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IMPACT Silver Announces Q1 2024 Financial Results with Improved Revenue and Investment

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Vancouver, British Columbia--(Newsfile Corp. - May 28, 2024) - IMPACT Silver Corp. (TSXV: IPT) (OTCQB: ISVLF) (FSE: IKL) ("IMPACT" or the "Company") announces its financial and operating results for the first quarter ended March 31, 2024. The Company reports revenue of $5.3 million in Q1 2024, of which $4.3 million was from Guadalupe Mining Centre with $1.0 million from the start-up operations at the Plomosas mine which was acquired in April 2023 . There was a net loss during the period of $3.1 million, primarily from MLAZ (Plomosas zinc mine) as that company incurred $2.8 million in operating costs expensed during the quarter to upgrade the facilities.

Subsequent to quarter-end, the Company announced a non-brokered private placement financing of up to $10.2 million, and closed the first tranche for aggregate gross proceeds of $7.1 million. The second tranche is anticipated to close on or before the week of June 3, 2024. During the quarter, the Company continued to focus on exploration and development of its mining districts and spent $1.9 million on these programs.

The price of silver and zinc started to improve towards the end of the quarter as a more dovish policy from the U.S. Federal Reserve led to speculation of interest rate cuts in 2024. These gains were reinforced as it became clearer that inflation was trending towards the central bank's target of 2%.

Major Investment in Rehabilitation Setting Stage for Growing 2024 Production

Throughout the first quarter, management sought to accelerate maintenance, rehabilitation and underground development efforts at both mines including upgrading the underground railway track system and shaft at Zacualpan while redesigning the Plomosas mine plan and planning a low-cost solar and battery power solution at Plomosas. The second quarter has already seen significant upward price movement in commodity prices, namely for silver and zinc which are the Company's two main revenue sources. Additionally, the Company successfully negotiated a new labour agreement with the primary union at the Zacualpan silver operation, allowing for added cost certainty and more efficient production going forward.

Fred Davidson, President & CEO of IMPACT, stated, "We spent the first quarter positioning the Company for the future. Major rehabilitation efforts at the Zacualpan operation and the development at Plomosas mine, coupled with added visibility for a significant portion of our cost structure such as labour at Zacualpan and the potential low cost sustainable power at Plomosas, have positioned the Company to benefit from the current increase in commodity prices. Management expects operating profit to improve throughout the year as both operations ramp up to full design capacity and investments made over the last 12 months begin to bear fruit for investors."