IMPACT Silver Announces Second Quarter 2015 Financial and Production Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 24, 2015) - IMPACT Silver Corp. ("IMPACT" or the "Company") (TSX VENTURE:IPT) announced today its financial results for the three and six months ended June 30, 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 mill feed on both the exploration and production fronts is proving effective. The Cuchara-Oscar Mine is now providing 48% and the San Ramon Deeps Mine, discovered and opened in 2014, is contributing 40% of the total mill feed to the Guadalupe Production Centre, which is now averaging for the six months 185 grams per tonne ("g/t") silver. The Company's objective continues to be to increase the overall silver head grade in the Zacualpan District in 2015 while controlling operating and exploration costs at the site.

Financial Overview

• Revenues for the second quarter were $2.7 million compared to $2.6 million in 2014. The 4% increase was due to greater production tonnage and significantly higher grade mineral being processed, but was offset by lower silver prices.
  
  
• Net loss was $1.0 million for the quarter, of which non-cash items included $0.5 million in amortization and depletion, compared to a $1.0 million net loss in the same quarter last year, of which non-cash items included $0.7 million in amortization and depletion.
  
  
• Mine operating loss before amortization and depletion¹ was $0.2 million for the Guadalupe mill for the current quarter compared to $0.1 million in the same quarter last year due to lower silver prices despite mining more tonnes of higher grade.
  
  
• Capital expenditures during the quarter included mineral property expenditures of $0.4 million, compared to $0.7 million in the second quarter of 2014. At June 30, 2015, cash was $0.7 million and net working capital was $2.4 million.

¹ Mine operating loss before amortization and depletion is a non-IFRS measure which the Company believes provides a useful indicator of how the Company's operations are performing.