Mr. Frederick Davidson reports

IMPACT SILVER UPSIZES FINANCING TO $5.0 MILLION

Impact Silver Corp. is amending and increasing its previously announced non-brokered private placement of the company from $3.5-million to aggregate gross proceeds of up to $5.0-million due to increased investor interest. The non-brokered private placement will still consist of a listed issuer financing exemption offering for $1.75-million, which is being fully allocated to Trafigura, and a standard private placement for $3.25-million.

All other aspects of the financing remain the same.

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 $3.25-million from the sale of up to 18,055,556 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.

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 viewed under the company's profile at 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.

Warrant extension approved

On April 4, 2025, the company announced the extension of warrants and confirms the extension of 33,283,030 warrants. This has received Toronto Stock Exchange approval.

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-tonne-per-day 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 the 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 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.

We seek Safe Harbor.