IMPACT Silver Corp.

IMPACT Silver Corp. is a junior silver producer headquartered in Vancouver, Canada, operating primarily in Mexico. The company's portfolio consists of 3 projects, comprising 2 operating mines and 1 suspended project, in addition to several early-stage exploration prospects. Key assets include Plomosas and Royal Mines Of Zacualpan. The company operates as an intermediate miner with integrated capabilities spanning production, growth, and exploration. Its business model leverages nearly two decades of operational experience, focusing on controlling the majority of extensive mineral districts. A key competitive advantage is the use of its own diamond drill fleet, which facilitates cost-effective and flexible exploration programs that directly support and expand mining operations. The organization maintains a disciplined approach to cost control and production efficiency, actively assessing new technologies and process improvements, such as ore sorting systems, to enhance operating margins. The enterprise has transitioned from a near-pure play on a single commodity to a more diversified producer, which has broadened its revenue base and reduced its reliance on a single market. This diversification is a core element of its current identity, positioning it to capitalize on favorable market dynamics across multiple key industrial and green-energy metals. The operational strategy is supported by a strong balance sheet with no long-term debt, enabling sustained investment in both production and exploration activities.

Strategic priorities are centered on expanding production and sustaining aggressive exploration to organically grow the business. The long-term vision involves establishing multiple processing centers, each supported by a network of mining operations. A key operational strategy is to optimize the production mix by prioritizing higher-grade mineral systems and implementing infrastructure upgrades to enhance recovery rates. The enterprise is also evaluating the potential restart of a previously suspended open-pit operation, contingent on studies aimed at improving operating margins through reduced processing costs. Capital allocation is directed toward accelerating exploration and development across its production centers, supported by recent financing activities. A significant shift in accounting policy, now expensing most exploration costs as incurred, reflects a strategic focus on near-term development and operational expansion rather than capitalizing early-stage reconnaissance work. This approach aligns financial reporting with the company's evolution into a more mature production-focused entity, emphasizing prudent and transparent investment in growth.

Executive leadership is guided by a philosophy of leveraging deep internal technical expertise for growth, reflected in a track record of discovering and developing multiple mining operations. The board of directors was recently strengthened with the appointment of Janet Meiklejohn, who brings over 25 years of experience in corporate finance, institutional equity sales, and CFO roles for high-growth public companies. This appointment enhances the board's financial and strategic oversight capabilities. Governance is structured through a Board of Directors that includes an Audit Committee responsible for overseeing financial reporting and internal controls. This committee meets periodically with management and annually with independent auditors to ensure compliance and transparency. The management team's decision-making for production is largely based on internal, non-public data and reports generated by the company's own geologists and engineers, underscoring a culture of self-reliance and technical discipline. The President and Chief Executive Officer, Frederick W. Davidson, provides overall leadership for the organization.

The sustainability strategy includes specific initiatives to minimize environmental impact and enhance community relations. The company utilizes modular diamond drills that require minimal surface disturbance, and all drill sites are reclaimed post-use. A significant environmental program involves planting over 15,000 trees and 2,900 agave plants, with plans for thousands more, to reduce atmospheric CO2 and create economic opportunities for local farmers. Water management practices ensure that 100% of mine water is either recycled or lost to evaporation, and tailings dams are engineered to stringent standards. A key decarbonization effort is a commitment to convert over 85% of one operation's electricity consumption to battery and solar power. Social initiatives focus on employing local workers and collaborating with communities to build and upgrade infrastructure, including roads, a school, and a health clinic. The organization also supports local education by providing co-op work experience for geology and engineering students, creating a pipeline for future employment.

In April 2023, the company completed a significant acquisition, purchasing 100% of the outstanding shares of Minera Latin American Zinc S.A.P.I. de C.V. from Yari Minerals Ltd. of Australia. This transaction expanded the company's production profile from one to two distinct operating centers. The consideration for the acquisition included a combination of cash and company shares, along with a 12% net profit interest royalty payable to the vendor. This move represents a key structural change, adding significant metal diversification and new exploration potential. Subsequent to the acquisition, in December 2024, the company successfully resolved outstanding disputes and claims related to the transaction, resulting in a favorable settlement. Minera Latin American Zinc S.A.P.I. de C.V. now operates as a subsidiary, with its integration progressing through extensive upgrades to its facilities and infrastructure. The company's shares are publicly traded as a Tier 1 Issuer on the TSX Venture Exchange, on the OTCQB in the U.S., and on the Frankfurt Stock Exchange.