IMPACT Silver Announces First Quarter 2016 Financial and Production Results - Seite 2

³ Cash flows from operations before changes in non-cash working capital is a non-IFRS measure which the Company believes provides a useful indicator of the Company's ability to generate cash flows from its mining operations.

See "NON-IFRS MEASURES" for additional information.

Production Overview

• Silver production increased to 240,414 ounces for the first quarter of 2016, up 9% from 220,961 ounces in the same period of 2015 and up 3% from 233,740 ounces in the fourth quarter of 2015.
  
  
• Total tonnes milled during the first quarter of 2016 increased 10% to 45,094 from 41,046 in the comparable quarter of 2015, raising production to 496 tonnes per day.
  
  
• Average mill feed grade for silver in the first quarter of 2016 was 185 grams per tonne (g/t) compared to 189 g/t in the first quarter of 2015.
  
  

Silver sales were 229,792 ounces in the first quarter of 2016 compared to 240,535 ounces sold in the same period in 2015. The Company's revenue stayed steady at $88.14 per tonne in the first quarter of 2016, from $88.53 in the first quarter of 2015. In 2016, IMPACT's objective is to expand, upgrade and optimize production with a focus on higher grade zones to optimize cash flows.

Exploration goals continue to focus on developing the 4,500+ compiled old mine workings in the Zacualpan and Capire districts toward potential production and build mineral inventories for mining. Currently, the team is exploring larger and higher grade targets close to current production areas at Alacran North and El Angel.

With a track record of successful exploration, rapid mine development and numerous old mine workings identified to date as exploration targets, the Company's long term vision sees potential for the establishment of multiple mills throughout the two districts, each fed by multiple mines producing silver-lead-zinc as well as gold and copper.

Subsequent to the quarter, in April 2016, the Company completed two private placements. In the first placement, a total of 6,666,666 shares were issued to an accredited investor at a price of $0.30 per share for aggregate gross proceeds of $2,000,000. In the second placement, a total of 2,000,000 shares were issued to accredited investors at a price of $0.31 per share for aggregate gross proceeds of $620,000. 1,000,000 of these shares were acquired by Energold Drilling Corp., which is considered a related party.