IMPACT Silver Corp. ("IMPACT" or the "Company") announces its financial and operating results for the year ended December 31, 2023. The Company is recognized as an intermediate miner with strength across the value chain including production, growth and exploration potential. The Company is evolving 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. In 2023, the Company acquired Mineral Latin America Zinc (“MLAZ”), a Mexican entity which owns and operates the Plomosas high grade zinc-lead-silver mine in northern Mexico; IMPACT brought limited production back online in late 2023 with the goal of reaching full design capacity in late 2024, leading to meaningful high-grade zinc production going forward.

The Company reported $20.8 million in revenue in FY 2023, an increase of 27% compared to revenues of $16.3 million in revenue in 2022, primarily due to a 178% increase in gold sales and a 22% increase in lead sales over 2022. Most of the revenue was generated from the Company’s silver producing assets at the Royal Mines of Zacualpan. The mine’s operating loss before amortization and depletion[1] in 2023 was ($0.6 million) compared to mine operating earnings of $1.2 million in 2022, and was negatively impacted due to strong inflationary cost pressures across the operation in 2023, as well as a strong Mexican Peso. This included operating costs of $2.1 million related to the rehabilitation of the Plomosas mine which impacted profitability, as those costs were required to be treated as expenses on the income statement rather than capitalized on the balance sheet. At December 31, 2023, the Company had cash of $8.3 million, working capital of $7.6 million and no debt.

Fred Davidson, President & CEO of IMPACT, stated, “In 2023, we were able to leverage our silver producing assets and add meaningful new gold production resulting in strong revenue growth on a year over year basis. We integrated the acquisition of the Plomosas mine and are in the process of bringing it back online and expect this high-grade zinc operation to meaningfully add to the Company’s financial results going forward. Notwithstanding, inflationary pressures across the operation and throughout the supply chain, continued to negatively impact profitability. Nonetheless, the Company was able to maintain a strong balance sheet with over $8 million in cash and no debt at year-end. Our dual-pronged strategy focussing on maintaining production grade from existing and new development sites while simultaneously improving efficiencies at our mill, allowed for an overall successful year in 2023 despite the challenging operating environment."

In 2023, IMPACT carried out greenfield and brownfield exploration programs at Zacualpan where the Company holds a large 211km2 package. As well, we initiated drilling activity at Plomosas where management expects to ramp up to full design capacity in late 2024. Ongoing exploration at Zacualpan is expected to result in improved feed for the nearby Guadalupe processing facility while drilling at Plomosas includes development drilling and brownfield activity to expand the resource size over time.

With nearly 13 million ounces of silver produced since 2006, generating over $261 million in revenue and investing over $82 million in CAPEX to date, we are proud of our 2023 achievements amidst a challenging cost environment and look forward to returning to profitability and production growth in 2024.


[1] Mine operating earnings before amortization and depletion is a measure that the Company believes provides additional information regarding how the Company’s operations are performing. This measure is calculated as revenues less operating expenses, excluding amortization and depletion. The Company’s method of calculating these non-IFRS measures may differ from other entities, and accordingly, may not be comparable to measures used by other entities. Investors are cautioned, however, that these measures should not be construed as an alternative to measures determined in accordance with IFRS as an indicator of the Company’s performance.

2023 FINANCIAL OVERVIEW

Revenue in 2023 was $20.8 million, a 27% increase from $16.3 million in 2022
After investing $8.5 million in exploration expenditures and mining assets during the year, the cash position remained strong at year-end at $8.3 million with working capital of $7.6 million.
Net loss in 2023 was $7.6 million (which included $2.3 million incurred by MLAZ to bring operations online, as well as deferred income tax expenses of $2.0 million), compared to $3.2 million in 2022.
The Company has no long-term debt.
2023 PRODUCTION OVERVIEW - ZACUALPAN

2023 full year silver production was 637,514 ounces (2022 – 632,862 ounces).
Silver sales of 636,655 compared to 644,843 ounces in 2022. Gold sales of 780 ounces in 2023 increased 178% compared to 281 ounces in 2022.
Average mill silver feed grade was 160 grams per tonne (g/t) for 2023 which was comparable to 2022.
Throughput at the mill was 147,444 tonnes milled in 2023, down 4% from 152,862 tonnes in 2022, for an average of 404 tonnes per day for the year.
Given the evolving cost profile and fluctuating commodity prices during the year, the goal at the Guadalupe silver processing plant at Zacualpan in 2023 was to focus on lower cost, higher grade production. Lower but steady production tonnes allowed the Company to focus on mining higher margin areas in lower cost situations. Revenue per tonne sold improved by 30% to $136.62 in 2023 from $105.39 in 2022 due in part to the substantial increase in gold production.

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