IMPACT Silver Corp.
TSX VENTURE : IPT

IMPACT Silver Corp.

August 17, 2011 12:56 ET

IMPACT Silver Expands Capire Deposit, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 17, 2011) - IMPACT Silver Corp. (TSX VENTURE:IPT) ("IMPACT" or "the Company") is pleased to announce additional drill results for the planned open pit Capire mine in the 200-square-kilometer Mamatla Mineral District, in central Mexico. Results from this expansion drilling have begun to outline additional mineralization to the north and southeast beyond the limits of the previously defined Measured and Indicated Mineral Resources totaling 7.2 million ounces silver, 30,446 ounces gold, 95.6 million lbs zinc and 37.2 million lbs lead (see IMPACT Silver news release dated February 1, 2011 for details (http://www.impactmin.com/s/NewsReleases.asp?ReportID=440575&_Type=News-Releases&_Title=IMPACT-Silver-Reports-Updated-Mineral-Resources-at-Capire-in-Preparation-fo)). Highlights from recent drilling include the following:

CAPIRE ZONE DRILL RESULTS
DRILL FROM TO INTERSECTION SILVER GOLD LEAD ZINC COPPER
HOLE (m) (m) (m) (g/t) (g/t) (%) (%) (%)
C11-36 74.70 83.50 8.80 83 0.18 0.50 1.25 0.11
Including 82.00 83.50 1.50 298 0.54 1.61 3.48 0.32
C11-38 95.50 103.00 7.50 53 0.14 0.45 1.13 0.09
Including 97.00 98.00 1.00 166 0.48 1.53 3.02 0.31
C11-39 54.50 56.00 1.50 206 0.77 1.14 2.14 0.17
C11-41 119.40 122.00 2.60 99 0.21 0.97 2.38 0.12
Including 119.40 120.45 1.05 152 0.31 1.29 3.34 0.19
C11-42 111.80 112.30 0.50 1,160 3.74 3.86 8.83 0.65
C11-50 21.35 24.40 3.05 139 2.95 0.52 1.02 0.26
Including 22.85 24.40 1.55 256 5.62 0.97 1.82 0.49

Other holes completed during this phase of drilling may also contribute to expanding the mineralized zone. Initial assays from this drill program included 304g/t silver, 4.51g/t gold, 1.52% lead, 3.05% zinc and 0.49% copper across 5.0m (see IMPACT Silver news release dated May 24, 2011 for details (http://www.impactmin.com/s/NewsReleases.asp?ReportID=459044&_Type=News-Releases&_Title=Impact-Silver-Intersects-304gt-Silver-And-4.51gt-Gold-Across-5.0-Meters-at)). IMPACT engineers are now studying the possibility of expanding the open pit plan to incorporate these new drill results. The zone remains open for further expansion.

The Capire Project is in the mine planning and permitting stage with initial pilot plant production scheduled to start in late 2011. Production plans at Capire are to first install a 200-tonne-per-day pilot plant (already purchased) to optimize mining and processing parameters toward planning for a larger operation in the future. Surface rights for all mining areas, tailings dam and the processing plant have been acquired. Condemnation drilling under the plant site, tailings dam and rock waste piles has been completed in preparation for mine and plant construction. When in production, Capire will be the Company's fourth active mining operation and represents a new production district. The orientation and shallow depth from surface of the mineralization will allow for open pit mining of a portion of the zone. The project is located 16 kilometers southwest of the Company's other active mining and processing operations in the Royal Mines of Zacualpan Silver District.

Wojtek Jakubowski, P. Geo., a Qualified Person under the meaning of Canadian National Instrument 43-101, is responsible for the technical content of this news release.

IMPACT Silver Corp. is a profitable silver-focused mining and exploration company operating in Mexico with a producing silver operation at the 423-square-kilometer Royal Mines of Zacualpan District, the adjacent 200-square-kilometer Mamatla Mineral District which includes the Capire Mine Development Project and a portfolio of projects with an operational processing plant at Zacatecas. Additional information including drill plans can be found on the company website at www.IMPACTSilver.com.

On behalf of the Directors of IMPACT Silver Corp.

Frederick W. Davidson, President & CEO

Forward-Looking Statements

This IMPACT News Release may contain certain "forward-looking" statements and information relating to IMPACT that are 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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

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