2025 News Releases

Vancouver, British Columbia - (January 8, 2025) - IMPACT Silver Corp. (TSXV: IPT) (OTCQB: ISVLF) is pleased to reflect on a year marked by significant operational advancements, robust financial performance, and strategic initiatives that have strengthened the Company's position in the silver and zinc mining industry, establishing itself as a leader in in the intermediate mining sector in Mexico.

Operational Milestones

• Plomosas Zinc Mine Ramp-Up: Following a substantial investment and rehabilitation process that began in mid-2023, the Plomosas high-grade zinc mine, acquired in Q2/2023, achieved substantial operational progress in 2024. By the third quarter of 2024, the mine was operating at approximately 70% of its design capacity, processing 12,686 tonnes-a significant increase compared to earlier quarters.

• Exploration Success at Plomosas: The Company's exploration programs delivered strong results, including high-grade mineralization at the Plomosas Mine. Drilling highlights included 16.6% zinc over 2.5 meters and 27.5% zinc over 1.1 meters, bolstering future resource potential across the 6km trend where exploration continues. The balance of the property's exploration potential remains open in all directions.

• Flagship Royal Mines of Zacualpan Silver District continued to generate revenue: Revenue at Zacualpan was $6.1 million in Q3 2024, up from $4.8 million in Q3 2023, and production of gold resumed from the Alacran Mine.

• New Discovery at Zacualpan: A new high-grade silver vein discovery at the legacy Royal Mines of Zacualpan Silver-Gold district revealed significant mineralization in the newly designated Kena Vein South, located within 100-200 meters of active Guadalupe mine workings. Highlights included an impressive 213 g/t silver over 17.30 meters, including an interval of 1,400 g/t silver over 0.75 meters. The Kena Vein South has been drilled over 150 meters strike length and remains open for extension in multiple directions, presenting substantial exploration upside.

Financial Highlights for 2024

• Revenue Growth: Revenue showed consistent strength throughout 2024, driven by increased production as the new Plomosas Mine ramped up, enhanced by stronger metal prices. Q3 revenue reached $8.6 million, an 81% increase compared to Q3 2023, while Q2 revenue rose by 40% year-over-year to $7.7 million. The Company maintained a strong balance sheet, ending Q3 2024 with $6.4 million in cash, working capital of $7.1 million and no long-term debt.

• Operating Income: IMPACT Silver achieved positive mine operating earnings in Q3, reaching $1.03 million, a significant improvement from earlier periods. With elevated metal prices, the Company's operations are expected to continue to benefit.

Strategic Initiatives

• Sustainable Energy Integration: Early in the year, the Company contracted a Tesla Battery Energy and System with solar capabilities for the Plomosas mine, advancing its commitment to sustainable and efficient operations. This endeavour is ongoing with meaningful progress anticipated in early 2025.

• Strengthened Leadership: The appointment of Janet Meiklejohn to the Board in August brought valuable financial and governance expertise, enhancing strategic oversight.

Market Dynamics

The appreciating prices of silver and zinc in 2024 were pivotal in driving financial performance:

• Silver Market: Silver prices exhibited remarkable strength, climbing by 27.4% year-to-date as of December 30, averaging at $29.30 per ounce. This increase reflected strong industrial demand, a supply deficit, and investor interest amid economic uncertainty.

• Zinc Market: Zinc prices demonstrated strong performance in 2024, reaching a 15-month high of US$3,180 per tonne in October, driven by growing optimism around industrial demand tied to the global energy transition and advancements in AI-powered technologies. The 15% year-over-year increase reflected robust market fundamentals and investor confidence.

Outlook for 2025

As observed in recent cycles, the TSX Venture Index nearing multi-year lows presents a significant opportunity for investors, especially as the commodities we produce reach multi-year highs. This dynamic could lead to a sharp revaluation of high-quality small-cap mining companies.

As we close 2024, IMPACT Silver remains committed to delivering value through operational excellence, focussed exploration, and sustainability initiatives. With a strong foundation and favorable market conditions, the Company is well-positioned for continued growth.

ABOUT IMPACT SILVER

IMPACT Silver Corp. (TSXV: IPT) (OTCQB: ISVLF) is a successful intermediate mineral producer and explorer with multiple mining projects in Mexico.

• Royal Mines of Zacualpan Silver-Gold District: IMPACT owns 100% of the 211 km² Zacualpan project in central Mexico where four producing underground silver mines and one open pit mine feed the central 500 tpd Guadalupe processing plant. To the south, the Capire Project includes a 200 tpd processing pilot plant adjacent to an open pit silver mine with an NI 43-101 inferred mineral resource of over 4.5 million ozs silver, 48 million lbs zinc and 21 million lbs lead (see IMPACT news release dated January 18, 2016, for details and QP 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 where only 10% of the 6 km-long structure have seen modern exploration. 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.

Additional information about IMPACT and its operations can be found on the Company website at www.impactsilver.com. Follow us on X @IMPACT_Silver and LinkedIn at https://www.linkedin.com/company/impactsilver.

Qualified Person and NI 43-101 Disclosure

George Gorzynski, P.Eng., is a "Qualified Person" within the meaning of NI 43-101 and has approved the technical information contained in this news release.