IMPACT Silver Announces First Quarter 2014 Financial and Production Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 27, 2014) - IMPACT Silver Corp. ("IMPACT" or the "Company") (TSX VENTURE:IPT) announced today its financial results for the three months ended March 31, 2014. The information in this news release should be read in conjunction with the Company's unaudited condensed consolidated interim financial statements and Management's Discussion and Analysis, available on the Company website at www.impactsilver.com and on SEDAR at www.sedar.com. All amounts are stated in Canadian dollars unless otherwise specified.

Overview for the Quarter Ended March 31, 2014

Financial Overview

• Revenues for the first quarter of 2014 were $3.0 million, a 30% decrease from $4.2 million in the first quarter of 2013, resulting primarily from a decline in the silver price.
• Net loss of $1.3 million for the quarter, of which non-cash items included $0.7 million in depreciation and amortization and $0.1 million in share based payments (stock option grants).
• Mine operating loss before amortization and depreciation of $0.1 million compared to $1.5 million earnings in the prior year. This was a direct reflection of the downturn in silver prices.
• Capital expenditures during the quarter included mineral property expenditures of $1.0 million which brought cash down to $2.5 million. The Company continues to be free of long term debt.

Production Overview

• Silver production decreased 10% to 148,696 ounces for the first quarter of 2014, down from 165,651 ounces in the same period of 2013.
• Average mill feed grade for silver in the first quarter of 2014 decreased to 137 grams per tonne (g/t) from 146 g/t in the first quarter of 2013.
• Total tonnes milled during the first quarter of 2013 decreased to 39,775 from 42,009 in the first quarter of 2013 but increased from the fourth quarter 2013 of 36,655 tonnes.
• The shutdown of the Capire open pit was completed during the quarter. Work commenced on modification of the Capire plant which is being planned to process higher value gold and copper mineralization from the Carlos Pacheco/San Juan area later in the year.
• The Cuchara-Oscar mine was put into production in February 2013. During 2013, the mine contributed 23% of total mill feed. For the first quarter of 2014 it provided 48%.

As noted, the Company increased tonnes produced in the current quarter to 39,775 over the previous two quarters of 36,655 and 38,520 for Q4 2013 and Q3 2013, respectively. This increase has been a result of additional feed from the Cuchara-Oscar mine as it becomes the Company's principal producer, as well as strong contributions from the San Ramon and Noche Buena mines. Grades were lower in the quarter at 137 g/t compared with 146 g/t for the same period in 2013. With production materials being drawn from several mines with different feed grades, mine production can vary from quarter to quarter. However, with the Cuchara-Oscar Mine developing into higher grade mineral, the Company expects an increase in grades going forward in 2014.