IMPACT Silver Announces Q2 2025 Financial Results with 27% Increase in Revenue

Vancouver, British Columbia--(Newsfile Corp. - August 25, 2025) - IMPACT Silver Corp.  (TSXV: IPT) (OTCQB: ISVLF) (FSE: IKL) ("IMPACT" or the "Company") announces its financial and operating results for the second quarter ended June 30, 2025. The Company is pleased to report revenue of $9.8 million for Q2 2025, representing a 27% increase over revenue of $7.7 million in Q2 2024, bringing year-to-date ("YTD") revenue to $20.5 million, which was driven by increased year over year production at Plomosas and strong commodity prices. Mine operating income before amortization and depletion in Q2 2025 was $1.6 million, representing a substantial improvement over the $0.2 million loss in Q2 2024. The loss for the quarter, including $0.5 million in deferred taxes, $1.1 million in exploration and $0.6 million in amortization and depletion, was $2.0 million. At quarter-end, the Company had $10.3 million in cash, $13.3 million in working capital, and no long-term debt. During the quarter, the Company closed a $5.2 million private placement financing, including participation from Trafigura Pte Ltd.

In 2024, the Company revised its accounting policies for exploration, and as a result, the Company expensed $1.1 million in exploration costs in Q2 2025 that previously would have been capitalized.

Fred Davidson, President & CEO of IMPACT, stated, "Our ongoing ramp-up at Plomosas, combined with strong commodity prices, has positioned the Company to deliver improved revenue in the second quarter and beyond. After several years of strategic positioning to capitalize on stronger silver prices, our exploration efforts are now bearing fruit, highlighted by the recently discovered Kena vein. This was accomplished while conducting a substantial rehabilitation effort at Plomosas and extensive upgrading and development programs at the Guadalupe mine. We anticipate that the remainder of 2025 and 2026 will further build on these successes, as we maintain our focus on improving grade, advancing development activities, and continuing exploration activity across both of our assets."

Operations Review

Zacualpan Silver-Lead Operation

YTD 2025, the Company processed 69,185 tonnes of mill feed at the Zacualpan/Guadalupe complex, representing a 4% improvement over the 66,797 tonnes process YTD 2024. During the quarter, extreme weather caused power outages from the Mexican grid and washouts along key haul roads, but throughput at Zacualpan has recovered since that event.

Silver production from the Guadalupe complex to June 30, 2025 was 295,131 ounces ("oz"), a 2% increase from 289,443 oz in the first half of 2024, while lead production increased by 15% and gold production improved by 58% to 237 oz from 150 oz in the comparative period in 2024. The average mill head grade for silver of 158 g/t to June 30, 2025 fell by 2% compared to 161 g/t in 2024. Revenue per tonne sold for the first six months in 2025 increased by 38% to $209.84 from $152.09 while direct costs per tonne decreased by 2% on a year over year basis to $138.69 from $141.53 in 2024.

Plomosas Zinc-Lead-Silver Operation

YTD 2025, the mill processed 27,747 tonnes, up 116% from 12,850 tonnes in the first half of 2024. The average grades for YTD 2025 were 8.4% zinc, 4.6% lead, and 30.0 g/t silver. Plomosas sales for the YTD included 1,744 tonnes of lead, 397 tonnes of zinc, and over 17,663 ounces of silver, representing an improvement of 108%, 114% and 49%, respectively, compared to YTD 2024.

After more than two years of rehabilitating mobile equipment, plant facilities, infrastructure, and the underground mine, production has significantly expanded. With the investment of improved equipment and facilities, YTD direct costs fell to $230.14/t in 2025 from $400.70/t in 2024. Development and drilling costs per tonne continue to resist reductions until larger mineral stopes can be established.

In the second quarter, unfavourable ground conditions required further development to access an area where the majority of the higher grade mill feed is located. As a result, production was sourced from two lower grade stopes plus development muck. Notwithstanding, revenue per tonne in the six months ended June 30, 2025 fell by only 1% to $216.04 compared to $217.26 in YTD 2024. The new development through more favourable ground and is expected to access to these higher-grade areas, supporting improved production going forward.

Outlook

Following several years of exploration focused on improving grades at Zacualpan, alongside the rehabilitation and development of Plomosas, the Company is now well positioned to capitalize on higher commodity prices within an enhanced production framework at both sites.

With increasing grades at Zacualpan expected following new discoveries and production at Plomosas, management anticipates that the remainder of 2025 and 2026 will be further supported by improving industry fundamentals, moderated cost inflation, and higher revenue per ton.

Coupled with a strong balance sheet, management plans to maintain active exploration activities and pursue strategic partnerships aimed at further increasing shareholder value over the investment horizon.

A recorded conference call reviewing the financial and production results of the quarter ended June 30, 2025 will be available on the Company website on August 26^th, 2025 at www.impactsilver.com/s/ConferenceCalls.asp.

The information in this news release should be read in conjunction with the Company's unaudited condensed consolidated interim 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 ounces 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 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 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.

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

For more information, please contact:
Jerry Huang
CFO | Investor Relations
(604) 664-7707 or inquiries@impactsilver.com
(778) 887 6489 Direct

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 statements include, but are not limited to, statements with respect to the expected use of proceeds of the Private Placement.

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, criminal activity, relationships with vendors and strategic partners, governmental regulation and supervision, 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.

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.

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