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CORPORATE PRESENTATION │ SEPTEMBER 2012
TSX–V:IPT │ FRANKFURT:IKL │ OTC: ISVLF
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
• Profitable silver production in Mexico: Three 100% owned and operated mines
• Corporate focus is on profits: 553% increase in net earnings from 2009 to 2011
• A strong cash position of $23.1M and zero debt and 90% of revenues from silver
• Building a new mining district: Capire Mine and Processing Plant in Mamatla, Mexico
• Friendly-to-investor, tightly managed share structure (73M Shares FD)
CORPORATE HIGHLIGHTS
2
LOCATION
• Two mineral districts in a
large contiguous 623 sq km
land package
• A three-hour drive from
Mexico City with paved road
access to operating plant
• Excellent infrastructure:
modern electric power grid,
ample water supply and a
skilled Mexican work force
• Many other significant
mining operations nearby
3
HISTORY
• The Royal Mines of Zacualpan
is one of the oldest mining
districts in the Americas with
485 years of recorded mining
history
• Over 3,000 old mine workings
have been catalogued and
form the basis for modern and
effective exploration
• IMPACT bought the Zacualpan
assets in 2006 and then
consolidated ownership of the
entire district for the first time
in its history
One of 30 historic processing plants found in the
district attesting to a long history of silver mining
4
TWO DISTRICTS, ONE LAND PACKAGE
• Current active mining center
• Large 100% owned claim position
covers 423 sq km (163 sq miles)
• Central 500 tpd mill fed by three
underground mines: San Ramon,
Chivo & Noche Buena
• New underground Oscar mine
scheduled for production late
2012
• Substantial exploration
potential for both silver and gold
ROYAL MINES OF ZACUALPAN SILVER DISTRICT
.
5
This map is reproduced in miniature on following slides
MINE PRODUCTION
ROYAL MINES OF ZACUALPAN
• 500 tpd Guadalupe Mill fed by
the San Ramon, Chivo and
Noche Buena mines
• YE 2011:154,289 tonnes
produced, average of 424 tpd
at 5.7 oz/ton (195 g/t) silver
recovered
• YE 2011: 833,607 silver ounces
produced
• YE 2011: $9 cash cost per
ounce silver net of lead and
zinc credits
• YE 2012: Oscar mine
scheduled for production
6
SILVER PRODUCTION
2011 2010 2009 2008 2007 2007 %
Change 2006-2011
Total tonnes processed (t) 154,289 131,348 114,340 102,426 99,918 99,918 +126%
Tonnes processed / day (t) 424 360 313 280 274 274 +116%
Silver (oz) Production 833,607 750,259* 823,571 645,668 349,949 349,949 +79%
Gold (oz) Production 676 600 - - - - -
Lead (t) Production 731 734 969 813 601 601 +95%
Zinc (t) Production 1,248 1,212 1,098 1,053 976 976 +72%
Revenue per production tonne
sold $171 $123 $110 $90 - - +90%
Direct cost per tonne sold $70 $63 $60 $55 $44 $44 +17%
• Strong organic growth marked by rapid mine development with first drill hole to
mine production in less than 24 months
• Currently building two mines: underground Oscar mine and open-pit Capire mine
• 2011 direct cost per tonne sold averaged $70 per tonne or $9 per ounce of silver net
of lead and zinc credits
*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
7
TWO PRODUCTION CENTERS
OPERATING
• Guadalupe Processing Plant, Zacualpan
• 500-tpd crushing and flotation circuit
UNDER CONSTRUCTION
• Capire Processing Plant, Mamatla
• 200-tpd pilot plant being installed
with future expansion plans
8
TWO DISTRICTS, ONE LAND PACKAGE
• Newest mineral district in
IMPACT’s land package, located
16 km southwest of Zacualpan in
Mamatla, Mexico
• Mamatla concession covers 200
sq km (77 sq miles)
• Capire open-pit VMS deposit will
be the first mine in the district
• Initial production from 200 tpd
pilot plant, currently under
construction
• Future silver production from
Capire is anticipated to propel
IMPACT into a multimillion
ounce silver producer
CAPIRE DISTRICT
.
9
Capire Mine & Processing Plant, September 2012
NEW MINE DEVELOPMENT #1
CAPIRE PRODUCTION CENTER
• Capire mine represents a new production center in a new
mining district
• Strategy to bring Capire to full-scale production:
o 2012: Construction of 200-tpd pilot plant and 5,000 m drill program
o 2013 & 2014: 200 tpd pilot plant production (~200,000 oz silver
annually) to optimize operating parameters for expansion plans
o 2015: Construction of full scale plant (800-1,500 tpd) with goal to
produce over 1M oz silver annually
Capire Mine site Capire Mine: Open pit model
Plant
Site
Defined NI 43-101
Mineral Resources Open for
expansion
Open for expansion Capire
open pit
3D Model Processing Plant Site
Tailings Facility
10
Tailings Facility
Open-Pit
CAPIRE
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 of 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 portion of Capire
• Drilling is continuing at Capire to expand mineral resources
• Capire zone lies in the same stratigraphy as Campo Morado where Nystar (formerly Farrallon
Resources) is in production on the large G-9 VMS deposit, which is on trend 45 km southwest
of Capire 11
NEW MINE DEVELOPMENT #2
OSCAR MINE
OLD CUCHARA MINE
OSCAR MINE
SANTA LUCIA ZONE
12
• Oscar is a silver vein
corridor on the southern
extension of the past-
producing Cuchara 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
• Pre-existing Cuchara mine
mining infrastructure will
contribute to low capital
costs and rapid mine
development at Oscar (<1yr)
NEW MINE DEVELOPMENT #2
OSCAR MINE
• Oscar and Santa Lucia host high grade veins as found in the following drill holes:
OSCAR CORRIDOR DRILLING HIGHLIGHTS
Drill
Hole
True
Width
(m/ft)
Silver
(g/t)
Gold
(g/t)
Lea
d
(%)
Zinc
(%)
Z11-44 31m /
101.7ft 291 0.01 0.1 0.4
Including 7.5m /
24.6ft 780 0.02 0.4 1.1
Including 5.8m /
19.0ft 398 0.03 0.2 0.9
Z11-46 5.7m /
18.7ft 1,007 0.07 0.5 1.1
Including 2.8m /
9.2ft 1,128 0.51 0.9 1.4
Including 1.1 /
3.6ft 4,580 0.26 1.7 4.0
Z11-64 6.6m /
21.7ft 223 0.08 0.2 0.5
Z11-74 1.0m /
3.3ft 1,875 0.74 2.7 6.9
Z12-08 23.4 /
76.8ft 115 0.02 0.1 0.4
SANTA LUCIA ZONE DRILLING HIGHLIGHTS
Drill
Hole
True
Width
(m/ft)
Silver
(g/t)
Gold
(g/t)
Lead
(%)
Zinc
(%)
Z09-35 1.4m /
4.6ft 600 0.10 - -
Z09-47 6.3m /
20.7ft 278 0.01 0.2 0.7
Including 3.2m /
10.5ft 467 0.01 0.2 1.1
Z09-50 1.0m /
3.3ft 602 0.02 0.1 0.1
Z09-53 2.4m /
7.9ft 419 0.03 0.3 0.3
Z09-55 1.1m /
3.6ft 372 0.01 0.1 0.2
Z09-58 2.1m /
6.9ft 274 0.10 0.4 1.2
Z10-03 1.1m /
3.6ft 588 0.05 0.4 2.0
Including 1.7m /
5.6ft 394 0.07 1.1 1.6
13
GEOLOGY
METAL DISTRIBUTION IN ORE ZONES
Depth
0 m (0 ft)
150 m (500 ft)
300 m (1,000 ft)
Oscar Mine
San Ramon Mine
Chivo Mine
Noche Buena Mine
Length
150-420 m (500-1400 ft)
Silver-rich at top
200 – 1,000+ g/t Ag
Lead & Zinc rich
at bottom
60 – 150 g/t Ag
Gold (Copper)
at depth
Host to high grade
Gold
Mining Level
Carlos Pacheco
Gold-Copper Zone Typical
Mining Width
3 m (10 ft)
• Veins in the Royal Mines of
Zacualpan District tend to
be silver-rich near the top
(commonly 1,000+ g/t) with
increasing lead and zinc
and decreasing silver
toward the bottom
• New discoveries indicate
that significant gold and
copper may lie at depth
• Capire zone is a different
type of mineralization: a
volcanogenic massive
sulfide (“VMS”) deposit
14
VALLE DE ORO
GOLD POTENTIAL AT DEPTH
• First gold-copper zone found by company prospectors in a canyon below the
known silver veins
• Initial drill results on two zones returned high gold values (see tables below)
• These initial drill 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
HUATECOSCO DRILLING HIGHLIGHTS
Drill
Hole
True Width
(m/ft)
Gold
(g/t /opt)
Silver
(g/t)
Lead
(%)
Zinc
(%)
Z11-48 4.1 m /
13.5 ft
5.2 g/t
0.16 opt 30 0.7 1.8
Including 0.8 m /
2.6 ft
25.0 g/t
0.75 opt 50 0.5 1.6
Z11-17
3.2 m /
10.5 ft
3.4 g/t
0.10 opt 118 0.6 0.8
Z11-19 1.8m /
5.9 ft
3.5 g/t
0.11 opt 321 0.4 0.6
Z11-20 9.5 m /
31.2 ft
3.97 g/t
0.12 opt 49 1.7 2.6
Including 4.2 m /
13.9 ft
6.96 g/t
0.21 opt 84 2.9 5.1
CARLOS PACHECO DRILLING HIGHLIGHTS
Drill Hole True Width
(m/ft)
Gold
(g/t /opt)
Silver
(g/t)
Copper
(%)
Z08-65 2.1 m /
6.9 ft
11.3 g/t 0.34
opt 18 -
Including 1.2m /
3.9 ft
18.8 g/t
0.56 opt 24 -
Z08-68 2.9 m /
9.5 ft
19.6 g/t
0.59 opt 68 0.29
Including 1.0 m /
3.3 ft
49.7 g/t
1.49 opt 59 0.31
Including 1.7 m /
5.6 ft
31.1 g/t
0.93 opt 69 0.31
Z12-13
Including
2.8 m /
9.0 ft
8.5 g/t
0.26 opt 56 1.12
15
TECHNICAL SUMMARY
IMPACT’s goal is to build a multimillion ounce precious metals
producer with multiple processing centers
1
4
3
2
1. Guadalupe Production Center
• Oscar Silver Mine scheduled for
production in late 2012
• Current ore feed from San Ramon, Noche
Buena and Chivo Mines
2. Capire Production Center
• New production centre in new district
• Initial production through 200-tpd pilot plant
• Multiple gold and silver targets in district
3. Valle De Oro Gold & Silver Area
• Area of many silver veins with gold and
copper mineralization at depth
• Large drill program currently underway
• Potential site of a third processing plant
4. Southeast Exploration Area
• Currently mapping numerous old
mine workings, early stage exploration
16
RAPID EXPLORATION
TO MINE DEVELOPMENT
RESEARCH
Compile old
mines/
prospects from
historic maps
DRILLING
Drilling in
phases
based on
success
MINE &
DISTRICT
DEVELOPMENT
Mine Planning,
Permitting and
Construction
FIELD WORK
Surface &
underground
sampling,
mapping
MINE
PRODUCTION
& CASH
FLOW
More than
3,000 old
mines and
prospects
catalogued
to date
Select
areas and
prospects
for drilling
• Capire (North)
• Pilarica
• Condesa &
Cuchara North
• Carlos Pacheco
• Huatecosco
• San Ramon
• Noche
Buena
• Chivo
• Gallega
• Capire (new
mining district)
• Oscar
• Santa Lucia
First Drill Hole to Production: 12 – 24 Months
• A cornerstone of IMPACT’s success is rapid mine development to generate near-term cash flow
• Since 2006, IMPACT’s team has successfully discovered and built three new mines with two additional mines now under construction
(Chivo, San Ramon Extensions, Noche Buena)
EXPLORATION AND MINE DEVELOPMENT PROCESS FLOWCHART:
17
FINANCIAL SUMMARY
($000’000’s CDN except of EPS) 2011 2010 2009 2008 2007 2006* % Change
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
Flow* $10.2 $5.4 $3.7 $2.2 $1.9 $2.6 +292%
Cash & Cash
Equivalents $30.8 $18.7 $5.3 $5.4 $10.1 $4.0 +670%
Working Capital $31.9 $20.2 $6.3 $7.3 $11.3 $5.2 +467%
EPS $0.12 $0.07 $0.02 $0.01 $0.01 $0.01 +1,100%
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
2006 2007 2008 2009 2010 2011
Revenue
Net Earnings
Operating Cash Flowbefore changes innon-cash operatingcapital*
* Royal Mines of Zacualpan project purchased by IMPACT Silver in January 2006
18
LONG-TERM VALUE PLAY
MARKET INFORMATION – SEPT 2012
Recent
Share Price $1.55
52 Wk
Range
$0.96 -
$2.35
Shares
Outstanding
Basic – 68 M
FD – 73 M
Avg Vol
(3m) 125,000
Market Cap 105 M Warrants Nil
Largest Positions
Sprott Asset Management, 12%
Energold Drilling Corp, 11%
CAPITAL EXPENDITURE USE EFFICIENCY ($CDN)*
Total funds raised since start of
operations in January, 2006
Property payments, plant & equipment,
and exploration expenditures
Cash Position
(June 30th, 2012)
$25 Million $38 Million $23 Million
19
Share Price Performance, 3 Years Source: Stockwatch, Sept 2012
ZACATECAS OPTION AGREEMENT
DEFIANCE SILVER CORP. (TSX.V:DEF)
• IMPACT Silver optioned its
200-tpd Santa Gabriela
Processing Plant and ten mineral
concessions to Defiance Silver
for cash and a 16.5% share
position
• Defiance Silver is a near term
silver producer exploring in the
Zacatecas Mining District in
Mexico
• Defiance Silver plans to marry
IMPACT’s Santa Gabriela plant
with their San Acacio Silver Mine
(18M oz Silver defined)
Santa Gabriela Processing Plant
San Acacio Silver Mine
20
FUTURE PLANS AND GOALS
2012
• 2012 is a transition year as IMPACT builds two new mines, laying the
foundation for the next phase of profitable silver production growth
• Continue aggressive exploration to accelerate organic growth at the
Royal Mines of Zacualpan
• With over $23 million of unallocated cash and consistent production
earnings, pursue accretive merger and acquisition opportunities of
near term production or cash-strapped precious metals companies
worldwide
2013 to 2015
• Double silver production with expansion of Capire Production Center
• Continue exploration and development of both silver zones and deep
gold zones within the gold-rich Valle de Oro zone 21
WHY IMPACT SILVER?
• Five years of increasing
revenues and earnings
• Strong cash position & zero
debt
• Expanding silver production
with two new mines
commencing production within
the next five months
• Aggressive exploration for gold
and silver in the Valle de Oro
• Tight share structure and small
market cap for a profitable
producer
• Proven history of profitable
mining success
22
This statue of a miner is located in front of the
church in the town of Zacualpan, signifying the
importance and acceptance of mining within
the community and the surrounding areas.