IMPACT Silver Reports Production Results

VANCOUVER - IMPACT Silver Corp. reported production results for the second quarter ended June 30, 2012. IMPACT currently operates four underground silver mines (Chivo, San Ramon, Noche Buena and Gallega) and is building two new mines within the 100%-owned, 623 square kilometer (241 square miles) land package in Mexico. The new mines being constructed are the high-grade, underground silver Oscar Mine (which will replace the Chivo Mine) and the open-pit, poly-metallic Capire Mine, both of which are on schedule and on budget. The commencement of production at the new mines will represent the next phase of growth for the Company with the aim to establish IMPACT as a multi-million ounce silver producer.

Production in the second quarter continued at modest but profitable levels as the transition from mining at the Chivo Mine to the new high grade Oscar Mine continues. It is anticipated that Oscar will begin production before year end and result in higher silver production from the higher grade mineralization. Recent drill results from Oscar include 1,875 grams per ton ("g/t") silver across one meter and 115 g/t silver across 23 meters, 1,007 g/t silver across six meters and 1,128 g/t silver across three meters.

Simultaneous construction of the new Capire Mine continues with first concentrate shipments anticipated this winter. Capire represents a new production centre in the south portion of the property. Initial production will be from a 200 tpd pilot plant which will be used to optimize the metallurgy and mining methods, with future plans to construct a much larger plant.

IMPACT reported additional drill results from the Carlos Pacheco Gold-Silver-Copper Project including 3.84g/t Gold and 0.54% Copper across 6.7 meters. The Carlos Pacheco Project is located within the Valle de Oro Gold Sector, 200 meters from IMPACT's producing Noche Buena Silver Mine in the Royal Mines of Zacualpan Silver District. Within the Valle de Oro gold sector, high-grade gold and copper mineralization has been observed in the deeper valleys (at depths of 300 meters or 1,000 feet) and drill holes which support the concept of gold-copper mineralization lying at depth below the silver mineralization in the Zacualpan District. Exploration drilling in this area will continue to test the potential of adding gold and copper to IMPACT's future production profile.

The company's address is 1100-543 Granville St., Vancouver, BC V6C 1X8, (604) 681-0172, fax: (604) 681-6813, email: [email protected].