Slide 1: Corporate Presentation June 2012
C O R P O R AT E P R E S E N T AT I O N │ J U N E 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
Slide 2: Disclaimer
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 statem
Slide 3: Corporate Highlights
CORPORATE HIGHLIGHTS • Corporate focus is mining at a profit • Consistently maintains a strong cash position and zero debt • 90% of revenues from unhedged silver • Friendly-to-investor, tightly managed share structure (73M Shares FD) 2
Slide 4: Technical Highlights: Royal Mines of Zacualpan
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 (6
Slide 5: Location
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 and skilled work force (99% Mexican) • Many other significant mining operations in the surrounding area 4
Slide 6: History
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 o
Slide 7: Mine Production: Royal Mines of Zacualpan
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 cen
Slide 8: Mineral Processing: Guadalupe and Capire Plants
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
Slide 9: New Mine Development #1: Oscar Mine
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 OS
Slide 10: New Mine Development #1: Oscar Mine Drilling
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
Slide 11: New Mine Development #2: Capire Mine
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 repres
Slide 12: Capire Project NI 43-101 Mineral Resource Estimate
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 37,264,4
Slide 13: Geology
GEOLOGY METAL DISTRIBUTION IN ORE ZONES • Mineral zones in the Depth Length Mining Level Royal Mines of Zacualpan 500-1,400 ft (150-420 m) District tend to be silver 0 ft (0 m) Silver rich Oscar Mine rich near surface (commonly 1,000+ g/t) 200 – 1,000 g/t+ Ag Noche Buena Mine with increasing lead an
Slide 14: Valle de Oro: Gold Potential at Depth
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 at depths of 1,000 ft (300 m) b
Slide 15: Rapid Exploration to Mine Development
RAPID EXPLORATION TO MINE DEVELOPMENT • A cornerstone of IMPACT’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 PROCES
Slide 16: Zacatecas Option Agreement: Defiance Silver Corp
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
Slide 17: Royal Mines of Zacualpan Silver Production
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* 823,571 645,668 349,949 465,67
Slide 18: Consistently Profitable
CONSISTENTLY PROFITABLE % Change 2011 2010 2009 2008 2007 2006* 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 $10.2 $5.4 $3.7 $2.2 $1.9 $2.6 +292% Cash & Cash $30.8 $18.7 $5.3 $5.4 $10.1 $4.0 +670% Equivalents EPS $0.1
Slide 19: Long-Term Value Play
LONG-TERM VALUE PLAY FUNDAMENTAL DATA Recent 52 Wk $1.26- $1.47 Share Price Range $2.42 Basic – 68M Shares Avg Vol Fully Diluted – 120,000 Outstanding (3m) 73M Market Cap 100M Warrants Nil Largest Shareholders Sprott Asset Management,12% & Energold Drilling Corp,11% Share Price Performance, 3 Years
Slide 20: Future Plans and Goals
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 CAD$20M+ of unallocated cash and profitable production, pursue accretive merger a
Slide 21: Royal Mines of Zacualpan Long Term Strategy
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 C
Slide 22: Thank You
THANK YOU Contact Us Telephone: 1 604 681 0172 Email: inquiries@impactsilver.com www.impactsilver.com