic investors, Trafigura Pte Ltd. and Palisades Goldcorp Ltd. The non-brokered private placement will consist of a LIFE (listed issuer financing exemption) offering for $1.75-million, which is being fully allocated to Trafigura, and a standard private placement for $1.75-million, of which Palisades is participating for $1.1-million.

Trafigura is a major supplier of vital resources, including non-ferrous and precious metals, as a market leader in the global commodities industry. Trafigura was founded in 1993 and is active in more than 150 countries.

Palisades is a publicly listed investment company focused on the junior resource space. With a strong balance sheet and an experienced management team, Palisades provides investors with highly levered exposure to junior resource equities. Palisades is listed on the TSX Venture Exchange under the stock symbol PALI, and holds a diversified portfolio of securities and derivatives, among which it holds a 21.64-per-cent interest in New Found Gold Corp.

Fred Davidson, president and chief executive officer of Impact Silver, states: "We are pleased to welcome two notable institutional investors into Impact Silver. Trafigura has collaborated with Impact for many years, and this investment signifies their commitment to long-term support with us both at Guadalupe, Plomosas and beyond. With Palisades Goldcorp, they have been instrumental in building multiple hundred-million-dollar mid-cap gold companies, and we are pleased to have them participating in this financing."

The financing will be under the LIFE of National Instrument 45-106 -- Prospectus Exemptions and other private placement exemptions under NI 45-106. The LIFE portion of the offering is referred to in this news release as the LIFE offering. The company intends to raise gross proceeds of up to $1.75-million from the sale of up to 8.75 million units at a price of 20 cents per LIFE unit and up to $1.75-million from the sale of up to 9,722,222 standard private placement units at 18 cents per standard PP unit. Each LIFE unit will consist of one common share of the company and one-half common share purchase warrant, with each warrant entitling the holder thereof to acquire one common share of the company at a price of 26 cents per warrant share for a period of 24 months from its date of issue. Each standard PP unit will consist of one common share of the company and one full warrant, with each warrant entitling the holder thereof to acquire one warrant share at a price of 24 cents per warrant share for a period of 36 months from its date of issue.

The company intends to use the proceeds from the offering to accelerate exploration activity at its Plomosas high-grade zinc-lead-silver property located in Chihuahua, Mexico, further develop its prolific silver assets at its legacy Royal mines of Zacualpan district, as well as invest in operational improvements to improve productivity and throughput as the price of silver nears 52-week highs. 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. As such, the company intends to allocate a portion of the proceeds to continue development and grow production at the Plomosas high-grade zinc deposit as zinc prices continue to outperform on the back of forecasted supply deficits.

Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 -- Prospectus Exemptions, the LIFE 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 LIFE 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 May 15, 2025, 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 finders' fees or commissions on a portion of the offering, subject to compliance with the policies of the exchange and applicable securities legislation. All common shares and warrants issued as part of the standard PP units will bear a hold period of four months and one day from the date of issuance.

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 pounds 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 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 km 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.

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 (inductively coupled plasma) package for base metals and silver. Assays for base metals used an overlimit ICP method. 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, 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.

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