January 23, 2012 at 12:30 PM EST
IMPACT Silver 2011 Exploration Review and 2012 Outlook

IMPACT Silver Corp. ("IMPACT") is pleased to provide a

summary of its 2011 exploration program at the Royal Mines of

Zacualpan Silver District ("Zacualpan") and the adjacent

Mamatla Mineral District ("Mamatla") in Mexico. IMPACT has

over five years of consistently profitable operations, with 2011 being

a record breaking year for revenues and earnings.

Exploration in 2011 focused on the open-pit Capire Silver Mine

Development Project, the Huatecosco Gold-Silver Project and multiple

high-grade silver zones in Zacualpan including the Oscar Silver Vein

Corridor, the Chontalpan Silver Project and the Golondrinas Silver

Project. IMPACT's continued success of significantly expanding its

mining operations and its exceptional discovery rate of four new mines

in the past five years is attributed to a systematic and persistent

approach to mining exploration.

IMPACT controls two large adjacent mineral districts in Mexico,

Zacualpan and Mamatla, which comprise 623 square kilometers and

include three operating silver mines, the 500 tonnes-per-day ('tpd')

Guadalupe Processing Plant and the new open-pit Capire Mine

Development Project.

2011 Exploration Review

IMPACT's exploration increased significantly in 2011 as a result of an

expansive program focused on both surface and underground drilling.

Total drilling for 2011 surpassed the proposed 25,000 meters to 29,481

meters, up 68% from 17,520 meters drilled in 2010. Underground

drilling totaled 3,010 meters, a 37% jump from 2,197 meters in 2010,

and surface and resource drilling grew to 26,471 meters, up 73% from

15,323 meters in 2010.

IMPACT explored multiple targets in 2011 including the Oscar,

Huatecosco, Capire, Chontalpan, Golondrinas, Cerro Cuates, San Pablo

Norte and Condesa areas. Field work included extensive geological

mapping, trenching, soil sampling, prospecting, the re-opening of many

old mine workings and their systematic sampling. Surface drilling was

conducted on a number of project areas, as detailed in the following

summary.

Oscar Vein Corridor Drilling Highlights

The Oscar Vein Corridor ("Oscar"), located 2.5 kilometers

east of the Guadalupe Processing Plant, is a series of high-grade

silver veins linking the past producing Cuchara Silver mine and the

Santa Lucia Silver Zone. The 2011 Oscar drill program was conceived to

test a series of sub parallel high-grade silver veins that represent

the faulted extension to the Santa Lucia veins. Earlier drill results

for the Santa Lucia included 466 g/t silver across 3.2 meters (see

IMPACT News Release dated December 16, 2009). Previous drilling at

the Oscar returned values of 2,820 g/t silver, 7.83 g/t gold, 3.48%

lead and 7.83% zinc over 0.30 meters (see IMPACT News Release dated

January 25, 2007). The drill results from the 2011 Oscar program

include many high-grade silver intersections, as indicated in the

table below:

---------------------------------------------------------------------

|2011 Oscar Project Drill Results |

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

|Drill |Drill |From |To |Intersection|Silver|Gold |Lead|Zinc|

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

|Hole |Section|(m) |(m) |(m) |(g/t) |(g/t)|(%) |(%) |

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

|Z11-35 |18+50N |79.88 |81.20 |1.32 |156 |0.00 |0.0 |0.2 |

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

|And |  |145.90|146.25|0.35 |2,860 |0.35 |1.6 |4.6 |

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

|Z11-36 |18+50N |203.30|205.63|2.33 |109 |0.11 |1.0 |1.6 |

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

|Z11-37 |18+50N |183.95|189.20|5.25 |108 |0.19 |0.2 |0.4 |

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

|Including|  |183.95|186.08|2.13 |178 |0.40 |0.4 |0.8 |

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

|Z11-38 |18+50N |97.72 |103.70|5.98 |197 |0.02 |0.2 |0.5 |

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

|Including|  |100.47|100.92|0.45 |1,310 |0.11 |1.3 |4.0 |

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

|Z11-39 |19+00N |62.15 |63.70 |1.55 |285 |0.01 |0.2 |0.3 |

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

|Z11-40 |19+00N |59.45 |61.45 |2.00 |165 |0.01 |0.1 |0.4 |

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

|And |  |120.25|124.75|4.50 |136 |0.08 |0.3 |0.9 |

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

|Including|  |120.25|120.80|0.55 |414 |0.16 |0.4 |1.8 |

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

|Z11-41 |19+00N |72.35 |74.05 |1.70 |64 |0.00 |0.1 |0.6 |

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

|Including|  |72.35 |72.55 |0.20 |246 |0.02 |0.3 |3.4 |

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

|Z11-42 |19+50N |32.40 |39.90 |7.50 |76 |0.09 |0.2 |0.6 |

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

|Including|  |32.40 |34.55 |2.15 |162 |0.28 |0.6 |1.5 |

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

|Z11-43 |19+50N |5.05 |6.18 |1.13 |69 |0.01 |0.1 |0.2 |

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

|Z11-44 |19+50N |51.80 |82.45 |30.65 |291 |0.01 |0.1 |0.4 |

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

|Including|  |51.80 |59.25 |7.45 |780 |0.02 |0.4 |1.1 |

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

|Including|  |51.80 |52.10 |0.30 |6,730 |0.20 |1.5 |8.0 |

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

|Including|  |55.50 |55.95 |0.45 |4,240 |0.06 |2.1 |6.8 |

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

|Including|  |64.60 |70.40 |5.80 |398 |0.03 |0.2 |0.4 |

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

|Including|  |68.25 |68.95 |0.70 |1,290 |0.06 |0.2 |1.3 |

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

|And |  |139.45|146.80|7.35 |244 |0.07 |0.5 |0.9 |

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

|Including|  |140.45|144.45|4.00 |380 |0.08 |0.7 |1.3 |

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

|Z11-45 |18+00N |118.30|118.60|0.30 |530 |0.02 |0.2 |0.2 |

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

|And |  |130.20|132.50|2.30 |119 |0.00 |0.1 |0.4 |

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

|Including|  |130.20|130.80|0.60 |362 |0.01 |0.4 |1.2 |

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

|Z11-46 |17+50N |92.10 |97.75 |5.65 |1,007 |0.07 |0.5 |1.1 |

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

|Including|  |96.70 |97.75 |1.05 |4,580 |0.26 |1.7 |4.0 |

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

|And |  |108.95|111.70|2.75 |1,128 |0.51 |0.9 |1.4 |

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

|Including|  |109.70|110.80|1.10 |2,630 |0.40 |0.8 |2.2 |

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

|And |  |135.65|137.60|1.95 |111 |0.01 |0.1 |0.5 |

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

|Including|  |135.65|135.95|0.30 |537 |0.05 |0.5 |3.1 |

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

|Z11-47 |17+50N |116.60|122.40|5.80 |122 |0.01 |0.1 |0.2 |

---------------------------------------------------------------------

The final phase of the drilling program is currently underway at

Oscar, which will determine the orientation and continuity of silver

grades in the veins. Upon receiving and interpreting the final drill

results, the IMPACT mine development team will determine the

feasibility of mine production in the combined Oscar-Santa Lucia area

utilizing the existing mining infrastructure at the adjacent historic

Cuchara Mine.

Huatecosco Gold-Silver Project

In 2011, IMPACT commenced drilling on the Huatecosco Gold-Silver

Project ("Huatecosco") located 9.5 kilometers south of the

Guadalupe Processing Plant. The Huatecosco vein is one of the dominant

veins in the Zacualpan Silver-Gold District. It is a large northwest

trending structure with an inferred strike length of 16 kilometers.

This vein, along with a number of others located in the southern and

western portions of the Zacualpan District, contains elevated gold

values in addition to the silver mineralization that is characteristic

of the District. The 2011 Huatecosco drill program was designed to

test a series of gold-silver-lead-zinc-copper soil anomalies located

in the extreme southeast portion of this structure.

The first anomaly drilled was the Huatecosco Central Zone, which

contained a collection of old mine workings and returned significant

drill results, as indicated in the table below:

----------------------------------------------------------------------

|2011 Huatecosco Central Zone Drill Results |

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

|Drill |Drill |From |To |Intersection|Gold |Silver|Lead|Zinc|

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

|Hole |Section |(m) |(m) |(m) |(g/t)|(g/t) |(%) |(%) |

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

|Z11-15 |26+50 SE|92.55 |98.00 |5.45 |1.19 |59 |1.42|1.95|

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

|including|  |92.55 |94.05 |1.50 |3.82 |149 |4.10|3.80|

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

|Z11-16 |26+50 SE|156.95|159.20|2.25 |0.98 |83 |0.14|0.26|

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

|Z11-17 |27+00 SE|54.51 |59.25 |4.74 |3.44 |118 |0.59|0.81|

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

|including|  |55.08 |57.40 |2.32 |2.29 |217 |0.97|1.19|

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

|Z11-18 |27+00 SE|91.05 |96.17 |5.12 |0.72 |53 |0.81|0.71|

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

|Z11-19 |26+00 SE|110.55|117.40|6.85 |1.60 |159 |0.22|0.30|

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

|including|  |114.65|117.40|2.75 |3.53 |321 |0.43|0.57|

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

|Z11-20 |26+00 SE|167.90|178.20|10.30 |3.97 |49 |1.69|2.62|

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

|including|  |167.90|172.50|4.60 |6.96 |84 |2.89|5.11|

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

|Z11-23 |26+50 SE|344.90|347.23|3.15 |0.96 |26 |0.28|1.52|

----------------------------------------------------------------------

The Huatecosco Pedro Zone, located 300 meters northwest of the

Huatecosco Central Zone, is marked by a second

gold-silver-lead-zinc-copper soil anomaly, and is also host to an

abundance of old mine workings. Recently completed soil sampling two

kilometers further northwest on the structure indicated the presence

of two stronger soil anomalies, which are scheduled for drilling in

2012. Initial drill results from the Huatecosco Pedro Zone returned a

number of significant assays, as listed in the table below:

-----------------------------------------------------------

|2011 Huatecosco Pedro Zone Drill Results |

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

|Drill |From |To |Interval|Gold |Silver|Lead |Zinc |

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

|Hole |(m) |(m) |(m) |(g/t)|(g/t) |(%) |(%) |

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

|Z11-33 |183.55|192.6 |9.05 |0.48 |62.96 |0.62 |2.02 |

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

|Including|186.35|187.8 |1.45 |1.4 |61.69 |1.4 |4.75 |

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

|Z11-34 |228.25|233.05|4.8 |0.15 |50.66 |1.55 |6.39 |

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

|Including|231.95|232.4 |0.45 |0.16 |123 |4.01 |23.6 |

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

|Z11-48 |351.7 |355.8 |4.1 |5.22 |30.1 |0.69 |1.78 |

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

|Including|353.75|354.5 |0.75 |25 |50.1 |0.49 |1.59 |

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

|Z11-50 |197.8 |201.3 |3.5 |0.45 |108.13|1.85 |2.7 |

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

|Including|200.45|201.3 |0.85 |1.25 |220 |3.58 |6.45 |

-----------------------------------------------------------

Definition drilling is continuing at both the Huatecosco Central and

Huatecosco Pedro Zones to fully delineate these zones. When the

drilling results have been received and interpreted, IMPACT's mine

planning team will determine the feasibility of mine production at the

Huatecosco Gold-Silver Project.

Capire Silver Mine Project

The open-pit Capire Silver Project represents a new production center

in a new mining district and an opportunity that, upon successful

completion of the proposed exploration and development program, would

propel IMPACT to become a multimillion ounce silver producer.

The Capire Project, located in the Mamatla District, is 16 kilometers

southwest of IMPACT's active mining operations in Zacualpan. In

February 2011, the updated NI 43-101 compliant Measured and Indicated

Mineral Resources was announced and totaled 7.2 million ounces silver,

30,446 ounces gold, 95.6 million lbs zinc and 37.2 million lbs lead

(see IMPACT News Release dated February 1, 2011). IMPACT recently

announced the construction of the Capire Mine and pilot plant had

commenced, with first concentrate shipments scheduled for late 2012

(see IMPACT News Release dated January 11, 2012).

Subsequent to the mineral resource announcement, IMPACT completed

6,698 meters of drilling to expand the Capire zone to the north, east

and southeast (see IMPACT News Releases dated May 24, 2011 and August

17, 2011). Highlights from this expansion drilling are included in the

table below:

----------------------------------------------------------------

|2011 Capire Project Drill Results |

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

|DRILL |FROM |TO |INTERVAL|SILVER|GOLD |LEAD|ZINC|COPPER|

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

|HOLE |(m) |(m) |(m) |(g/t) |(g/t)|(%) |(%) |(%) |

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

|C11-24 |58.50 |63.50 |5.00 |304 |4.51 |1.52|3.05|0.49 |

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

|Including|59.50 |61.50 |2.00 |661 |10.83|3.06|6.05|1.06 |

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

|C11-26 |96.05 |102.65|6.60 |212 |0.37 |1.24|2.79|0.22 |

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

|Including|100.65|102.65|2.00 |496 |0.77 |2.34|4.99|0.48 |

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

|C11-27 |61.00 |75.00 |14.00 |49 |0.20 |0.57|1.44|0.09 |

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

|Including|65.00 |69.00 |4.00 |93 |0.33 |1.07|2.27|0.12 |

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

|C11-28 |58.00 |60.00 |2.00 |240 |0.34 |1.54|4.99|0.20 |

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

|C11-29 |78.25 |82.35 |4.10 |122 |0.52 |0.79|2.04|0.18 |

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

|C11-30 |54.90 |56.90 |2.00 |136 |0.17 |0.43|1.04|0.07 |

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

|C11-36 |74.70 |83.50 |8.80 |83 |0.18 |0.50|1.25|0.11 |

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

|Including|82.00 |83.50 |1.50 |298 |0.54 |1.61|3.48|0.32 |

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

|C11-38 |95.50 |103.00|7.50 |53 |0.14 |0.45|1.13|0.09 |

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

|Including|97.00 |98.00 |1.00 |166 |0.48 |1.53|3.02|0.31 |

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

|C11-39 |54.50 |56.00 |1.50 |206 |0.77 |1.14|2.14|0.17 |

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

|C11-41 |119.40|122.00|2.60 |99 |0.21 |0.97|2.38|0.12 |

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

|Including|119.40|120.45|1.05 |152 |0.31 |1.29|3.34|0.19 |

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

|C11-42 |111.80|112.30|0.50 |1,160 |3.74 |3.86|8.83|0.65 |

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

|C11-50 |21.35 |24.40 |3.05 |139 |2.95 |0.52|1.02|0.26 |

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

|Including|22.85 |24.40 |1.55 |256 |5.62 |0.97|1.82|0.49 |

----------------------------------------------------------------

The Capire Zone remains open for further expansion, with additional

drilling planned for 2012.

Chontalpan Silver Project

The IMPACT exploration team drilled an additional ten holes as they

embarked on the second phase of the Chontalpan drill program in 2011.

The second phase of the drill program was designed to further

delineate two zones of silver mineralization on trend with the

historic Chontalpan Mine, located five kilometers southeast of the

Guadalupe Processing Plant. Significant drill results included 4.38

meters grading 116.5 g/t silver (see IMPACT News Release dated June 7,

2011). Previous drill results include 2.14 meters of 402.6 g/t silver

(see IMPACT New Release dated September 15, 2010). Drilling is now

complete and IMPACT's mine planning team is currently studying the

feasibility of developing these zones into small producing mines that

may augment production from IMPACT?s principle mining operations in

the Zacualpan District.

Golondrinas Silver Project

In 2011, IMPACT added four exploration holes at the Golondrinas

Project, located three kilometers southeast the Guadalupe Plant.

Drill results included 2.84 meters grading 132.3 g/t silver (see

IMPACT News Release dated June 7, 2011). Previous drill results from

2010 included 1.03 meters of 1,045 g/t silver (see IMPACT News Release

dated October 19, 2010). Additional drilling is planned for the

northern portion of the Golondrinas area where a number of high-grade

silver intersections were discovered in 2010 (see IMPACT News Release

dated November 10, 2010).

Zacatecas Silver Project

In 2010, IMPACT completed the purchase of a 200 tpd processing plant

in the Zacatecas Silver District, in addition to the previously

purchased 10 mineral concessions with no underlying royalties (see

IMPACT News Release dated March 23, 2010). In 2011, IMPACT optioned

its Zacatecas assets to Defiance Silver Corp. (DEF: TSX.V) in return

for cash and a major share position (see IMPACT News Release dated

September 12, 2011). Defiance Silver plans to refurbish the plant and

commence commercial production with mineral feed from the IMPACT

concessions and the past producing San Acacio mine, which is presently

under option.

Early Stage Exploration

IMPACT employs highly qualified field crews who are dedicated to early

stage exploration in the two mineral districts. During 2011, the soil

sampling team collected over 15,000 samples on the Coronas Grid in

Zacualpan at 25 meter intervals on lines spaced 100 meters apart. This

soil grid connects the Noche Buena mine area with the Huatecosco and

Cerro Cuates areas. Examination and evaluation of a multitude of

prominent anomalies continues with geological mapping, prospecting and

the opening of old mine workings. The IMPACT exploration team is

currently conducting a comprehensive vein interpretation for the

entire Coronas Grid area to identify future drilling targets.

Soil sampling and prospecting has also commenced north of the

Oscar-Cuchara area, and geological mapping, rock sampling and opening

of old mine workings is ongoing in the San Pablo Norte and Santa

Efigenia areas in Zacualpan.

Data Compilation

Since 2004, IMPACT has been constructing a state-of-the-art

computerized Geographic Information System (GIS) database. At the

core of this database is information pertaining to over 2,500 old mine

workings and prospects representing almost 500 years of mining history

in the Zacualpan and Mamatla Districts. For several years the GIS

database has been the main engine for generating and prioritizing new

drill targets. In 2010, the GIS database reached a critical mass of

data that lead to the use of enhanced methods for in-depth data

analysis and the modeling of geology and exploration targets.

2012 Outlook

Exploration continued at a high level into 2012, and initial plans are

to rapidly move the Capire Silver Project into production, assess

possible production at Oscar for 2013 and continue aggressive drilling

and field work on priority targets among the approximately 2,500

compiled prospects in the Zacualpan and Mamatla Districts.

IMPACT's next mine planned to come on-stream is the open-pit Capire

Silver Project, scheduled for pilot plant production in late 2012.

IMPACT announced the commencement of construction at Capire upon

successfully receiving the final permits necessary to begin mining

activities in early 2012 (see IMPACT News Release dated January 11,

2012). Construction activities currently underway include site

preparation work, pre-stripping and tailings pond development, and

installation of the 200 tpd pilot plant. Arrangements for the initial

silver-lead-zinc concentrate shipments to the smelter are organized

for late 2012.

After successful drilling at the Oscar Silver Project in 2011,

additional drilling is continuing to complete definition of the zones

in 2012, after which the silver-rich Oscar-Santa Lucia zones will be

given to the IMPACT mine development team for feasibility and mine

planning with an aim for potential production in 2013.

The IMPACT exploration team drilled two significant targets in the

gold-rich Huatecosco trend in 2011, which will be assessed for

potential mine development in this new gold-copper-silver camp. 2012

will see the IMPACT team continue to aggressively explore this

emerging zone.

With a track record of successful exploration, rapid mine development

and more than 2,500 old mine workings in the GIS database, IMPACT's

long term growth strategy is to become a mid-tier multimillion ounce

silver producer with multiple production centers each fed by multiple

mines. The construction of a second production center at Capire in

2012 is the next important step to fulfilling this vision. IMPACT's

strong cash position and consistently positive cash flow allows for

accelerated growth through aggressive exploration and potential

accretive acquisitions.

George Gorzynski, P.Eng, Vice President and Director of IMPACT Silver,

and Brian V. Hall, P.Geo., both Qualified Persons under the meaning of

Canadian National Instrument 43-101, are responsible for the technical

information in this news release. The Capire mineral resource

estimates in this news release were taken from a technical report

(posted on www.sedar.com ) by Claus G. Wiese, P.Eng, I-Cubed LLC, an

independent professional engineer.

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

adjacent 200 square kilometer advanced Mamatla Silver District

including the Capire Mine Development Project, and an option agreement

for a major share position in Defiance Silver Corp. (DEF: TSX-V) in

return for IMPACT's 200 tpd mill and mineral concessions in the

Zacatecas Silver District. Additional information including maps of

IMPACT's projects can be found on the company website at

www.IMPACTSilver.com.

On behalf of the Directors of IMPACT Silver Corp.,

"Frederick W. Davidson"

President & CEO

For further information, please contact:

Meghan Brush, Investor Relations

(604) 681 0172 or inquiries@impactsilver.com

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 is 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.

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