IMPACT Silver Announces Full Year 2024 Results With Record Revenue and a Return to Net Profit in Q4

Vancouver, May 5, 2025 - Impact Silver Corp. (TSXV: IPT) (OTCQB: ISVLF) (FSE: IKL) ("IMPACT" or the "Company") announces its financial and operating results for the year ended December 31, 2024. The Company is recognized as an intermediate miner with strength across the value chain including production, growth and exploration potential. In 2024, the Company evolved from being a near pure-play on silver with ongoing production across an extensive mining district at its Royal Mines of Zacualpan Silver district in Central Mexico to include now substantial production from the Plomosas high-grade zinc mine in Northern Mexico.

The Company reported record revenue of $31.9 million in FY 2024, an increase of 53% compared to revenues of $20.8 million in FY 2023. This includes a near doubling of quarterly revenue to $10.2 million in Q4 2024, an increase of $4.8 million from Q4 2023, primarily due to the increase in production at Plomosas as well as a 24% increase in gold sales in Q4 2024 compared to Q4 2023 at Zacualpan. Overall, in FY 2024, 72% of the revenue came from the Zacualpan silver-lead-zinc assets however, with increased production from Plomosas coming online later in the year, the revenue split in Q4 2024 was 65% from Zacualpan and 35% from Plomosas. In Q4 2024, mine operating earnings increased by $3.6 million to $1.1 million over Q4 2023 on higher revenue and production.

In 2024, the Company's ramp up of zinc production at Plomosas from minimal levels at the start of the year to 75% of capacity at year-end, combined with robust commodity prices, resulted in a strong end to the year including a net income of $1.6 million in Q4 2024 compared to a net loss of $9.3 million in Q4 2023. At the end of the year, the Company had $7.1 million in cash, $9.0 million in working capital and no long-term debt.

Fred Davidson, President & CEO of IMPACT, stated, "2024 was a year of transition for the Company, having culminated in improved financial results after years of integrating and rehabilitating the Plomosas mine, which is now approaching full capacity. IMPACT is now firmly established as a proven silver, zinc and lead producer and a leading intermediate miner in Mexico. Strong commodity prices driven by geopolitical events and evolving monetary policy have improved economics for the industry and are evident in our Q4 2024 results which markedly improved as the year came to close. In 2025, we will focus on improving production, grade, and building on our substantial efficiencies achieved over the last 12 months."

2024 PRODUCTION OVERVIEW - ZACUALPAN PROJECT (SILVER-LEAD-ZINC)

• 2024 full year silver production was 595,264 ounces (2023 - 637,514 ounces).

• Silver sales of 592,844 ounces in 2024 compared to 636,655 ounces in 2023.

• Gold sales increased to 135 oz in Q4 2024 from 109 oz in Q4 2023.

• Average mill feed grade was 161 grams per tonne (g/t) silver for 2024, which was similar to 160 g/t silver in 2023.

• Throughput at the mill was 136,280 tonnes in 2024, down 8% from 147,444 tonnes in 2023.

Production and associated volume sales were down year over year due to extreme weather events impacting production in 2H 2024. These issues have been repaired, and production has ramped up since. Notwithstanding, strong commodity prices resulted in revenue per tonne sold improving by 39% to $189.34 in Q4 2024 from $135.80 in 2023.

Following several years of cost inflation, direct costs per production tonne have stabilized, having decreased by 4% in Q4 2024 to $146.09 from $152.28 in Q4 2023. Management expects costs to stay at these controlled levels in 2025.

PLOMOSAS PROJECT (ZINC-SILVER)

Following the acquisition of the Plomosas high grade zinc-lead-silver mine in April 2023, the Company embarked on an aggressive rehabilitation program to bring the mine back online The Company resumed limited test production at Plomosas in October 2023, and after nearly 18 months of rehabilitating mobile equipment, plant facilities, infrastructure, and the underground mine, production has significantly expanded. By the end of the year, production reached approximately 75% of the mill's design capacity.

In Q4 2024, the Plomosas Mine continued its gradual ramp-up, processing 13,633 tonnes, up from 3,594 tonnes in Q1 2024. Total production for 2024 reached 39,169 tonnes. The average grades for 2024 were 12.2% zinc, 7.3% lead, and 47 g/t silver. Plomosas sales for the year included 2,706 tonnes of zinc, 569 tonnes of lead, and 35,010 ounces of silver.

Historical mining made Plomosas one of the highest grading zinc-silver mines with approximately 2.5MT mined since 1943 grading 15-25% zinc, 2-7% lead and 40-60 g/t silver with low deleterious elements¹. The 3,019-hectare property covers extensive carbonate replacement deposit-type ("CRD") zinc-lead-silver mantos (beds) mainly hosted in carbonates (limestones, marbles). The previous operator reported Australian JORC mineral resources² of 215,000 tonnes grading 13.5% zinc, 6.3% lead and 34.0 g/t silver indicated, and 772,000 tonnes grading 13.1% zinc, 3.0% lead and 19.0 g/t silver inferred, at a 3% zinc cutoff at December 2021.

GOING FORWARD

The Company intends to continue allocating resources toward exploration and development at both of its mining sites. At the Zacualpan project, management is focused on improving grades as the Kena discovery continues to expand (see news release from February 11, 2025). Efforts are also underway to further optimize silver and gold production considering improved commodity prices. Additionally, the Company is evaluating various strategic options for the Capire open-pit silver mine to capitalize on strong silver market conditions.

At the Plomosas mine, management anticipates that 2025 will be a year of optimal production, supported by substantial exploration activity across the largely unexplored property. Strong zinc prices, coupled with operational efficiencies at the processing level, have enabled Plomosas to achieve key financial and operational milestones-progress that the Company aims to build upon.

Following several years of cost inflation and unfavorable foreign currency impacts, the Company believes that most cost pressures are now under control. This provides a foundation for renewed focus on delivering shareholder value through improved grades, increased production, and continued exploration success.

A recorded conference call reviewing the financial and production results of the year ended December 31, 2024 will be available on the Company website on May 7^th, 2025 at www.impactsilver.com/s/ConferenceCalls.asp.

The information in this news release should be read in conjunction with the Company's audited condensed consolidated Financial Statements and Management's Discussion and Analysis, available on the Company website at www.impactsilver.com and on SEDAR at www.sedar.com. All amounts are stated in Canadian dollars unless otherwise specified.

ABOUT IMPACT SILVER

IMPACT Silver Corp. (TSXV: IPT) is a successful producer-explorer with two 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 $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 the 6 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.

Qualified Person and NI 43-101 Disclosure

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

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

On behalf of IMPACT Silver Corp.
"Frederick W. Davidson"
President & CEO

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking and Cautionary Statements

This IMPACT News Release may contain certain "forward-looking" statements and information relating to IMPACT that is based on the beliefs of IMPACT management, as well as assumptions made by and information currently available to IMPACT management. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved.

Such forward-looking information involves known and unknown risks and assumptions, including with respect to, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, criminal activity, seasonality, technological change, industry practices, and one-time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. IMPACT does not assume the obligation to update any forward-looking statement except as required by law.

The Company's decision to place a mine into production, expand a mine, make other production related decisions or otherwise carry out mining and processing operations, is largely based on internal non-public Company data and reports based on exploration, development and mining work by the Company's geologists and engineers. The results of this work are evident in the discovery and building of multiple mines for the Company and in the track record of mineral production and financial returns of the Company since 2006. Under NI 43-101 the Company is required to disclose that it has not based its production decisions on NI 43-101 compliant mineral resource or reserve estimates, preliminary economic assessments or feasibility studies, and historically such projects have increased uncertainty and risk of failure.

303-543 Granville Street
Vancouver, BC, Canada V6C 1X8
Telephone (604) 664-7707
www.impactsilver.com
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¹ Reference: Alexandri, A. Gonzalez, H., & Salas, H. (2022). Plomosas Project (CZL), Field Visit Report. IMPACT Silver Corp. private report on field visits and compilation of historic and recent data, 56 pages.
² Plomosas mineral resources were reported by Consolidated Zinc Ltd. (CZL: ASX) on their website (https://www.consolidatedzinc.com.au) under the Australian JORC (2012) Code as mineral resources "depleted as at December 2021". IMPACT's Qualified Person has reviewed but not verified in detail these reported mineral resources and is only reporting them as material mineral resources reported by CZL and available in the public record. IMPACT believes the estimates are relevant and reliable, given they are reported to Australian JORC standards; however, IMPACT's Qualified Person has not done sufficient work to classify them as current Canadian NI 43-101 mineral resources.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/250923