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C O R P O R AT E P R E S E N T AT I O N │ J U L Y 2 0 1 2T S X – V : I P T │ F R AN K F U R T : I K L │ I S I N : C A4 5 2...
CAUTIONARY NOTE REGARDING    FORWARD-LOOKING STATEMENTS    Except for historical information, this presentation may contai...
CORPORATE HIGHLIGHTS    • Silver production in Mexico    • Corporate focus is on profits    • Strong cash position & zero ...
TECHNICAL HIGHLIGHTS    ROYAL MINES OF ZACUALPAN    • Three operating silver mines      in Mexico feeding a central       ...
LOCATION    • Located a three-hour drive      from Mexico City with a      paved road right to the      front gate of the ...
HISTORY    • The Royal Mines of Zacualpan      is one of the oldest mining      districts in the Americas with      485 ye...
MINE PRODUCTION     ROYAL MINES OF ZACUALPAN    • Guadalupe Production      Center fed by three      producing mines – San...
MINERAL PROCESSING    TWO PRODUCTION CENTERS    OPERATING                                  UNDER CONSTRUCTION    • Guadalu...
NEW MINE DEVELOPMENT #1      OSCAR MINE    • The high grade Oscar-      Santa Lucia Zones are      scheduled for productio...
NEW MINE DEVELOPMENT #1      OSCAR MINE    • Oscar and Santa Lucia host high grade veins as found in the following drill h...
NEW MINE DEVELOPMENT #2       CAPIRE PRODUCTION CENTER                                                                    ...
CAPIRE PROJECT     NI 43-101 MINERAL RESOURCE ESTIMATE                                          Metal Content for Capire P...
CAPIRE PROJECT     EXPANSION DRILL PROGRAM     • 5,000 meter drill program in       2012 to expand Capire Zone     • Numer...
GEOLOGY                                           METAL DISTRIBUTION IN ORE ZONES     • Mineral zones in the Royal        ...
VALLE DE ORO       GOLD POTENTIAL AT DEPTH     • First gold-copper zone found by company prospectors in a canyon       bel...
RAPID EXPLORATION     TO MINE DEVELOPMENT     • A cornerstone of IMPACT Silver’s success is rapid mine development to gene...
ROYAL MINES OF ZACULAPAN     TECHNICAL SUMMARYWorking toward becoming a Multimillion Ounce Silver Producer with Multiple P...
ZACATECAS OPTION AGREEMENT     DEFIANCE SILVER CORP (TSX.V:DEF)     • IMPACT Silver optioned its                          ...
ROYAL MINES OF ZACUALPAN     SILVER PRODUCTION                                                                            ...
FINANCIAL HIGHLIGHTS                                                                                                      ...
LONG-TERM VALUE PLAY             MARKET INFORMATION JUNE 2012     Recent Share                             52 Wk       $1....
FUTURE PLANS AND GOALS     2012     • A transition year, building two new mines as a foundation for the next       phase o...
WHY IMPACT SILVER?                          • Strong cash position and zero                            debt               ...
Contact Us  Telephone: 1 604 681 0172Email: inquiries@impactsilver.com      www.impactsilver.com
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Corporate Presentation

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  1. 1. C O R P O R AT E P R E S E N T AT I O N │ J U L Y 2 0 1 2T S X – V : I P T │ F R AN K F U R T : I K L │ I S I N : C A4 5 2 5 7 A1 0 2 1
  2. 2. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Except for historical information, this presentation 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 factors that could cause actual results to differ materially include, but are not limited to, the following: general economic conditions; changes in financial markets; the impact of exchange rates; political conditions and developments in countries in which the Company operates; changes in the supply, demand and pricing of the metal commodities which the Company mines or hopes to find and successfully mine; changes in regulatory requirements impacting the Company’s operations; the ability to properly and efficiently staff the Company’s operations; the sufficiency of current working capital and the estimated cost and availability of funding for the continued exploration and development of the Company’s exploration properties. This list is not exhaustive and these and other factors should be considered carefully, and readers should not place undue reliance on the Company’s forward-looking statements. As a result of the foregoing and other factors, no assurance can be given as to any such future results, levels of activity or achievements and neither the Company nor any other person assumes responsibility for the accuracy and completeness of these forward-looking statements. NI43-101 QUALIFIED PERSON George Gorzynski, P.Eng., Vice President, Exploration and a Qualified Person under the meaning of Canadian National Instrument 43-101, is responsible for the technical information in this presentation.1
  3. 3. CORPORATE HIGHLIGHTS • Silver production in Mexico • Corporate focus is on profits • Strong cash position & zero debt • 90% of revenues from unhedged silver • Friendly-to-investor, tightly managed share structure (73M Shares FD)2
  4. 4. TECHNICAL HIGHLIGHTS ROYAL MINES OF ZACUALPAN • Three operating silver mines in Mexico feeding a central . processing plant • Two new mines scheduled for initial production in late 2012, early 2013 • Plan to double silver production in three years • Large claim position covering 623 sq km (241 sq miles) • Substantial exploration potential for both silver and gold3
  5. 5. LOCATION • Located a three-hour drive from Mexico City with a paved road right to the front gate of the plant • Excellent infrastructure with modern electric power grid, ample water supplies and a skilled work force (99% Mexican including senior managers) • Many other significant mining operations in area4
  6. 6. HISTORY • The Royal Mines of Zacualpan is one of the oldest mining districts in the Americas with 485 years of recorded mining history • Over 2,700 old mine workings have been catalogued and form the basis for modern and effective exploration • IMPACT Silver bought the Zacualpan assets in 2006 One of 30 historic processing plants found in the and then consolidated district attesting to a long history of silver mining ownership of the entire district for the first time in its history5
  7. 7. MINE PRODUCTION ROYAL MINES OF ZACUALPAN • Guadalupe Production Center fed by three producing mines – San Ramon, Chivo, Noche Buena • In 2011, the three mines averaged 421 tonnes per day (“tpd”) at 5.7 oz/ton (195 g/t) silver recovered • In 2011, cash cost per ounce of silver was $9 net of lead and zinc credits • Second production center at Capire Mine is currently This map is reproduced in miniature on following slides under construction6
  8. 8. MINERAL PROCESSING TWO PRODUCTION CENTERS OPERATING UNDER CONSTRUCTION • Guadalupe Processing Plant, Zacualpan • Capire Pilot Plant, Mamatla • 500-tpd crushing and flotation circuit • 200-tpd Pilot Plant being installed with expansion plans for 20157
  9. 9. NEW MINE DEVELOPMENT #1 OSCAR MINE • The high grade Oscar- Santa Lucia Zones are scheduled for production in late 2012 to replace the Chivo Mine where grades are dropping with depth OLD CUCHARA MINE • Oscar is a silver vein corridor on the southern extension of the past-producing Cuchara Mine NEW OSCAR MINE • Pre-existing Cuchara Mine SANTA LUCIA ZONE mining infrastructure will contribute to a low capital costs and rapid mine development at Oscar8
  10. 10. NEW MINE DEVELOPMENT #1 OSCAR MINE • Oscar and Santa Lucia host high grade veins as found in the following drill holes: OSCAR CORRIDOR DRILLING HIGHLIGHTS SANTA LUCIA ZONE DRILLING HIGHLIGHTS True True Drill Silver Gold Lead Zinc Drill Silver Gold Lead Zinc Width Width Hole (g/t) (g/t) (%) (%) Hole (g/t) (g/t) (%) (%) (m/ft) (m/ft) 31m / 1.4m / Z11-44 291 0.01 0.1 0.4 Z09-35 600 0.10 - - 101.7ft 4.6ft 7.5m / 6.3m / Including 780 0.02 0.4 1.1 Z09-47 278 0.01 0.2 0.7 24.6ft 20.7ft 5.8m / 3.2m / Including 398 0.03 0.2 0.9 Including 467 0.01 0.2 1.1 19.0ft 10.5ft 5.7m / 1.0m / Z11-46 1,007 0.07 0.5 1.1 Z09-50 602 0.02 0.1 0.1 18.7ft 3.3ft 2.8m / 2.4m / Including 1,128 0.51 0.9 1.4 Z09-53 419 0.03 0.3 0.3 9.2ft 7.9ft 1.1 / 1.1m / Including 4,580 0.26 1.7 4.0 Z09-55 372 0.01 0.1 0.2 3.6ft 3.6ft 6.6m / 2.1m / Z11-64 223 0.08 0.2 0.5 Z09-58 274 0.10 0.4 1.2 21.7ft 6.9ft 1.0m / 1.1m / Z11-74 1,875 0.74 2.7 6.9 Z10-03 588 0.05 0.4 2.0 3.3ft 3.6ft 23.4 / 1.7m / Z12-08 115 0.02 0.1 0.4 Including 394 0.07 1.1 1.69 76.8ft 5.6ft
  11. 11. NEW MINE DEVELOPMENT #2 CAPIRE PRODUCTION CENTER Open for Defined NI 43-101 expansion Plant Mineral Resources Site Tailings Facility Capire Open for expansion Open Pit 3D Model Processing Plant Site Open-Pit Tailings Facility Capire Mine Site Capire Mine Open Pit Model • The Capire Mine represents a new production center in a new mining district • Two-phase strategy to bring Capire to full-scale production in 2015: o 2012-13: Construction of 200-tpd Pilot Plant and 5,000 m drill program o 2013: Pilot Plant production (~200,000 oz silver) to optimize operating parameters for expansion plans o 2014: Construction of full scale plant (800-1,500 tpd) with goal to produce 1M oz silver per year10
  12. 12. CAPIRE PROJECT NI 43-101 MINERAL RESOURCE ESTIMATE Metal Content for Capire Project Ag (oz) Au (oz) Cu (lbs) Pb (lbs) Zn (lbs) Measured 3,529,969 14,146 3,389,275 18,234,678 46,140,820 Indicated 3,694,066 16,300 3,693,733 19,029,800 49,522,173 Measured & Indicated 7,224,035 30,446 7,083,007 37,264,478 95,662,993 Inferred 435,959 1,919 475,594 2,260,089 5,823,490 Summary Table Classified Mineral Resources – Measured + Indicated and Separate Inferred Domain Classification Tonnes Ag (g/t) Au (g/t) Cu (%) Pb (%) Zn (%) Capire Measured + Indicated 3,104,944 46.46 0.19 0.06 0.33 0.93 Aurora 1 Measured + Indicated 1,807,302 44.50 0.199 0.07 0.36 0.80 Total Measured + Indicated 4,912,246 45.74 0.193 0.06 0.34 0.88 Total Inferred 371,066 36.54 0.161 0.06 0.28 0.71 • Initial production planned on higher grade sections • Drilling is continuing at Capire and other nearby zones to expand mineral resources11
  13. 13. CAPIRE PROJECT EXPANSION DRILL PROGRAM • 5,000 meter drill program in 2012 to expand Capire Zone • Numerous old mine workings and VMS targets to be drilled in areas surrounding the Capire Zone • Each triangle represents rock sampling containing 500 g/t silver and/or 10% zinc • Multiple epithermal silver veins discovered north of the Capire Mine Capire Zone12
  14. 14. GEOLOGY METAL DISTRIBUTION IN ORE ZONES • Mineral zones in the Royal Depth Length Mining Level Mines of Zacualpan District 150-420 m (500 -1,400 ft) tend to be silver-rich near 0 m (0ft) Oscar Mine the top (commonly 1,000’s Silver-rich at top of grams per tonne) with 200 – 1,000 g/t+ Ag Noche Buena Mine increasing lead and zinc, and decreasing silver San Ramon Mine toward the bottom 150 m (500 ft) • New discoveries indicate Lead- & Zinc-rich that significant gold and at bottom Chivo Mine copper may lie at depth 300 m (1,000 ft) 60 – 150 g/t Ag Carlos Pacheco Typical Gold (Copper) Gold-Copper Zone Mining Width at depth 3m (10 ft) Host to high grade Gold13
  15. 15. VALLE DE ORO GOLD POTENTIAL AT DEPTH • First gold-copper zone found by company prospectors in a canyon below known silver veins • Initial drill results on two zones returned high gold values (see tables below) • These initial results indicate potential gold horizons lying at depths of 300 m (1,000 ft) below the silver district • Drilling will test gold targets at depth on other silver veins CARLOS PACHECO DRILLING HIGHLIGHTS HUATECOSCO DRILLING HIGHLIGHTS Drill True Width Gold Silver Lead Zinc Drill True Width Gold Silver Copper Hole (m/ft) (g/t /opt) (g/t) (%) (%) Hole (m/ft) (g/t /opt) (g/t) (%) 4.1 m / 5.22 g/t / 2.1 m / 11.3 g/t / Z11-48 30 0.7 1.8 Z08-65 18 - 13.5 ft 0.15 opt 6.9 ft 0.33 opt 0.8 m / 25.00 g/t/ Including 50 0.5 1.6 1.2m / 18.8 g/t / 2.6 ft 0.73 opt Including 24 - 3.9 ft 0.55 opt Z11-17 3.2 m / 3.44 g/t / 118 0.6 0.8 2.9 m / 19.6 g/t / 10.5 ft 0.10 opt Z08-68 68 0.29 9.5 ft 0.57 opt 1.8m / 3.53 g/t / Z11-19 321 0.4 0.6 5.9 ft 0.10 opt 1.0 m / 49.7 g/t / Including 59 0.31 9.5 m / 3.97 g/t / 3.3 ft 1.45 opt Z11-20 49 1.7 2.6 31.2 ft 0.12 opt 1.7 m / 31.1 g/t / 4.2 m / 6.96 g/t / Including 69 0.31 Including 84 2.9 5.114 5.6 ft 0.91 13.9 ft 0.20 opt
  16. 16. RAPID EXPLORATION TO MINE DEVELOPMENT • A cornerstone of IMPACT Silver’s success is rapid mine development to generate near-term cash flow • Since 2006, IMPACT’s successful team has discovered and built three new mines with two additional mines now under construction EXPLORATION AND MINE DEVELOPMENT PROCESS FLOWCHART: RESEARCH FIELD WORK DRILLING MINE DEVELOPMENT MINE Compile old Surface & Drilling in PRODUCTION mines/ underground phases Mine Planning, AND CASH prospects from sampling, based on Permitting and FLOW historic maps mapping success Construction • Capire (North) More than • Capire • San Ramon • Pilarica 2,700 old Select • Condesa & • Noche mines and areas and • Oscar Cuchara North Buena prospects prospects catalogued for drilling • Carlos Pacheco • Santa Lucia • Chivo to date • Huatecosco First Drill Hole to Production: 12 – 24 Months (Chivo, San Ramon Extensions, Noche Buena)15
  17. 17. ROYAL MINES OF ZACULAPAN TECHNICAL SUMMARYWorking toward becoming a Multimillion Ounce Silver Producer with Multiple Processing Centers 1. Guadalupe Production Centre • Oscar Silver Mine scheduled for production in late 2012 • Current ore feed from San Ramon, Noche Buena and Chivo Mines 1 2. Capire Production Centre • Initial production through 200-tpd pilot plant, scheduled for late 2012, early 2013 • Expansion to full scale plant planned 3. Valle de Oro Gold and Silver Area • Area of many silver veins with gold 3 mineralization at depth • Large drill program underway • Potential site of a third processing plant 2 4 4. Southeast Exploration Area • Currently mapping numerous old mine workings, early stage exploration16
  18. 18. ZACATECAS OPTION AGREEMENT DEFIANCE SILVER CORP (TSX.V:DEF) • IMPACT Silver optioned its Santa Gabriela Processing Plant 200-tpd Santa Gabriela Processing Plant and ten mineral concessions in Zacatecas, Mexico to Defiance Silver for cash and a 16.5% share position • Defiance Silver plans to marry IMPACT’s processing plant with their San Acacio Silver Mine (18M oz silver defined) and begin production in 2013 San Acacio Silver Mine17
  19. 19. ROYAL MINES OF ZACUALPAN SILVER PRODUCTION % Change 2011 2010 2009 2008 2007 2006 2006- 2011 Total tonnes processed (t) 154,289 131,348 114,340 102,426 99,918 68,173 +126% Tonnes processed per day (t) 424 360 313 280 274 196 +116% 750,259 Silver (oz) Production 833,607 * 823,571 645,668 349,949 465,673 +79% Lead (t) Production 731 734 969 813 601 375 +95% Zinc (t) Production 1,248 1,212 1,098 1,053 976 725 +72% Revenue per production tonne sold $171 $123 $110 $90 - - +90% Direct cost per tonne sold $70 $63 $60 $55 $44 $60 +17% *Silver production was marginally down 9% in 2010 because the Company reduced the cut-off grade of the ore mined due to higher silver prices • Organic growth with low-cost production • 2011 direct cost per tonne sold averaged $70 per tonne or $9 per ounce of silver net of lead and zinc credits18
  20. 20. FINANCIAL HIGHLIGHTS % Change (In C$’000,000s except EPS) 2011 2010 2009 2008 2007 2006* 2006-2011 Revenue $24.3 $16.7 $12.2 $8.9 $7.3 $7.0 +247% Net Earnings $7.6 $3.4 $1.6 $.66 $.29 $.51 +1,390% Operating Cash $10.2 $5.4 $3.7 $2.2 $1.9 $2.6 +292% Flow* Cash & Cash $30.8 $18.7 $5.3 $5.4 $10.1 $4.0 +670% Equivalents EPS $0.12 $0.07 $0.02 $0.01 $0.01 $0.01 +1,100% * Royal Mines of Zacualpan project purchased by IMPACT Silver in January 2006 Revenue $30,000,000 $25,000,000 $20,000,000 Net Earnings $15,000,000 $10,000,000 Operating Cash Flow $5,000,000 before changes in $- non-cash operating 2006 2007 2008 2009 2010 2011 capital*19
  21. 21. LONG-TERM VALUE PLAY MARKET INFORMATION JUNE 2012 Recent Share 52 Wk $1.07 - $1.10 Price Range $2.42 Shares Basic – 68M Avg Vol 95,000 Outstanding Fully Diluted – 73M (3m) Market Cap 75M Warrants Nil Largest Shareholders: Sprott Asset Management, 12% and Energold Drilling Corp, 11% Share Price Performance, 3 Years Source: Stockwatch, June 2012 CAPITAL EXPENDITURE USE EFFICIENCY ($CDN)* Total funds raised since start Property payments, plant & equipment, Cash Position of operations in January, 2006 and exploration expenditures (March 31, 2012) $25 Million $38 Million $28 Million20
  22. 22. FUTURE PLANS AND GOALS 2012 • A transition year, building two new mines as a foundation for the next phase of growth • Continue drilling exploration to accelerate organic growth at the Royal Mines of Zacualpan • With over $25M of unallocated cash and production earnings, aggressively pursue accretive merger and acquisition opportunities 2013 to 2015 • Double silver production with expansion of Capire Production Center and Oscar Mine • Continue exploration and development of both silver zones and deep gold horizons21
  23. 23. WHY IMPACT SILVER? • Strong cash position and zero debt • Five years of increasing revenues and earnings • Expanding silver production with two future mines • Aggressive exploration for gold and silver • Tight share structure and small market cap for a profitable producer22
  24. 24. Contact Us Telephone: 1 604 681 0172Email: inquiries@impactsilver.com www.impactsilver.com
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