IMPACT Silver Corp.
TSX VENTURE : IPT

IMPACT Silver Corp.

October 16, 2006 12:17 ET

IMPACT Acquires Two New Silver Projects

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 16, 2006) - IMPACT Silver Corp. ("IMPACT") (TSX VENTURE:IPT) is pleased to announce that it has purchased 100% interest in the San Sabino and Salvador properties in the historic Zacatecas Mining District in Mexico. IMPACT has also received the first sampling results from its wholly owned San Jose Project.

SALVADOR PROPERTY

The Salvador Property is located approximately 5 km southeast of the Veta Grande processing plant. Vein outcroppings and old workings indicate that the primary vein within the Salvador property can be traced for greater than 1 km. The central 400 m of the open pits trace a very well defined 2-5 m wide structure and a secondary vein nearby. There are three main shafts along the length of the vein: one at a presumed vein intersection and another outside the principal vein area, presumably for the ore extraction, access and services. There are at least two known splays to the principle vein. Along the length of the vein there are old mine dumps of various sizes. Results from the sampling done to date of the main dumps are as follows:



SAMPLE SAMPLE Ag Ag Au Pb Zn
NUMBER DESCRIPTION g/t Oz/t g/t % %

DUMP #1
400198 random material 109.0 3.2 0.137 0.20 0.34
400199 selected material 947.0 27.6 0.729 0.64 1.93

DUMP #2
400200 random material 288.0 8.4 0.303 0.24 0.36
399701 selected material 265.0 7.7 0.151 0.14 0.13

DUMP #3
399703 random material 199.0 5.8 0.326 0.19 0.37
399704 selected material 976.0 28.5 0.618 0.52 0.43

DUMP #4
399705 random material 276.0 8.1 0.098 0.20 0.28
399706 selected material 922.0 26.9 0.138 0.40 0.46

DUMP #5
399707 random material 82.0 2.4 0.159 1.24 0.42
399708 selected material 159.0 4.6 0.57 1.42 2.95

DUMP #6
399709 random material 201.0 5.9 0.266 0.35 0.14
399710 selected material 683.0 19.9 0.349 0.33 0.86


SAN SABINO PROPERTY

The San Sabino property is located approximately 8 km north of the Veta Grande processing plant. The property covers a 500-meter section of the San Sabino Vein marked by old workings and trenches. In the main showing area an old open cut and an old small mine dump are present. Random samples from this dump assayed 303 g/t silver and a selected high grade sample ran 834 g/t silver. A chip sample taken from a remnant pillar across the open cut assayed 260 g/t silver across a true width of 2.35 m.

There is a perpendicular structure that appears to intersect this structure at or near the open workings. This secondary vein has only one small test pit and appears to have not been mined. It outcrops across a width of 3.0 m and one sample across this width returned 290 g/t silver.

SAN JOSE

The San Jose property is located 5 km northwest of the Veta Grande processing plant. The project was acquired as part of the Veta Grande Silver Project purchase. (See News Release dated September 28, 2006.) The property has at least two veins and covers a 500-meter section of the principal vein. There are two open shafts with approximately 50 m depth to the water table. In the vicinity of the two primary shafts are a number of runs of mine dumps. Results from the sampling of these dumps are as follows:



SAMPLE SAMPLE Ag Ag Au Pb Zn
NUMBER DESCRIPTION g/t Oz/t g/t % %

DUMP #1
400126 selected material 4,970 145 6.74 1.67 2.98
400127 random material 122 3.6 0.15 n/a n/a

DUMP #2
400128 Selected material 200 5.8 0.22 n/a 1.12

DUMP #3
400131 selected material 4,200 122.5 7.73 1.37 1.68
400130 random material 525 15.3 1.07 1.87 n/a


There is considerable exploration potential at San Jose in at least two exploration targets that have been identified within the property. Further work is required in these areas, including sampling and mapping.

FUTURE PLANS

This acquisition is part of IMPACT's strategy of building a mid-tier silver producer based on an aggressive development and acquisition plan focusing on Mexico and silver. Through its network of local contacts, IMPACT continues to seek out undervalued assets that can represent consolidation opportunities in significant silver districts.

George Gorzynski, P.Eng., a Qualified Person under the meaning of Canadian National Instrument 43-101, is responsible for the technical content of this news release. Rock samples were collected from dumps beside old mine workings. 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.

IMPACT Silver Corp. is a Tier 1 silver focused mining and exploration company with two producing silver mines at Zacualpan, Mexico; an advanced-stage silver project at Zacatecas, Mexico; and, other projects in the Dominican Republic. Energold Drilling Corp. (TSX VENTURE:EGD) 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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