Mr. Frederick Davidson reports

IMPACT SILVER ANNOUNCES SHAREHOLDER APPROVAL OF OMNIBUS EQUITY INCENTIVE PLAN

At Impact Silver Corp.'s shareholder meeting held on Aug. 1, 2025, the company received shareholder approval for a new form of omnibus equity incentive plan to replace its 10-per-cent fixed stock option plan originally adopted on Dec. 21, 2020. Disclosure of the omnibus plan and the company's former option plan is contained in the information circular dated June 25, 2025, sent to shareholders for its annual general meeting.

The omnibus plan is a rolling up-to-10-per-cent security-based compensation plan, as defined in Policy 4.4 (Security Based Compensation) of the TSX Venture Exchange, pursuant to which the number of common shares in the capital of the company that are issuable upon the exercise of equity awards granted under the omnibus plan shall not exceed 10 per cent of the issued and outstanding shares of the company as at the date of any award grant, subject to adjustment as provided in the omnibus plan.

The plan remains subject to the final acceptance of the TSX Venture Exchange and must be reapproved by shareholders on an annual basis, beginning at the company's next annual meeting of shareholders in accordance with the policies of the TSX Venture Exchange.

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 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 the qualified person statement). Company engineers are reviewing Capire for a potential restart of operations to leverage improving commodity prices. Over the past 19 years, Impact has developed multiple exploration zones into commercial production and has produced over 13.5 million ounces of silver, generating revenue of more than $298-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. 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 and vice-president, exploration, 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.