IMPACT Silver Announces Record Revenues, Earnings and Production for the Year Ended 2011

IMPACT Silver Corp. ("IMPACT or "the Company") is

pleased to announce record financial and production results for the

year ended December 31, 2011.

-

2011Highlights

-Record revenues of $24.3 million, up 46% from $16.7 million in 2010.

-Record net earnings of $7.6 million, up 121% from $3.4 million in

2010, and basic earnings per share up 71% to $0.12, compared to $0.07

in 2010.

-Record mine operating earnings of $12.9 million, up 73% from $7.4

million in 2010.

-Record cash flow from operations before changes in non-cash working

capital of $10.2 million, up 89% from $5.4 million in 2010.

-Cash balance of $30.8 million, up 65% from $18.7 million in 2010.

-Record silver production of 833,607 ounces, up 11% from 750,259

ounces in 2010.

-Throughput for the mill averaged 424 tonnes per day

("tpd"), up 18% from 360 tpd in 2010.

2011 Production Highlights

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

|  |2011 |2010 |% Change|

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

|Total tonnes (t) produced |154,289|131,348|+17% |

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

|Tonnes produced per day |424 |360 |+18% |

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

|Silver production (oz) |833,607|750,259|+11% |

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

|Lead production (t) |731 |734 |-0.4% |

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

|Zinc production (t) |1,248 |1,212 |+3% |

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

|Gold production (oz) |676 |600 |+13% |

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

|Revenue per production tonne sold|$171.00|123.25 |+39% |

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

|Direct costs per production tonne|$69.71 |63.29 |+10% |

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

Fourth Quarter 2011 Consolidated Highlights

The Company generated revenues in the fourth quarter of $4.8 million,

compared to $6.8 million in the fourth quarter of 2010. Net earnings

for the fourth quarter totaled $0.6 million with earnings per share of

$0.01. Mine operating earnings were $1.3 million, compared to $3.5

million in the fourth quarter in 2010.

Fourth quarter silver production was 169,755 ounces compared to

203,259 ounces in the fourth quarter of 2010, as a result of revised

cut-off grades which slightly reduced the average ounce per tonne.

Additionally, in the third quarter of 2011, the smelter receiving

IMPACT's concentrate would not accept shipments for upwards of 30 days

due to a lack of capacity. IMPACT continued to produce and stockpile

the lead-silver concentrate and in mid-October recommenced shipments

to the smelter. The net realizable value of the unshipped inventories

at December 31, 2011, was $1.0 million. IMPACT continues to ship and

sell the stockpiled concentrate in 2012.

2012 Outlook

IMPACT will focus its efforts on developing the Capire

silver-lead-zinc deposit in the Mamatla District, anticipating the

open-pit Capire Project to move into pilot plant production in the

fourth quarter of 2012. Exploration activities have the IMPACT team

aggressively drilling at Huatecosco-Carlos Pacheco, a potential new

gold district, to determine the significance of recent drill results

from multiple targets indicating high-grade gold mineralization in the

deeper zones. Expansion drilling is currently underway at the

Huatecosco zone to also identify the economic feasibility of a future

processing plant in the area. The Oscar Project, a corridor of

multiple high-grade epithermal silver veins, saw extensive drilling in

2011. Drill results are presently being studied by the IMPACT team to

determine the potential to fast-track the Oscar into production in

early 2013.

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, and the

200-square-kilometer advanced Mamatla Silver District and a 16.6%

share holding in Defiance Silver Corp. The complete version of the

audited Financial Statements and the MD&A is available on SEDAR at

www.sedar.com or the Company's website, www.impactsilver.com. A

recorded conference call will be available on the Company's website on

Tuesday, April 3, 2012.

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.

1100-543 Granville StreetTelephone 604 681-0172

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

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