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EXPLORE. PRODUCE. PROFITS! JANUARY 2012 IPT TSX-V
23

Impact Silver Corporate Presentation

Jul 04, 2015

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Page 1: Impact Silver Corporate Presentation

EXPLORE. PRODUCE. PROFITS! JANUARY 2012 IPT TSX-V

Page 2: Impact Silver Corporate Presentation

DISCLAIMER

Except for historical information, this presentation may contain certain “forward-looking” statements and information

relating to IMPACT that are based on the beliefs of IMPACT management, as well as assumptions made by and

information currently available to IMPACT management. Such statements reflect the current risks, uncertainties and

assumptions related to certain factors including but not limited to, without limitations, exploration and development

risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic

factors, competitive factors, general economic conditions, relationships with vendors and strategic partners,

governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events.

Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove

incorrect, actual results and forward-looking statements may vary materially from those described herein. IMPACT

does not assume the obligation to update any forward-looking statement.

The factors that could cause actual results to differ materially include, but are not limited to, the following: general

economic conditions; changes in financial markets; the impact of exchange rates; political conditions and

developments in countries in which the Company operates; changes in the supply, demand and pricing of the metal

commodities which the Company mines or hopes to find and successfully mine; changes in regulatory requirements

impacting the Company’s operations; the ability to properly and efficiently staff the Company’s operations; the

sufficiency of current working capital and the estimated cost and availability of funding for the continued exploration

and development of the Company’s exploration properties.

This list is not exhaustive and these and other factors should be considered carefully, and readers should not place

undue reliance on the Company’s forward-looking statements. As a result of the foregoing and other factors, no

assurance can be given as to any such future results, levels of activity or achievements and neither the Company nor

any other person assumes responsibility for the accuracy and completeness of these forward-looking statements.

George Gorzynski, P.Eng., a Qualified Person under the meaning of Canadian National Instrument

43-101, is responsible for the technical information in this presentation.

2

Page 3: Impact Silver Corporate Presentation

INVESTMENT HIGHLIGHTS

EXPLORE. PRODUCE. PROFITS!

• Three producing silver mines

• Consistently profitable operations with 5+ years of production & profitability

• Strong asset base with two adjacent 100% owned districts in Mexico

• Focus on accelerating exploration & rapid mine development of high potential

near-term opportunities

• Capire Open-Pit Project scheduled for near term production

• Well-funded with a $33M cash position

• 90% of revenues is silver

• Zero debt

Page 4: Impact Silver Corporate Presentation

PROJECT LOCATION

MEXICO

• IMPACT’s 100% owned adjacent districts are located in the southern

portion of the Mexican Silver Belt

• 423 km² Royal Mines of Zacualpan District

• 200 km² Mamatla Silver District

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Page 5: Impact Silver Corporate Presentation

STRONG CORE ASSET BASE

• 100% owned 623 km²

land package

• District production

began 1527

• 1975 – 2011: Over

35 million silver

equivalent ounces

produced

• 2,500+ old mine

workings in GIS

database

5

Page 6: Impact Silver Corporate Presentation

ZACUALPAN OPERATIONS Excellent

Mining

Environment

Existing

Facilities

Proven Track

Record

• Modern power grid

• Paved highway access

• Abundant water supply

• Three mines feed a central 500 tpd processing plant: currently at 430 tpd

• Currently installing a 200 tpd mill for initial production at new Capire open-pit mine

• Acquired operations in 2006 & have been consistently profitable

• Silver production increased by 250% from 2007-2011

• Organic growth with low production cost (avg. $70 per tonne)

• Revenue per tonne sold increased 37% vs. increase in production cost of 15%

(fiscal years 2008-2010)

6

• No environmental or security issues

• Trained work force

• 3 hour drive from Mexico City

9 Months Ended

Sept 30th 2011 Dec 31st 2010 Dec 31st 2009 Dec 31st 2008

Silver Production (oz) 663,853 750,259* 823,571 645,668

Lead (t) 589 734 969 813

Zinc (t) 1,000 1,212 1,098 1,053

Revenue per production tonne sold $207.70 $123.25 $109.51 $89.89

Direct cost per tonne produced $75.52 $63.29 $60.39 $54.80

*Silver production was marginally down 9% because the Company reduced the cut-off grade of the ore mined due to higher Silver prices in 2011

Page 7: Impact Silver Corporate Presentation

MINES IN PRODUCTION

CHIVO MINE

• Principle producer

SAN RAMON MINE

• High grade epithermal

silver vein from large

stockwork zone

NOCHE BUENA MINE

• Newest addition to

production profile

OSCAR PROJECT

• Currently studying mine

production feasibility

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Page 8: Impact Silver Corporate Presentation

MINES IN PRODUCTION CHIVO MINE

• Discovered in late 2005, rapidly developed & commenced production in

November 2007

• Medium grade epithermal Silver vein with by-product Lead & Zinc

SAN RAMON MINE

• High grade epithermal Silver vein with historic grades of 5,000 g/t silver in

upper levels

• Production expanded based on discovery of 20m wide stockwork zone on

Level 5

NOCHE BUENA MINE

• Discovered in 2008 & initial production achieved in March 2010

• Expanding production with numerous high potential opportunities

GUADALUPE PROCESSING PLANT

• 500 tpd processing plant fed by the Chivo, San Ramon & Noche Buena mines

• Annual production levels of >1 million oz. silver eq.

• All current mines discovered by IMPACT exploration team

• Future expansion through exploration and development

Hauling ore from Chivo

Mine

San Ramon Mine Portal

Noche Buena Mine Portal

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Page 9: Impact Silver Corporate Presentation

GUADALUPE PROCESSING PLANT

9

• 500 tpd plant located in the Royal Mines of Zacualpan

• Ongoing upgrades to increase throughput and improve

recoveries

Page 10: Impact Silver Corporate Presentation

LONG TERM PRODUCTION STRATEGY

1. GUADALUPE MINING & PROCESSING

CENTRE

• Current main production area, possible expansion

• Exploration on potential new mine targets

2. CAPIRE MINING & PROCESSING

CENTRE (under construction)

• Pilot production scheduled for late 2012

• Potential 800- to 1,500-tpd processing plant

• Development plan for full operating mine

to target expanded production (pending drilling

program results)

3. NOCHE BUENA MINING & (future)

PROCESSING CENTRE

• First mine began production in April 2010

• Ore presently sent to Guadalupe plant

• Exploring gold and silver potential

4. SOUTHEAST ZONE

• Early stage exploration

• Many historic mine workings

10

To become a Multimillion Ounce Silver Producer with Multiple Production Centres

1

4

3

2

Page 11: Impact Silver Corporate Presentation

NEXT MINE TO COME ONLINE

CAPIRE VMS PROJECT

• Capire Project represents

new mine operations in a

new district; scheduled for

production late 2012

• Capire VMS Project in the

Mamatla District will be

IMPACT’s fourth producing

mine & first open-pit mine

• Initial annual production

target from new 200 tpd mill

is 300,000 oz silver

• Capire development plan

includes expansion of 800

to 1,500 tpd

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Page 12: Impact Silver Corporate Presentation

CAPIRE VMS PROJECT

• NI 43-101 Mineral

Resource Estimate on

open pit Capire Project

being expanded by

additional drilling

• All mining permits and

surface rights for the new

plant have been secured

• Several other VMS

targets in close proximity

to be drilled in 2012

• Additional silver vein drill

targets to the north

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Page 13: Impact Silver Corporate Presentation

NI 43-101 RESOURCE ESTIMATE

CAPIRE VMS PROJECT

• Expansive drilling program planned for 2012

• Mine construction currently underway

13

Metal Content for Capire + Aurora 1

Ag (oz) Au (oz) Cu (lbs) Pb (lbs) Zn (lbs)

Measured 3,529,969 14,146 3,389,275 18,234,678 46,140,820

Indicated 3,694,066 16,300 3,693,733 19,029,800 49,522,173

Measured & Indicated

7,224,035 30,446 7,083,007 37,264,478 95,662,993

Inferred 435,959 1,919 475,594 2,260,089 5,823,490

Summary Table Classified Mineral Resources – Measured + Indicated and Separate Inferred

Domain Classification Tonnes Ag (g/t) Au (g/t) Cu (%) Pb (%) Zn (%)

Capire Measured + Indicated 3,104,944 46.46 0.19 0.06 0.33 0.93

Aurora 1 Measured + Indicated 1,807,302 44.50 0.199 0.07 0.36 0.80

Grand Total Measured + Indicated 4,912,246 45.74 0.193 0.06 0.34 0.88

Grand Total Total Inferred 371,066 36.54 0.161 0.06 0.28 0.71

Page 14: Impact Silver Corporate Presentation

CAPIRE OPEN PIT MINE DESIGN

OPEN PIT DEVELOPMENT PLAN

• 2012: Initial annual silver production estimated at 300,000 ounces

• 2013: In-house feasibility study for expanded plant sizing

• 2014: Plans to construct an 800 to 1500 tpd processing plant

3D model of planned

Capire open pit

Areas of Phase 2 drill

program

Area of defined NI43-101 Resources

Open for expansion

Open for expansion

3D SURFACE MODEL

Open for expansion

Proposed Tailings Facility

Planned Processing

Plant Site

Page 15: Impact Silver Corporate Presentation

EXPLORATION OPPORTUNITIES

OSCAR VEIN CORRIDOR, ZACUALPAN

OSCAR - SANTA LUCIA ZONES

• Corridor of many wide & high grade

silver veins linking the past producing

Cuchara Mine & the Santa Lucia

Zone

OSCAR CORRIDOR

• Series of high grade silver veins near

Guadalupe Processing Plant

• Currently studying mine production

feasibility

SANTA LUCIA ZONE

• Drill highlights of 466 g/t silver across

3.18 meters

• Currently studying for future

underground mine development

DRILLING HIGHLIGHTS

OSCAR CORRIDOR

Drill

Hole

True

Width

(m)

Ag

(g/t)

Au

(g/t)

Pb

(%)

Zinc

(%)

Z11-44 0.30 6,730 0.20 1.5 8.0

Including 30.65 291 0.01 0.4 0.4

Z11-46 1.05 4,580 0.26 1.7 4.0

SANTA LUCIA ZONE

Z09-47 3.18 466.6 0.01 0.15 0.70

Z09-53 2.39 419.3 0.03 0.28 0.32

Z10-03 1.1 588.0 0.05 0.37 2.00

Including 1.7 394.2 0.07 1.05 1.57

Page 16: Impact Silver Corporate Presentation

EXPLORATION OPPORTUNTIES

EMERGING GOLD DISTRICT

GOLD RICH VEINS IN ZACUALPAN

• Veins indicate significant gold and

copper zones in the Zacualpan District

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DRILLING HIGHLIGHTS

CARLOS PACHECO ZONE

Drill

Hole

True

Width

(m)

Au

(g/t)

Ag

(g/t)

Cu

(%)

Zinc

(%)

Z08-68 2.9 19.6 68 0.29 0.11

Including 1.0 49.7 59 0.31 0.14

Z08-65 2.1 11.3 18 -- --

Including 1.2 18.8 24 -- --

HUATECOSCO GOLD PROJECT

Z11-20 9.48 3.97 48.7 N/A 2.62

Including 4.24 6.96 84.3 N/A 5.11

Z11-17 4.74 3.44 117.6 N/A 0.81

HUATECOSCO GOLD PROJECT

• A large gold-silver vein system,

southwest of Guadalupe Processing

Plant

• Potential new gold district

• Recent drill highlights of 6.96 g/t gold

across 4.24 meters

CARLOS PACHECO ZONE

• Significant gold-copper drill results

include 19.6 g/t gold across 2.9 meters

• Early exploration stage

Page 17: Impact Silver Corporate Presentation

MINE DEVELOPMENT PROCESS

• $7M exploration program for 2012 includes 25,000 meters of drilling

• Targets are generated by mapping and sampling of old workings

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Identify and

Map Old

Mines and

Workings

Phase 1 & 2

Drilling

Mine

Planning,

Permitting

and

Construction

Surface and

Underground

Sampling,

Detailed

Mapping

Production

More than

2,500

Mapped

Narrowed

down to

500+

Prospects

for follow

up

•Golondrinas

•Huatecosco

•Pilarica

•Cruz Blanca

•Chivo

•San Ramon

•Noche

Buena

•Capire

•Santa Lucia

•Oscar

First Drill Hole to Production: 12 – 24 Months

5 STAGE DEVELOPMENT PROCESS

(Chivo, San Ramon Extensions, Noche Buena)

Page 18: Impact Silver Corporate Presentation

OPTION AGREEMENT SIGNED

DEFIANCE SILVER CORP (TSX-V:DEF)

Production

• IMPACT optioned a 200 tpd processing

plant &10 mineral concessions in the

Zacatecas District to Defiance Silver

Corp for cash and major share position

• Zacatecas’ historical production is over

700M silver ounces

Exploration

• Nueva Granada Mine

o Old mine dumps returned 100 – 400 g/t

silver

• Cristian Mine

o Samples from surface dumps returned

310 g/t silver, 24% lead, 8% zinc

• San Pascual Mine

o Samples from surface dump returned

875 g/t silver

• Defiance recently announced a nearby,

near-term production acquisition

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Page 19: Impact Silver Corporate Presentation

CORPORATE SUMMARY

• Recent share price: $1.50

• Market capitalization: $102 million

• Shares Outstanding: 68 Million (73 Million Fully Diluted)

• Long-Term Debt: Nil

• Energold Drilling (EGD: TSX.V) owns 6.87 Million shares

• Institutions hold 30% of shares outstanding

• Listings: TSX.V:IPT / Frankfurt: IKL / ISIN: CA45257A1021

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Year Ended (‘000,000s $CDN except EPS)

9 Months Ended

Sept 30th 2011

Dec 31st

2010

Dec 31st

2009

Dec 31st

2008

Revenue $19.4 $16.7 $12.2 $8.9

Net Earnings $6.9 $3.4 $1.6 $.66

Cash Flow from Operations $9.1 $5.6 $4.4 $1.7

Cash & Cash Equivalents $33.7 $18.7 $5.3 $5.4

EPS $0.11 $0.07 $0.02 $0.01

Page 20: Impact Silver Corporate Presentation

PROVEN PROFITABILITY

20

($C

DN

)

Year

CAPITAL EXPENDITURE USE EFFICIENCY ($CDN)*

Total funds raised since start

of operations in January, 2006

Property payments, plant & equipment,

and exploration expenditures Cash Available

$28 Million $38 Million $33.7 Million

*Estimated projection based on inhouse estimates

$(5,000,000)

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

2006 2007 2008 2009 2010 2011

Revenue

Net Earnings

Operating Cash Flow

PROJECTED*

Page 21: Impact Silver Corporate Presentation

SHARE PRICE PERFORMANCE – One Year

Page 22: Impact Silver Corporate Presentation

IMPACT’S BOARD OF DIRECTORS:

PROVEN LEADERSHIP Frederick W. Davidson (CA) President, CEO & Director

Held senior management positions with Erickson Gold Mines Ltd. and TOTAL Energold Corp. Part of the

management team that took both the Erickson and Mt. Skukum Gold mines from discovery to production. Currently

President of Energold Drilling Corp. (EGD: TSX-V).

George A. Gorzynski (P.Eng) VP Exploration & Director

Director of Tirex Resources Ltd., Defiance Silver Corp., Rupert Resources Ltd. and Berkwood Resources

H. Walter Sellmer (P.Geo) Director

Held senior management positions with Amax Exploration, Canamax Resources and TOTAL Energold Corp.

Victor A. Tanaka (P.Geo) Director

Held senior positions with Teck Cominco, Asamera, Freeport McMoran, Aber Resources, Major General Resources

and Canarc. Participated in the discovery of Polaris and Sunrise Mines.

Richard J. Mazur (P. Geo, MBA) Director

Holds senior positions in Alto Ventures Ltd. and Forum Uranium Corp.

Peter Tredger (P. Eng, MBA) Director

Past Vice President of Thompson Creek Metals Company Inc. and held senior management positions at Glencairn

Gold Corp. and Wheaton River Mineral Ltd.

Jean-Pierre Boutin (MBA) Director

President and Money Manager in a private equity firm in Greenwich, Connecticut, former

Treasurer of Xerox Corporation, Emerging Markets.

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Page 23: Impact Silver Corporate Presentation

2012 OBJECTIVES

• Commence open pit production of 200 tpd at the new Capire Project in late

2012

• Ramp up production at Zacualpan’s Guadalupe Processing Plant to 500 tpd

• Assess economic viability of the Oscar Project, which is planned to feed

high grade silver ore to the 500 tpd Guadalupe Processing Plant

• Continue exploration of new silver targets and the gold-copper systems at

the Huatecosco Gold Project

• A strong positive cash flow and $33.7 million in the treasury allows for

accelerated growth through aggressive exploration and potential

acquisitions

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For more information please contact:

604 681 0172

[email protected]