IMPACT Silver Announces First Quarter 2015 Financial and Production Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 28, 2015) - IMPACT Silver Corp. ("IMPACT" or the "Company") (TSX VENTURE:IPT) announced today its financial results for the three months ended March 31, 2015. 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 and on SEDAR. All amounts are stated in Canadian dollars unless otherwise specified.

The Company's strategy of focusing on higher grade mineral on both the exploration and production fronts is proving effective. The Cuchara-Oscar Mine is now providing 51% and the San Ramon Deeps Mine, discovered and opened in 2014, contributed 39% of the total mill feed to the Guadalupe Production Centre, which is now averaging 189 grams per tonne ("g/t") silver. The objective continues to be to increase the overall silver head grade in the Zacualpan District in 2015 to approach the historical highs in excess of 200 g/t. Silver production and grades have increased substantially from the first quarter of 2014 and the Company continues to employ a disciplined and prudent approach to mining and exploration work.

Financial Overview

• Revenue for the first quarter was $3.9 million compared to $3.0 million in 2014, a 30% increase due mainly to the higher grade mineral being processed.
  
  
• Mine operating earnings before amortization and depletion were $0.8 million for the Guadalupe mill for the current quarter compared to $0.2 million in the same quarter last year.
  
  
• Net loss was $0.3 million for the quarter, of which non-cash items included $0.5 million in amortization and depletion, compared to a $1.3 million net loss in the same quarter last year, of which non-cash items included $0.7 million in amortization and depletion.
  
  
• Capital expenditures during the quarter included mineral property expenditures of $0.7 million. At March 31, 2015, cash was $0.5 million and net working capital was $3.9 million. The Company continues to be free of long term debt.
  

Production Overview

• Silver production increased to 220,961 ounces for the first quarter of 2015, up 49% from 148,696 ounces in the same period of 2014 and up 3% from 213,928 ounces in the fourth quarter of 2014.