IMPACT Silver Corp. (TSX-V: IPT) (OTCQB: ISVLF) (FSE: IKL) announces its financial and operating results for the second quarter and six-month period ended June 30, 2026. The Company is pleased to report Q2 2026 revenue of $22.0 million, representing a 124% increase over $9.8 million in Q2 2025, driven by higher realized silver prices and increased grades and production at the Zacualpan silver-focused operation. For the first six months of 2026, consolidated revenue grew to $53.1 million up from $20.5 million in the prior-year period. Q2 2026 gross profit reached $8.7 million compared to $1.0 million in Q2 2025, bringing six-month gross profit to $29.1 million compared to $3.2 million a year earlier.

Net income for Q2 2026 improved to $2.8 million, or $0.01 per share, compared to a net loss of $2.0 million, or $(0.01) per share in Q2 2025. For the six-month period ending June 30, 2026, net income reached $14.1 million, or $0.04 per share, compared to a net loss of $2.1 million, or $(0.01) per share, in 2025.

At quarter-end, the Company had $52.2 million in cash, $52.2 million in working capital, and no long-term debt. During the quarter, 4.0 million share purchase warrants were exercised for proceeds of $1.4 million.

Fred Davidson, President & CEO of IMPACT, stated, “Our second quarter results reflect the benefit of higher silver prices combined with improved grades from the Kena vein at Zacualpan, which together drove a substantial increase in revenue and a second consecutive quarter of significant net income. At Plomosas, we took decisive action in the previous quarter to temporarily suspend underground mining while we reassess the operation’s cost structure and evaluate options for its longer-term future, including the processing of third-party feed through our plant. With $52.2 million in cash, no long-term debt, and strong cash flow from Zacualpan, we are well positioned to continue optimizing our flagship operation, advance exploration at both Zacualpan and Plomosas, and evaluate the potential rehabilitation of the Capire mill, all while we look for opportunities to further build shareholder value.”

Operations Review

Zacualpan Silver-Gold-Lead Operation

Zacualpan continued to benefit from ongoing mine and mill improvements, with Q2 2026 production at the Zacualpan-Guadalupe mill increasing 8% to 36,908 tonnes from 34,173 tonnes in Q2 2025. More importantly, silver equivalent production¹ from the Guadalupe Complex increased 39% to 221,385 ounces, compared with 159,298 ounces a year earlier.

The increase was driven in part by a significant improvement in mill feed grades, with average silver head grades rising 31% to 207 g/t from 158 g/t in Q2 2025. Silver now represents approximately 97% of the production value at Zacualpan, highlighting the strong leverage the operation provides to silver prices.

Zacualpan delivered a strong quarter, with revenue more than doubling to $18.5 million in Q2 2026 from $7.4 million in Q2 2025. Gross profit increased more than five-fold to $10.8 million, compared with $2.0 million a year earlier.

Cost of sales at Zacualpan was $7.8 million in Q2 2026, compared with $5.3 million in Q2 2025. Operating expenses increased to $7.4 million from $4.9 million, reflecting inflationary and foreign exchange pressures, additional salary payments to union employees and increased underground development. This resulted in a 9% increase in operating expenses per silver equivalent ounce produced (refer to non-IFRS measures and ratios) to $33.34, compared with $30.65 in Q2 2025.

Exploration at Zacualpan continued to deliver high-grade results during the quarter, with drilling extending the Carlos Pacheco Vein at the Noche Buena Mine. On April 21, 2026, IMPACT reported an intersection of 114.5 g/t gold, 1,295 g/t silver and 1.10% copper over 0.61 metres within a broader interval of 9.79 g/t gold, 212 g/t silver and 0.29% copper over 9.49 metres. Follow-up drilling announced on June 15, 2026 returned 1,333 g/t silver over 5.72 metres, further extending the mineralized Carlos Pacheco Vein system to the north.

Plomosas Zinc-Lead-Silver Operation

Following the March 20, 2026 announcement of a temporary suspension of underground mining at Plomosas, the underground workforce was reduced in stages during Q2, while plant and administrative personnel were largely retained to maintain permits, complete an orderly wind-down and support ongoing exploration. Plomosas generated $3.4 million of revenue in Q2 2026, compared with $2.4 million in Q2 2025, from stockpiled mineral, third-party gold-bearing mineral processed under an industrial test agreement, and lead oxide recovered from the tailings pond.

Operating expenses increased to $5.2 million from $3.3 million, including $1.8 million for third-party mineral processed and sold during the quarter, as well as severance and other closure-related costs. As a result, Plomosas recorded a gross loss of $2.0 million, compared with a loss of $1.0 million in Q2 2025.

Exploration continued, with $0.7 million invested in approximately 2,986 metres of surface drilling and 1,907 metres of underground drilling. The program is testing a revised structural interpretation that links high-grade mineralization to a reactivated fault corridor, while advancing targets including Mina Juárez, Alfoncitos, Dipolo and La Chona. The Company also continued discussions with a nearby operator regarding processing third-party mineral through the Plomosas plant, supporting potential options for a future restart.

Outlook

Elevated commodity prices, particularly silver, provide IMPACT with significant flexibility to enhance shareholder value. With $52.2 million in cash and no long-term debt, the Company is well positioned to continue investing in exploration and development at its flagship Zacualpan Silver-Gold Operation, where work on higher-grade zones including the Kena, Carlos Pacheco and Noche Buena veins is being carried out to support further improvements in mill head grades and recoveries, production and margins.

At Capire, IMPACT is reassessing the potential restart of silver production and rehabilitation of the mill, including the economics of the existing inferred resource and opportunities to process higher-grade material from nearby veins. At Plomosas, the Company continues exploration along the prospective 6-kilometre structure and is pursuing offtake and third-party processing opportunities using existing plant infrastructure.

With a strong balance sheet, disciplined cost control and continued investment in exploration, particularly at Zacualpan, IMPACT believes it is well positioned to capitalize on current high metal prices while continuing to evaluate new opportunities across Mexico.

The information in this news release should be read in conjunction with the Company’s Q2/2026 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.sedarplus.ca. All amounts are stated in Canadian dollars unless otherwise specified.

ABOUT IMPACT SILVER

• Royal Mines of Zacualpan Silver-Gold-Lead-Zinc Mine: IMPACT owns 100% of over 200 km² of highly prospective ground at Zacualpan in central Mexico where four producing underground silver-gold 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 in 1,786,000 tonnes grading 79g/t Ag, 1.22% Zn and 0.54% Pb (see IMPACT news release dated January 18, 2016, for details and QP statement). Company engineers are reviewing Capire for a potential restart of operations. Over the past 20 years, IMPACT has developed multiple exploration zones into commercial production and has produced approximately 14 million ounces of silver, generating revenue of more than $370 million, with no long-term debt.
• Plomosas Zinc-Lead-Silver Project: Plomosas is a high-grade zinc project in northern Mexico with exploration upside potential. In March 2026, the Company temporarily suspended mining operations at Plomosas while it works toward a more efficient and sustainable operating plan. Exploration potential at Plomosas lies along a long 6 km 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., Director and Vice President, 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.