IMPACT Silver Corp.

Good day, ladies and gentlemen. Welcome to Impact Silver's Q2 2026 period ending June 30th, 2026 Financial and Production Results Conference Call. Before we begin, we would like to go over our disclosure statements, followed by Mr. Fred Davidson's comments on the quarterly results and the Q&A period. Certain statements in the following conference call regarding Impact Silver's core business operations may constitute four looking statements. Such statements are not historical facts, but are predictions about the future, which inherently involves risk, uncertainties, and could cause actual results to differ materially from those contained in the forelooking statements. I would like to now turn it over to Fred Davidson, President and CEO of Impact Silver.

Thanks, Jerry. I've got to admit, it's always great to have a quarter like this and a first half like this, in fact. So it's been a good year for a good year so far. Starting off with some of the numbers, it's revenue for the second quarter was and the rest of the world. and the gross profit for the six months was $29 million compared to $3 million in the year before. So overall, there's a heck of a way to start off the new year. Obviously, the things that are impacting it are the price of metals are obviously dramatically up. As well, we had significant improvement in grades over the quarter and the year for the year to date. The average grade... For instance, June 30th, 2025, for the quarter, was 158 grams a ton. We averaged over 200 grams per ton in this quarter. And year-to-date, we've averaged 229 grams a ton compared to 158 grams a ton. Obviously, grade is important and we can thank the Kenner for it. We advertised that a while ago. I don't think people truly appreciated that it was significant and is as significant as it is now. As we go forward, we're working into an area called San Ramon and San Ramon South Deep's Thank you for joining us. We had, as we've advertised, been rebuilding the shaft, which was, I guess, last built in about 1950, 1960. And the track system underground at the Guadalupe, because Guadalupe continues to provide our principal source of ore. And it's got, of course, the... It's fed now by the Kena as well as our traditional veins there. So that's going forward and I've got to admit it's really quite exciting to see it happen. The other mines are still consistently producing and they're moderate grades and what have you. But those two, the San Ramon and the Kena and the Guadalupe are our principal source of feed. Overall, The average price we received in the second quarter was $67.91 per ounce, and that's up from $34.83. So you can see there's been a fairly dramatic increase there. And the realized gold price was $4,283 as opposed to $3,317. So yes, grade, tonnage, price, you can't ask for a better combination. and as everybody knows, our stock is highly leveraged to that type of thing. We are a relatively small producer, but we are a very pure producer. 97% or thereabouts of our grade is traditionally the silver production and the other 3% is Things like lead sink. So going forward, we're looking at, subject to our friends south of the border, we're looking at continued strength in the price of metal and continued strength in terms of grades and time. Other things happening. We're looking at Capiri now. Obviously, prices have changed and changed our perspective. Then, of course, we've had the rather exciting results out at the Carlos Pacheco, where we're running over kilos in certain cases on some of the holes. So we're going to have an extensive program on that. It's high-grade. It's brand new in terms of our We did have an original understanding of Carlos Pacheco. We thought it was limited. It's now opening up to the north, and so the exploration there is dramatic. And finally, at Plamosa, we've been test running ore from other suppliers. We haven't signed off any of it yet. It's got to make money for us, otherwise we won't be doing it. But overall, I think we're looking at a strong balance of the year. We've averaged four cents for the first six months yield per shareholder, per share rather, and I'm not sure we'll get quite that comparable to the first quarter, which was dramatic, but certainly we're seeing growing strength both in production grade and metal prices. Cash in bank is over $50 million. We have no long-term debt. Our working capital is the equivalent as well. And we don't expect any substantial changes in that other than as we expand. When we start developing Capiri, we'll obviously be spending some capex there. And the rest of it is our expiration program. We're going to be accelerating the expiration program as we've always sort of funded it based on the amount of cash available. and that's been always tough in this business. We're going to be bringing two more rigs on site and that'll bring our surface fleet up to about three rigs at Sequalpan and an underground rig as well because we've still got 200 square kilometers of project, number of targets and a lot of them haven't been tested yet. So it's going to be an exciting year in 2027 as we accelerate our exploration there. Overall, it's just been a good six months. Period.

Perfect. Thanks Fred for that overview. Here are some of the questions we compiled and received from investors in emails and calls this quarter. In the future, please feel free to send questions to inquiries at impactsilver.com or call me directly at 778- 867-7909. Question 1. Great quarter, Fran and Jerry. Finally net income for the second quarter in a row. Looking forward to the rest of the year. With significant cash on hand, will there be any sort of buyback considered for IMPACT?