1. C O R P O R AT E P R E S E N T AT I O N │ M AY 2 0 1 2
T S X – V : I P T │ F R AN K F U R T : I K L │ I S I N : C A4 5 2 5 7 A1 0 2 1
2. DISCLAIMER
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.
George Gorzynski, P.Eng., a Qualified Person under the meaning of Canadian National Instrument 43-101,
is responsible for the technical information in this presentation.
1
3. CORPORATE HIGHLIGHTS
• Corporate focus is mining at a profit
• Consistently maintains a strong cash position & zero debt
• 90% of revenues from unhedged silver
• Friendly-to-investor, tightly managed share structure (73M Shares FD)
2
4. TECHNICAL HIGHLIGHTS
ROYAL MINES OF ZACUALPAN
• Three operating silver mines
in Mexico feeding a central .
processing plant
• Two new mines scheduled for
initial production in late 2012
• Plan to double silver
production in three years
• Ownership of two silver
districts covering 248 square
miles (643 square kilometers)
• Substantial exploration
potential based on extensive
silver mining history
3
5. LOCATION
• Located a three-hour
drive from Mexico City
with a paved road right
to the front gate of the
plant
• Excellent infrastructure
with modern electric
power grid, ample water
supplies & skilled work
force (99% Mexican)
• Many other significant
mining operations in the
surrounding area
4
6. HISTORY
• The Royal Mines of Zacualpan
is one of the oldest mining
districts in the Americas with
485 years of recorded mining
history
• Over 2,700 old mine workings
have been catalogued and
form the basis for modern and
effective exploration
• IMPACT Silver bought the
Zacualpan assets in 2006
One of 30 historic processing plants found in the
and then consolidated district attesting to a long history of silver mining
ownership of the entire district
for the first time in its history
5
7. MINE PRODUCTION
ROYAL MINES OF ZACUALPAN
• Three producing mines –
San Ramon, Chivo,
Noche Buena
• In 2011 the three mines
averaged 421 tonnes
per day (tpd) at 5.7
oz/tonne (195 g/t) silver
• In 2011 the cash cost per
ounce of silver was $9 net
of lead and zinc credits
• All three mines feed
the central Guadalupe
Processing Plant
This map is reproduced in miniature on following slides
6
8. MINERAL PROCESSING
GUADALUPE AND CAPIRE PLANTS
OPERATING UNDER CONSTRUCTION
• Guadalupe Processing Plant, Zacualpan • Capire Pilot Plant, Mamatla
• 500-tpd crushing and flotation circuit • 200-tpd Pilot Plant being installed
with expansion plans for 2015
7
9. NEW MINE DEVELOPMENT #1
OSCAR 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
OLD CUCHARA MINE
• Oscar is a silver vein
corridor on the
southern extension
of the past-producing
Cuchara Mine
NEW OSCAR MINE
• Pre-existing Cuchara Mine
SANTA LUCIA ZONE
mining infrastructure will
contribute to a low capital
costs and rapid mine
development at Oscar
8
10. NEW MINE DEVELOPMENT #1
OSCAR MINE
• Oscar and Santa Lucia host high grade veins as found in the following drill holes:
OSCAR CORRIDOR DRILLING HIGHLIGHTS SANTA LUCIA ZONE DRILLING HIGHLIGHTS
True True
Drill Silver Gold Lead Zinc Drill Silver Gold Lead Zinc
Width Width
Hole (g/t) (g/t) (%) (%) Hole (g/t) (g/t) (%) (%)
(m/ft) (m/ft)
31m / 1.4m /
Z11-44 291 0.01 0.1 0.4 Z09-35 600 0.10 - -
101.7ft 4.6ft
7.5m / 6.3m /
Including 780 0.02 0.4 1.1 Z09-47 278 0.01 0.2 0.7
24.6ft 20.7ft
5.8m / 3.2m /
Including 398 0.03 0.2 0.9 Including 467 0.01 0.2 1.1
19.0ft 10.5ft
5.7m / 1.0m /
Z11-46 1,007 0.07 0.5 1.1 Z09-50 602 0.02 0.1 0.1
18.7ft 3.3ft
2.8m / 2.4m /
Including 1,128 0.51 0.9 1.4 Z09-53 419 0.03 0.3 0.3
9.2ft 7.9ft
1.1 / 1.1m /
Including 4,580 0.26 1.7 4.0 Z09-55 372 0.01 0.1 0.2
3.6ft 3.6ft
6.6m / 2.1m /
Z11-64 223 0.08 0.2 0.5 Z09-58 274 0.10 0.4 1.2
21.7ft 6.9ft
1.0m / 1.1m /
Z11-74 1,875 0.74 2.7 6.9 Z10-03 588 0.05 0.4 2.0
3.3ft 3.6ft
23.4 / 1.7m /
Z12-08 115 0.02 0.1 0.4 Including 394 0.07 1.1 1.6
76.8ft 5.6ft
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11. NEW MINE DEVELOPMENT #2
CAPIRE MINE
Defined NI 43-101
Plant Open for
Mineral Resources
expansion
Site
Open for expansion
Tailings Facility Capire Open for expansion
Open Pit
3D Model Processing Plant Site
Open-Pit Tailings
Facility
Capire Mine Site Capire Mine Open Pit Model
• The Capire Mine represents a new production center in a new
mining district
• Three-phase strategy to bring Capire to full-scale production in 2015:
o 2012: Construction of 200-tpd Pilot Plant and 5,000 m drill program
o 2013: Pilot Plant production (~200,000 oz silver) to optimize
operating parameters for expansion plans
o 2014: Construction of full scale plant (800-1,500 tpd) with goal to
produce 1M oz silver per year starting in 2015
10
12. CAPIRE PROJECT
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 Table 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
Grand Total Measured + Indicated 4,912,246 45.74 0.193 0.06 0.34 0.88
Grand Total Total Inferred 371,066 36.54 0.161 0.06 0.28 0.71
• Initial production planned on higher grade sections
• Drilling is continuing at Capire and other nearby zones to expand mineral resources
11
13. GEOLOGY
METAL DISTRIBUTION IN ORE ZONES
• Mineral zones in the
Depth Length Mining Level
Royal Mines of Zacualpan 500-1400ft (150-420m)
District tend to be silver- 0 ft (0m)
Silver-rich at top Oscar Mine
rich near the top
(commonly 1,000+ g/t) 200 – 1,000 g/t+ Ag
Noche Buena Mine
with increasing lead and
zinc, and decreasing San Ramon Mine
silver toward the bottom 500 ft (150m)
• New discoveries indicate Lead & Zinc rich
that significant gold and at bottom Chivo Mine
copper may lie at depth 1,000 ft (300m) 60 – 150 g/t Ag
Carlos Pacheco
Typical
Gold (Copper) Gold-Copper Zone
Mining Width at depth
10 ft (3m) Host to high grade
Gold
11
14. VALLE DE ORO
GOLD POTENTIAL AT DEPTH
• First gold-copper zone found by company prospectors in a
canyon below known silver veins
• Initial drill results on two zones returned high gold values
(see tables below)
• These initial results indicate a potential gold district lying at
depths of 1,000 ft (300 m) below the silver district
• Drilling will test gold targets at depth on other silver veins
CARLOS PACHECO DRILLING HIGHLIGHTS HUATECOSCO DRILLING HIGHLIGHTS
Drill True Width Gold Silver Copper Drill True Width Gold Silver Lead Zinc
Hole (m/ft) (g/t /opt) (g/t) (%) Hole (m/ft) (g/t /opt) (g/t) (%) (%)
4.1 m / 5.22 g/t /
2.1 m / 11.3 g/t / Z11-48 30 0.7 1.8
Z08-65 18 - 13.5 ft 0.15 opt
6.9 ft 0.33 opt
0.8 m / 25.00 g/t/
1.2m / 18.8 g/t / Including 50 0.5 1.6
2.6 ft 0.73 opt
Including 24 -
3.9 ft 0.55 opt
Z11-17 3.2 m / 3.44 g/t /
118 0.6 0.8
2.9 m / 19.6 g/t / 10.5 ft 0.10 opt
Z08-68 68 0.29
9.5 ft 0.57 opt 1.8m / 3.53 g/t /
Z11-19 321 0.4 0.6
5.9 ft 0.10 opt
1.0 m / 49.7 g/t /
Including 59 0.31 9.5 m / 3.97 g/t /
3.3 ft 1.45 opt Z11-20 49 1.7 2.6
31.2 ft 0.12 opt
1.7 m / 31.1 g/t /
Including 69 0.31 4.2 m / 6.96 g/t /
5.6 ft 0.91 Including 84 2.9 5.1
13 13.9 ft 0.20 opt
15. RAPID EXPLORATION
TO MINE DEVELOPMENT
• A cornerstone of IMPACT Silver’s success is rapid mine development to generate
near-term cash flow
• Since 2006, IMPACT’s successful team has discovered and built three new mines
with two additional mines now under construction
EXPLORATION AND MINE DEVELOPMENT PROCESS FLOWCHART:
RESEARCH FIELD WORK DRILLING MINE
DEVELOPMENT MINE
Compile old Surface & Drilling in PRODUCTION
mines/ underground phases Mine Planning,
AND CASH
prospects from sampling, based on Permitting and
FLOW
historic maps mapping success Construction
• Capire (North)
More than • Capire • San Ramon
• Pilarica
2,700 old Select
• Condesa & • Noche
mine and areas and • Oscar
Cuchara North Buena
prospects prospects
catalogued for drilling • Carlos Pacheco • Santa Lucia • Chivo
to date • Huatecosco
First Drill Hole to Production: 12 – 24 Months
(Chivo, San Ramon Extensions, Noche Buena)
14
16. ZACATECAS OPTION AGREEMENT
DEFIANCE SILVER CORP. (TSX.V:DEF)
• IMPACT Silver optioned its
Santa Gabriela Processing Plant
200-tpd Santa Gabriela
Processing Plant and ten
mineral concessions in
Zacatecas, Mexico to Defiance
Silver for cash and a 16.5%
share position (September 2011)
• Defiance Silver plans to marry
IMPACT’s processing plant with
their San Acacio Silver Mine
(18M oz Silver defined) and
begin production in 2013
San Acacio Silver Mine
15
17. ROYAL MINES OF ZACUALPAN
SILVER PRODUCTION
% Change
2011 2010 2009 2008 2007 2006
2006-2011
Total tonnes processed (t) 154,289 131,348 114,340 102,426 99,918 68,173 +126%
Tonnes processed per day (t) 424 360 313 280 274 196 +116%
Silver (oz) Production 833,607 750,259* 823,571 645,668 349,949 465,673 +79%
Lead (t) Production 731 734 969 813 601 375 +95%
Zinc (t) Production 1,248 1,212 1,098 1,053 976 725 +72%
Revenue per production tonne
sold $171 $123 $110 $90 - - +90%
Direct cost per tonne sold $70 $63 $60 $55 $44 $60 +17%
*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
• Consistent organic growth with low-cost production
• 2011 direct cost per tonne sold averaged $70 per tonne or $9 per ounce
of silver net of lead and zinc credits
16
19. LONG-TERM VALUE PLAY
FUNDAMENTAL DATA
Recent 52 Wk $1.26-
$1.40
Share Price Range $2.42
Basic – 68M
Shares Avg Vol
Fully Diluted – 120,000
Outstanding (3m)
73M
Market Cap 95M Warrants Nil
Largest Shareholders
Sprott Asset Management,12% & Energold Drilling Corp,11%
Share Price Performance, 3 Years Source: Stockwatch, May 2012
CAPITAL EXPENDITURE USE EFFICIENCY ($CDN)*
Total funds raised since start Property payments, plant & equipment, Cash Position
of operations in January, 2006 and exploration expenditures (Dec 31, 2011)
$25 Million $38 Million $30.8 Million
18
20. FUTURE PLANS AND GOALS
2012
• Maintain production while completing construction of two new mines
at Oscar and Capire
• Continue aggressive exploration to accelerate organic growth at the
Royal Mines of Zacualpan
• With $20M+ of unallocated cash and profitable production, pursue
accretive merger and acquisition opportunities
2013-2015
• Double silver production with expansion of Capire Mine
• Continue exploration and potential development of a deep gold
district beneath the Zacualpan silver district
19
21. ROYAL MINES OF ZACULAPAN
LONG TERM STRATEGY
To become a Multimillion Ounce Silver Producer with Multiple Processing Centers
1. Guadalupe Production Centre
• Oscar Silver Mine scheduled for
production in late 2012
• Current ore feed from San Ramon,
Noche Buena and Chivo Mines 1
2. Capire Production Centre
• Initial production through 200-tpd pilot
plant, scheduled for late 2012
• Expansion to full scale plant planned for
2015
3. Valle de Oro Gold and Silver Area
• Area of many silver veins with gold
3
mineralization at depth
• Large drill program underway
• Potential site of a third processing plant 2 4
4. Southeast Exploration Area
• Currently mapping numerous old
mine workings, early stage exploration
20
22. THANK YOU
Contact Us
Telephone: 1 604 681 0172
Email: inquiries@impactsilver.com
www.impactsilver.com