IMPACT Silver Corp.
TSX VENTURE : IPT

IMPACT Silver Corp.

June 17, 2008 17:04 ET

IMPACT Silver Updates Production and Samples 657 g/t Silver Over 2.85 m at the Chivo Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 17, 2008) - IMPACT Silver Corp. ("IMPACT") (TSX VENTURE:IPT) is pleased to provide an update on production with information on its new mines, Chivo and San Ramon, in the central part of the Royal Mines of Zacualpan Silver District as well as significant equipment purchases.

CHIVO MINE

The Chivo Mine started commercial production in January, one month ahead of schedule, at 60 tonnes per day (see IMPACT news release dated September 20, 2007). Underground access is via a 92-metre long crosscut adit. With good grades and good metallurgy from the Chivo Zone, mining has now been ramped up to 150 tonnes per day.

The first production stope was developed over a length of 60 meters in 10-meter raises. Samples from this initial 60-meter long mining stope averaged 269 g/t silver, 0.74 g/t gold, 3.01% zinc and 1.08% lead across a true width of 3.3 meters ranging to a high of 657 g/t silver, 0.60 g/t gold, 1.13% zinc and 0.18% lead across a true width of 2.85 meters. At the point where the access adit intersected the vein, the rock section above the vein contained a series of additional sheeted veins which, when combined with the main vein, averaged 220 g/t silver across 20.1 meters including one sheeted vein which assayed 392 g/t silver across a true width of 5.2 meters. The full extent of this wide bulk mineable section will be further investigated as mining and underground exploration proceed. The 60-meter section now being mined is only a small portion of the Chivo Zone, which has now been defined by surface drilling to be at least 200 meters in length and 220 meters down dip. Drilling is continuing to expand the zone in all directions and a second production stope north of the access adit has been brought into production.

Last week, work began on a second adit to access the Chivo Zone 60 meters below the first adit. The second adit and more working faces are scheduled to be in place by the end of the year, and will serve to further increase production.

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 assayed 1,095 g/t silver and 0.38 g/t gold across 1.25 meters true width in the workings and 2,640 g/t silver and 1.36 g/t gold across 0.85 meters on surface. Subsequent drill programs consisting of 21 holes returned highlights of 937 g/t silver, 0.35 g/t gold, 1.88% zinc and 0.75% lead across 2.7 meters true width (Drill hole Z-06-10) and 378 g/t silver, 0.30 g/t gold, 4.25% zinc and 1.76% lead across 4.7 meters true width (Drill hole Z07-03) (see IMPACT news releases dated October 12, 2006 and July 12, 2007).

PRODUCTION PLANS

Presently the Royal Mines of Zacualpan operations are producing at 300 tonnes per day. Plans are to expand production to 500 tonnes per day over the next 12 months mainly sourcing additional high grade mineral from the Chivo Mine supplemented by redevelopment in the Guadalupe Mine to source mineral from the Kena Vein area and production from the Gallega and San Ramon Mines. To facilitate this significant increase in production, IMPACT has budgeted $2 million towards underground mine development, new equipment, plant upgrades and expansion of the tailings dam. Two new scoop trams have already been received and put into operation. These upgrades will be completed over the next eight months and will allow IMPACT to meet its production forecasts.

George Gorzynski, P. Eng., a Qualified Person under the meaning of Canadian National Instrument 43-101, is responsible for the technical content of this news release. Channel samples were collected from cleaned rock faces in mine workings over a continuous representative interval using a moil and hammer. All samples were securely stored at the IMPACT base camp until shipment. A total of 5% assay standards and 5% blanks were inserted into the 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 analyzed for an additional 30 elements by ICP spectrometry.

IMPACT Silver Corp. is a 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 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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