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CORPORATE PRESENTATION │ DECEMBER 2012
TSX–V:IPT │ FRANKFURT:IKL
CAUTIONARY DISCLAIMER 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
December 2012
Profitable silver production in Mexico: Advanced portfolio of mines in operation
Corporate focus is on profits: 1,390% increase in net earnings from 2006 to 2011
A strong cash position of $19.6M as of Q3 2012, no debt and 90% of revenues from silver
Developing new mining district: Capire Mine and Processing Plant in Mexico
Investor-friendly, tightly managed share structure (72M Shares FD)
Why IMPACT Silver?
2
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
2006 2007 2008 2009 2010 2011 As ofSept. 30
2012
Revenues
Earnings before taxes
Operating cash flow before changes innon-cash working capital
Board of Directors
Frederick W. Davidson, CA – President & CEO, Director
• 35+ years mining & corporate finance experience
• Founding President of IMPACT Silver Corp. & Energold Drilling Corp.
• Held senior management positions at Erickson Gold Mines Ltd. and Mt. Skukum Gold Mines.
George A. Gorzynski, P. Eng – VP Exploration, Director
• 30+ years of international mineral exploration and mining experience. Currently Director of Tirex Resources Ltd., Defiance Silver Corp. and Berkwood Resources Ltd.
H. Walter Sellmer, P. Geo – Director
• Held senior management positions at Amax Exploration, Canamax Resources Inc. and TOTAL Energold Corp.
Victor A. Tanaka, P. Geo – Director
• Held senior positions in mineral exploration at Cominco, Asamera, Freeport McMoRan, Aber, Major General, Fjordland and Pathfinder. Currently President & CEO of Bayswater Uranium.
Richard J. Mazur, P. Geo, MBA – Director
• Held senior management positions at Canamax Resources Inc. and IMPACT. Currently CEO of Alto Ventures Ltd. and President & CEO of Forum Uranium Corp.
Peter N. Tredger, P. Eng, MBA – Director
• Held senior management positions at Glencairn Gold Corp., Wheaton River Minerals Ltd. and Blue Pearl Mining Ltd. Currently VP of Thompson Creek Metals Company Inc.
Jean-Pierre Bourtin, MBA – Director
• Former Treasurer of Xerox Corp., Latin America & Emerging Markets. Currently President & Money Manager of a private investment firm in Wilton, Connecticut. 3
Year-To-Date 2012 Financial Highlights
Financial Results Nine Months Ended
September 30th , 2012
Revenue $11.3 million
Mine operating earnings $3.6 million
Earnings before taxes $1 million
Net earnings (loss) after taxes $(0.3) million
Earnings per share $0.00
Operating cash flows, before non-cash working capital changes $2.4 million
Shares issued & outstanding 68 million
Fully diluted shares 72 million
Cash $19.6 million
Debt Nil
Working capital $26.9 million
4
Growth in Production
Nine Months
Ended
Sept 30 2012
Year Ended
Dec 31
2011
Year Ended
Dec 31
2010
Year Ended
Dec 31
2009
Year Ended
Dec 31
2008
Year Ended
Dec 31
2007 Change 2007-2011
Silver (oz) 472,182 833,607 750,259 114,340 645,668 349,949 138%
Gold (oz) 465 676 600 - - - 13%
Lead (t) 384 731 734 969 813 601 22%
Zinc (t) 611 1,248 1,212 1,098 1,053 976 28%
Total tonnes
milled 125,956 154,289 131,348 114,340 102,426 99,918 54%
Tonnes
milled/day 463 424 360 313 280 274 55%
Rev/tonne $98 $171 $123 $110 $90 $- 90%
Cost/tonne $63 $70 $63 $60 $55 $44 59%
5
Strong Asset Base in Mexico
Strong asset base with control of two adjacent and operating mining districts
in Mexico
A three-hour drive southwest from Mexico
City
Excellent infrastructure with paved road access to
mil and ample water supply
Many other significant mining operations nearby:
Grupo Mexico, First Majestic, Goldcorp, Peñoles
IMPACT employs a highly skilled, 99%
Mexican workforce with substantial mining
experience in Mexico 6
Zacualpan – Mamatla Silver Districts
2012 Production: • Chivo Mine
• San Ramon Mine
• Noche Buena Mine
• Gallega
Exploration: • Valle de Oro zone
Huatecosco Vein
Carlos Pacheco Vein
Pilarica Vein
• Zacualpan District
La Condesa Vein
Mirasol Prospect
• Capire zone
Acquired the Zacualpan land package in 2006; Mamatla in 2007
In Development: • Capire Mine
• Oscar Mine
7
Geography
Two adjacent mineral districts totaling 623 sq km, located in central Mexico, the world’s top silver producing country in 2011
Epithermal, mesothermal and VMS mineralization within land package
Rolling hills and deep valleys provide various depths to access mineralization
Substantial exploration potential for both gold and silver
Foreground: Zacualpan
Background: Mamatla
8
Two Silver Districts, One Land Package
Current active mining center with three underground silver mines in production: San Ramon, Noche Buena and Gallega
The Chivo Mine, in operation since January 2007, was phased out of production during the fourth quarter of 2012
New underground high-grade Oscar Mine is scheduled for production in early 2013
The districts’ central mill, the Guadalupe Processing Plant, is rated at 500 tpd; year-to-date mill throughput is 463 tpd
Substantial exploration potential for gold in Valle de Oro zone, a new subdistrict recently discovered within the Zacualpan Silver District
ROYAL MINES OF ZACUALPAN
.
A new mineral district for IMPACT; the Mamatla claim position covers 200 sq km (77 sq miles)
Capire Mine and Processing Plant, the first operation in the district, is scheduled for initial pilot plant production in early 2013
Capire pilot plant is rated at 200 tpd, estimated annual throughput of ~200,000 ounces of silver once in production
Capire Mine is an open-pit VMS deposit with NI 43-101 measured and indicated resources of 7.2M oz Ag and 30,446 oz Au (January, 2011)
Several VMS targets in close proximity to Capire Mine to be drilled in 2013
MAMATLA SILVER DISTRICT
9
Core Assets
San Ramon Mine – Commenced production in early 2008; mill feed in Q3 2012 – 50%
Large and wide zone of high-grade epithermal silver stockwork breccia style mineralization.
Noche Buena Mine – Commenced production in 2010; mill feed in Q3 2012 - 27%
Noche Buena is located in the Valle de Oro zone and contributes a silver-gold feed with low lead and zinc contents to the Guadalupe mill. This feed is used to optimize concentrate value.
Gallega Mine – Production was restarted in late 2012 to augment the declining silver grades
at the Chivo Mine; mill feed in Q3 2012 - 13%. Gallega will continue to supply modest silver-rich feed to the Guadalupe mill until the Oscar Mine is in production.
Capire Mine – Open-pit, VMS deposit with high-grade polymetallic mineralization.
Construction and pre-stripping for the open-pit is advancing with the initial test milling this winter.
Oscar Mine – Corridor of many wide and high-grade silver veins linking the legacy Cuchara Mine and the Santa Lucia zone. Scheduled to commence production winter 2012.
Valle de Oro – A large gold-copper vein system indicate a potential new gold district in the Zacualpan District. Major veins mapped to date are the Carlos Pacheco and Huatecosco.
10
Geology
MINERALIZATION IN ORE SHOOTS
Depth
Surface (0m / 0 ft)
150 m (500 ft)
300 m (1,000 ft)
Oscar Mine
San Ramon Mine
Chivo Mine Phased out in Q4 2012
Noche Buena Mine
Strike 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
Mining Level
Carlos Pacheco/
Huatecosco Zone Typical
Mining Width
3 m (10 ft)
Veins in the Zacualpan
District tend to be silver-rich near
the top
(commonly 1,000+ g/t)
Increasing lead and zinc & decreasing
silver towards the
bottom
Significant gold and copper
may lie at depth
11
Royal Mines of Zacualpan – Prolific Mining History
The Royal Mines of Zacualpan is one of the oldest mining districts in the Americas, with 485 years of recorded mining history
Over the past six years, IMPACT’s thorough exploration efforts have resulted in over 3,000 old mine workings catalogued in the GIS database, forming the basis for modern and effective exploration
IMPACT bought the Zacualpan assets in 2006 and 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
12
Two Production Centres
Guadalupe Processing Plant,
Zacualpan District
- 500 TPD
- Operating at 486 TPD (as of Sept 30, 2012)
- Crushing and flotation circuit
Capire Pilot Processing Plant,
Mamatla District
- 200 TPD plant scheduled for pilot production in early 2013
- CAPEX - $8 million (funded internally through capital and cash flow)
- Plant infrastructure is built to accommodate future expansion
13
Potential for additional processing centres may be constructed in the future to support increased mill throughput, as a result of ongoing successful exploration.
Capire Mine & Processing Centre
Production on the Capire volcanogenic massive sulphide (VMS) deposit represents new mining operations in a new mining district
The 200 tpd pilot plant will be used to optimize mining and processing parameters towards planning for a larger plant in the future
The Capire open-pit deposit will be the first mine in the Mamatla District, scheduled for production in early 2013
The Capire area hosts epithermal silver and base metal veins as well as VMS base and precious metal mineralization
Future production from a larger plant at Capire is anticipated to propel IMPACT into a multimillion ounce silver producer
Capire Pilot Plant, November 2012
14
Mamatla Exploration
VMS mineralization in Mamatla is predominantly silver-rich with zinc, lead, copper and gold credits
Mamatla covers the same stratigraphy as the Campo Morado VMS belt, where Nyrstar N.V. is in commercial production on the G-9 deposit
Several VMS targets in close proximity to Capire will be drilled: Guadalupe, Cruz Blanca, Santa Rita & Aurora
15
NI 43-101 Mineral Resource Estimate – Capire Mine
Metal Content for Capire Mine Ag (oz) Au (oz) Cu (lb) 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 (M&I) 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 of Classified Mineral Resources – Measured & Indicated and Separate Inferred
Zone Classification Tonnes Ag g/t Au g/t Cu (%) Pb (%) Zn (%)
Capire M&I 3,104,944 46.46 0.19 0.06 0.33 0.93
Aurora 1 M&I 1,807,302 44.50 0.199 0.07 0.36 0.80
Total M&I 4,912,246 45.74 0.193 0.06 0.34 0.88
Inferred 371,066 36.54 0.161 0.06 0.28 0.71
• Drilling in 2010 showed Capire and Aurora 1 to be one continuous zone, now referred to as Capire.
• Initial mining grades anticipated to be 150 g/t silver
16
Published: February 2011
Capire Drill Highlights – November 2012
Drill
Hole
From
(m)
To
(m)
Interval
(m)
Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
Cu
(%)
C12-06 78.25 80.30 2.05 507 1.81 2.20 4.02 0.41
including 79.30 80.30 1.00 929 3.27 2.77 5.27 0.63
and 105.70 110.80 5.10 183 0.20 1.05 2.45 0.13
C12-21 83.35 110.10 16.75 153 0.40 1.14 2.71 0.21
including 92.40 97.00 4.60 435 0.71 3.13 5.99 0.48
C12-25 13.20 23.35 10.15 107 0.58 0.90 2.43 0.10
including 13.20 15.25 2.05 315 0.91 2.93 8.19 0.25
• Drill holes listed above were drilled vertically and all intersections are estimated to be close to true
width.
• These holes expanded to the extent of the Capire mineralization to the north and south; the zone
remains open for further expansion to the east.
17
Capire Open-Pit Mine Design
Open-pit 3D model Initial open-pit mine site, Mamatla District
Open-pit
200 tpd pilot mill
Remains
open for
expansion
Mill
Tailings facility
Area of defined
NI 43-101 Resource
3D model of
planned
open-pit
Strategy to bring Capire Mine &
Processing Centre to full-scale production
2012
Build the 200 tpd pilot plant; 5,000
meter drill program
(90% complete)
2013 & 2014
Production goal of ~200,000 ounces
annually and ongoing drilling to optimize
operating parameters for future plant
expansion
2015 & 2016
Construction of full-scale, permanent
processing plant in the Capire zone; size
will be determined from exploration and
pilot plant results
18
N
Oscar Mine
Oscar is a high-grade silver vein corridor linking the past-producing Cuchara Mine and the Santa Lucia zone, located 2.5km east of the Guadalupe Mill in Zacualpan
Production at Oscar-Santa Lucia is scheduled for early 2013, with silver-rich mineralization to feed the 500 tpd Guadalupe Mill
Utilizing the legacy Cuchara Mine infrastructure allows for lower capital costs and rapid mine development at Oscar
19
Oscar-Santa Lucia Drill Highlights
A Selection of Oscar Vein Drill Highlights
Drill Hole To (m) From (m) Interval (m) Ag (g/t) Au (g/t) Pb (%) Zn (%)
Z11-64 36.60 43.20 6.60 223 0.08 0.18 0.52
including 36.60 37.40 0.80 1,270 0.23 0.86 1.66
Z11-69 0.70 3.35 2.65 408 0.62 0.73 1.12
Z11-74 21.35 22.35 1.00 1,875 0.74 2.65 6.88
and 90.00 91.24 1.24 835 0.12 1.28 1.78
Z12-05 92.50 97.60 5.10 234 0.05 0.14 0.49
A Selection of Santa Lucia Drill Highlights
Z09-47 60.60 66.90 6.30 278 0.01 0.15 0.70
including 63.72 66.90 3.18 467 0.01 0.24 1.11
including 63.72 64.65 0.93 1,185 0.02 0.65 3.30
Z09-53 216.13 218.52 2.39 419 0.03 0.28 0.32
See News Releases dated: April 23, 2012 and December 16, 2009 20
Valle de Oro – Emerging Gold District
First gold-copper zone found by IMPACT’s exploration team in a canyon below the known silver veins in the Zacualpan District.
Initial drill results indicate a significant gold and copper zone at depths of 300 meters below the silver district, 9km east of the Guadalupe Processing Plant.
Two dominant veins identified in the Valle de Oro zone: The Huatecosco Vein and the Carlos Pacheco Vein.
The Huatecosco Vein is on a major structure that strikes northwesterly, thought to be one of the longest in the Zacualpan District.
The Carlos Pacheco Vein, a parallel vein located 200m east of the Noche Buena Mine, with gold-copper mineralization.
Northwest view of Carlos Pacheco and Noche Buena area
21
Valle de Oro – Drill Highlights
A Selection of Carlos Pacheco Drill Highlights
Drill Hole From (m) To (m) Interval (m) Au (g/t) Ag (g/t) Cu (%)
Z08-68 Top of intercept - 85.74 2.90 19.6 68 0.29
including Top of intercept - 85.74 1.0 49.7 59 0.31
Z12-13 192.30 199.00 6.70 3.84 28 0.54
including 192.30 195.05 2.75 8.47 56 1.12
Z12-23 229.85 230.95 1.10 3.82 84 0.54
A Selection of Huatecosco Drill Highlights
Drill Hole From (m) To (m) Interval (m) Au (g/t) Ag (g/t) Pb (%) Zn (%)
Z11-17 54.51 59.25 4.74 3.44 117.6 0.59 0.81
Z11-19 114.65 117.40 2.75 3.53 320.8 0.43 0.57
Z11-20 167.90 178.20 10.30 3.97 48.7 1.69 2.62
including 167.90 172.50 4.60 6.96 84.3 2.89 5.11
Z11-48 351.70 355.80 4.10 5.22 30.10 0.69 1.78
including 353.75 354.50 0.75 25.0 50.10 0.49 1.59
22 See News Releases dated July 11, 2012, October 12, 2011 and June 2, 2011
Summary of Operations
IMPACT’s goal is to build a multimillion ounce precious metals producer with multiple processing centers in multiple districts
1
4
3
2
1. Zacualpan Silver District • The San Ramon, Noche Buena and
Gallega Mines currently feed the 500 tpd
Guadalupe Processing Plant
• Oscar Mine is next near-term producer
2. Capire Mine & Processing Centre • New production centre in new district
• Initial production through 200-tpd pilot plant
• Multiple gold and silver targets in area
3. Valle De Oro • Area of many silver veins with gold and
copper mineralization at depth
• Exploration program currently underway
• Potential site of a third processing plant
4. Southeast Exploration Area • Currently mapping numerous old
mine workings, early stage exploration
23
Mine Development Process
RESEARCH
Compile old
mines/
prospects from
historic maps
DRILLING
Drilling in
phases
based on
success
MINE
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
Prioritize and
select
areas and
prospects
for drilling
• Capire (North)
• Pilarica
• Condesa &
Cuchara North
• Carlos Pacheco
• Huatecosco
• San Ramon
• Noche
Buena
• Gallega
• Capire
• Oscar -
Santa Lucia
A cornerstone of IMPACT’s success has been rapid mine development to increase mill throughput and generate near-term cash flow
EXPLORATION AND MINE DEVELOPMENT PROCESS FLOWCHART:
24
Yearly 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 $10.6 $5.4 $3.7 $2.2 $1.9 $2.6 292%
Cash $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%
25
Long-term Value Play
MARKET INFORMATION December 2012
Recent Share
Price $1.25
52 Wk
Range
$0.96 -
$2.18
Shares
Outstanding
Basic:
68 M
FD:
72 M
Avg Vol
(3m) 98,448
Market Cap 85M Warrants Nil
Two Largest Ownership Positions ( >10%):
Sprott Asset Management & Energold Drilling Corp.
CAPITAL UTILIZATION ($CDN)
Shareholder capital
raised from January 2006
to December 2011
Equity generated by
increasing retained
earnings
Total revenue
generated to date
Funds spent on property,
plant, equipment (PP&E)
and exploration
expenditures
Revenue in
excess of
PP&E and
exploration
expenditures at Sept. 30, 2012
$44.9M $10.1M $55.0M $35.9M $19.1M 26
1 Year Share Price Performance Source: Big Charts, November 2012
Zacatecas Option Agreement – Defiance Silver Corp
IMPACT Silver optioned its 200-tpd Santa Gabriela Processing Plant and 10 mineral concessions to Defiance Silver Corp. for a 16.5% share position and a future cash payment of $1.95M
Defiance Silver is a near term silver producer exploring in the Zacatecas Mining District in Mexico (TSX-V: DEF)
Defiance Silver plans to utilize IMPACT’s Santa Gabriela plant with their San Acacio Silver Mine (18M ounces of silver defined)
Santa Gabriela Processing Plant
San Acacio Silver Mine
27
Future Plans & Goals
• Continue exploration and expansion of mining activities which move toward becoming a multimillion ounce silver producer
2014 & 2015
• Continue aggressive exploration to accelerate organic growth
• Pursue accretive M&A opportunities of advanced stage assets
2013
• Marked as a transition year as IMPACT winds down the Chivo Mine and builds two new mines (one within a new mining district), laying the foundation for the next phase of profitable silver production growth
2012
28
Why IMPACT Silver?
Five years of increasing
revenues and earnings
Strong cash position & zero
debt
Expanding silver production with two new mines commencing
production in the winter of
2012/2013 Aggressive exploration for
gold and silver in the Valle de Oro
zone
Tight share structure and
small market cap for a profitable
junior silver producer
Proven history of profitable mining
success
29
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.