IMPACT Silver Announces Temporary Suspension of Underground Mining at Plomosas

 IMPACT Silver Corp (TSXV: IPT,OTC:ISVLF) (OTCQB: ISVFL) (FSE: IKL) ("IMPACT" or the "Company") announces the temporary suspension of underground mining operations at its Plomosas Mine in Chihuahua State, Mexico following a review of recent operating performance and cost structure. The decision reflects management's disciplined approach to capital allocation and its focus on operating within defined economic thresholds. Only the underground mining operations will be temporarily suspended; the Company will continue to maintain the asset in good standing while preserving future operating flexibility. The suspension is also expected to reduce operating costs, preserve capital and improve overall capital efficiency.

During the suspension the Company will focus on refining its geological model, optimizing the mine plan and redesigning development to improve grade control, reduce unit costs and enhance predictability, with the objective of supporting a sustainable restart over the coming quarters.

The Company is also in advanced-stage discussions with third parties regarding potential operational arrangements on nearby mining projects and is in the process of completing final-stage due diligence. These opportunities are expected to provide near-term cash flow from alternative sources of mineral feed, allowing the Company to continue operating its processing plant and surface infrastructure profitably during the suspension period.

"This is a measured step to ensure we are enhancing the value of Plomosas over the long term," said Fred Davidson, CEO Of IMPACT Silver. "Our focus now is on improving the quality and consistency of the operation and putting the right plan in place for a more sustainable restart. At the same time, we are advancing opportunities to keep the mill running and generate value while this work is underway."

Over the past months, the Company completed a detailed assessment of underground operations, including production rates, grade and cost performance. The review identified that development intensity and variability in grade and tonnage impacted cost efficiency and operational consistency. Under the current mine plan, continued mining was not expected to deliver sustainable economic results without continued development capital. As a result, the Company has elected to temporarily suspend underground mining while it works toward a more efficient and sustainable operating plan.

In parallel, the Company will continue advancing exploration both underground and at surface across the approximately 6-kilometre prospective trend. This work is expected to better define higher-quality mineralization and test new exploration targets to support a more robust and better-defined restart. With over $35 million of cash on hand and continued positive cash flow from its Zacualpan operations, the Company is well positioned for this transition.

ABOUT IMPACT SILVER

IMPACT Silver Corp. (TSXV: IPT,OTC:ISVLF) is a successful producer-explorer with two projects in Mexico.

• Royal Mines of Zacualpan Silver-Gold Mine: IMPACT owns 100% of over 200 km2 of highly prospective ground at Zacualpan 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 where which is being reviewed for a potential restart of operations. Over the past 20 years, IMPACT has developed multiple exploration zones into commercial production and has produced over 13.9 million ounces of silver, generating revenue of more than $322 million, with no long-term debt.

• Plomosas Zinc Project: Plomosas is a high-grade zinc project in northern Mexico with exploration upside potential. The Company is temporarily suspending mining operations 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.

George Gorzynski, P.Eng., VP Exploration and a Director of the Company, is a Qualified Person within the meaning of National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and has approved the technical information contained in this news release.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking and Cautionary Statements

This news release contains certain "forward-looking" statements and information relating to IMPACT. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. This news release contains forward-looking information concerning, among other things, the Company's plans to maintain the Plomosas asset in good standing; the expected timing and benefits of the temporary suspension of underground mining operations at the Plomosas Mine; plans to advance underground and surface exploration and the expected outcomes of such plans; and the status and potential outcomes of discussions with third parties regarding potential operational arrangements on nearby mining projects.

Such forward-looking information involves known and unknown risks and assumptions. Factors that could cause actual results to differ materially from such forward-looking information include, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, fluctuations metal prices, local, national and international political and economic factors, competitive factors, general economic conditions, relationships with vendors, strategic partners and other third parties, governmental regulation and supervision, criminal activity, seasonality, technological change, industry practices, one-time events and other risks and uncertainties involved in the mineral exploration and development industry. Forward-looking information is this news release is based on the beliefs and assumptions of IMPACT management considered reasonable as of the date hereof, including but not limited to the assumption that the temporary suspension and continued exploration work will produce the expected results; that exploration and other business activities will not be adversely disrupted or impeded by regulatory, political, community, economic, environmental and/or health and safety risks; and general business and economic conditions will not change in a materially adverse manner. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. IMPACT does not assume the obligation to update any forward-looking statement except as required by law.

The Company's decision to place a mine into production, expand a mine, make other production related decisions or otherwise carry out mining and processing operations, is largely based on internal non-public Company data and reports based on exploration, development and mining work by the Company's geologists and engineers. The results of this work are evident in the discovery and building of multiple mines for the Company at Zacualpan and in the track record of mineral production and financial returns of the Company since 2006. Under NI 43-101 the Company is required to disclose that it has not based its production decisions on NI 43-101 compliant mineral resource or reserve estimates, preliminary economic assessments or feasibility studies, and historically such projects have increased uncertainty and risk of failure.

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