IMPACT Silver Corp. provided an update from the recently acquired Plomosas high-grade zinc-silver mine in Chihuahua State, Mexico. The company expects the Plomosas mine to contribute to the Company's existing silver production located to the south, in Zacualpan, Mexico.

By diversifying the Company to include a meaningful zinc component against the backdrop of strong medium and long term fundamentals, management is transforming IMPACT into a diversified and growing production company with significant exploration potential. Rehabilitation Update Plant: All necessary components of the mill have arrived on site or have been refurbished with assembly currently in the final stages. Testing and modification of the plant is expected to start in late summer, with ramp up to design capacity of nearly 200 tpd expected over the coming months.

Construction is now approximately 85% complete. Tailings Pond: The Company has applied for the expansion of the current tailings pond which is expected to add at least an additional two years capacity. Meanwhile, an additional tailings pond is in the planning stages to accommodate years of future production and growth.

Underground Mine: Refurbishments to ventilation, electrical and lighting systems are ongoing as activity increases underground. Mining has begun and is expected to ramp up as the Company deploys additional equipment to the mine including scoop trams and underground trucks. Underground drilling to better define and expand resources has begun and drill permits for surface brownfield and greenfield exploration targets have been received.

Mine Planning: The exploration team has initiated its first phase of the 2023-2024 mine plan. This includes extraction of high-grade material in line with previous grades in excess of 13% Zn. Workforce & Personnel: There are currently 70 Company employees on site and another 25 contract workers.

The Company is fortunate to have inherited a strong workforce after the acquisition closed and is adding positions in specific areas centred around engineering, exploration and day-to-day operations. ESG: While generally remote, the Company engages with the nearest communities to ensure ongoing support and coordination. The State of Chihuahua provides the mine with a strong and experienced labour force from which to draw talent.

The Company is currently studying proposals to reduce its reliance on fossil fuels with plans to be an industry leader in decarbonization in the mining sector.