IMPACT Silver Announces Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 20, 2016) - IMPACT Silver Corp. (TSX VENTURE:IPT) ("IMPACT" or the "Corporation") is pleased to announce a brokered private placement (the "Private Placement") of a minimum of $3,000,000 worth of units (each a "Unit"), at a price of $0.57 per Unit (a minimum of 5,263,158 units). Each Unit consists of one common share and one-half of one warrant. Each whole warrant (each a "Warrant") entitles the holder to purchase one common share (each a "Share") per Warrant at a price of $0.90 per Share for a period of 36 months from the date of issuance.

The Corporation is pleased to announce that it has appointed a syndicate of agents led by M Partners Inc. ("M Partners") and including Clarus Securities Inc. to sell the Units by way of Private Placement. As per the terms of the appointment of the syndicate of agents, the Corporation will pay a commission of 7% on the value of Units issued on the Private Placement and issue to the agents Warrants equal to 7% of the number of Units issued on the Private Placement.

The net proceeds of the Offering will be used to fund the Corporation's continued exploration and development of its silver assets in Mexico, and for general working capital purposes.

This proposed Private Placement is subject to receipt of all required regulatory approvals, including the approval of the TSX Venture Exchange, as well as the negotiation and execution of definitive documentation.

The Securities to be issued under the Private Placement will be offered pursuant to applicable exemptions from the prospectus requirements under applicable securities laws. Closing of the Private Placement is anticipated to occur in one or more tranches with the first tranche expected to close on or about May 27, 2016 or such other date as may be agreed to by the Corporation and M Partners (the "Closing Date"). The securities issued pursuant to the Private Placement will be subject to a statutory hold period of four months plus one day from the Closing Date in accordance with applicable securities legislation.

On behalf of the Directors of IMPACT Silver Corp.,

Frederick W. Davidson

President & CEO

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking and Cautionary Statements

This IMPACT News Release may contain certain "forward-looking" statements and information relating to IMPACT that is based on the beliefs of IMPACT management, as well as assumptions made by and information currently available to IMPACT management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including but not limited to, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. IMPACT does not assume the obligation to update any forward-looking statement.