IMPACT Silver Corp. (TSX-V: IPT) (OTCQB: ISVLF) (FSE: IKL) is pleased to announce the closing of its previously announced “bought deal” private placement for gross proceeds of C$16,000,000.56, which includes the exercise in full of the Underwriters’ (as defined herein) over-allotment option. Pursuant to the Offering, the Company sold 44,444,446 units of the Company at a price of C$0.36 per Unit. Red Cloud Securities Inc. and Research Capital Corporation acted as co-lead underwriters and joint bookrunners under the Offering.

Each Unit consists of one common share of the Company and one common share purchase warrant. Each Warrant entitles the holder to purchase one common share of the Company at a price of C$0.45 at any time on or before September 17, 2027.

The Company intends to use the net proceeds of the Offering for the following:

• advance underground development and infrastructure at the high-grade Guadalupe mine and increasing processing plant throughput and production flexibility at the Company’s 100%-owned Guadalupe Production Centre (Royal Mines of Zacualpan) in the states of Mexico and Guerrero, Mexico;
• expand mining operations and processing capacity and accelerate resource definition drilling with the objective of extending the mine life at the Company’s 100%-owned Plomosas zinc-silver-lead mine and production centre in the state of Chihuahua, Mexico; and
• general working capital and corporate purposes.

The Amended Offering Document (as defined herein) contains additional details regarding the use of the net proceeds of the Offering.

In accordance with National Instrument 45-106 – Prospectus Exemptions, the Units were issued to Canadian purchasers pursuant to the listed issuer financing exemption under Part 5A of NI 45-106, as amended by Coordinated Blanket Order 45-935 – Exemptions from Certain Conditions of the Listed Issuer Financing Exemption. The Unit Shares and the Warrant Shares underlying the Units sold to purchasers resident in Canada are immediately freely tradeable in accordance with applicable Canadian securities legislation. The Units were also offered in offshore jurisdictions and in the United States on a private placement basis pursuant to one or more exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the “U.S. Securities Act“).

As consideration for their services, the Underwriters received aggregate cash fees of C$1,040,000.04 and 2,888,888 non-transferable common share purchase warrants. Each Broker Warrant is exercisable into one common share of the Company at the Offering Price at any time on or before September 17, 2027. The Broker Warrants and Broker Warrant Shares are subject to a statutory hold period in accordance with applicable Canadian securities law and may not be traded until January 18, 2026, except as permitted by applicable securities legislation and the policies of the TSX Venture Exchange.

There is an amended offering document related to the Offering that can be accessed under the Company’s profile at www.sedarplus.ca and on the Company’s website at www.impactsilver.com.

The closing of the Offering remains subject to the final approval of the TSXV.

The securities offered in the Offering have not been, and will not be, registered under the U.S. Securities Act or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

ABOUT IMPACT SILVER

IMPACT Silver Corp. 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.

George Gorzynski, PEng, a director of the Company, is a qualified person within the meaning of NI 43-101 and has approved the technical information contained in this news release.