IMPACT Silver Corp.
TSX VENTURE : IPT

IMPACT Silver Corp.

January 10, 2008 19:18 ET

IMPACT Silver Exploration Summary

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 10, 2008) - IMPACT Silver Corp. ("IMPACT") (TSX VENTURE:IPT) is pleased to provide a summary of its exploration activities in 2007 and plans for 2008. Most of IMPACT's exploration work was carried out at the Royal Mines of Zacualpan Silver District ("Zacualpan") and the adjacent Mamatla District in 2007. A smaller program took place in the Zacatecas Silver District.

ROYAL MINES OF ZACUALPAN EXPLORATION OVERVIEW

Zacualpan is located in central Mexico and consists of a 125-square-kilometer land package with wholly owned operating mines and a processing plant rated at 500 tonnes-per-day ("tpd") and currently operating at 300 tpd.

Since 2004, IMPACT has been reporting results from a large number of old mine prospects at Zacualpan. To put the results of this extensive field work, historical information and assays in context and prioritize exploration targets, IMPACT hired a senior geological database expert in early 2007 to compile a computer GIS (Geographic Information System) database encompassing all past mining and exploration data in the Zacualpan and neighbouring Mamatla Districts. To date, over 750 old mine workings have been entered into the database, of these IMPACT exploration crews have sampled in detail 87. Of these, ten priority targets were drill tested resulting in the discovery of two new mines (Chivo and San Ramon). Five of the other ten targets returned economically significant results that will lead to further drilling. At this point, only about 10% of the Zacualpan property has seen detailed exploration.

In 2008, an expanded drill budget including 12,000m of Phase 1 surface drilling and 5000m of underground drilling will continue to test targets. The field workforce has also been expanded to better tackle the more than 700 old mine workings that remain to be explored. Reconnaissance crews and prospectors continue to sample an expanded soil grid which will encompass an additional 12,000 samples in 2008 and more prospective old mine workings are being added to the existing data bank on a regular basis.

Due to the vast size of the Zacualpan district, exploration activity is carried out as a series of projects, each with its own dedicated team. A summary of exploration work completed in 2007 is discussed below with target areas described as near term, intermediate term and long term production potential (see map at www.impactsilver.com for locations).

Near Term Exploration Targets (Less than one year horizon to potential production)

Near Term Exploration targets are mainly located in the vicinity of active mine workings. Many of these targets are tested by the mine staff through underground sampling and IMPACT's wholly owned, continuously operating underground drill. The resulting samples are processed in a modern fully equipped laboratory that is located at the mine site. IMPACT does not routinely report assays from this underground sampling and drilling as the work is considered part of the daily management of mining operations.

In 2007 underground Near Term Exploration focused on the Guadalupe, Gallega and Chivo Mines. The underground drill is presently testing extensions of known veins on Level 195m of the Guadalupe mine outlining new areas for production. Other parts of the mines are re-evaluated by underground channel sampling. For example the San Lorenzo Vein on Level 195 at Guadalupe returned nine underground samples averaging 444g/t silver, 1.3% lead and 2.6% zinc across 0.54m true width ("TW") along a strike length of 90m with the best sample assaying 1,040g/t silver, 0.8% lead and 2.3% zinc across 1.1m TW and is now included in production plans for 2008. Similarly, underground exploration combined with surface drilling at the nearby Gallega Mine in 2007 discovered several new veins that are now in production.

Chivo Project

The Chivo Mine is the newest addition to IMPACT's production profile. In early 2007 drill results from 18 holes in the Chivo Silver Shoot lead to a production decision. Highlights of this work included the following: 937g/t silver, 0.35g/t gold, 1.88% zinc and 0.75% lead across 2.7m TW (DH Z-06-10) and 378g/t silver, 0.30g/t gold, 4.25% zinc and 1.76% lead across 4.7m TW (DH Z07-03).

In November 2007 the first underground workings reached the Chivo Silver Shoot. This shoot has since been exposed underground for a distance of 120m on the south end in preparation for commercial production. Underground sampling of this southern portion of the shoot has now been completed to NI43-101 standards and an additional five drill holes from surface have been completed to the north. Assays from this work are pending.

Exploration of several nearby targets continues on the premise that any of them could be readily and quickly integrated into the Chivo Mine. One of them, the San Patricio Vein, located 600m west of the Chivo Mine, is a branch off the main Lipton Vein which is host to the producing Guadalupe Mine further to the north. Four drill holes at San Patricio in 2007 returned highlights of 242g/t silver across 4.6m TW and 935g/t silver and 2.14% zinc across 0.6m TW. Further drilling is planned at San Patricio to expand on these results and on other targets in the Chivo Project area in 2008.

Intermediate Term Exploration Targets (1 to 3 year horizon to potential production)

Significant effort is being given to Intermediate Term Exploration Targets. The latest success in this category is the silver-rich Chivo Mine which progressed from discovery sampling in September 2005 to first drill hole assays in October 2006 and to first production in November 2007. A variety of Intermediate Term Exploration Targets were explored in the district in 2007.

San Antonio Project

The San Antonio zone is located four kilometers southeast of the Zacualpan mill and 1350m northeast of the Chivo Mine. On surface it is marked by a large glory hole, two old adits and a foundation for an old processing plant. Highlights from the 11 hole drill program in 2007 include the following:



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SAN ANTONIO DRILL HOLES
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TOP OF
DRILL INTERCEPT ESTIMATED ZINC LEAD SILVER GOLD
HOLE No. (m) TW (%) (%) (g/t) (g/t)
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SECTION 2000N
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Z07-15 53.5 2.9 7.81 3.76 50 0.91
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Including: 0.9 15.95 8.10 97 1.63
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Z06-22 47.4 1.1 4.09 4.46 118 5.12
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SECTION 2050N
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Z07-21 82.8 4.5 11.55 1.94 33 0.51
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Including: 1.8 16.53 1.63 25 0.55
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Further drilling is planned for the San Antonio Zone and other nearby veins in 2008 and soil sampling, prospecting and mapping are planned for the general San Antonio Project area.

Cuchara Project

The Cuchara Mine is located three kilometers east of the Zacualpan mill. The main shoot has been mined intermittently for hundreds of years and was last in production in 2004. Recent drilling tested the southern extension of the Cuchara Vein system beyond historic mining areas returning the following highlights:



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CUCHARA EXTENSION DRILL HOLES
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DRILL TOP OF ESTIMATED SILVER GOLD ZINC LEAD
HOLE No. INTERCEPT (m) TW (m) (g/t) (g/t) (%) (%)
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Z07-29 107.5 2.2 641 0.02 1.67 0.53
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Including: 0.6 1,340 0.02 2.27 0.80
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Z07-30 18.8 1.5 229 0.07 1.17 0.35
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In early 2007, a new discovery was also made at the nearby Oscar Vein:



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OSCAR VEIN DRILL HOLE
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DRILL TOP OF ESTIMATED SILVER GOLD ZINC LEAD
HOLE No. INTERCEPT (m) TW (m) (g/t) (g/t) (%) (%)
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Z07-26 95.0 0.3 2,820 7.83 7.83 3.48
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Mapping and prospecting has identified a cluster of at least ten other veins with old workings in the Cuchara area. Data compilation and surface work are continuing in preparation for further drilling of these and other nearby veins.

Pino Prospect

The Pino Prospect lies on the Lipton Vein system. It is located 700m south of the Guadalupe Mine which has historically produced 10 million ounces of silver predominantly from the Lipton Vein. The Pino Prospect area is marked by a large soil anomaly and sparse old small mine workings. Highlights from drilling returned:



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PINO PROSPECT DRILL HOLES
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DRILL TOP OF ESTIMATED SILVER GOLD ZINC LEAD
HOLE No. INTERCEPT (m) TW (m) (g/t) (g/t) (%) (%)
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Z06-19 125.5 4.9 8 0.06 1.84 0.59
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Including: 3.3 11 0.05 2.29 0.67
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Z06-21 63.6 2.7 84 0.09 2.67 0.64
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and: 1.7 109 0.11 3.58 0.84
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This initial test indicated this to be a zinc-rich prospect. The best holes (19 and 21) were both drilled near the valley bottom and indicate that metal values were increasing with depth in the vein structure. In late 2007 one additional hole was drilled to test this system to greater depth. Assays are pending. Additional drill sites have been prepared to further test this zone to depth in 2008.

Longer Term Exploration Targets (3 to 5 year horizon to potential production)

IMPACT field crews have been exploring various mineralized areas at Zacualpan with longer term production possibilities. The most significant of these is the CPN Gold-Copper Zone.

CPN Gold-Copper Project

The Carlos Pacheco-Nochebuena ("CPN") Project covers a sizeable target area within the larger Zacualpan District. It is located five kilometers southwest of the Zacualpan mill in the central portion of IMPACT's land holdings covering a 10-square-kilometer area of large-scale, well mineralized with Copper-Gold and Silver-Zinc-Lead veins. In early 2007 the first results of sampling in some old mine workings returned highlights of:



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CARLOS PACHECO ADIT SAMPLES
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ESTIMATED GOLD COPPER SILVER
LOCATION TW (m) (g/t) (%) (g/t)
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End of adit 2.7 14.6 0.46 58
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Including: 1.2 32.4 0.80 106
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8m from end of adit 2.4 5.9 0.70 80
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Including: 0.9 10.9 1.27 134
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The Cobre Prospect is an old adit located on the Pacheco Vein System 3.5 kilometers south of the Pacheco Prospect. Samples were collected in five places over the 25m exposed length of the vein in the adit and returned the following values:



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COBRE ADIT SAMPLES
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ESTIMATED GOLD COPPER SILVER
LOCATION TW (m) (g/t) (%) (g/t)
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Average of 5 samples along 25m
exposed length of vein 1.0 1.2 2.34 181
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including 1.2 0.2 7.81 88
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Through much of 2007, a dedicated exploration team has been mapping and sampling the CPN Project area in preparation for a major drill program in 2008. Results from the 2007 exploration work will be released when all assays are received and interpreted.

These significant copper and gold zones are found at lower elevations in the Zacualpan district and may be indicative of a copper and gold district underlying the silver district. IMPACT geologists consider this idea to hold big blue sky exploration potential and incorporate the possibility into their exploration planning.

MAMATLA DISTRICT EXPLORATION OVERVIEW

IMPACT won the 200-square-kilometer Mamatla District in a government auction in February 2007 and a dedicated field crew began work immediately. The district is located immediately adjacent to and southwest of Zacualpan. Mamatla is host to epithermal silver and base metal veins as well as volcanogenic massive sulphide ("VMS") base and precious metal mineralization.

Mamatla VMS Prospects

Capire VMS Project

The most advanced exploration targets at Mamatla are the Capire and Aurora 1 VMS Deposits which were discovered less than one kilometer apart and drilled by prior operators in the 1990's. In the auction bid document publicly released by the Mexican Geological Survey, 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 such as the following indicate that there are also higher grade portions to this deposit:



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CAPIRE ZONE
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Width Gold Silver Lead Zinc Copper
(m) g/t g/t % % % Source
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4.0 2.66 430 2.88 7.18 0.35 See Valerie Gold Press
Release dated April 3, 1997
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6.0 3.65 2218 2.38 5.67 0.66 See Valerie Gold Press
Release dated May 22, 1996
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In the auction bid document publicly released by the Mexican Geological Survey, the Aurora 1 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. Some past drill highlights include:



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AURORA 1 ZONE
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Width Gold Silver Lead Zinc Copper
(m) g/t g/t % % % Source
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7.5 0.54 230 3.67 6.71 0.44 See Valerie Gold Press
Release dated April 3, 1997
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1.0 0.65 693 4.16 6.85 1.28
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1.0 1.34 353 5.18 10.6 0.67
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IMPACT has not independently verified the resource estimates in this news release and the estimates are not compliant with NI 43-101 requirements, therefore they should not be relied upon. IMPACT has also not yet verified the results of the previous exploration assays quoted from news releases of Valerie Gold Resources (now Valgold Resources), a TSX Venture Exchange company. These news releases were issued in the 1990's and therefore readers are cautioned that the results as presented may not comply with current NI43-101 standards of disclosure. However IMPACT believes the historical resource estimates and drill results provide an indication of the potential of the Capire VMS Project and are relevant to IMPACT's plans for further exploration work.

In December 2007 IMPACT drilled an initial four holes into the Capire Deposit. Assays have not yet been received but these holes did intersect the mineralized horizons as indicated by previous drilling. A further 3,000m of drilling is planned for the Capire and Aurora 1 Deposits in 2008 to outline mineral resources.

Mamatla Epithermal Vein Prospects

Since acquisition of the Mamatla project in February 2007, a dedicated exploration crew has discovered over 70 previously unidentified epithermal vein prospects and old mines. Initial results from this work include the following. Assays from other prospects are pending.

Huatecosco Prospect

IMPACT crews found two old mine workings at the historic Huatecosco Prospect located about 10 kilometers southwest of the Zacualpan mill. The lower working is a mine adit that has collapsed but a selected grab sample of vein material from the mine dump returned an assay of 409g/t silver, 5.41g/t gold, 0.9% zinc and 0.5% lead. Crews were able to enter the upper inclined shaft which leads to a small underground working on the vein in oxidized material. Sampling of the exposed vein returned 1.88g/t gold and 40g/t silver across 8.7m. Elsewhere in this working, assays were highly variable ranging up to 189g/t gold across 1.5m. IMPACT geologists conclude that this is a wide vein that has variable, locally very high gold grades in the near surface oxidized zone and more consistent silver and gold grades at depth. Plans are to open the lower adit and sample the vein at this lower level in preparation for future drilling.

San Joaquin Prospect

The San Joaquin Prospect is located 2.5 kilometers west of Huatecosco. A grab sample of vein material from the mine dump assayed 295g/t silver and 1.5% zinc. Plans are to map and sample this area and establish access to the old mine workings.

San Carlos Area Prospects

The ruins of the large historic San Carlos processing plant are located 13 kilometers southwest of IMPACT's operating Zacualpan processing plant. The San Carlos plant appears to have served as a central facility for processing minerals from local mines. At the site, IMPACT crews found seven piles of mineralized rocks varying from 20 - 500 tonnes in size. Samples from these rock piles assayed between 0.06 - 2.12% copper, 0.1 - 17.55% zinc, 0.1 - 11.45% lead, 46 - 836g/t silver and 0.2 - 8.65g/t gold. With the belief that these piles represent mineral collected from various nearby old mines, IMPACT crews began prospecting the surrounding countryside and discovered numerous old mine workings. Samples from some of the first workings discovered are reported below.

Pirul Prospect

The Pirul Prospect is comprised of old mine shafts and adits located 1 kilometer north of the San Carlos plant. Samples from the workings returned the following highlights:



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PIRUL PROSPECT
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SAMPLE SILVER ZINC LEAD
LOCATION WIDTH (m) (g/t) (%) (%)
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Sample from shaft 2.0 331 0.04 9.23
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Samples from adit located 65m southeast of shaft
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12m from entrance 1.0 285 5.31 6.88
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Gorrion Prospect

The Gorrion Prospect is located 500m west of the Pirul Prospect. Samples from a dump beside a surface cut and a nearby outcrop returned the following values:



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GORRION PROSPECT
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LOCATION ESTIMATED TW (m) SILVER (g/t)
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Surface sample of vein 2.1 163
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Angel Prospect

The Angel Prospect is located 3 kilometers northwest of the San Carlos plant. Highlights from a series of old shafts and small surface open cuts traced over 100m returned the following values:



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ANGEL PROSPECT
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LOCATION ESTIMATED TW (m) SILVER (g/t)
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Average of 3 samples
beside Shaft No. 1 0.9 331
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Sample from Shaft No. 2
(30mNW of Shaft No. 1) 0.9 492
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San Nicolas del Cobre Prospects

The San Nicolas del Cobre Prospects are found over a distance of 1 kilometer in the far northwest of the Mamatla District. Samples taken from old mine workings in the area returned the following values:



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SAN NICOLAS DEL COBRE PROSPECTS
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ESTIMATED COPPER SILVER GOLD
LOCATION TW (m) (%) (g/t) (g/t)
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Amigo Shaft 1.0 1.67 123 0.5
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Enjambre Shaft 0.5 1.85 98 4.1
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Dedicated IMPACT crews continue to carry out Intermediate Term Exploration and reconnaissance work in the Mamatla District. Detailed field work in 2008 will begin in the Huatecosco area.

ZACATECAS SILVER DISTRICT

IMPACT has a Comprehensive Agreement to purchase the Veta Grande Silver Project located historic Zacatecas Silver District of Mexico over a term of four years. The project is located 500 kilometers northwest of Mexico City and includes an operating 200 tonne-per-day processing plant and certain surface rights. During 2007 exploration focused on some of the 17 mineral concessions located within this district.

100% IMPACT Concessions

In 2007 IMPACT crews carried out a program of mapping and surface sampling on the Nueva Granada and Asturiana concessions which cover veins branching off the Veta Grande Vein system, the major silver producer in the district. Old plans indicate the veins on these concessions were mined over a length of 700m and to a depth of 150-200m on the IMPACT concessions.

Field work in late 2007 focused on the San Jose and Armado Veins. The San Jose Vein crosses the concessions over a distance of 800m. Old mine workings and dumps mark the surface along its entire width. A total of six channel samples were collected from surface exposures of the vein and averaged 239g/t silver over 0.74m TW ranging to a high of 444g/t silver over 1.10m TW.

The Armado Vein trends 100m west of and runs parallel to the San Jose Vein. It has been traced over a distance of 500m and is marked by old mine workings and dumps along its entire length. Channel samples collected from surface exposures of the vein located 130m apart assayed 237g/t silver over 1.92 TW and 1,320g/t silver over 0.30m TW. Two samples were collected at an old mine dump on the vein located 400m to the north. A sulphide-bearing sample assayed 358g/t silver and a sulphide-poor sample assayed 247g/t silver.

Most of the other IMPACT concessions have medium to high grade rock dumps beside old mine workings that have not seen any modern exploration or drilling. These include the Cristian Mine where samples from surface dumps returned 310g/t silver, 24.2% lead and 8.0% zinc from a high grade stockpile. At the San Pascual a representative sample of the dump around the shaft assayed 875g/t silver. A representative sample from the dump beside the nearby Pirul shaft assayed 525g/t silver.

Based upon the encouraging results from this initial field work, the known extensive old workings on the concessions and the close proximity to the processing plant, a first phase drill program is being planned in 2008.

Zacatecas Joint Venture (Yale Resources)

IMPACT optioned four of its Zacatecas concessions (San Sabino, Zacatecas, Salvador and San Jose) to Yale Resources. Under the agreement Yale may earn an interest in the concessions by making certain cash payments and completing certain work commitments. In mid-2007, a drill program was carried out on three concessions. In total four holes (501m) were drilled at San Jose and 12 holes (1,314m) were drilled at Salvador/Zacatecas. The best intersection assayed 1,340g/t silver over 0.80m at San Jose.

FUTURE EXPLORATION PLANS

The exploration budget for 2008 has been more than doubled in order to put some of the 700+ known prospects at the Zacualpan and Mamatla districts on a faster track to potential production. The exploration program will be funded through existing cash balances. Additional technical personnel were hired to carry out work ranging from green fields to advanced stage exploration. 2008 will begin with three dedicated field crews each led by a senior geologist working on the San Antonio, Mamatla and CPN Projects respectively. A prospecting team will continue reconnaissance work in the districts and a soil crew will begin the year sampling a large grid in the Cuchara-San Antonio Project areas Three geologists will also oversee both surface and underground drilling operations at Zacualpan and Capire (Mamatla). An initial phase of 12,000m of surface exploration drilling and 5,000m of underground drilling is planned. The purchase of a second wholly owned underground drill has also been budgeted. The GIS database compilation will also continue into 2008 with an emphasis put on district-wide interpretation.

George Gorzynski, P.Eng., Vice President Exploration and a Qualified Person under the meaning of Canadian National Instrument 43-101, is responsible for the technical content of this news release. Drill core was NTW size (5.71cm diameter) and BTW size (4.20 cm diameter). Half core samples were collected with a rock saw and tagged for identification. Chip and channel samples were collected from cleaned rock faces over a continuous representative interval using a chisel and hammer. All samples were securely stored at the IMPACT base camp until shipment. A total of 5% assay standards and blanks were inserted into every sample shipment as a quality control measure. All samples were shipped to the ALS Chemex preparation laboratory in Guadalajara (Mexico) where they were fine crushed (70% passing a 2mm screen), pulverized (85% passing a 75 micron screen) and pulp split separated for assay by a riffle splitter. These pulps were shipped to the ALS Chemex laboratory in North Vancouver, Canada where a 30 gram split of each was assayed for gold and silver by standard fire assay and a 10 gram split was analysed for an additional 30 elements by ICP spectrometry. Higher copper, zinc and lead values were done by wet assay methods.

IMPACT Silver Corp. is a silver focused mining and exploration company operating in Mexico with a producing silver operation at Zacualpan, an advanced project with a producing mill at Zacatecas and the 200-square-kilometer advanced Mamatla District. Energold Drilling Corp. (TSX VENTURE:EGD) who was the contractor for the drill programs, owns 6.6 million shares of IMPACT.

On behalf of the Directors of IMPACT Silver Corp.

Frederick W. Davidson, President, CEO

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

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