IMPACT Silver Upgrades Capire for Gold-Dominant Mineralization

IMPACT Silver Corp., a successful producer-explorer in Mexico, has announced significant growth initiatives at its Capire mill, located 16 kilometres southwest of its current Guadalupe complex operations at Zacualpan. The company aims to increase its overall production capacity to almost 700 tpd (tonnes per day), including the legacy Zacualpan Guadalupe mill (500 tpd) that has been operational for over 20 years.

IMPACT has initiated a program to upgrade the Capire mill to treat underground feed from the Noche Buena Complex, which consists of mineral from the Carlos Pacheo, San Juan, and San Francisco veins. The recent discovery of the gold-dominant Carlos Pacheo vein is a key driver for this opportunity. The upgraded Capire circuit would recover gold into precious-metal-rich separate concentrates of copper, lead, and zinc, making it a more suitable treatment route for this mineralization compared to the Guadalupe mill. Metallurgical work supports this approach, with further testing and engineering focused on enhancing recoveries under operating conditions.

The operation would complement the existing Zacualpan milling activities. Management plans to maintain Zacualpan's current profitability while directing suitable gold and copper-bearing material to Capire for treatment through a dedicated circuit. When operational, Capire would provide an incremental source of revenue and enhance overall Company viability.

IMPACT's existing Zacualpan operations remain the central operating priority. The Capire mill is being evaluated as a complementary satellite development opportunity, with mine planning and feed allocation intended to support both operations.

Following the suspension of underground mining announced in March 2026, IMPACT evaluated third-party feed opportunities to support continued operation of the Plomosas processing plant. At September 30, 2026, there were no third-party feed arrangements in place that could economically support ongoing production. Consequently, the Company has decided to transition the Plomosas plant to care and maintenance, with activities directed toward maintaining permits and environmental authorizations, safeguarding the tailings facility, and preserving the processing infrastructure. The Company will continue its exploration program and discussions with potential third-party mill feed suppliers.

As a result, IMPACT has determined that a non-cash impairment charge of approximately $4.3 million should be recorded in Q3 2026, reducing the carrying value of the Plomosas property, plant, and equipment accordingly. This charge will not impact the Company's cash balance. The final impairment amount will be confirmed in the Q3 2026 financial statements.

Qualified Person and NI 43-101 Disclosure George Gorzynski, P.Eng., is a "Qualified Person" within the meaning of NI 43-101 and has approved the technical information contained in this news release.

IMPACT Silver Corp. (TSXV: IPT) is a successful producer-explorer in Mexico. The company owns 100% of over 200 km² of highly prospective ground at Zacualpan in central Mexico, where four producing underground silver mines and one open-pit mine feed the central 500 tpd Guadalupe processing plant. Over the past 20 years, IMPACT has developed multiple exploration zones into commercial production and has produced approximately 14 million ounces of silver, generating revenue of more than $322 million, with no long-term debt.

To the south, the Capire Project includes a 200 tpd processing pilot plant adjacent to an open-pit silver mine, which is being reviewed for a potential restart of operations. An upgrade to the Capire mill is currently underway to process mill feed from the newly developing Noche Buena mine complex. At this time, this will take priority over the advancement of the adjacent Capire open-pit. The upgrade of the Capire mill will increase total milling capacity and the capability of handling more diverse mill feed in the Zacualpan district.

The Plomosas Zinc Project is a high-grade zinc project in northern Mexico with exploration upside potential. The Company has put the Plomosas plant and mine on care and maintenance while continuing its exploration program and discussions with potential third-party mill feed suppliers. The extensive exploration program on the Plomosas concessions aims to identify and delineate additional mineralization that could provide future feed for the plant. The objective is to establish sufficient tonnage, grade, and continuity to support evaluation of a sustainable restart of mining and processing operations.

As a result, the Company has determined that a non-cash impairment charge of approximately $4.3 million should be recorded in Q3 2026, reducing the carrying value of the Plomosas property, plant, and equipment accordingly. This charge will not impact the Company's cash balance. The final impairment amount will be confirmed in the Q3 2026 financial statements.

IMPACT Silver Corp. (TSXV: IPT) is a successful producer-explorer in Mexico.