IMPACT Silver Corp.
TSX VENTURE : IPT

IMPACT Silver Corp.

July 12, 2007 18:50 ET

IMPACT Silver Announces Chivo Drill Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 12, 2007) - IMPACT Silver Corp. ("IMPACT") (TSX VENTURE:IPT) is pleased to announce drill results from the Chivo Silver Shoot, as well as a new discovery named Chivo Northeast Zone at the Royal Mines of Zacualpan Silver Project, Mexico. These are the initial results from the first area tested in our 2007 Zacualpan 10,000m drill program.

CHIVO SILVER SHOOT

The Chivo Silver Shoot is located in the southern part of the Zacualpan silver district. Field sampling by IMPACT personnel in 2005 found a main vein and splay in old mine workings at Chivo (see news release dated September 7, 2005). Samples from the western vein assayed 1,095g/t silver and 0.38g/t gold across 1.25m true width in the workings and 2,640g/t silver and 1.36g/t gold across 0.85m on surface. Highlights of an initial drill program in 2006 returned an intercept of 937g/t silver over 2.7m including 2,380g/t silver and 4.83% zinc over 0.7m (see news release dated October 12, 2006).

The 2007 drill program at Chivo was designed to test the outer limits of the high grade silver shoot for mine planning purposes. Significant results from recent holes drilled at Chivo are as follows:



------------------------------------------------------------------------
SILVER
TOP OF ESTIMATED EQUIVALENT(i)
DRILL INTERCEPT TRUE WIDTH SILVER GOLD ZINC LEAD (ounces
HOLE No. (m) (m) (g/t) (g/t) (%) (%) per ton)
------------------------------------------------------------------------

------------------------------------------------------------------------
Z07-01 48.5 0.2 1,260 1.51 2.21 0.84 46.7
------------------------------------------------------------------------
Z07-01 57.0 0.6 358 0.10 0.91 0.36 13.7
------------------------------------------------------------------------

------------------------------------------------------------------------
Z07-02 71.6 1.9 37 0.22 1.49 1.31 8.1
------------------------------------------------------------------------

------------------------------------------------------------------------
Z07-03 84.1 4.7 378 0.30 4.25 1.76 26.3
---------------------------------------------------------------
Including 1.3 1,305 0.33 9.63 3.77 71.7
------------------------------------------------------------------------

------------------------------------------------------------------------
Z07-04 97.8 1.7 237 0.90 6.26 2.52 30.0
------------------------------------------------------------------------


The other 2007 drill holes successfully delineated the northern and down dip edges of the zone for mining purposes, as well as determining that the shoot is still open for expansion to the south. The Chivo Silver Shoot, as defined to date, measures 100m horizontal and 220m down dip. Based on the success of this drill program and prior work, the Chivo Silver Shoot is scheduled to be put into production by the end of 2007 adding significant volumes to our daily mill throughput. Mine preparation work and permit applications have already commenced.

CHIVO NORTHEAST ZONE

Three drill holes testing a target 120m to the northeast of the Chivo Silver Shoot, discovered a significant zone of mineralization that may be the margin of a second mineral shoot. Initial assays from these holes returned the following results:



------------------------------------------------------------------------
SILVER
TOP OF ESTIMATED EQUIVALENT(i)
DRILL INTERCEPT TRUE WIDTH SILVER GOLD ZINC LEAD (ounces
HOLE No. (m) (m) (g/t) (g/t) (%) (%) per ton)
------------------------------------------------------------------------

------------------------------------------------------------------------
Z07-08 111.3 0.8 321 0.14 2.79 0.64 32.7
------------------------------------------------------------------------

------------------------------------------------------------------------
Z07-10 116.5 3.4 34 0.06 2.34 1.22 11.3
---------------------------------------------------------------
Including 0.7 67 0.05 3.93 3.05 21.8
------------------------------------------------------------------------

------------------------------------------------------------------------
Z06-11 128.5 1.4 451 0.43 3.86 1.32 46.8
------------------------------------------------------------------------
Z06-11 132.3 4.2 52 0.12 2.48 1.14 12.8
------------------------------------------------------------------------


(i) Silver Equivalent grades listed in the tables of this news release were calculated as 'in the ground' values, with no provision made for production or processing recovery allowances. Metal prices used for the calculations were US$12.00 per ounce silver, US$650 per ounce gold, US$1.40 per pound zinc and US$1.20 per pound lead.

Presently, very little is known about this target. It is open for expansion to the northeast and down dip. More drilling is planned for this new discovery in the near future.

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 (5.71cm diameter) and BTW size (4.20 cm diameter). Half core samples were collected with a rock saw, tagged for identification and securely stored at the IMPACT base camp until shipment. Chip and channel samples were collected from cleaned rock faces in old mine workings and from bedrock outcrops over a continuous representative interval using a moil and hammer. 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.

IMPACT Silver Corp. is a silver mining and exploration company focused in Mexico, with a producing silver operation at Zacualpan, an advanced project with a producing mill at Zacatecas and the 200km2 advanced Mamatla Silver District. Energold Drilling Corp. (TSX VENTURE:EGD), who was the contractor for the drill program, 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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