IMPACT Silver Reports Q2 2026 Results: Revenue Increased by 124%, Gross Profit up 756% on Silver Leverage, Higher Grades

IMPACT Silver Corp. announces its financial and operating results for the second quarter and six-month period ended June 30, 2026. The Company is pleased to report Q2 2026 revenue of $22.0 million, representing a 124% increase over $9.8 million in Q2 2025, driven by higher realized silver prices and increased grades and production at the Zacualpan silver-focused operation. For the first six months of 2026, consolidated revenue grew to $53.1 million up from $20.5 million in the prior-year period. Q2 2026 gross profit reached $8.7 million compared to $1.0 million in Q2 2025, bringing six-month gross profit to $29.1 million compared to $3.2 million a year earlier. Net income for Q2 2026 improved to $2.8 million, or $0.01 per share, compared to a net loss of $2.0 million, or $(0.01) per share in Q2 2025. For the six-month period ending June 30, 2026, net income reached $14.1 million, or $0.04 per share, compared to a net loss of $2.1 million, or $(0.01) per share, in 2025. At quarter-end, the Company had $52.2 million in cash, $52.2 million in working capital, and no long-term debt. During the quarter, 4.0 million share purchase warrants were exercised for proceeds of $1.4 million.

Our second quarter results reflect the benefit of higher silver prices combined with improved grades from the Kena vein at Zacualpan, which together drove a substantial increase in revenue and a second consecutive quarter of significant net income. At Plomosas, we took decisive action in the previous quarter to temporarily suspend underground mining while we reassess the operation's cost structure and evaluate options for its longer-term future, including the processing of third-party feed through our plant. With $52.2 million in cash, no long-term debt, and strong cash flow from Zacualpan, we are well positioned to continue optimizing our flagship operation, advance exploration at both Zacualpan and Plomosas, and evaluate the potential rehabilitation of the Capire mill, all while we look for opportunities to further build shareholder value.

Zacualpan continued to benefit from ongoing mine and mill improvements, with Q2 2026 production at the Zacualpan-Guadalupe mill increasing 8% to 36,908 tonnes from 34,173 tonnes in Q2 2025. More importantly, silver equivalent production from the Guadalupe Complex increased 39% to 221,385 ounces, compared with 159,298 ounces a year earlier. The increase was driven in part by a significant improvement in mill feed grades, with average silver head grades rising 31% to 207 g/t from 158 g/t in Q2 2025. Silver now represents approximately 97% of the production value at Zacualpan, highlighting the strong leverage the operation provides to silver prices. Zacualpan delivered a strong quarter, with revenue more than doubling to $18.5 million in Q2 2026 from $7.4 million in Q2 2025. Gross profit increased more than five-fold to $10.8 million, compared with $2.0 million a year earlier. Cost of sales at Zacualpan was $7.8 million in Q2 2026, compared with $5.3 million in Q2 2025. Operating expenses increased to $7.4 million from $4.9 million, reflecting inflationary and foreign exchange pressures, additional salary payments to union employees and increased underground development. This resulted in a 9% increase in operating expenses per silver equivalent ounce produced to $33.34, compared with $30.65 in Q2 2025. Exploration at Zacualpan continued to deliver high-grade results during the quarter, with drilling extending the Carlos Pacheco Vein at the Noche Buena Mine.