Impact Silver Corp. | Company Profile

About the Company

IMPACT Silver Corp. is a profitable silver producer with an aggressive growth strategy. Our goal is to build the Company into a mid-tier silver producer focused on economic projects in mining friendly and politically stable parts of the world. Operating in prolific silver districts totaling 472 km2 including: 125 km2 Royal Mines of Zacualpan, 200 km2 Mamatla Silver; with over 70 targets located within trucking distance of production facilities.

A SELF-SUSTAINING
OPTION ON SILVER
MILESTONES

• Four mines processing at over 300 tpd
• Two wholly owned mills with combined capacity of 700 tpd
• Option to purchase a third 200 tpd operating mill in Zacatecas
• Six months ended June 2008 Net Income $1.2 Million, EPS $0.02

FINANCIALS (6 months ended June 2008)

• Positive Cash Flow: $2 Million
• Net Income: $1 Million
• Cash: $8 Million
• Gross Revenues: $4 Million
• Mine Operating Earnings: $2 Million
• Working Capital: $10 Million
• No Debt

ZACUALPAN

Over 900+ historic mines and workings have been identified on IMPACT’s flagship property in Zacualpan signifying potential for large high grade deposits given that historically only material grading over 20 ounces per tonne silver was previously mined. The Company’s strategy is to increase shareholder value by expanding production from current operations and acquiring new advanced stage quality silver projects with near term production potential.

ZACUALPAN EXPLORATION

Of the 900+ identified mine workings, 10 have reached advanced exploration with a few flagship notables listed below.

The producing Chivo Mine is located in the southern part of the Zacualpan silver district and represents a new zone of high grade silver mineralization at the Zacualpan Project. Since initial discovery, IMPACT has put the Chivo mine into full production in a period of only 18 months. IMPACT has drilled a total of 46 holes to date on the Chivo Shoot. Recent drill highlights include 3,902 g/t silver over 1.9m TW, including 11,463 g/t silver at 0.6m TW; and 865 g/t silver over 3.2m TW, including 1,765 g/t silver over 1.6m TW. The zone has now been drill-defined over a length of 300m and vertical depth of 250m and remains open in all directions for expansion.

The Los Reyes Zone is a Zinc-Lead rich area in close proximity to the Chivo Mine which is readily accessible underground from existing mine workings. It is located 4.5 km southeast of the Zacualpan processing plant along a thick vein system trending parallel to the silver-rich Chivo Vein. Recent drill highlights include 4.35% Zn over 1.1m TW, including 17.8% Zn over 0.6m TW. The zone is open for expansion to the northwest, southeast and down dip.

The San Antonio Zone is located 4 km southeast of the Zacualpan processing plant and 1,350m northeast of the Chivo Mine. Zinc- Lead rich in nature, an 11 hole drill program recently returned 11.55% Zn over 4.5m TW, including 16.53% Zn over 1.8m TW. Further drilling is planned as well as soil sampling, prospecting
and mapping.

DEVELOPMENTS & OUTLOOK
IMPACT has upgraded equipment in the mines and the processing plant which combined with engineering and metallurgical changes have improved metal recoveries dramatically and set the stage for continued expansion of production. Since assuming operations, average daily tonnes processed have almost doubled from 196 tpd to over 300 tpd.

IMPACT is carrying out an extensive program that includes drill programs designed to expand the active mining areas and test high priority exploration targets for new zones of mineralization. A minimum of 17,000 meters of drilling is currently underway employing both surface and underground drilling. The Chivo Mine is the newest addition to the production profile. In early 2008, the Company purchased a third mill at 200 tpd, bringing the total production capacity to 700 tpd. Mine management has also initiated safety and community relation programs, hiring specific personnel for these areas. The previously announced program of rehabilitation and preventative maintenance for mobile equipment and the mill is underway, with the objective of improving recoveries and reducing equipment downtime.

MAMATLA

Impact holds a 100% interest in the 200km2 Mamatla Mining District located immediately southwest of and adjacent to IMPACT's Royal Mines of Zacualpan Silver Project and production facilities in central Mexico.
Among the 70 mineral prospects known on the Mamatla concession, the most significant identified to date are the Aurora I and the nearby Capire Prospects. In the auction bid document publicly released by the Mexican Geological Survey, the Aurora deposit is described with an indicated resource of 194,000 tonnes grading 1.28g/t gold, 180g/t silver, 2.13% lead and 4.45% zinc. The Capire deposit is described with an indicated resource of 1,154,500 tonnes grading 0.22g/t gold, 73g/t silver, 0.45% lead and 1.13% zinc in a near surface zone with potential for open pit mining and open for expansion. Several past drill highlights, 2218g/t silver and 3.65g/t gold over 6m, indicate that there are also higher grade portions to this deposit. Over 60 targets remain untested by drilling. The Company also recently acquired a significant amount of technical data on its Mamatla Silver District which includes results from exploration works carried out in the 1990’s.

IMPACT has not independently verified these resource estimates and they are not compliant with NI 43-101 requirements, therefore they should not be relied upon. IMPACT believes the historical resource estimates and results provide an indication of the potential of the Mamatla Project, and are clearly relevant to IMPACT's decision to purchase the project and to IMPACT's plans for further exploration work. A 5,000 m drilling program was recently completed and assays are pending.

ZACATECAS

The Zacatecas silver district is located in central Mexico. It is one of the largest historic silver districts in the world with past production estimated at 1.2 billion ounces. IMPACT is undertaking an aggressive expansion into Zacatecas where the Company holds an interest in 16 mineral concessions. Presently, IMPACT holds an option to purchase a 100% interest in a 200 tpd mill.

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