Announces Record Silver Production and Earnings

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Announces Record Silver Production and Earnings

posted on Apr 15, 2009 02:01PM

April 15, 2009

IMPACT Silver Announces Record Silver Production and Earnings

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 15, 2009) - IMPACT Silver Corp. ("the Company" or "IMPACT") (TSX VENTURE:IPT) is pleased to announce record silver production of 635,668 ounces, up 82% from 348,949 ounces in 2007. Gross revenues for the fiscal year were $8,907,958, up 23% from $7,250,077 in 2007. These higher revenues were due to increased silver, lead and zinc production which more than offset lower realized prices (net of smelter costs) for silver, lead and zinc. Average mill throughput during the year ended December 31, 2008 was 280 tpd (tonnes per day), up from 274 tpd during 2007. By year end, production was primarily from the high grade mines of Chivo and San Ramon.

At December 31, 2008, metal prices had declined by about 7% for silver, 40% for zinc, and 20% for lead from prices prevailing at the beginning of the year. As a result of the dramatic decline in zinc prices, the Company stopped shipping and began stockpiling its zinc concentrate production at the end of October.

---------------------------------------------------------------------
Year Ended December 31            2008            2007       % Change
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Revenue                    $ 8,907,958      $ 7,250,077            23%
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Mine Operating Earnings    $ 2,187,124      $ 2,070,931             6%
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Net Income                 $   662,100      $   286,727           131%
---------------------------------------------------------------------
Earnings Per Share         $      0.01      $      0.01
---------------------------------------------------------------------

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Cash and Cash Equivalents  $ 5,433,480     $ 10,144,831
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Working Capital            $ 7,281,243     $ 11,349,373
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IMPACT's financial position at December 31, 2008 remained strong with $5.4 million in cash and cash equivalents (December 31, 2007 - $10.1 million) and net working capital of $7.3 million (December 31, 2007 - $11.3 million). The decrease in cash and cash equivalents is primarily due to the Company's investment in exploration expenditures and resource property costs of $5.4 million and property, plant and equipment acquisitions of $1.5 million. These cash outflows were offset by positive cash flows from operations of $1.7 million during 2008 (2007 - $1.8 million). Cash flows from operations before changes in non cash working capital were $2.2 million during 2008 (2007 - $1.9 million).

Production for the three months and year ended December 31:

---------------------------------------------------------------------------
                        Three months ended               Year ended
                   --------------------------------------------------------
                    Dec 31,  Dec 31,             Dec 31,   Dec 31,
                      2008     2007  % Change      2008      2007  % Change
                   --------------------------------------------------------
Total tonnes (t)
 produced           26,343   24,349        +8%  102,426    99,918        +2%
Tonnes produced
 per day               286      265        +8%      280       274        +2%
Silver
 production (oz)   213,876  103,772      +106%  635,668   348,949       +82%
Lead
 production (t)        257      153       +68%      813       601       +35%
Zinc
 production (t)        300      259       +16%    1,053       976        +8%
Revenue per
 production
 tonne sold         $86.03   $86.67        -1%   $89.89    $72.56       +24%
Direct costs
 per tonne
 produced           $56.82   $44.05       +29%   $54.80    $44.15       +24%
---------------------------------------------------------------------------

Early in 2008 the Company made a heavy commitment in accelerating its exploration and development program. This resulted in extensive drill programs at Capire/Aurora as well as the recently announced results at Noche Buena and Carlos Pacheco veins in the Noche Buena Camp. Further drilling was conducted in the la Virgen Valley Camp, home of the high grade El Chivo and San Ramon mines. As a result of the success of these programs the Company anticipates that exploration expenditures for 2009 will be moderated and funds will be focused on new mine development.

The Company intends to further increase throughput at its current Guadalupe mill to ultimately reach its rated capacity of 500 tpd. This involves some additional expenditure for underground equipment, certain equipment replacements and upgrades in the plant and expansion of the tailings dam (now begun). The process of finding, permitting, developing mines and production stopes takes an intensive contribution of resources of manpower, equipment and time.

IMPACT Silver Corp. is a silver focused mining and exploration company operating in Mexico with a producing silver operation at the Royal Mines of Zacualpan, the 200-square-kilometer advanced Mamatla Silver District and a portfolio of projects with a producing mill at Zacatecas.

On behalf of the Directors of IMPACT Silver Corp.,

Frederick W. Davidson, President, CEO

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