IMPACT Silver Announces Second Quarter 2014 Financial and Production Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 26, 2014) - IMPACT Silver Corp. (TSX VENTURE:IPT) ("IMPACT" or the "Company") announced today its financial results for the three months ended June 30, 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.

Fred Davidson, President and CEO, stated, "Our production performance during the second quarter was lower compared to Q1, mainly due to production feed drawn from several mines with different feed grades. We continue our focus to shift silver production to mines with higher grades and to control costs. We will continue to employ a disciplined and prudent approach to our mining and exploration work to position IMPACT to benefit and grow as the market continues to recover."

Overview for the Quarter Ended June 30, 2014

Financial Overview

• Revenues for the second quarter of 2014 were $2.6 million, an approximately 32% decrease from $3.8 million in the second quarter of 2013, resulting primarily from a decline in the silver grade
  and price.
• Net loss of $1.0 million for the quarter, an improvement from net loss of $1.3 million in Q1, of which non-cash items included $0.7 million in depreciation and amortization and $0.05 million in share based payments (stock option grants).
• Mine operating loss before amortization and depreciation of $0.4 million compared to $0.6 million in earnings in the comparative period.
• A sale of 3,600,000 Defiance shares at $0.09 per share resulted in net proceeds of $321,550 and a gain of $213,550.
• Capital expenditures during the quarter included mineral property expenditures of $0.7 million which reduced cash to $1.7 million. The Company continues to be free of long term debt.
• Net working capital decreased to $4.3 million on June 30, 2014, compared to $6.9 million on December 31, 2013.

Production Overview