Health, safety and well-being of the people working at the Johnson Tract project remain the company’s highest priority. The company’s on-site team responded immediately and efficiently to secure the well-being of the pilot and other personnel in accordance with Highgold’s response plans. The helicopter contractor will be investigating the cause of the incident in co-operation with the Federal Aviation Administration and the National Transportation Safety Board.

The contractor’s second helicopter remains on site to service the three drill rigs in operation, as well as geophysical and geological survey crews.

“We are grateful that no one was significantly injured, and we will continue to make the health and safety of our employees and contractors a top priority at Highgold Mining,” said president and chief executive officer Darwin Green.

Under the terms of the agreement, the company will make a $42,000 cash payment and issue 1.2 million common shares to Stuhini as consideration.

The company has also granted Stuhini a 1-per-cent net smelter return royalty on the property.

Highgold owns gold projects in Alaska and Ontario. Its current priority is the JT deposit in Alaska, where it is working on a 15,000-metre drill program. Past work at this high-grade deposit has outlined 750,000 ounces grading 10.93 grams per tonne gold equivalent (AuEq) in the indicated category, with a further 134,000 ounces grading 7.16 g/t AuEq inferred. With this year’s drill program targeting no fewer than five targets, Mr. Taylor says these resources “could rise dramatically, very quickly.” He is also pleased that Highgold has developed good relations with local indigenous groups. This should help it avoid the headline-grabbing problems currently dogging another Alaskan project, Northern Dynasty’s Pebble. Further adding to Highgold’s appeal are its jingling pockets (with $23-million cash) and its low share count (with just 48 million shares outstanding). “I’m a strong bull for these shares,” concludes Mr. Taylor. Buy.

Eric Sprott has agreed to invest $5,351,022 in the private placement on the acquisition of 8,232,341 common shares. Assuming the private placement is fully subscribed, this investment will result in Mr. Sprott holding approximately 19.9 per cent of Aftermath issued and outstanding common shares, postclosing.

The company intends to use the net proceeds for drilling and other technical studies on the Berenguela silver-copper project in Peru, and the Challacollo and Cachinal silver-gold projects in Chile, and for general working capital purposes.

The company may pay a finder’s fee in connection with the private placement. The private placement is subject to the approval of the TSX Venture Exchange and other applicable securities regulatory bodies, and the securities will be subject to a four-month-and-one-day hold period from the closing date, under Canadian securities laws.

Trapper Copper-Gold Porphyry Project in Northern British Columbia

To view an enhanced version of this image, please visit:
https://orders.newsfilecorp.com/files/3803/62637_671ce9867446190b_002full.jpg

“Brixton is ideally placed to take the Trapper project forward as their Thorn project surrounds the Trapper claims. With an existing camp at Thorn they will be able to explore Trapper cost-effectively,” said Kodiak Copper President and CEO Claudia Tornquist. “This transaction strengthens Kodiak’s focus on our southern projects, in particularly our highly prospective MPD copper gold porphyry project in South-Central BC where we are currently drilling to follow-up on our Gate Zone discovery and are expecting the first results within weeks.”

Under the terms of the agreement Brixton will pay $100,000 cash and 2,324,393 common shares as consideration for Trapper. The common shares are subject to a four month hold period pursuant to applicable securities laws. The transaction is subject to the approval of the TSX-Venture Exchange.

Trapper Copper-Gold Porphyry Project

• 3,756 hectare (38 km²) copper gold porphyry project in the Northern Golden Triangle, Northern British Columbia
• Adjacent to Brixton’s Thorn Project
• Geophysics, grab sampling and 42 holes (8581 m) of diamond drilling in 2011
• Stream sediment sampling program in 2016

For further information please contact Mr. Knox Henderson, Investor Relations, at 604-551-2360 or khenderson@kodiakcoppercorp.com.

Chairman and chief executive officer of Brixton Metals Gary R. Thompson stated: “We are happy to have reached an agreement with Kodiak and royalty holders on this high-potential project. The Trapper claims are strategic to Brixton’s plans for consolidating the Thorn mineral claim holdings. Currently the Thorn project represents the largest contiguous mineral claim package in the Golden Triangle forming a mineralized megatrend under one banner: Brixton Metals.”

The company has entered into a purchase agreement to acquire a 100-per-cent interest in the Trapper project, which is 3,756 hectares in size, from Kodiak Copper Corp., for consideration of 2,324,393 common shares and $100,000 in cash. In connection with the transaction, the company has also entered into agreements to terminate net smelter royalties (NSR) and other economic interests held by third parties. The company will pay $20,000 to Constantine Metals Resources Ltd. to terminate its right of first refusal on a 0.5-per-cent NSR. The company has also agreed to terminate the NSR on the Trapper project held by C.J. Greig Holdings Inc. for $45,000 and 113,924 common shares of Brixton. The Trapper project, following these transactions, will be unencumbered with respect to any royalty burden. The transaction and ancillary transactions are subject to the acceptance of the TSX Venture Exchange and other customary conditions of closing.

About the Trapper project

Drilling highlight from 2011:

• 22.86 metres of 2.51 grams per tonne gold, including 4.26 m of 9.18 g/t Au, 0.41 m of 92.80 g/t Au, with visible gold;
• 34.11 m of 1.01 g/t Au.

True widths can not be determined at this time.

About the Trapper project

The Trapper project covers a large gold-in-soil anomaly that was established with more than 900 soil samples. The gold anomaly is defined by a greater-than-two-kilometre-by-0.2-kilometre zone that remains open ended along strike. Gold grades in rocks at surface are up to 33 g/t gold and were reported to occur in hydrothermal breccias. The gold-in-soil anomaly is thought to be related to mafic volcanic rocks of the Triassic-aged Stuhini group that are intruded by multiple diorite and dacite feldspar porphyry stocks. Evidence of extensive iron oxide and carbonate-silica alteration footprints suggests that the soil anomaly is associated with a large hydrothermal porphyry system.

Gold-mineralized feldspar porphyry dikes have been drilled in the Main gold zone, along the southern margin of the main porphyry target. The dikes occur within a gold-rich carbonate-altered halo that surrounds a porphyry centre. Multiple occurrences of porphyry-style alteration and mineralization have been identified across over half of the Trapper project.

Trapper project history

The Trapper project was first staked as the Inlaw claim by Chevron Minerals Ltd. in 1983, when anomalous gold values were returned in soil geochemical samples collected along reconnaissance traverse lines (Walton, 1984). Chevron geologists noted that both the reconnaissance-style soil geochemical sampling and subsequent grid-controlled soil sampling indicated that there was a large area of anomalous gold present on the property, and that within the anomaly there were a number of very high values. Between 10 and 15 individual soil samples yielded gold values greater than 1,000 parts per billion, and two sites yielded greater than 8,000 ppb Au along the greater-than-one-kilometre strike length of the anomaly. The anomaly also encompasses many supportive plus 100 ppb Au values, and it also appears to be open to the west, near the valley bottom of Inlaw Creek. Bulk sampling and heavy mineral separation of soil collected at grid sample sites, which yielded the highest gold values (up to 8,650 ppb), confirmed their location and high gold content, and showed that visible gold was present on the property. Walton (1984) also noted that the gold was coincident with high arsenic and antimony values, and noted that the As-Sb halo around the Au-rich core of the anomaly indicated that the system could be quite large.

The 1984 Chevron follow-up program also included prospecting and preliminary mapping, with over 30 grab samples and 11 channel samples collected. The grab samples included one sample which returned greater than 10,000 ppb gold, and the channel samples, all collected from a single trench, returned up to 6.2 g/t gold. The trench excavated by Chevron measured approximately three by eight metres, with the long dimension oriented perpendicular to the overall trend of the gold-in-soil anomaly. According to Walton (1984), previous sampling in the area had returned grades in grab samples ranging up to 33 g/t Au.

In 1994 the Inlaw claim was allowed to lapse, but in 1998 it was restaked by Clive Aspinall as the Check-Mate 2 claims, and in the same year Aspinall collected a total of 51 rock, soil and stream sediment samples, with the highest gold values returned being 2,054 ppb in a soil sample, 509 ppb from a stream sediment sample and 704 ppb in a rock sample from float.

In 2004, Mr. Aspinall optioned the property to Solomon Resources Ltd., and three additional claims were added to the north and east of Mr. Aspinall’s original Check-Mate 2 tenure. Solomon’s 2004 work program was designed to confirm the soil geochemistry anomalies and bedrock sample results obtained by Chevron, as well as to evaluate the adjacent newly staked claims. Solomon’s crews collected a total of 58 rock samples, 223 soil samples and 21 stream sediment samples (Tupper, 2005). The results, as well as those from other nearby streams, confirmed that the area was highly anomalous in Au, As, Sb, mercury and copper, as had been determined in the government regional geochemical survey. In particular, the Solomon survey showed that the upper headwaters of Inlaw Creek were anomalous in Au.

In 2007, Charles Greig staked the Trapper claims based on the large gold anomaly that was defined by Chevron.

In 2008, Richfield Ventures Corp. optioned the property and conducted additional soil-rock geochemical surveys for a total of 221 soil samples. Of the soil samples, 69 returned values greater than 100 ppb gold, with 12 samples yielding greater than 1.0 g/t and a high of 3.75 g/t. Silver values ranged up to 11.4 g/t Ag. Thirteen rock samples were collected. Two of the samples yielded almost 20 g/t gold. One limonite-rich float sample with notable galena (nearly 5 per cent lead) and nearly three ounces per ton silver. Two vein float samples, with common galena, pyrite, sphalerite and minor chalcopyrite yielded values of two to three g/t Au, with 50 to 75 g/t Ag, and 2 to 4 per cent combined lead and zinc.

In 2011, Ocean Park Ventures (now Kodiak Copper Corp.) incurred $4.2-million of exploration expenditures through an extensive exploration program on the Trapper project. The program included prospecting, property-wide geological field mapping, 27 line kilometres of induced polarization/resistivity and magnetic geophysical surveys, 418 line kilometres of airborne SkyTEM electromagnetic/magnetic geophysical survey, and 8,377.84 metres of diamond drilling in 42 drill holes, with 2,436 soil samples and 490 rock samples collected. Twelve rock samples contained values between 1.0 g/t gold and 14.05 g/t gold.

In 2010, Constantine optioned the property and subsequently assigned it to Ocean Park Ventures.

Mr. Thompson, who is a qualified person as defined by National Instrument 43-101, reviewed and approved the information in this press release.

The principal target at Abriaqui is a series of over 80 high grade, Buritica-style gold veins. These veins, which have been worked for over 80 years by Fenix’ partner, a local mining cooperative, will be the primary focus of the Company’s upcoming 6000m maiden drill program.

Additionally, the potential for porphyry-style gold mineralization was recognized earlier this year with the discovery of a small surface outcrop of magnetite-bearing potassic alteration. The outcrop sampled up to 1.1 grams per tonne gold which is representative of the grade in the better porphyry gold systems in Colombia and throughout the world. The location of this outcrop is coincident with a magnetic anomaly from a pre-existing geophysical program. This alteration type is typical of the gold-bearing portions of mineralized porphyry systems world-wide. In several gold districts along the 200+ kilometer long Cauca trend in Colombia, porphyry style mineralization has been discovered using magnetometry to map this type of magnetic rock alteration.

FenixOro recently commissioned a program of ground magnetics to define and hopefully expand the magnetic body in three dimensions. Results are summarized in Figure 1 which shows magnetic data (reduced to the pole), the contact of the diorite intrusion which hosts the majority of the mineralized gold veins, and faults interpreted from the magnetic data.

The data define a strong, near-surface magnetic anomaly of about one square kilometer. The body is centered on FenixOro ground and is open to the west, but it is not expected to continue far in that direction as the contact of the host diorite with the sedimentary package is right at the grid margin. FenixOro has recently acquired the seizure rights to the license which covers the area of this western extension from Polo Resources Limited (see Press Release dated August 25, 2020). The magnetic body is terminated on the south by a significant, northeast-trending fault. Three-dimensional analysis indicates that the body continues at approximately the same diameter to a depth of at least 700 meters below surface. The original surface outcrop area of mineralized alteration (area “A” in the figure) appears to be in a fault block at the northern end of the body. If so, the main body of the anomaly has been down dropped which explains the lack of surface exposure south of the fault.

The presence of such mineralization on surface and the comparison with other similar mineralized systems in this part of Colombia are greatly encouraging. Additionally, the development of 800+ vertical meters of high grade gold veins topographically above and lateral to the modeled porphyry horizon strengthens the analogy with the neighboring, multi-million ounce Buritica system where deep drilling beneath more than 1 km of vertical vein extent is targeting a similar magnetic anomaly (Continental Gold Press Release September 25, 2019).

The Phase 1 drill program, which is designed to test the vein sets north of the magnetic anomaly, is being modified to include at least one hole testing the magnetic body. The current level of erosion at Abriaqui is such that a porphyry body, if verified, should be fully preserved at reasonable drill depths.

Figure 1

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/6188/62644_dc8b7c1b74666808_001full.jpg

About FenixOro Gold Corp.

FenixOro Gold Corp is a Canadian company focused on acquiring gold projects with world class exploration potential in the most prolific gold producing regions of Colombia. FenixOro’s flagship property, the Abriaqui project, is located 15 km west of Continental Gold’s Buritica project in Antioquia State at the northern end of the Mid-Cauca gold belt, a geological trend which has seen multiple large gold discoveries in the past 10 years including Buritica and Anglo Gold’s Nuevo Chaquiro and La Colosa. As documented in “NI 43-101 Technical Report on the Abriaqui project Antioquia State, Colombia” (December 5, 2019), the geological characteristics of Abriaqui and Buritica are very similar. The report also documents the high gold grade at Abriaqui with samples taken from 20 of the veins assaying greater than 20 g/t gold. Abriaqui has not yet been drilled but surface and underground geological mapping and sampling as well as a preliminary magnetometry survey have been completed. The property is drill-ready pending finalization of the government permitting process.

Fenix’s VP of Exploration, Stuart Moller, led the discovery team at Buritica for Continental Gold in 2007-2011. The Buritica Mine currently contains measured plus indicated resources of 5.32 million ounces of gold (16.02 Mt grading 10.32 g/t) plus a 6.02 million ounce inferred resource (21.87 Mt grading 8.56 g/t) for a total of 11.34 million ounces of gold resources. Buritica is scheduled to commence production in 2020 with annual average production of 250,000 ounces at an all-in sustaining cost of approximately US$600 per ounce. Resources, cost and production data are taken from Continental Gold’s “NI 43-101 Buritica Mineral Resource 2019-01, Antioquia, Colombia, 18 March, 2019”). Continental Gold was recently the subject of a takeover by Zijin Mining in an all-cash transaction valued at C$1.4 billion.

Corporate Office:

FenixOro Gold Corp

350 Bay St. Suite 700

Toronto, ON

Telephone: 1-833-ORO-GOLD

Email: info@FenixOro.com

Website: www.FenixOro.com

Technical Information

The comparison between Abriaqui and the nearby Buritica project is meant only to indicate the similarities between the two in terms of geological setting. FenixOro does not imply that exploration results and/or economic characteristics of a potential future mine at Abriaqui will be similar to those seen at Buritica. The sampling done at Abriaqui is in the form of rock chip and channel samples on surface and in shallow underground workings on vein exposures. The samples were prepared and analyzed at ALS laboratories in Medellin and Lima respectively. Samples were taken, prepared, shipped and analyzed following, industry standard QA/QC protocols and were submitted with certified reference standards.

Stuart A Moller, P. Geol. (British Colombia) Vice President of Exploration of FenixOro and a Qualified Person for the purposes of National Instrument 43-101, has reviewed and approved the technical information contained within this press release. Mr, Moller is a geologist with over 40 years of experience in world-wide mineral exploration including 10 years in Colombia.

Cautionary Statement on Forward-Looking Information

This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of FenixOro’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “will”, “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information and forward-looking statements contained herein include, but are not limited to information concerning the Abriaqui. Although FenixOro believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. In particular, there is no guarantee that Abriaqui will be drilled or produce viable quantities of minerals, that the Company will pursue Abriaqui or that any mineral deposits will be found.. The forward-looking information and forward-looking statements contained in this news release are made as of the date of this press release, and FenixOro does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.

Neither the Canadian Securities Exchange nor its Market Regulator (as defined in the policies of the Canadian Securities Exchange) accept responsibility for the adequacy or accuracy of this release.

HIGHLIGHTS

Highlights for the three months ended 30 June 2020 and to the date of this report are as follows:

Corporate highlights:

Appointment to the Altus board of Karim Nasr, CEO of La Mancha Holdings S.a r.l. as its representative

Acquisition by ASX-listed Graphex Mining Ltd of JV earn-in rights held by Glomin Services Ltd on Lakanfla and Tabakorole gold projects, Mali

Non-binding Term Sheet signed with TSX-V listed Stellar AfricaGold Inc. for sale of and royalties on Prikro and Zenoula gold projects, Cote d'Ivoire

Appointment of Alister Hume as Business Development Manager who will play an integral role for the Company in evaluating and progressing the growing number of potential royalty and project transactions under review

Operational highlights:

Gold targets defined by 25km2 ground geophysics programme at Tabakorole, southern MaliEncouraging results from 70-hole 2,042m shallow aircore drilling at Tabakorole, defining 200m northwest extension to mineralisation of the FT Prospect

Commencement of 8 hole, 1,600m diamond drilling programme at Tabakorole targeting modelled high-grade trends defined by historical drilling and the northwest extension zone

Financial highlights:

Cash and marketable securities of pounds sterling9.4m / C$15.7m (cash of pounds sterling7.5m / C$12.6m and listed equity of pounds sterling1.9m / C$3.1m as at 30 June 2020)Cash outflow for operating activities of pounds sterling0.5m / C$0.8m for three months ending 30 June 2020

Post period:

Mineral resource estimate published in news release entitled Significant Gold Resource at Diba Project, Western Mali and dated 06 July 2020 on Diba gold project, western Mali, comprising 4,834,000 tonnes at 1.39 g/t gold for 217,000 ounces in the Indicated category and 5,479,000 tonnes at 1.06 g/t gold for 187,000 ounces in the Inferred category

Preliminary Economic Assessment published in news release entitled Robust US$81 Million (After-Tax) PEA for Diba Gold Project, Western Mali and dated 22 July 2020 for Diba project outlines US$81 million after-tax net present value based on 10% discount rate and US$1,500/oz gold price (note that mineral resources that are not mineral reserves do not have demonstrated economic viability)

Further high grade aircore drilling results announced extending strike length of the FT Prospect by 600m at Tabakorole gold project, southern Mali

Environmental Impact Assessment of Agdz silver and copper project, eastern Morocco, accepted by Ministry of the Interior, and new targets generated on the project using predictive mapping techniques

Appointment of Sandra Bates as in-house General Counsel who will play an integral role for the Company in structuring potential royalty and project transactions as well as managing the Company's general legal affairs

The Company reported $2.84 million in revenue for the first quarter of 2020 compared to Q2 2019 at $2.76 million with improved grades and higher silver prices realized during the quarter. This is impressive considering half the quarter was formally shut down due to the official Mexican decree to suspend operation to limit potential spread of COVID-19 pandemic.

Mine operating earnings before amortization and depletion improves significantly year over year by $1.2 million to positive $0.65 million as high silver prices and continued cost monitoring proved effective. Operating activities this quarter generated over $0.17 million positive cashflow, impressive especially in light of operations losing nearly half the quarter due to COVID19 shutdown. Adjusted EBITDA of $0.48 million (Earnings Before Interest, Taxes, Depreciation, and Amortization) comprises of EBITDA of $0.16 million and non-cash loss on foreign exchange loss $0.32 million. EBITDA for six months of 2020 totalled $0.63 million, a 120% improvement compared to a loss of $2.86 million.

Fred Davidson, President & CEO of IMPACT, stated, “At the outset of the COVID19 pandemic we were all faced with an uncertainty and potential prolonged catastrophic shutdown if the virus spread. I would like to commend our operation staff on an effective social distancing practice in limiting COVID19 to zero cases Zacualpan mining district and contributed significantly in being able to recommence operations in a timely manner.

Despite losing nearly half the quarter (April to June) due to mandatory shutdown, high grade, a sharp rally in silver prices, and an ability to sell some stockpile allowed IMPACT to mitigate a large drop in revenue. In fact, the Company actually turned operation profit and positive EBITDA for the sixth quarter since January 2019. With silver reaching higher prices in Q3 2020 and beyond, IMPACT’s profitability as pure silver producer will only be further magnified.

With additional capital coming in the market and rapid increase in silver prices in recent months, IMPACT is well positioned to be able to fast track additional targets and rationalize further expansion possibilities on both exploration and production fronts.”

In Q2 2020, IMPACT’s geological team has focused on desktop studies in preparation of the 2020 exploration season. Targets within 2020 include further exploration of the in-production Veta Negra open pit area and Chapanial area.

Production Overview

• Mill was shut down mid April to beginning of June. As a result, silver production decreased to 129,570 ounces in Q2 2020 compared to 145,658 ounces in Q2 2019, a decrease due to mandatory shutdown from COVID19 Mexican protocols.
• Q2 2020 production at the Guadalupe mill came from the Guadalupe Mine (37% of mill feed), the San Ramon Mine (23% of mill feed), the Cuchara Mine (23% of mill feed), and the Veta Negra Mine (17% of mill feed)
• Average mill feed grade for silver was 187 grams per tonne (g/t) in Q2 2020, an increase of 17% from 160 g/t in Q2 2019.
• Throughput at the mill in Q2 2020 was 25,602 tonnes compared to 33,616 in Q2 2019.

Financial Overview

• Mine operating earnings2 for Q2 2020 were $0.6 million an improvement of $1.3 million over Q2 2019.
• Net loss for the quarter was $0.2 million, a $3.0 net increase from loss of $2.8 million in Q2 2019. We note Q2 2019 there was a one-time write down of $1.7 million based on reduction of property size to lower property taxes.
• EBITDA Q2 2020 at ___, a $2.6 million increase from Q2 2019.
• In April 2020 the Company closed a private placement for $2.0 million. Warrants in the amount of $0.5 million were exercised during the quarter.
• At June 30, 2020, cash position was at $6.3 million with working capital at $5.3 million compared to $3.8 million and $3.6 million working capital at Dec 31, 2019.

Revenue per tonne sold in Q2 2020 rose sharply by 54% year over year to over $117.8/tonne from $76.7/tonne in Q2 2019, attributable to higher silver prices. Direct cost continues to drop 7% to $76.7/tonne down from $82/tonne in the comparable quarter, further expanding profit margins. This regimented cost control has been a priority for IMPACT since the leaner market years and will continue to balance efficiency and grade at operations.

Despite a drop of 24% this quarter in tonnage processed and sold, IMPACT has largely mitigated processing.

Exploration Sampling Result at Chapanial Gold

During the quarter, IMPACT announced results from rock sampling in the Chapanial area which included 97.5g/t gold and 97.9g/t silver over a true width of 0.80 meters and 18.25g/t gold and 75.4g/t silver over a true width of 0.20 meters. Work is continuing to outline the potential size of this area.

Exploration Field Work

In early June the Mexican government lifted the COVID-19 decree suspending work and the Company re-started exploration work. Work first re-started with sampling and trenching on the north extensions of the Veta Negra Mine and then in the Chapanial area. In addition, compilation of historical maps and other technical data from the districts into a large computer database continued and is being used to plan future exploration programs.

A recorded conference call reviewing the financial and production results of the year ended June 30, 2020 will be available on the Company website on August 30, 2020 at http://www.impactsilver.com/s/ConferenceCalls.asp.

George Gorzynski, P.Eng., a Qualified Person under the meaning of Canadian National Instrument 43-101, approved the technical content regarding exploration work in this news release.

The information in this news release should be read in conjunction with the Company’s unaudited condensed consolidated interim financial statements and Management’s Discussion and Analysis, available on the Company website at http://www.impactsilver.com and on SEDAR at http://www.sedar.com. All amounts are stated in Canadian dollars unless otherwise specified.

2020 Resource Expansion and Drilling Update

Positive results from the Company’s 2019 successful drilling program totaling 5,000 meters have been incorporated into our planning for the second phase of resource expansion drilling of up to 10,000 meters. The second phase of resource expansion drilling has commenced with a drill contractor selected and a drill rig mobilized to the Copperstone project.

The purpose of the first phase of the 2020 drilling program is step-out reverse circulation (“RC”) exploration holes for the purpose of increasing resource ounces in the Copperstone and Footwall zones. The step-out holes will target the limit of known mineralization trends for future conversion of resources that will be used for mine planning purposes.

The 2020 underground core drilling will commence at the culmination of the surface RC drilling program and includes both step-out and definition drilling in the Copperstone and Footwall zones for purposes of resource addition and conversion in areas proximal to the initial stopes to be mined.

Overall, drilling will continue to focus on resource expansion by way of underground core drilling in the D and C zones and surface RC drilling in the Copperstone B and A and Footwall zones. As previously reported in 2019 step-out underground drilling results from Drill Hole 18-21-06 returned 16.8 meters of 40.0 grams per tonne (“g/t”) gold, including 3 meters of 98.26 g/t gold within the same interval (See Figure 1). Building on the previous results, this next phase of drilling will focus on stepping out along strike and dip beyond the previously defined mineralized domains.

Of the prospective targets for the current program, the areas beneath the Copperstone D and C zones have a number of down-dip targets which can be reached from underground. The Copperstone B and A zones and the Footwall zone drilling includes targets along the strike of these zones and will be drilled from surface. In these areas, drilling for the purposes of expanding the significant potential of resources in a down-dip direction will be allocated to future drilling from underground due to the depth of the targets.

Drilling results from the 2020 resource expansion program, using surface RC and underground core drilling, will be combined with those from the 2019 drilling results to update the current resource estimate. Based on the 2019 drill program, the updated resource estimate is expected to reflect an increase in overall tonnage and ounces. For purposes of updating the resource estimate, the Company will also update the previously used cut-off grade and structural mapping.

The Copperstone zone is the underground extension of the same orebody that was historically mined as an open pit. The pit historically mined nearly 150 vertical meters of the Copperstone zone and produced in excess of 500,000 gold ounces from 5.0 million tonnes of ore at an average grade of 3 g/t gold. The Copperstone orebody currently has a horizontal strike length of over 1,500 meters and extends 110 meters beneath the historical open pit.

Highlights from the 2019 program are below and a view of several underground drilling stations used during the 2019 program is shown in Figure 1:

Drill hole 18-21-06, an exploration step-out hole, returned an interval of 16.8 meters at 40.0 g/t gold, including 3 meters of 98.26 g/t gold, further indicating the zone is significantly of higher grade and thickness than initially anticipated with a total effective mining width of 17.9 meters;

Drill hole 18-08A-02 returned an interval of 12.2 meters at 11.7 g/t Au, including 3 meters of 38.3 g/t gold, indicating the zone is higher grade and thicker than initially anticipated with an effective mining width of 17.7 meters;

Drill hole 18-21-04, an exploration step-out hole, returned an interval of 10.7 meters at 17.49 g/t gold, including 6.1 meters of 29.45 g/t gold with a total effective mining width of 12 meters;

Drill hole 18-21A-05, an exploration step-out hole, returned an interval of 6.1 meters at 15.02 g/t gold, including 3 meters of 22.4 g/t gold further indicating the zone is significantly of higher grade and thickness than initially anticipated with a total effective mining width of 13.1 meters;

Drill hole 18-04-01, a conversion hole, returned an interval of 6.1 meters at 15.91 g/t gold, including 4.6 meters of 21.02 g/t gold with a total effective mining width of 3.2 meters;

Drill Hole 18-18-02, a conversion hole, returned a high-grade gold mineralized interval of 3 meters at 27.45 g/t gold, including 1.5 meters of 52.30 g/t gold, in an area where additional down-dip step-out drilling is planned for the next phase of drilling while further indicating the zone is significantly of higher grade and thickness than initially anticipated;

Drilling was accomplished entirely from existing underground access and affects an area of 500 meters of strike length and 200 meters of elevation, representing approximately 30 per cent of the current resource strike length,

Complete drilling results as previously disclosed are included in press releases dated April 4, 2019, May 1, 2019, June 5, 2019, and July 9, 2019.

The Copperstone zone is the underground extension of the same orebody that was historically mined as an open pit. The pit mined nearly 150 vertical meters of the Copperstone zone and produced in excess of 500,000 gold ounces historically. The Copperstone orebody currently has a horizontal strike length of over 1,500 meters and extends 110 meters beneath the historical open pit. Within this area and the Footwall Zone, there are Measured and Indicated resources of 276,100 gold ounces and Inferred resources of 145,700 gold ounces.1

Permitting

On January 22, 2020 the U.S. Bureau of Land Management (“BLM”) issued a decision of record (“DOR”) based on a finding of no significant impact (“FONSI”) formally approving Kerr Mines Inc.’s mining plan of operation (“MPO”) at its 100-per-cent-owned Copperstone mine gold project located in Arizona.

Receipt of the DOR based on FONSI and approved MPO were part of a strategic value-enhancing process undertaken by the company to restart the Copperstone gold mine and resulted in the following positive project implications:

• Increase of gold ore production from the current allowable limit of 450 tons per day to 600 tons per day;
• Use of cyanide for recovery of gold from ore using captive steel tanks located in the gold ore processing facility;
• Storage of stabilized tailings produced from the ore processing facility;
• Construction and use of a water evaporation and infiltration basin to be used to manage surplus water generated from underground operations;
• Improved operating conditions, which will further improve project economics.

This final approval and receipt of the DOR marked the conclusion of the permit modification effort that commenced in 2018. On Feb. 5, 2019, the company announced the Arizona Department of Environmental Quality (ADEQ) issued approval for the modification of the existing air permit governing air quality. On Sept. 19, 2019, the company announced the ADEQ issued approval for the modification of the existing aquifer protection permit. The water permit is effective for the life of mine and the air permit is valid for five years.

Project Optimization and Financing

In accordance with Copperstone Preliminary Feasibility Study1 and Management’s on-going efforts to improve project economics and extend the current mine life, the Company anticipates a reduction in the estimated initial project capital from what has been reflected in the Copperstone PFS. These reductions are facilitated by way of internal trade off studies and advancement of the detailed engineering of the mine and mineral processing. These reductions are expected to improve project economics as a result of moving forward with a mineral processing strategy that moves to refurbishment and modification of the existing mineral processing and gold recovery circuit.

The mineral processing optimization work is being performed primarily with Resource Development, Inc. and FLSmidth, and is based on historic and recent metallurgical test work, packaged pricing and a thorough assessment of refurbishment costs. Further metallurgical testing will be completed in order to complete the optimization of the existing plant flowsheet and bring both cost and gold production performance to final detailed engineering level prior to the commencement of any refurbishment and modification activities.

In addition, further project optimization is being undertaken on the mine operations aspect of the project. In an effort to further reduce execution risk, the Company has been actively engaged with mine operations contractors in planning several options to use contractor services in the pre-production and start-up phases of mine production and development.

The Company is continuing its discussions with Sprott regarding the balance of the Sprott Project Financing Package which is subject to achieving defined project milestones. In view of the much improved capital markets the Company is also considering alternative forms of project financing that could further enhance project economics by reducing the effective cost of capital while negating further dilution.

1 National Instrument 43-101 Technical Report: “Preliminary Feasibility Study for the Copperstone Project, La Paz County, Arizona, USA” dated May 18, 2018. prepared by Hard Rock Consulting, LLC and endorsed by Zachary J. Black, SME-RM; J.J. Brown, P.G., SME-RM, Jeff Choquette, P.E., MMSA-QP; Deepak Malhotra, PhD, SME-RM, each of whom are independent “Qualified Persons” as defined in NI 43-101 (the “Copperstone PFS “) The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in NI 43-101 and reviewed and approved by Sean Muller, PGeo, SME Registered Member (Geology), who is a “Qualified Person” as defined by NI 43-101 for this project.

Quality Assurance and Quality Control Statement

Procedures have been implemented to assure Quality Assurance Quality Control (QAQC) of drill hole assaying being done at an ISO Accredited assay laboratory. All intervals of drill holes are being assayed and samples are securely stored for shipment, with chain of custody documentation through delivery. Mineralized commercial reference standards and coarse blank standards are inserted every 30th sample in sequence and results are graphed to assure acceptable results, resulting in high confidence of the drill hole assay results. When laboratory assays are received, the QAQC results are immediately evaluated and graphed to analyze dependability of the drill hole assays. As the Copperstone Project advances, additional QAQC measures will be implemented including selected duplicate check assaying on pulps and coarse rejects at a second accredited assay laboratory. All results will be analyzed for consistency.