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IMPACT Silver Begins Preliminary Operations at New Capire Production Centre

IMPACT Silver Corp. ("IMPACT" or the "Company") is pleased to announce the start of preliminary operations at its second production centre in Mexico, the new Capire Production Centre ("Capire").

The open-pit Capire mine and pilot processing operation is located in northern Guerrero State in south-central Mexico. Construction of the 200 tpd (tonne-per-day) pilot plant is now complete and first concentrate shipments are expected within the second quarter of 2013.

The Capire Production Centre hosts an initial 200 tpd flotation circuit pilot plant, with the objective to significantly expand processing operations in the future. The purpose of the 200 tpd pilot plant and mining operation is to determine the future production costs and cut-off grades for a possible larger plant and provide near-term operating cash flow. Production revenues are projected to come from silver with zinc, lead, gold and possibly copper byproducts.

Exploration drilling is continuing both to expand the Capire deposit and to test nearby satellite silver prospects. A minimum 10,000 meter drill program is planned for the Capire area in 2013. Among other factors, the level of drilling success through 2013 and into 2014 will determine the size of the future plant expansion. The main mineralized zones in the Capire area are volcanogenic massive sulphide (VMS) base metal deposits with elevated silver values (see IMPACT's Updated N1 43-101 Report on Mineral Resources of the Capire-Aurora1 Project dated January 28, 2011 at www.sedar.com for details).

Infrastructure is good throughout the Capire area with gravel road networks, gentle topography, a new electric power line, water supplies and a local work force augmented by personnel from IMPACT's Royal Mines of Zacualpan Silver Production Center, located a 40 minute drive to the north. Photos chronicling the development of the Capire Mine and Processing Plant are available on the Company website at www.IMPACTSilver.com.

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 content of this news release.

Source: http://www.impactsilver.com

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