IMPACT Silver reports Q1 2026 results: revenue nearly triples to $31.2 million, net income $11.3 million

Vancouver, British Columbia--(Newsfile Corp. - May 20, 2026) - IMPACT Silver Corp. (TSXV: IPT) (OTCQB: ISVLF) ("IMPACT" or the "Company") is pleased to report financial and operating results for the first quarter ended March 31, 2026. Revenue increased to $31.2 million, nearly three times $10.7 million in Q1 2025, driven by higher silver prices, higher grades, and increased mill throughput at the Zacualpan Silver Operation. Gross profit grew almost ten-fold to $20.3 million, from $2.2 million in Q1 2025.

Net income for the quarter was $11.3 million, or $0.03 per share, marking a return to profitability following a net loss of $0.1 million in Q1 2025. At quarter-end, IMPACT held $45.3 million in cash, $4.0 million in guaranteed investment certificates ("GICs"), working capital of $48.0 million, and carried no long-term debt. Fred Davidson, President & CEO of IMPACT, stated, "This is the kind of quarter we have been working toward for a long time.

Revenue nearly tripled, gross profit grew almost tenfold, and we delivered our strongest quarterly net income in the history of the Company — all while continuing to invest in development and exploration. The silver price environment is clearly part of the story, but the bigger story is what is happening on the ground at Zacualpan: higher grades, higher throughput, and the meaningful contribution from our newly developed Kena Vein. At Plomosas, we reduced expenditures by making the disciplined decision to temporarily suspend underground mining while we work toward a more efficient and sustainable operating plan, and we are in advanced-stage discussions on toll-milling arrangements with nearby third-party operators that we believe can generate cash flow during the suspension.

IMPACT is in the strongest financial position in its history, with the resources to optimize Zacualpan, advance Plomosas, and pursue new opportunities in Mexico." Q1 2026 Review Zacualpan Silver-Lead-Zinc Operation Revenue from Zacualpan increased to $29.3 million in Q1 2026 from $7.2 million in Q1 2025 on realized silver prices of $77.91 per ounce, compared to $$31.51 per ounce in Q1 2025. Operating expenses at Zacualpan were $6.7 million in Q1 2026, up from $4.8 million in Q1 2025 on higher throughput, underground development expenses, and inflationary pressures. Gross profit from Zacualpan rose to $22.3 million, compared to $2.2 million in the same period last year.

In Q1 2026, the Guadalupe mill processed 37,922 tonnes of mill feed at the Zacualpan/Guadalupe complex, representing an 8% increase from 35,012 tonnes in Q1 2025. Silver production at the Guadalupe complex totaled 268,470 ounces in Q1 2026, an 80% increase from 149,449 ounces in the same period last year, with the average silver grade increasing 60% to 251 grams per tonne ("g/t"). Subsequent to quarter end, IMPACT reported initial drill results from the north extension of the Carlos Pacheco Vein, including 114.5 g/t gold, 1,295 g/t silver and 1.10% copper over 0.61 metres within 9.79 g/t gold, 212 g/t silver and 0.29% copper over 9.49 metres (see IMPACT news release dated April 21, 2026).

Plomosas Zinc-Lead-Silver Operation Plomosas revenue in Q1 2026 was $1.8 million, compared to $3.5 million in Q1 2025, with the operation recording a gross loss of $2.0 million for the quarter (Q1 2025 – gross loss of $0.03 million). In Q1 2026, the Plomosas mill processed 10,692 tonnes, down 25% from 14,265 tonnes in Q1 2025. Average grades in Q1 2026 were 7.6% zinc, 6.0% lead, and 52.1 g/t silver.

Sales for the quarter totaled 500 tonnes of zinc, 157 tonnes of lead, and 7,020 ounces of silver. On March 20, 2026, the Company announced a temporary suspension of underground mining at Plomosas, effective at the end of March 2026, while it works toward a more efficient and sustainable operating plan. The decision followed a detailed assessment of underground operations, production rates, grade and cost performance, which identified that development intensity and variability in grade and tonnage had impacted cost efficiency and operational consistency.

During the suspension period, the Company will focus on updating the geological model, optimizing and redesigning the mine plan and development, and continuing exploration both underground and on the surface, including targets at Mina Juarez, Mina Mexico, Alfoncitos, and the La Chona Au-Cu target. The Company has acquired a second underground drill rig to support the programs. Outlook Management believes IMPACT is well positioned as an established intermediate producer, offering investors leveraged exposure to silver in a strong commodity price environment, supported by a debt-free, cash-rich balance sheet and a strong working capital position.

At Zacualpan, the Company plans to shift the production mix toward higher-grade silver vein systems, including the new Kena vein in the Guadalupe Mine, while advancing development at the recently restarted Noche Buena-Carlos Pacheco mine and pending development of the new San Ramon SE Deeps area. A focused program of definition and step-out drilling is expected to provide additional feed from the San Ramon, Carlos Pacheco, Noche Buena, and Guadalupe mines. At Plomosas, the Company is pursuing additional mill feed with nearby third-party operators while advancing surface and underground exploration on the underexplored 3,019-hectare property.

The Company believes the property and underlying geology remain its prime asset and continues to view the district as offering exploration upside along the prospective 6-kilometre structure. The Company's strong working capital position provides the flexibility to expand exploration programs, optimize production at Zacualpan, advance development at Plomosas, and actively evaluate new opportunities, primarily in the Mexican market. A recorded conference call reviewing the financial and production results of the quarter ended March 31, 2026 will be available on the Company website on May 20 th , 2026 at https://impactsilver.com/media/conference-calls/ .

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 at www.impactsilver.com and on SEDAR+ at www.sedarplus.ca . All amounts are stated in Canadian dollars unless otherwise specified. ABOUT IMPACT SILVER IMPACT Silver Corp. (TSXV: IPT) is a successful producer-explorer with two mining projects in Mexico.

Royal Mines of Zacualpan Silver-Gold District : IMPACT owns 100% of the Zacualpan project in central Mexico, where multiple producing underground silver mines and one open pit mine feed the central 500 tpd Guadalupe processing plant. To the south, the Capire Project includes a 200 tpd processing pilot plant adjacent to an open pit silver mine with an NI 43-101 inferred mineral resource of over 4.5 million ounces silver, 48 million lbs zinc and 21 million lbs lead in 1,786,000 tonnes grading 79g/t Ag, 1.22% Zn and 0.54% Pb (see IMPACT news release dated January 18, 2016, for details and QP statement). Company engineers are reviewing Capire for a potential restart of operations to leverage current high commodity prices..

Since 2006, IMPACT has produced over 14 million ounces of silver at Zacualpan, generating revenue of more than $352 million, with no long-term debt. Plomosas Zinc-Lead-Silver District : Plomosas is a zinc (lead-silver) property in northern Mexico with exploration upside potential for zinc-lead-silver along a prospective 6-kilometre structure as well as untested copper-gold targets with indications of high grade at surface. Regionally, Plomosas lies in the same mineral belt as some of the largest carbonate replacement deposits in the world.

Qualified Person and NI 43-101 Disclosure George Gorzynski, P.Eng., a Director and VP Exploration of IMPACT Silver Corp., is a "Qualified Person" within the meaning of NI 43-101 and has approved the technical information contained in this news release. On behalf of IMPACT Silver Corp. "Frederick W. Davidson" President & CEO For more information, please contact: Jerry Huang VP Finance | Investor Relations (604) 664-7707 or inquiries@impactsilver.com (778) 867-7909 Direct Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Forward-Looking and Cautionary Statements This IMPACT News Release contains forward-looking statements or forward-looking information relating to IMPACT (collectively, "forward-looking information").

Forward-looking information is often, but not always, identified by the use of words such as "plan", "expect", "project", "predict", "potential", "targeting", "intend", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information in this News Release includes information concerning, among other things, strategies, plans and expectations concerning the Company's, business and operations, including those in respect of the Zacualpan, Plomosas, Capire and other projects, and the anticipated outcomes thereof; the status and potential outcomes of discussions with third parties regarding potential operational arrangements on nearby mining projects and the Company's outlook in respect of the metals market, including the demand for silver and zinc. These statements involve known and unknown risks, uncertainties, and other factors that may cause the Company's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievement expressed or implied by these forward-looking statements.

The forward-looking information in this News Release is based on the beliefs and assumptions of IMPACT management considered reasonable as of the date hereof, including but not limited to the assumption that the temporary suspension and continued exploration work at Plomosas will produce the expected results; that the Company's development, exploration and other business activities will not be adversely disrupted or impeded by regulatory, political, community, economic, environmental and/or health and safety risks; that management's projections will be validated over time; and general business and economic conditions will not change in a materially adverse manner. 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. Factors that could cause actual results to differ materially include, but are not limited to, the following: unfavorable economic conditions; changes in financial markets; the impact of exchange rate fluctuations; unstable political conditions and developments in countries in which the Company operates; community relations; criminal activity; 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; pandemics and epidemics; the ability to properly and efficiently staff the Company's operations; the sufficiency of current working capital; the estimated cost and availability of funding for the continued exploration and development of the Company's exploration properties; and other risks and uncertainties involved in the mineral exploration and development industry.

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. The Company does not undertake to update forward-looking statements or forward-looking information, except as required by law.

Additional information relating to IMPACT is on the Company website at www.IMPACTSilver.com and on SEDAR at www.sedarplus.ca . The Company's decision to place a mine into production, expand a mine, make other production related decisions or otherwise carry out mining and processing operations, is largely based on internal non-public Company data and reports based on exploration, development and mining work by the Company's geologists and engineers. The results of this work are evident in the discovery and building of multiple mines for the Company and in the track record of mineral production and financial returns of the Company since 2006.

Under NI 43-101 the Company is required to disclose that it has not based its production decisions on NI 43-101 compliant mineral resource or reserve estimates, preliminary economic assessments or feasibility studies, and historically such projects have increased uncertainty and risk of failure. 303-543 Granville Street Vancouver, BC, Canada V6C 1X8 Telephone (604) 664-7707 www.impactsilver.com Twitter LinkedIn To view the source version of this press release, please visit https://www.newsfilecorp.com/release/298086 Source: IMPACT Silver Corp.