October 12, 2011 at 17:14 PM EDT
IMPACT Silver Corp. Drills 4.1m of 5.2g/t Gold at New Zone at Huatecosco Gold Project, Mexico

IMPACT Silver Corp. ("IMPACT" or "the Company") is pleased to announce discovery of another new zone of gold rich mineralization at the Huatecosco Project on the 423-square-kilometer Royal Mines of Zacualpan District of central Mexico. The new Huatecosco Pedro Zone is located 300m northwest of the Huatecosco Central Zone where previous drilling included 6.96 g/t gold across 4.24m true width (see IMPACT News Release dated June 2, 2011 for details).

Initial results from the new Huatecosco Pedro Zone are as follows:

Huatecosco Northwest Zone Drill Results

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|DRILL HOLE|FROM (m)|TO (m)|INTER- |GOLD |SILVER|LEAD (%)|ZINC (%)|

| | | |SECTION|(g/t)|(g/t) | | |

| | | |(m) | | | | |

|-----------------------------------------------------------------|

|  |  |  |  |  |  |  |  |

|-----------------------------------------------------------------|

|Z11-33 |183.55 |192.60|9.05 |0.48 |62.96 |0.62 |2.02 |

|-----------------------------------------------------------------|

|Including |186.35 |187.80|1.45 |1.40 |61.69 |1.40 |4.75 |

|-----------------------------------------------------------------|

|  |  |  |  |  |  |  |  |

|-----------------------------------------------------------------|

|Z11-34 |228.25 |233.05|4.80 |0.15 |50.66 |1.55 |6.39 |

|-----------------------------------------------------------------|

|Including |231.95 |232.40|0.45 |0.16 |123.00|4.01 |23.60 |

|-----------------------------------------------------------------|

|  |  |  |  |  |  |  |  |

|-----------------------------------------------------------------|

|Z11-48 |351.70 |355.80|4.10 |5.22 |30.10 |0.69 |1.78 |

|-----------------------------------------------------------------|

|Including |353.75 |354.50|0.75 |25.00|50.10 |0.49 |1.59 |

|-----------------------------------------------------------------|

|  |  |  |  |  |  |  |  |

|-----------------------------------------------------------------|

|Z11-50 |197.80 |201.30|3.50 |0.45 |108.13|1.85 |2.70 |

|-----------------------------------------------------------------|

|Including |200.45 |201.30|0.85 |1.25 |220.00|3.58 |6.45 |

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The Huatecosco Project is located 9.5 kilometers due south of IMPACT'S 500-tonne-per-day Guadalupe processing plant. It covers one of several gold rich veins in this part of the district which are different from the silver rich veins that IMPACT is currently mining further north. Huatecosco is on a major structure that strikes northwesterly and is thought to be one of longest and dominant in the Zacualpan District, having an inferred strike length in excess of 16 kilometers based on the alignment of old mine workings having similar mineralogy. To date, soil sampling over a three kilometer portion of the Huatecosco structure has outlined five en-echelon gold-silver-lead-zinc-copper soil anomalies, of which only three have been drill tested resulting in the discovery of the Huatecosco Central and Huatecosco Pedro Zones.

The soil anomaly over the Huatecosco Pedro Zone measures 250m by 150m and contains the historic Watecosco, Pedro and Jocoyala underground workings from which rock samples collected by the Company's field crews grade up to 1.6 g/t gold and 170 g/t silver along with values of 10.1% zinc and 10.3% lead. Drilling is continuing on the Huatecosco Pedro Zone as it remains open for expansion along strike in both directions.

At the Huatecosco Central Zone, recently completed drill holes intersected veins returning lower grades which delineate the southeast and depth extents. The zone remains open for expansion to the northwest where four more drill holes are planned. Once this zone has been drill delineated, the Company's mine development group will undertake metallurgical testing and an economic evaluation to determine the feasibility of bringing the Huatecosco Central Zone into production.

Brian Hall, P. Geo. and Nigel Hulme, P. Geo., Qualified Persons under the meaning of Canadian National Instrument 43‑101, are responsible for the technical content of this news release.

IMPACT Silver Corp. is a silver focused mining and exploration company operating in Mexico with a producing silver operation at the 423-square-kilometer Royal Mines of Zacualpan Silver District, the 200-square-kilometer advanced Mamatla Silver District including the Capire Mine Development Project, and an option agreement with Defiance Silver Corp. in return for IMPACT's 200-tonne-per-day mill and mineral concessions in the Zacatecas Silver District. Additional information can be found on the Company's website at www.IMPACTSilver.com .

On behalf of the Directors of IMPACT Silver Corp.,

"Frederick W. Davidson"

President, CEO

For further information, please contact:

Sunny Pannu, Investor Relations

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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.

1100-543 Granville StreetTelephone 604 681-0172

Vancouver, BC, Canada V6C 1X8Facsimile 604 681-6813

www.IMPACTSilver.com inquiries@IMPACTSilver.com

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