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Corporate Presentation

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  2. 2. Cautionary Statement 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, 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. 2
  3. 3. Overview GROWING ASSETS IMPACT Silver is a junior silver producer with low cost operations and a growing portfolio of silver mines in south-central Mexico. CONTINUOUS EXPLORATION A cornerstone of IMPACT’s success is systematic exploration leading to rapid mine development to increase mill throughput and generate near-term cash flow. PRUDENT MANAGEMENT Focused on creating value by growth primarily through earnings, in the pursuit of building a multimillion ounce precious metals producer. 3
  4. 4. Directors & Management Frederick W. Davidson, CA President, CEO, Director President of IMPACT Silver and Energold Drilling Corp. Over 35 years of mining experience holding various senior positions, including at Erickson Gold Mines Ltd. and Mt. Skukum Gold Mines. George Gorzynski, P. Eng VP Exploration, Director Over 30 years of exploration and mining experience; current Director of Tirex Resources, Defiance Silver and Berkwood Resources. Richard Younker, CA, CMC CFO Held the senior financial consulting principal position at Woods Gordon; independent financial consultant in public and private sectors Armando Alexandri COO Over 35 years of mining experience in underground and open-pit mines as well as flotation and cyanidation processing plants H. Walter Sellmer, P. Geo Director Held senior positions at Amax Exploration, Canamax Resources Inc. and TOTAL Energold Corp. Victor Tanaka, P. Geo Director President and CEO of Bayswater Uranium Corp. Held senior positions at Asamera Inc., Freeport McMoRan Gold Corp., Aber Resources, Major General Resources, Fjordland Exploration and Pathfinder Resources. Richard Mazur, P. Geo, MBA Director President and CEO of Forum Uranium Corp. and CEO of Alto Ventures Ltd. Held senior positions at Canamax Resources and IMPACT Minerals. Peter Tredger, P. Eng, MBA Director Former Senior Officer of Thompson Creek Metals Company. Held senior positions at Glencairn Gold (now B2Gold) and Wheaton River Minerals (now Goldcorp). Jean-Pierre Bourtin, MBA Director President of a private equity firm in Connecticut, USA. Former Treasurer of Xerox Corp., Latin American and Emerging Markets. 4
  5. 5. Property Location in Mexico • Nearly 100% owned and operated 623 km² (62,300 ha) mineral exploration land package in south-central Mexico • Two contiguous mineral districts with mining activities dating back to the 1500s • A three hour drive southwest from Mexico City, with paved road access to the gate of IMPACT’s Guadalupe Production Center • Excellent infrastructure, with a modern power grid, ample water supply and a skilled, 99% Mexican workforce • Many other significant mining operations within close proximity 5
  6. 6. Prolific Mining History Zacualpan District • • Valle de Oro subdistrict Early stage exploration area The Royal Mines of Zacualpan is one of the oldest mining districts in the Americas, with over 485 years of recorded mining history IMPACT’s 623 km² land package consists of two large mineral districts and one subdistrict: The Zacualpan District and the Capire-Mamatla District, and the Valle de Oro subdistrict • IMPACT’s exploration work has catalogued over 3,000 old mine and mill workings, forming an invaluable basis for modern and effective exploration Capire District 6
  7. 7. Mine and Production Center Location Map • The 500-tpd Guadalupe Production Center is located within the Zacualpan District • The Guadalupe Production Center receives ore from three underground silver mines located within close proximity: • San Ramon Mine • Noche Buena Mine • Cuchara-Oscar Mine • The 200-tpd Capire Production Centre is located within the Capire-Mamatla District • The Capire Production Center commenced pilot production in March 2013, with test operations continuing with mineral feed from the adjacent open-pit Capire Mine 7
  8. 8. Long Term Goal and Mine Development Process To build a profitable, mid-tier, multimillion ounce precious metals producing company with multiple mines feeding multiple processing centres. Exploration and Mine Development Process Flowchart RESEARCH Compile old mines and prospects from historic maps FIELD WORK Geological mapping, surface and underground rock sampling DRILLING Drill program will be results-driven and implemented in phases MINE DEVELOPMENT Mine design, planning, permitting and construction Over 3,000 old mine workings and prospects catalogued in IMPACT’s ArcGIS database Select and prioritize favorable areas and prospects and design the drill program Current targets: • Capire (south) • Mirasol • La Condesa • Santa Efigenia • San Juan Pilot operations at Capire Plant with plans to expand to larger scale production in the future PRODUCTION & CASH FLOW • San Ramon • Noche Buena • Cuchara-Oscar • Capire 8
  9. 9. Two Production Centres Guadalupe Production Guadalupe Production Centre Centre Zacualpan District ZacualpanDistrict 500 TPD 500 TPD Capire Production Capire Production Centre Centre Capire-Mamatla District Capire-Mamatla District 200 TPD 200 TPD Flotation circuit Flotation circuit Operating capacity Operating near near capacity Pilot plantplantexpansion Pilot with with plans expansion plans Mill feed from Mill feed from San Ramon, Noche San Ramon, Noche Buena & Buena & Cuchara-Oscar Cuchara-Oscar Mines Mines Mill feed from Mill feed from Capire Mine Capire Mine (underground) (underground) (open-pit) (open-pit) 9
  10. 10. Guadalupe Production Centre • Guadalupe Production Centre (500 tpd) • Flotation circuit 10
  11. 11. Capire Mine and Production Centre • Capire Production Centre (200 tpd) pilot plant • Capire Mine (VMS, open-pit) 11
  12. 12. Four Producing Silver Mines San Ramon Noche Buena Cuchara-Oscar Capire Began production in 2008 Epithermal veins Current primary producing mine in the Zacualpan District Began production in 2010 Epithermal veins in Valle de Oro subdistrict located in the Zacualpan District Corridor of wide, high-grade epithermal veins linking legacy mines within the Cuchara Mine Complex in the Zacualpan District Volcanogenic sulfide deposit with high-grade polymetallic mineralization in the Capire-Mamatla District Contribution of total production in Q3 2013: 27% Contribution of total production in Q3 2013: 0% (In commissioning phase) Contribution of total production in Q3 2013: 41% Contribution of total production in Q3 2013: 32% 12
  13. 13. Geology of Epithermal Vein Systems Metal Level in Producing Mines Metal Zoning in Ore Shoots Strike Length 150 – 420 m (500 – 1,400 ft) Cuchara-Oscar Mine Surface – 0 m (0 ft) Silver-rich at top of vein 200 – 1,000+ g/t Ag Noche Buena Mine San Ramon Mine Depth 150 m (500 ft) Lead and Zinc-rich at bottom of vein 60 – 150 g/t Ag 300 m (1,000 ft) Valle de Oro subdistrict Exploration property, includes Carlos Pacheco Zone and San Juan Project Gold-copper at depths of 300 m+ 13
  14. 14. Exploration Targets • An abundance of attractive exploration targets across Zacualpan and Capire districts to drive organic growth and potentially advance into mine development and production. Zacualpan District • Mirasol • La Condesa • Santa Efigenia 623 km²/ 62,300 ha land package* Valle de Oro Subdistrict • Carlos Pacheco • San Juan Project • Huatescosco * Does not include the Dominican Republic claims Capire-Mamatla District • Manto Rico • Guadalupe • Aurora II Dominican Republic • Early stage exploration on legacy claims Above: Statue of miner in Zacualpan’s town square, Mexico 14
  15. 15. Production Summary Production Highlights Silver production (oz) Gold production (oz) Average mill head grade (silver grams per tonne) Total tonnes produced (t) Q3 2013 HY 2013 YE 2012 185,998 351,649 620,515 348 584 Silver-Focused Producer 629 2012 Metal Production Silver - 85.5% 171 155 138 Lead - 4.2% 38,520 84,095 168,826 Zinc - 6.1% Tonnes produced per day 419 467 463 Revenue per production tonne sold $81 $94 $94 Direct costs per production tonne $67 $67 $65 Gold - 4.2% 15
  16. 16. Financial Highlights Q3 2013 HY 2013 YE 2012 YE 2011 Revenues $3.1 $8.0 $15.9 $24.3 Operating expenses $2.7 $5.8 $10.3 $10.1 Mine operating earnings (loss) ($0.4) $1.2 $4.0 $12.9 EBITDA ($0.5) ($1.2) $1.6 $13.0 Net earnings (loss) ($1.2) ($2.6) ($1.1) $7.6 ($0.05) $0.6 $3.3 $10.2 Nil Nil Nil Nil ($0.02) ($0.04) ($0.02) $0.12 Cash and cash equivalents $6.7 $10.0 $16.0 $30.8 Working capital $9.9 $12.7 $21.4 $31.2 (CDN$000’000’s except EPS) Operating cash flow* Debt Earnings (loss) per share – basic The Company’s working capital and cash position decreased from the year ended December 31, 2012, as the Company continued to invest in the development of the Capire Mine and Production Centre, as well as continued exploration in the Zacualpan District. 16 *Before changes in non-cash working capital
  17. 17. Corporate Summary (TSX-V: IPT) All prices in Canadian Dollars As of November 28, 2013 Common shares – Issued & Outstanding 68.1M Fully Diluted 1-Year Chart Summary 74.8M Share Price 52wk Range $0.50 $0.47 - $1.28 90-Day Average Daily Volume 47,848 Market Capitalization 34.1M Insider and Institutional Ownership 14.9% Options Issued Warrants 6.7M Source: BigCharts.com Nil 17
  18. 18. Plans for Growth 2013 2014 2015 • 30,000 meter exploration drill program (completed) • Increase average silver mill feed grade (underway: Q1-146 g/t Ag; Q2 – 163 g/t Ag; Q3 – 171 g/t Ag) • Complete drilling at Mirasol Prospect and determine its potential as next producing mine (underway) • Continue drilling on the VMS targets in the Capire district • Advance towards graduation from the TSX-V to the TSX • Consider the location of an additional production center in the Zacualpan District • Define the size of the planned expansion at the Capire Processing Centre and to initiate construction the larger processing plant 18
  19. 19. Contact Us IMPACT Silver TSX-V: IPT Frankfurt: IKL Telephone 1-604-681-0172 Fax 1-604-681-6813 Email Investor Relations inquiries@impactsilver.com Meghan Brush, BBA Website www.impactsilver.com Twitter @IMPACT_Silver Corporate Address 1100 - 543 Granville Street Vancouver, BC, Canada V6C 1X8 19
  20. 20. Appendix I: Capire NI 43-101 Resource Estimate Completed February 2011 Metal Content for Capire Mine Ag (oz) Au (oz) Cu (lb) 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 (M&I) 7,224,035 30,446 7,083,007 37,264,478 95,662,993 435,959 1,919 475,594 2,260,089 5,823,490 Inferred Summary Table of Classified Mineral Resources – Measured & Indicated and Separate Inferred Zone Classification Tonnes Ag (g/t) Au (g/t) Cu (%) Pb (%) Zn (%) Capire M&I 3,104,944 46.46 0.19 0.06 0.33 0.93 Aurora 1 M&I 1,807,302 44.50 0.199 0.07 0.36 0.80 M&I 4,912,246 45.74 0.193 0.06 0.34 0.88 371,066 36.54 0.161 0.06 0.28 0.71 Total • • Inferred Drilling in 2010 showed Capire and Aurora 1 to be one continuous zone, now referred to as Capire See National Instrument 43-101 Resource Estimate on the Company website at www.impactsilver.com 20
  21. 21. Appendix II: Capire Drill Highlights A Selection of Capire Drill Highlights Drill Hole From (m) To (m) Interval (m) Ag (g/t) Au (g/t) Pb (%) Zn (%) Cu (%) C12-06 78.25 80.30 2.05 507 1.81 2.20 4.02 0.41 including 79.30 80.30 1.00 929 3.27 2.77 5.27 0.63 105.70 110.80 5.10 183 0.20 1.05 2.45 0.13 C12-21 83.35 100.10 16.75 153 0.40 1.14 2.71 0.21 including 92.40 97.00 4.60 435 0.71 3.13 5.99 0.48 C12-25 13.20 23.35 10.15 107 0.58 0.90 2.43 0.10 including 13.20 15.25 2.05 315 0.91 2.93 8.19 0.25 and • • Drill holes listed above were drilled vertically and all intersections are estimated to be close to true width See IMPACT Silver News Release dated October 25, 2012 21
  22. 22. Appendix III: Mirasol Drill Highlights A Selection of Mirasol Drill Highlights Interval (m) Ag (g/t) Au (g/t) Pb (%) Zn (%) Vein Name Z12-71 Mirasol Central 73.9 82.9 8.98 183 0.030 0.07 0.14 including Mirasol Central 75.2 82.4 7.15 216 0.040 0.08 0.16 Z12-79 Mirasol Arriba 4 111.22 113.36 2.14 119 0.014 0.07 0.18 and Mirasol Arriba 3 127.25 128.40 1.15 400 0.034 0.13 0.08 and Mirasol Arriba 1 162.60 164.48 1.88 529 0.283 0.37 1.31 Z12-80 El Deshuesadero 83.45 85.15 1.70 931 0.30 1.03 2.10 Z12-85 Mirasol Arriba 3 114.65 116.00 1.35 792 0.143 0.48 0.16 Z12-86 Mirasol 176.56 177.60 1.04 337 0.023 0.15 0.76 • • From (m) To (m) Drill Hole Discovered in November 2012, located 5.5km from Guadalupe Production Center, in Zacualpan Several high grade silver values discovered, with drill hole Z12-79 encountering seven distinct veins, all of which are contributing potentially economic silver intersections. See IMPACT Silver News Releases dated January 28, 2013 and November 26, 2012 22
  23. 23. Appendix IV: Cuchara-Oscar Drill Highlights A Selection of Cuchara-Oscar Drill Highlights Drill Hole To (m) From (m) Interval (m) Ag (g/t) Au (g/t) Pb (%) Zn (%) Z11-46 92.10 97.75 5.65 1,007 0.07 0.50 1.1 including 96.70 97.75 1.05 4,580 0.26 1.70 4.0 108.95 111.70 2.75 1,128 0.51 0.90 1.4 Z11-55 21.80 22.85 1.05 435 0.01 0.15 0.24 Z11-64 36.60 43.20 6.60 223 0.08 0.18 0.52 Z11-69 0.70 3.35 2.65 408 0.62 0.73 1.12 Z11-74 21.35 22.35 1.00 1,875 0.74 2.65 6.88 Z12-05 92.50 97.60 5.10 234 0.05 0.14 0.49 Z12-08 22.36 45.75 23.39 115 0.02 0.12 0.36 and • See IMPACT Silver News Releases dated October 26, 2011 and April 23, 2012 23
  24. 24. Appendix V: Valle de Oro Drill Highlights A Selection of Carlos Pacheco Drill Highlights Drill Hole From (m) To (m) Interval (m) Au (g/t) Ag (g/t) Cu (%) Z08-68 Top of intercept - 85.74 2.90 19.6 68 0.29 including Top of intercept - 85.74 1.0 49.7 59 0.31 Z12-13 192.30 199.00 6.70 3.84 28 0.54 including 192.30 195.05 2.75 8.47 56 1.12 Z12-23 229.85 230.95 1.10 3.82 84 0.54 A Selection of Intermediate Vein Drill Highlights Drill Hole From (m) To (m) Interval (m) Au (g/t) Ag (g/t) Pb (%) Zn (%) Z12-16 100.00 114.30 14.30 0.04 82 0.09 0.19 including 100.00 106.50 6.50 0.06 119 0.06 0.14 Z12-18 57.00 59.00 2.00 0.20 337 0.23 0.43 Z12-23 26.10 28.10 2.00 0.22 207 0.10 0.15 • In addition to the gold-copper mineralization in the Carlos Pacheco vein, other drill holes intersected Ag-Pb-Zn mineralization in the Intermediate vein cluster, located midway between the Carlos Pacheco and Noche Buena veins. See IMPACT Silver News Releases dated December 4, 2008 and July 11, 2012 24
  25. 25. Appendix VI: La Condesa Drill Highlights A Selection of La Condesa Drill Highlights Drill Hole To (m) From (m) Interval (m) Ag (g/t) Au (g/t) Pb (%) Zn (%) Z12-39 167.30 171.00 3.70 312 0.029 0.27 0.90 Z12-42 136.00 139.78 3.78 214 0.269 0.15 0.37 Z12-45 177.90 179.00 1.10 1,655 0.010 0.25 0.08 Z12-46 151.40 154.25 2.85 255 0.111 0.22 0.46 Z12-55 57.80 59.60 1.80 245 0.030 0.12 0.36 Z12-63 106.50 108.85 2.35 231 0.010 0.16 0.26 Z12-64 101.10 105.55 4.45 200 0.035 0.21 0.49 Z12-68 46.40 50.30 3.90 250 0.009 0.07 0.16 • • • La Condesa accessed through the underground workings of the historic Cuchara Mine, which is also used to access the Cuchara-Oscar Mine Mineralization from La Condesa is planned to augment the production from Cuchara-Oscar See IMPACT Silver News Release dated November 19, 2012 25
  26. 26. Appendix VII: San Juan Project Drill Highlights A Selection of San Juan Project Area Drill Highlights Drill Hole Vein Name Z13-40 From (m) To (m) True Width (m) Ag (g/t) Au (g/t) Pb (%) Zn (%) 61.70 63.15 1.31 7.9 3.956 0.10 0.19 Z13-42 Carlos Pacheco 119.30 128.60 9.02 21.3 3.894 0.98 3.28 including Carlos Pacheco 127.65 128.60 0.92 73.3 33.630 4.09 12.02 Z13-43 Carlos Pacheco 92.05 98.95 6.63 152.4 0.412 0.28 0.75 Z13-44 Noche Buena 11.60 14.00 2.07 1,409.8 0.963 0.29 0.34 including Carlos Pacheco 158.05 162.40 4.03 30.9 4.070 0.18 0.83 Z13-45 Carlos Pacheco 14.60 22.55 7.47 41.64 0.050 0.18 0.25 and Carlos Pacheco 169.00 173.00 3.78 18.3 9.350 0.04 0.08 • • These first phase drill results are from the San Juan Project Area, located in the Valle de Oro subdistrict, adjacent to the producing Noche Buena Mine The San Juan Project Area encompasses a series of old mine workings containing multiple working levels located 150m to the north of the Noche Buena Mine. These old working lie along the northern extension of the Carlos Pacheco Vein, where previous drilling intersected 19.6g/t gold across 2.9m and 3.84g/t gold across 6.7m. See IMPACT Silver News Release dated October 30, 2013 for details. 26
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