Mr. Frederick Davidson reports

IMPACT SILVER INTERSECTS 534.8 G/T SILVER OVER 8.50M INCLUDING 2,320 G/T SILVER OVER 1.07M ON NEW KENA VEIN SOUTH AT GUADALUPE MINE

Impact Silver Corp. has released further drill results from the Kena vein South zone in its producing Guadalupe silver mine in the Royal Mines of Zacualpan silver district, Mexico.

New Kena vein south underground drill results

Underground drilling from Level 140 of the Guadalupe Mine intersected further significant mineralization on the recently discovered Kena Vein South extending the zone to the north and discovered other nearby parallel and splay high-grade veins. New assays received include that shown in the attached table.

True widths are estimated to be 85 to 100 per cent of drill intervals. Drill results reported in this news release tested the north extension of the Kena vein zone. These results include newly discovered nearby parallel and splay high-grade veins. Kena vein South mineralization has now been traced over 300-metre strike length and remains open in all directions. Additional drilling is planned. New underground access to the Kena vein South has been completed on Level 140 with first mining tonnes recently extracted.

CEO statement

President and chief executive officer Fred Davidson commented: "Drilling on the recently discovered Kena vein continues to return exceptional high-grade results extending the zone to the north. These drill holes have also made new discoveries of nearby high-grade parallel and splay veins. The zone has been drilled over 300 m length now and remains open for exploration in all directions. Drilling will continue when a new underground drill station is completed to next test the southern extension of the vein. The close proximity of the new vein to current active mine workings has allowed for rapid and low-cost access and mine development. Our mining team recently extracted the first tonnes of mineral from Kena vein South and are now developing north and south on the vein to start full commercial mining."

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 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 personnel are reviewing Capire for a potential restart of operations. Over the past 18 years, Impact has placed multiple zones into commercial production and produced over 13 million ounces of silver generating revenues over $284-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 a 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 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, using a multielement ICP package for silver and base metals. Assays for base metals greater than 1 per cent resorted to an overlimit method. Certified reference materials and internal control samples were added to the sample stream at regular intervals to monitor assay quality control.

Qualified person and NI 43-101 disclosure

Silvia Kohler, PGeo, 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.