IMPACT Silver Announces Third Quarter 2014 Financial and Production Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 25, 2014) - IMPACT Silver Corp. (TSX VENTURE:IPT) ("IMPACT" or the "Company") announced today its financial results for the nine months ended September 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 third quarter was very positive compared to Q2. We generated higher production ounces and overall grades, which combined with stringent cost controls, enabled us to achieve significantly improved operating results despite the 14% drop in silver prices in 2014. Our near-term strategy in this low pricing environment is to continue to focus on higher grade zones of silver and gold close to active mining operations such as Cuchara-Oscar and San Ramon to ensure IMPACT continues to generate solid cash flow as the market stabilizes. While we remain focused on efficient operations, if the price for silver remains at current levels the Company will be looking at opportunities to improve its balance sheet and to fund future development through possible financing and/or acquisition or merger.

Overview for the Quarter Ended Sept 30, 2014

Financial Overview

• Revenues for the third quarter were $3.4 million, an approximately 32% increase from $2.6 million in the second quarter, resulting primarily from an increase in production and grade.
  
• Net loss of $0.6 million for the quarter, of which non-cash items included $0.6 million in depreciation and amortization and $0.02 million in share based payments (stock option grants).
  
• Mine operating earnings before amortization and depreciation of $0.5 million compared to $0.4 million in earnings in Q3 2013.
  
• Capital expenditures during the quarter included mineral property expenditures of $0.5 million which reduced cash to $1.0 million. The Company continues to be free of long term debt.
  
• Net working capital decreased to $4.1 million on Sept 30, 2014, compared to $6.9 million on December 31, 2013.

Production Overview

• Silver production increased to 210,513 ounces for the third quarter of 2014, up 19% from 177,366 ounces in the same period of 2013, and up 38% from the second quarter of 2014.