IMPACT Silver Corp.
TSX VENTURE : IPT

IMPACT Silver Corp.

August 12, 2008 16:35 ET

Impact Drills 11,463g/t (334 oz/ton) Silver Over 0.6m (2ft) at Chivo Mine and Expands Strike Length by 40%

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 12, 2008) - IMPACT Silver Corp. ("IMPACT") (TSX VENTURE:IPT) is pleased to announce that drilling on extensions of the Chivo Zone has both intersected high grade mineralization, as well as increased the strike length of the Zone by 40% to over 300 meters.

The Chivo Mine at the Royal Mines of Zacualpan Silver Project in Mexico achieved commercial production in early 2008 based on successful exploration over the past two years. This news release reports on drilling conducted to establish the southern limits of the Chivo Zone. These results, along with those announced on August 6, 2008 for the northern extensions, indicate that the high-grade Chivo Zone remains open for further expansion.

Assays from the new holes drilled on the southern extension of the Chivo Zone are as follows:



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CHIVO DRILL HOLES (MAIN VEIN - SOUTH EXTENSION)
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TOP OF ESTIMATED
DRILL INTERCEPT TRUE WIDTH SILVER SILVER GOLD ZINC LEAD
HOLE No. (m) (m) (g/t) (oz/ton) (g/t) (%) (%)
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SECTION 850N (Drill holes listed from west to east)
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Z08-13 49.4 1.9 3,902 114 1.34 3.96 2.16
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Including: 0.6 11,463 334 3.46 10.25 5.02
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Z08-14 65.4 0.7 601 18 0.22 1.74 1.56
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SECTION 875N (Drill holes listed from west to east)
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Z08-25 45.6 3.2 865 25 0.41 3.73 3.90
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Including: 1.6 1,765 51 0.81 6.42 7.56
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Z08-11 58.4 3.2 793 23 0.21 4.23 3.27
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Including: 1.1 1,792 52 0.46 8.73 7.25
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Z08-12 71.3 1.7 91 3 0.86 2.03 2.65
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SECTION 900N (Drill holes listed from west to east)
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Z08-16 57.7 1.6 664 19 0.79 3.23 1.79
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Z08-23 76.6 3.0 501 15 0.51 8.51 4.96
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Including: 1.8 810 24 0.80 12.75 6.91
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Z08-24 88.0 1.3 73 2 0.66 10.96 2.81
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Z08-27 114.5 3.7 89 3 0.22 6.91 2.81
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Including: 1.1 175 5 0.60 14.95 6.91
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These intersections were drilled on an approximate 25 meters (horizontal) by 30 meters (vertical) grid pattern. Five other holes drilled further south intersected low grade mineralization. This newly discovered mineralization will be accessible by the lower Chivo Mine adit now being excavated and expected to reach the Chivo Vein in the fourth quarter of 2008.

During the past year, the objective of the drill program at Chivo was to define the northern and southern limits of the Chivo high grade mineralization, as well as down dip extensions. This work continues. Currently, the Chivo Zone has been defined over a length of 300 meters and a vertical depth of 250 meters by 46 drill holes, as well as several hundred meters of underground workings. Mining widths at Chivo are 3 meters plus. This is up from a length of 200 meters and vertical depth of 220 meters reported earlier (see IMPACT news release dated June 17, 2008). A recently completed computer model of the Chivo Zone indicates two high grade shoots within the Chivo Zone separated by a medium grade central zone. Within the plane of the vein, the high grade mineralization rakes to the north and remains open, indicating the potential for additional high-grade mineralization. Future drilling from both surface and underground is planned to expand this zone on all sides.

Chivo was discovered in 2005 when IMPACT crews found high-grade veins in old mine workings (see IMPACT news release dated September 7, 2005). Samples from the veins included assays of 1,095 g/t silver and 0.38 g/t gold across 1.25 meters true width. Subsequent drill programs returned significant grades, including 937 g/t silver, 0.35 g/t gold, 1.88% zinc and 0.75% lead across 2.7 meters true width (see IMPACT news release dated October 12, 2006). Continued exploration success lead to a production decision and in January 2008, only 28 months from first discovery, the Chivo Mine achieved commercial production.

Fred Davidson, President and CEO of IMPACT Silver, states, "Chivo has become the new cornerstone of our Royal Mines of Zacualpan silver operations. We are actively mining our best grades here and drilling continues to expand the zone and deliver high grade results. We have recently begun excavation of a new lower mine adit which should reach the main vein later this year and access the high grade zones reported here."

George Gorzynski, P. Eng. and Nigel Hulme, P. Geo., Qualified Persons under the meaning of Canadian National Instrument 43-101, are responsible for the technical content of this news release. Drill core was NTW size (5.71 cm diameter). Half core samples were collected with a rock saw and tagged for identification. All samples were securely stored at the IMPACT base camp until shipment. A total of 5% assay standards and 5% 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 2 mm 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 analyzed for an additional 30 elements by ICP spectrometry.

IMPACT Silver Corp. is a profitable 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 an option on a producing mill at Zacatecas.

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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