IMPACT Silver Corp.
TSX VENTURE : IPT

IMPACT Silver Corp.

May 29, 2006 17:36 ET

IMPACT Announces First Quarter Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 29, 2006) - IMPACT Silver Corp. ("IMPACT" or "the Company") (TSX VENTURE:IPT) is pleased to announce results for the quarter ended March 31, 2006. IMPACT's consolidated financial statements include the results of Royal Mines of Zacualpan Project in Mexico, which was purchased on January 16, 2006. IMPACT's first full day of production was January 18, 2006. For the quarter, the Company's net revenues were $1,142,916 and net profit was $188,276 ($0.01 EPS). Zacualpan had an operating profit of $341,287.



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Three Months Ended March 31 2006 2005
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Revenue $1,142,916 0
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Net Income $ 188,276 ($ 106,886)
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Earnings Per Share $ 0.01 ($ 0.01)
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Production

The first mineral shipments (one silver-lead concentrate, one zinc concentrate and one shipment of high grade silver direct shipping ore) were made on January 31, 2006. Mineral shipments have continued on a regular basis since then. Average mill throughput in the first quarter was 180 tpd. In spite of much of the production being from development muck, the average recovered grade for the quarter was over 320 g/t silver equivalent. On site operating costs were approximately CDN$50 per tonne. Production for the quarter was as follows:



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January 18 to March 31, 2006 2006
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Tonnes of Ore Processed 12,959
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Silver (Ounces) 92,950
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Gold (Ounces) 55.10
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Lead (Tonnes) 69.55
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Zinc (Tonnes) 139.86
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At the year end 2005, mining by the previous owner was down to Level 8 at the high grade San Ramon Mine. The levels are about 10 to 12m apart. Subsequent to the purchase, IMPACT continued mining remnant high grade (2000 g/t Silver) mineral on Level 8 and continued mining medium grade (200 - 450 g/t Silver) mineral from both Levels 7 and 8. As of the end of the first quarter, the ramp has reached Level 9. During the quarter, mining of medium grade mineral at the Guadalupe Mine continued on the 195m Level exploiting the Lipton, Lipton del Bajo and Liptonia Veins. Material is trucked from the operating mines to the central processing plant.

Developments

In April 2006, the Company signed a drill contract for a first phase minimum 2000m surface core drilling program. The program commenced at the end of April and will initially test the San Ramon extension and the Chivo and Pino Prospects. The Company also owns an underground drill which is being simultaneously utilized for underground exploration drilling.

Subsequent to the quarter, the Company exercised its option to purchase certain mining equipment for US$500,000 (see news release dated March 16, 2006 for details).

Outlook

IMPACT's plan for the Royal Mines of Zacualpan Silver Project in 2006 is to focus on consolidating its position in the district, upgrading and expanding its operations and carrying out extensive exploration. It is IMPACT's intention to complete the purchases of the processing plant and associated assets now under lease. With these purchase IMPACT will own all the equipment and surface rights related to its operations along with a 100% interest and no underlying royalties on its entire 124.5 km2 concessions area.

IMPACT has begun upgrading equipment in the mines along with the processing plant. When combined with its engineering and metallurgical studies, these upgrades are expected to improve metal recoveries and set the stage for the expansion of production. It is anticipated that this program of upgrades and expansion, utilizing funds from the recent financing, will span 12 to 18 months.

IMPACT plans to grow into a premier producer of silver through internal growth at the Royal Mines of Zacualpan Silver Project and through acquisitions. As a result of the Company's strategy to increase production and operating efficiencies through the previously mentioned initiatives, considerable expenditures will be incurred over the next couple of quarters. While the Company will be affected by these substantial expenses and their corresponding effects to profitability in the short-term, subsequent quarters should reflect the implemented operating efficiencies as well as lower costs of production.

IMPACT Silver Corp. is a silver focused mining and exploration company with projects in Mexico and the Dominican Republic.

On behalf of the Directors of IMPACT Silver Corp.

Frederick W. Davidson, President, CEO

The TSX Venture Exchange has neither approved nor disapproved this news release.

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