Mr. Frederick Davidson reports

IMPACT SILVER ANNOUNCES Q3 2025 RESULTS WITH REVENUE UP 24%

Impact Silver Corp. has released its financial and operating results for the third quarter (Q3) and nine months ended Sept. 30, 2025. The company reports revenue of $10.7-million in Q3 2025, representing a 24-per-cent increase over revenue of $8.6-million in Q3 2024. The improvement in revenue is due to substantially higher silver prices during the period. Before amortization and depletion, mine operating income (1) on a YTD (year-to-date) basis was $5.6-million, compared with a loss of $800,000 in 2024.

The net loss in Q3 2025 improved to $600,000, compared with a net loss of $3.1-million in Q3 2024.

Highlights:

• Zacualpan (silver-lead-zinc) revenue was $8.7-million in Q3 2025, up from $6.1-million in Q3 2024, with increased production of 8 per cent on a year-over-year basis. Revenue on a YTD basis was $23.3-million, compared with $16.3-million in the first nine months of 2024.
• Plomosas revenue on a YTD basis in 2025 increased to $7.9-million, compared with $5.4-million in the same period of 2024.
• At Plomosas in the newly developed Juarez zone, the company intersected 18.03 per cent zinc equivalent (ZnEq) over 2.6 metres (m), including 23.70 per cent ZnEq over 0.73 m, and in a separate drill hole 15.14 per cent zinc equivalent over 3.07 m with a high-grade interval of 24.69 per cent zinc equivalent over 1.47 m.
• On Sept. 17, 2025, the company closed a $16.0-million bought deal LIFE (listed issuer financing exemption) private placement at 36 cents per unit. Each unit consists of one common share and one warrant, which entitles the holder to purchase one common share at a price of 45 cents for two years.
• At Sept. 30, 2025, the company had cash of $25.2-million and working capital of $27.3-million, up from $7.1-million in cash and $9.0-million in working capital on Dec. 31, 2024. In Q3 2025, the company spent $1.3-million on exploration and, on a YTD basis, the company spent $3.2-million. This was split between Zacualpan and Plomosas.

"Our third quarter results reflect significant progress in enhancing efficiencies at the Zacualpan silver-lead-zinc complex, positioning the company to capitalize on near-record silver prices. Continued mine optimization and exploration have strengthened our foundation for long-term shareholder value, while production at Plomosas zinc-lead-silver asset improved substantially year over year, it continues to require additional rehabilitation and development to achieve production on a sustainable basis. Management remains focused on improving grades, advancing operational efficiencies and maximizing value amid record precious metal prices," said Fred Davidson, president and chief executive officer.

Zacualpan silver district

During Q3 2025, the Zacualpan-based Guadalupe mill processed 35,437 tonnes of mill feed, up from 32,901 tonnes in Q3 2024. Production was up during the quarter despite one ball mill not operating for approximately 84 days due to a major repair. Seasonal weather continued to cause power outages from the Mexican grid and delayed concentrate shipments to the smelter.

Despite the above, silver production from the Guadalupe complex in Q3 2025 was 150,394 ounces (oz), a 5-per-cent increase from 142,945 oz in Q3 2024. However, silver sales decreased by 1 per cent over the same period in 2024, owing mostly to previously mentioned weather issues. The average mill head grade for silver in Q3 2025 was down by 2 per cent to 157 grams per tonne (g/t) from 160 g/t in Q3 2024.

Revenue per tonne sold in Q3 2025 increased by 40 per cent to $253.33 from $180.90 in Q3 2024 on higher commodity prices, while direct costs per tonne increased 23 per cent to $180.69, allowing for margin expansion at the operation.

Plomosas high-grade zinc mine

In the third quarter of 2025, Plomosas produced 9,957 tonnes at an average grade of 8.3 per cent zinc (Zn), 4.5 per cent lead (Pb) and 30.3 g/t silver (Ag), bringing the YTD mill throughput to 37,704 tonnes, representing a 48-per-cent increase over YTD 2024 production of 25,536 tonnes. On a YTD basis, zinc, lead and silver sales increased by 34 per cent, 62 per cent and 16 per cent, respectively.

Regular pauses in production due to mine optimization and development activities have provided management an opportunity to assess and re-evaluate processes. Continued improvements are under way, including mine development, expansion of the tailings pond, and the acquisition and rehabilitation of mobile equipment. In parallel, the mine successfully commissioned a new lead oxide recovery circuit following extensive metallurgical testing. This new system has been performing well, recovering up to 60 per cent of lead oxide material, which occurs locally in the mine that was previously unrecoverable by the prior operator.

Outlook

Following a strong quarter of efficient mine development and production at the Zacualpan silver-lead-zinc complex, along with a substantial year-to-date increase in production at Plomosas, the company believes that it is well positioned to capitalize on record precious metal prices and its significant continuing investment in exploration. As the company heads into 2026, management is optimistic that the company can target improved grade and rising production levels while maintaining strict cost discipline. Supported by a robust balance sheet, the company is actively evaluating shareholder value opportunities that leverage its extensive asset base and the significant, largely undeveloped exploration potential across both of its operations.

A recorded conference call reviewing the financial and production results of the quarter ended Sept. 30, 2025, will be available on the company website on Nov. 27, 2025.

The information in this news release should be read in conjunction with the company's Q3 2025 unaudited condensed consolidated interim financial statements and management's discussion and analysis, available on the company website and on SEDAR+.

About Impact Silver Corp.

Impact Silver is a successful intermediate mineral producer and explorer with two mining projects in Mexico.

Royal mines of Zacualpan silver-gold district

Impact owns 100 per cent of the 211-square-kilometre Zacualpan project in central Mexico, where four producing underground silver mines and one open-pit mine feed the central 500-tonne-per-day (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 a National Instrument 43-101 inferred mineral resource of over 4.5 million ounces silver, 48 million pounds (lb) zinc and 21 million lb lead (see Impact news release dated Jan. 18, 2016, for details and QP (qualified person) 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 13.7 million ounces of silver, generating revenue of more than $307-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. In late 2023, the company restarted mining operations and is ramping up production. Exploration potential at Plomosas is exceptional along the six-kilometre-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, PEng, vice-president, exploration, and 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.

(1) Mine operating earnings before amortization and depletion is a non-IFRS (international financial reporting standards) measure, which the company believes provides meaningful information about the company's financial performance.

We seek Safe Harbor.