IMPACT Developing Two New Silver Mines

VANCOUVER - IMPACT Silver Corp. reported that it has been simultaneously developing two new silver mines both of which began initial production in the first quarter of 2013.

The Capire open-pit mine and 200 tonne-per-day pilot plant is the Company's second operating production center, with plant expansion plans to drive future growth. Initial material being fed to the Capire Plant is an average of 149 grams per tonne silver, with lower grade material being stockpiled for future processing.

The new underground Cuchara-Oscar Mine, which commenced initial production in February 2013, is projected to provide higher grade silver feed and increase the overall silver grades entering the existing 500 tpd Guadalupe Production Centre. Frederick Davidson, President and CEO, stated, "2012 was a significant year for the Company as we moved two new mines toward production. Despite the challenge of declining silver prices and grades as production shifted from the Chivo Mine to the new Cuchara-Oscar Mine, we anticipate that our two new mines will form the basis of the next level of growth in IMPACT's silver production."

In addition to simultaneously constructing two mines, 2012 proved to be a very successful year for IMPACT's mineral exploration programs. "IMPACT will continue to ambitiously invest in the exploration and development of our 623 square kilometer land package in Mexico, as we see substantial exploration upside evident in the cataloguing of over 3,000 old mine workings on the property to date," stated George Gorzynski, Vice President, Exploration. IMPACT has begun a 30,000-meter surface and underground drill program for 2013, with a minimum of 10,000 meters designated to expand the Capire deposit and to test its nearby satellite silver prospects. Management intends to increase production steadily by advancing mines from discovery into production by using internally generated cash flow and developing additional new production centres within the Zacualpan and Capire districts.