IMPACT Silver Intersects New High Grade Silver Veins at Oscar Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 20, 2011) - IMPACT Silver Corp ("IMPACT" or "the Company") (TSX VENTURE:IPT) is pleased to announce high grade silver values in initial drilling results at the Oscar Project. Oscar is located only 2.5 kilometers east of the Company's operating 500-tpd (tonnes per day) Guadalupe processing plant in the 423-square-kilometer Royal Mines of Zacualpan District of central Mexico. Initial results from this first phase drilling are as follows:

Oscar Project Drill Results

Drill Hole	Section	From (m)	To (m)	Intersection (m)	Silver (g/t)	Gold (g/t)	Lead (%)	Zinc (%)
Z11-35	18+50N	79.88	81.20	1.32	156	0.00	0.0	0.2
And		145.90	146.25	0.35	2,860	0.35	1.6	4.6
Z11-36	18+50N	203.30	205.63	2.33	109	0.11	1.0	1.6
Z11-37	18+50N	183.95	189.20	5.25	108	0.19	0.2	0.4
Including		183.95	186.08	2.13	178	0.40	0.4	0.8
Z11-38	18+50N	97.72	103.70	5.98	197	0.02	0.2	0.5
Including		100.47	100.92	0.45	1,310	0.11	1.3	4.0
Z11-39	19+00N	62.15	63.70	1.55	285	0.01	0.2	0.3
Z11-40	19+00N	59.45	61.45	2.00	165	0.01	0.1	0.4
And		120.25	124.75	4.50	136	0.08	0.3	0.9
Including		120.25	120.80	0.55	414	0.16	0.4	1.8
Z11-41	19+00N	72.35	74.05	1.70	64	0.00	0.1	0.6
Including		72.35	72.55	0.20	246	0.02	0.3	3.4
Z11-42	19+50N	32.40	39.90	7.50	76	0.09	0.2	0.6
Including		32.40	34.55	2.15	162	0.28	0.6	1.5
Z11-43	19+50N	5.05	6.18	1.13	69	0.01	0.1	0.2
Z11-44	19+50N	51.80	82.45	30.65	291	0.01	0.1	0.4
Including		51.80	59.25	7.45	780	0.02	0.4	1.1
Including		51.80	52.10	0.30	6,730	0.20	1.5	8.0
Including		55.50	55.95	0.45	4,240	0.06	2.1	6.8
Including		64.60	70.40	5.80	398	0.03	0.2	0.4
Including		68.25	68.95	0.70	1,290	0.06	0.2	1.3
And		139.45	146.80	7.35	244	0.07	0.5	0.9
Including		140.45	144.45	4.00	380	0.08	0.7	1.3

* Note the initial interpretation for this 30.65-meter intersection is a sheeted stockwork zone that lies between two of the larger veins (Oscar and Cuchara), both of which appear to be hosted by thrust faults which the drilling has intersected at a low angle. Due to the multiplicity of veins encountered in these drill holes, final interpretation of drill sections and determination of true widths is pending and requires further drilling, now in progress.

These Oscar drill results are from multiple veins in a wide vein corridor (Oscar Vein Corridor), located on the southern extensions of the large Cuchara Mine, a former producer that last operated in 2004. Some of these Oscar area veins have historically been in production and are exposed in nearby old mine workings. Previous limited drilling by IMPACT on the Oscar Vein returned values of 2,820 g/t silver, 1.83 g/t gold, 3.48% lead, and 7.83% zinc over 0.30 meters (see IMPACT News Release dated January 25, 2007).

The 2011 Oscar Project drill plan was initially conceived to test an area of high potential, yet poorly known mineralization that, if successful, would provide a profitable underground mine access route to the Santa Lucia area located immediately to the southeast. Previous drilling at Santa Lucia included drill assays of 466 g/t silver across 3.2 meters (see IMPACT News Releases dated October 6, 2009, December 16, 2009 and July 27, 2010 for full results). Providing some initial confirmation for this concept are the results presented in this news release. Additional drilling is now in progress in the Oscar Vein Corridor to sort out the orientation and continuity of silver grades in these veins. If this additional drilling proves successful, it may lead to a more extensive and comprehensive mining plan for the combined Oscar-Santa Lucia area.

George Gorzynski, P. Eng., Director and Vice President, Exploration stated, "These drill results demonstrate the high grade nature characteristic of much of the silver mineralization at the Royal Mines of Zacualpan. This high grade has allowed the Company to mine at a profit through high and low silver price cycles."

Brian Hall, P. Geo. and Nigel Hulme, P. Geo., Qualified Persons under the meaning of Canadian National Instrument 43-101, are responsible for the technical content of this news release.

IMPACT Silver Corp. is a silver focused mining and exploration company operating in Mexico with a producing silver operation at the 423-square-kilometer Royal Mines of Zacualpan Silver District, the 200-square-kilometer advanced Mamatla Silver District including the Capire Mine Development Project, and an option agreement with Defiance Silver Corp. in return for IMPACT's 200-tpd mill and mineral concessions in the Zacatecas Silver District. Additional information can be found on the Company's website at www.IMPACTSilver.com.

On behalf of the directors of IMPACT Silver Corp.

Frederick W. Davidson, President & CEO

Forward-Looking Statements
This IMPACT News Release 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.