IMPACT SILVER CORP — Interim / Quarterly Report 2021

Aug 18, 2021

IMPACT SILVER CORP.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

June 30, 2021 and 2020

Unaudited

NOTICE OF NO REVIEW BY AUDITOR

In accordance with National Instrument 51 – 102 Continuous Disclosure Obligations of the Canadian Securities Administrators WE HEREBY GIVE NOTICE THAT the condensed consolidated interim financial statements which follow this notice have not been reviewed by an auditor.

IMPACT Silver Corp.

Condensed Consolidated Interim Statements of Financial Position

(Canadian dollars) Unaudited

ASSETS	June 30, 2021 December 31, 2020
Current Cash Trade and other receivables_(Note 3) Inventories(Note 4) Investments Value added and other taxes receivable Right-of-use assets(Note 5) Property, plant and equipment (Note 7) Exploration and evaluation assets(Note 8)_	$ 22,404,969 $ 20,385,551 1,657,506 1,379,217 946,946 1,213,996 85,000 -
	25,094,421 22,978,764 176,655 575,192 65,791 103,475 19,152,199 19,302,596 22,057,344 21,871,603
	$ 66,546,410 $ 64,831,630
LIABILITIES
Current Trade payables and accrued liabilities Lease liabilities_(Note 6) Lease liabilities(Note 6)_ Reclamation provision Deferred income tax liabilities SHAREHOLDERS' EQUITY	$ 2,290,303 $ 2,589,464 32,662 61,672
	2,322,965 2,651,136 9,263 16,997 761,924 761,228 3,410,572 2,713,220
	6,504,724 6,142,581
Share capital Warrants(Note 11(c)) Contributed surplus Accumulated other comprehensive loss Accumulated deficit	81,087,110 79,325,168 2,674,695 2,954,251 8,369,286 7,523,552 (7,983,859) (7,047,278) (24,105,546) (24,066,644)
	60,041,686 58,689,049
	$ 66,546,410 $ 64,831,630

Nature of operations (Note 1)

ON BEHALF OF THE BOARD:

“F.W. Davidson” , Director “P. Tredger” , Director

-The accompanying notes form an integral part of these consolidated financial statements-

IMPACT Silver Corp.

Condensed Consolidated Interim Statements of Income (Loss) For the Three and Six Months Ended June 30

Canadian dollars Unaudited

	Three months ended June 30 Six months ended June 30 2021 2020 2021 2020
Revenues Cost of sales Operating expenses_(Note 10) Amortization and depletion Mine operating income General and administrative expenses Accounting, audit and legal Amortization Investor relations, promotion and travel Management fees and consulting Office, rent, insurance and sundry Office salaries and services Share-based payments (_Note 11(b)) Operating income (loss) Other income (expenses) Finance cost Finance income Foreign exchange (loss) gain Other income (expense) Write-down of exploration and evaluation assets Income (loss) before taxes Current income tax expense (recovery) Deferred income tax expense (recovery) Net income (loss)	$ 4,215,562 $ 2,842,355 $ 9,591,422 $ 6,256,063 2,895,618 1,865,913 6,326,712 4,981,060 311,290 327,964 589,453 743,264
	3,206,908 2,193,877 6,916,165 5,724,324
	1,008,654 648,478 2,675,257 531,739
	53,351 52,171 105,754 98,800 11,537 6,720 22,325 10,582 13,282 203,727 28,385 281,513 44,240 75,720 122,450 157,853 74,134 90,445 195,712 143,323 180,395 130,140 362,832 255,193 - - 943,511 -
	376,939 558,923 1,780,969 947,264
	631,715 89,555 894,288 (415,525)
	(11,573) (8,955) (23,592) (19,327) 29,994 5,041 63,786 18,960 (113,792) (321,470) (30,794) 239,556 (6,993) 56,001 (15,118) 55,967 (33,451) - (33,451) -
	(135,815) (269,383) (39,169) 295,156
	495,900 (178,828) 855,119 (120,369) 36,353 28,248 128,334 150,842 241,108 (13,057) 765,687 13,982
	$ 218,439 $ (195,019) $ (38,902) $ (285,193)
Income (loss) per share –(Note 11(d)) Basic Diluted Weighted average number of shares outstanding Basic Diluted	$ - $ - $ - $ - $ - $ - $ - $ - 144,441,166 116,926,932 146,308,767 113,637,562 152,628,856 116,926,932 146,308,767 113,637,562

-The accompanying notes form an integral part of these consolidated financial statements-

IMPACT Silver Corp.

Condensed Consolidated Interim Statements of Comprehensive Income For the Three and Six Months Ended June 30

(Canadian dollars) Unaudited

	Three months ended June 30 Six months ended June 30
	2021 2020 2021 2020
Net income (loss) Other comprehensive loss Items that may be subsequently reclassified to profit or loss Cumulative translation adjustment Items that will not be subsequently reclassified to profit or loss Gain (loss) on investments Comprehensive income (loss)	$ 218,439 $ (195,019) $ (38,902) $ (285,193) 463,562 (471,910) (936,581) (4,690,205) 10,000 (1,250) - (2,500)
	$ 692,001 $ (668,179) $ (975,483) $ (4,977,898)

-The accompanying notes form an integral part of these consolidated financial statements-

IMPACT Silver Corp.

Condensed Consolidated Interim Statements of Cash Flows For the Three and Six Months Ended June 30

(Canadian dollars) Unaudited

(Canadian dollars) Unaudited
Cash resources provided by (used in)	For the three months ended June 30 For the six months ended June 30 2021 2020 2021 2020
Operating activities Net income (loss) Items not affecting cash Amortization and depletion Share-based payments Deferred income tax (recovery) expense Accretion expense Write-down of exploration and evaluation assets Unrealized gain on foreign exchange Changes in non-cash working capital Trade and other receivables Income taxes receivable Inventories Trade payables Income taxes payable Investing activities Proceeds on sale of long-lived assets Acquisition of long-lived assets Financing activities Repayment of lease liability Proceeds from private placement, net Proceeds from the exercise of stock options Proceeds from exercise of warrants Net change in cash Cash - Beginning of period Cash- End of period	$ 218,439 $ (195,019) $ (38,902) $ (285,193) 322,827 334,684 611,778 753,846 - - 943,511 - 241,108 (13,057) 765,687 13,982 10,651 7,025 21,449 14,989 33,451 - 33,451 - 54,353 (14,435) (57,889) (103,360) 428,763 249,490 56,538 677,672 - (2,715) (1,387) (3,157) (239,492) (89,650) 235,446 (35,106) (26,672) (133,332) (249,846) (352,120) 11,928 28,248 15,308 145,330
	1,055,356 171,239 2,335,144 826,883
	- - 50,000 - (877,358) (225,934) (1,707,292) (759,919)
	(877,358) (225,934) (1,657,292) (759,919)
	(20,519) (24,086) (43,043) (50,743) - 1,992,727 - 1,992,727 - - 135,350 - 498,489 500,117 1,249,259 519,667
	477,970 2,468,758 1,341,566 2,461,651
	655,968 2,414,063 2,019,418 2,528,615 21,749,001 3,887,614 20,385,551 3,773,062
	$ 22,404,969 $ 6,301,677 $ 22,404,969 $ 6,301,677

-The accompanying notes form an integral part of these consolidated financial statements-

IMPACT Silver Corp.

Condensed Consolidated Interim Statements of Changes in Shareholders’ Equity For the Three Months Ended June 30

(Canadian dollars) Unaudited

For the Three Months Ended June 30 (Canadian dollars) Unaudited
Shares Outstanding	Share Capital ($) Warrants ($) Contributed Surplus ($) Accumulated Other Comprehensive Income ($) Retained Deficit ($)	Total Shareholders’ Equity ($) 42,478,405 (285,193) 1,999,990 (7,263) - 519,667 (4,690,205) (2,500) 40,012,901 58,689,049 (38,902) 943,511 1,249,259 135,350 (936,581)
Balance at January 1, 2020 110,262,345 Net loss for the period - Shares issued in relation to private placement 6,666,634 Share issue costs - Warrants issued in relation to private placement - Warrants exercised 1,402,856 Cumulative translation adjustments - Loss on investments -	63,923,949 2,193,199 7,628,059 (4,899,146) (26,367,656) - - - - (285,193) 1,999,990 - - - - (7,263) - - - - (639,439) 639,439 - - - 662,293 (142,626) - - - - - - (4,690,205) - - - - (2,500) -
Balance at June 30, 2020 118,331,835	65,939,530 2,690,012 7,628,059 (9,591,851) (26,652,849)
Balance at January 1, 2021 141,410,247 Net loss for the period - Share-based compensation expense - Warrants exercised 6,672,272 Stock options exercised 230,000 Cumulative translationadjustments -	79,325,168 2,954,251 7,523,552 (7,047,278) (24,066,644) - - - - (38,902) - - 943,511 - - 1,528,815 (279,556) - - - 233,127 - (97,777) - - - - - (936,581) -
Balance at June 30,2021 145,312,519	81,087,110 2,674,695 8,369,286 (7,983,859) (24,105,546)	60,041,686

• The accompanying notes form an integral part of these consolidated financial statements –

IMPACT Silver Corp.

Notes to the Condensed Consolidated Interim Financial Statements June 30, 2021 (Canadian dollars) Unaudited

1. Nature of operations

IMPACT Silver Corp. and its subsidiaries (collectively, “IMPACT” or the “Company”) are engaged in silver mining and related activities including exploration, development and mineral processing in Mexico. The Company operates a series of mines near Zacualpan in the State of Mexico and in Guerrero State and produces silver, lead, zinc and gold sold in the form of lead and zinc concentrates. The registered address of the Company is 705 – 543 Granville Street, Vancouver, British Columbia.

The business of mining and exploring for minerals involves a high degree of risk and there can be no assurance that the current exploration and development programs will result in ongoing profitable mining operations. The investment in and expenditures on exploration and evaluation assets comprise a significant portion of the Company’s assets. The recovery of the Company’s investment in these exploration and evaluation assets and the attainment of profitable operations are dependent upon future commodity prices, the ongoing discovery and development of economic ore on these properties and the ability to arrange sufficient financing to bring the ore estimates into production. The ultimate outcome of these matters cannot presently be determined because they are contingent on future events.

The consolidated financial statements have been prepared on a going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business as they come due into the foreseeable future. The Company estimates that it has adequate financial resources for the next twelve months.

2. Basis of Preparation

Statement of compliance

The Company’s consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and Interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”). These unaudited condensed interim financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting. All material intercompany balances have been eliminated. The accounting policies applied in the preparation of these unaudited condensed financial statements are consistent with those applied and disclosed in the Company’s audited consolidated financial statements for the year ended December 31, 2020.

As all the disclosures required by IFRS are not included, these interim statements should be read in conjunction with the audited financial statements of IMPACT Silver Corp. for the year ended December 31, 2020.

Except when otherwise stated, all amounts are presented in Canadian (“CDN”) dollars, which is the presentation currency of the Company.

The condensed consolidated interim financial statements were authorised for issue by the Board of Directors on August 17, 2021.

(Canadian dollars) Unaudited

IMPACT Silver Corp. Notes to the Condensed Consolidated Interim Financial Statements June 30, 2021

3. Trade and other receivables

The following table details the composition of trade and other receivables at:

Value added taxes receivable – current portion Trade and other receivables Prepaids	June 30, 2021 December 31, 2020
	$ 690,146 $ 320,613 632,819 898,327 334,541 160,277
	$ 1,657,506 $ 1,379,217

4. Inventories

The following table details the composition of inventories at:

Materials and supplies Stockpile inventory Concentrate inventory	June 30, 2021 December 31, 2020
	$ 570,945 $ 410,100 52,509 42,616 323,492 761,280
	$ 946,946 $ 1,213,996

The amount of inventories recognized as an expense during the period ended June 30, 2021 was $6,326,712 (June 30, 2020 - $4,981,060).

5. Right-of-use assets

Details are as follows:

Balance at January 1, 2020 Additions Amortization Foreign exchange movement Balance at December 31, 2020 Additions Amortization Foreign exchange movement Balance at June 30, 2021	Land
	$ 155,856 59,874 (107,891) (4,364)
	103,475 7,290 (43,196) (1,778)
	$ 65,791

IMPACT Silver Corp.

Notes to the Condensed Consolidated Interim Financial Statements

June 30, 2021

(Canadian dollars) Unaudited

6. Lease Liabilities

Details are as follows:

Balance at January 1, 2020 Interest Repayments Additions Foreign exchange movement Balance at December 31, 2020 Interest Repayments Additions Foreign exchange movement Balance at June 30, 2021 Less: current portion Non-current lease liabilities	$ 156,604 7,573 (140,893) 59,874 (4,489)
	78,669
	2,143 (45,186) 7,290 (991)
	41,925 (32,662)
	$ 9,263

The Company’s leased assets are for office leases and land. The lease liabilities were discounted at the Company’s incremental borrowing rate. The weighted average rate applied at January 1, 2019 was 8.0%. Operating lease expenses relating to short-term and low-value leases not included in the measurement of lease obligations for the six months ended June 30, 2021 was $43,802.

The expected timing of undiscounted lease payments is as follows:

Less than one year $ One to five years $	June 30, 2021 December 31, 2020
	38,814 $ 65,496 12,446 16,937
	51,260 $ 82,433

IMPACT Silver Corp. Notes to the Condensed Consolidated Interim Financial Statements June 30, 2021

(Canadian dollars) Unaudited

7. Property, plant and equipment

Details are as follows:

Cost Balance at January 1, 2020 Additions Disposals Change in reclamation estimate Foreignexchangemovement	Plant and mine equipment ($) Vehicles ($) Office furniture and equipment ($) Surface rights ($) Mining Assets ($)	Total ($)
	9,799,315 488,225 207,749 1,130,664 29,034,828 163,750 59,226 32,959 - 592,103 - (15,524) - - - - - - - 295,628 (675,961) (33,910) (8,462) (78,531) (1,805,844)	40,660,781 848,038 (15,524) 295,628 (2,602,708)
Balance at December 31, 2020 Additions Foreign exchange movement	9,287,104 498,017 232,246 1,052,133 28,116,715 231,987 87,078 17,748 - 585,279 (257,749) (13,686) (3,295) (28,915) (649,687)	39,186,215 922,092 (953,332)
Balance at June30, 2021	9,261,342 571,409 246,699 1,023,218 28,052,307	39,154,975
Accumulated amortization Balance at January 1, 2020 Amortization for the period Disposals Foreign exchange movement	6,971,583 423,609 154,503 - 12,207,380 389,971 20,218 27,497 - 916,729 - (13,649) - - - (474,048) (29,053) (7,163) - (703,958)	19,757,075 1,354,415 (13,649) (1,214,222)
Balance at December 31, 2020 Amortization for the period Foreignexchangemovement	6,887,506 401,125 174,837 - 12,420,151 159,815 13,132 16,543 - 381,784 (191,098) (10,447) (2,811) - (247,761)	19,883,619 571,274 (452,117)
Balance at June 30, 2021	6,856,223 403,810 188,569 - 12,554,174	20,002,776
Net book value
At December 31, 2020	2,399,598 96,892 57,409 1,052,133 15,696,564	19,302,596
At June 30, 2021	2,405,119 167,599 58,130 1,023,218 15,498,133	19,152,199

IMPACT Silver Corp.

Notes to the Condensed Consolidated Interim Financial Statements June 30, 2021

(Canadian dollars) Unaudited

8. Exploration and evaluation assets

Balance at January 1, 2020	$	22,071,788
Additions		953,751
Foreign exchange		(1,153,936)
Balance at December 31, 2020		21,871,603
Additions		797,593
Recoveries		(135,000)
Write-down		(33,947)
Foreignexchange		(442,905)
Balance at June 30, 2021	$	22,057,344

9. Key management personnel compensation

Key management includes the Chief Executive Officer, Chief Financial Officer, Vice-President Exploration and Board of Directors and Audit Committee members. The remuneration of directors and other members of key management personnel for the three months ended June 30 is as follows:

Salaries and fees Share based compensation	2021 2020
	$ 235,712 $ 246,400 581,310 -
	$ 817,022 $ 246,400

10. Expenses by nature

The following table details the nature of expenses within cost of goods sold for:

Production costs Administration Transportation Wages and salaries	Three months ended June 30 Six months ended June 30 2021 2020 2021 2020
	$ 1,452,882 $ 820,440 $ 3,470,304 $ 2,575,706 247,931 38,085 411,827 144,104 60,128 88,318 209,973 214,408 1,134,677 919,070 2,234,608 2,046,842
	$ 2,895,618 $ 1,865,913 $ 6,326,712 $ 4,981,060

IMPACT Silver Corp.

Notes to the Condensed Consolidated Interim Financial Statements June 30, 2021 (Canadian dollars) Unaudited

11. Equity

a) Share capital

Authorised share capital consists of an unlimited number of common shares without par value.

On August 20, 2020, the Company completed a brokered private placement for aggregate gross proceeds of $9.5 million from the issuance of 10,049,096 units of the Company at $0.95 per unit. Each unit consists of one common share and one-half share purchase warrant, each whole purchase warrant exercisable into one common share at a price of $1.30 for a period of 24 months from the date of issuance. The Company paid cash commissions of 6% of the gross proceeds from certain subscribers in the private placement and the agents were granted, and subscribed for, an aggregate of 598,089 broker warrants entitling the holder to acquire one unit at a price of $0.95 per unit.

On April 16, 2020, the Company closed a non-brokered private placement for 6,666,634 units of the Company at a price of $0.30 per unit for gross proceeds of $2.0 million. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one common share at a price of $0.385 for a period of 36 months from the date of issuance.

On August 12, 2019, the Company closed a non-brokered private placement which was completed in four tranches. The private placement raised aggregate gross proceeds of $4.9 million by issue of 7,500,000 series 1 units at a price of $0.26 per unit and 10,344,827 series 2 units at a price of $0.29 per unit. Each series 1 unit consists of one common share and one warrant. Each series 1 warrant entitles the holder to purchase one common share at a price of $0.30 per common share for a period of 36 months from the date of issuance. Each series 2 unit consists of one common share and one warrant. Each series 2 warrant entitles the holder to purchase one common share at a price of $0.385 per common share for a period of 36 months from the date of issuance.

• On July 5, 2019, a total of 4,752,770 series 1 units were issued for aggregate gross proceeds of $1.2 million.

• On July 24, 2019, a total of 2,747,230 series 1 units were issued for aggregate gross proceeds of $0.7 million.

• On August 2, 2019, a total of 8,433,759 series 2 units were issued for aggregate gross proceed of $2.4 million.

• On August 12, 2019, a total of 1,911,068 series 2 units were issues for aggregate gross proceeds of $0.6 million.

On January 18, 2019, the Company closed the second tranche of a non-brokered private placement which commenced in 2018. The private placement raised aggregate gross proceeds of $1.7 million by issue of 6,453,253 units at a price of $0.27 per unit. Each unit consists of one common share and one warrant. Each warrant entitles the holder to purchase one common share at a price of $0.35 per common share for a period of 24 months from the date of issuance.

• On November 30, 2018, a total of 2,031,500 units were issued for aggregate gross proceeds of $0.5 million.

• On January 18, 2019, a total of 4,421,753 units were issued for aggregate gross proceeds of $1.2 million

IMPACT Silver Corp.

Notes to the Condensed Consolidated Interim Financial Statements June 30, 2021 (Canadian dollars) Unaudited

11. Equity – continued

b) Stock options

The Company has established a stock option plan whereby the board of directors may, from time to time, grant options to directors, officers, employees or consultants. Under the terms of the Company’s fixed stock option plan, the maximum number of shares reserved for issuance is 10% of the issued shares of the Company or 12,936,917 shares. Options granted must be exercised no later than five years from date of grant or extension or such lesser period as determined by the Company’s board of directors. The exercise price of an option is not less than the closing price on the TSX Venture Exchange on the last trading day preceding the grant.

On January 18, 2021 the Company granted stock options under its Stock Option Plan to directors, officers, employees and consultants exercisable for 2,110,000 shares of the Company. The options are exercisable on or before January 18, 2026 at a price of $0.90 per share. Options vested 100% on the date granted.

The Black Scholes Option Pricing Model was used to estimate the fair value of stock options for calculating stockbased compensation expense. The Company recognized a stock-based compensation expense and an increase to contributed surplus based on a grading vesting schedule using the following assumptions:

Date Granted	January 18, 2021
Numberofoptions granted	2,110,000
Risk-free interest rate	0.14%
Expected dividend yield	Nil
Expected share price volatility	84.516%
Expected option life in years	2.5

The expected volatility is based on the historical and implied volatility of the Company’s common share price on the TSX Venture Exchange. The risk-free interest rate assumption is based on the Bank of Canada marketable bonds with a remaining term equal to the stock options’ expected life. Option pricing models require the input of highly subjective assumptions including the expected price volatility. Changes in the subjective input assumptions can materially affect the fair value estimate, and therefore the existing models do not necessarily provide a reliable single measure of the fair value of the Company’s stock options.

The total fair value of share-based payment expense on stock options granted to employees and consultants of the Company for the year ended June 30, 2021 is $943,511 (June 30, 2020 – $nil).

A summary of the Company’s stock options as at June 30, 2021 and the changes for the periods ended on these dates is as follows:

as follows:
		Weighted Average
	Number	Exercise Price ($)
At January 1, 2020	5,185,000	0.55
Exercised	(545,000)	0.40
Forfeited	(30,000)	0.98
At December 31, 2020	4,610,000	0.57
Granted	2,110,000	0.90
Exercised	(230,000)	0.59
At June 30, 2021	6,490,000	0.67

IMPACT Silver Corp.

Notes to the Condensed Consolidated Interim Financial Statements June 30, 2021

(Canadian dollars) Unaudited

11. Equity – continued

b) Stock options – continued

The following table summarizes information about the stock options outstanding at June 30, 2021:

Exercise		Weighted Average
Price	Number of Options	Remaining Life	Number of Options
Per Share	Outstanding	(Years)	Exercisable	Expiry Date
$0.98	1,470,000	0.07	1,470,000	July 27, 2021
$0.35	1,160,000	1.22	1,160,000	September 20, 2022
$0.36	1,750,000	3.32	1,750,000	October 24, 2024
$0.90	2,110,000	4.56	2,110,000	January18,2026
	6,490,000	2.61	6,490,000

c) Warrants

A summary of the Company’s warrants as at June 30, 2021 and the changes for the periods ended on these dates is as follows:

		Weighted Average
	Number	Exercise Price ($)
At January 1, 2020	23,900,655	0.35
Issued	12,289,268	0.79
Exercised	(13,887,172)	0.36
At December 31, 2020	22,302,751	0.58
Exercised	(3,672,272)	0.34
At June 30, 2021	18,630,479	0.63

The fair value of each warrant granted is estimated at the time of grant using the Black-Scholes option pricing model with assumptions as follows:

	July 5	July 24	Aug 2	Aug 12
Date Granted	2019	2019	2019	2019
	July 5	July 24	Aug 2	Aug 12
Expiry Date	2022	2022	2022	2022
Number of warrants granted	4,752,770	2,747,230	8,433,759	1,911,068
Risk-free interest rate	1.69%	1.51%	1.41%	1.39%
Expected dividend yield	Nil	Nil	Nil	Nil
Expected share price volatility	72.93%	74.32%	75.39%	75.81%
Expected warrant life in years	1.5	1.5	1.5	1.5

IMPACT Silver Corp.

Notes to the Condensed Consolidated Interim Financial Statements June 30, 2021

(Canadian dollars) Unaudited

11. Equity – continued

c) Warrants – continued

	April 16	Aug 20	Aug 20
Date Granted	2020	2020	2020
	April 16	Aug 20	Aug 20
ExpiryDate	2023	2022	2022
Number of warrants granted	6,666,634	5,024,545	598,089
Risk-free interest rate	0.34%	0.26%	0.26%
Expected dividend yield	Nil	Nil	Nil
Expected share price volatility	79.48%	89.00%	89.00%
Expected warrant life in years	1.5	1.5	1.5

Pricing models require the input of highly subjective assumptions including the expected share price volatility. Changes in the subjective input assumptions can materially affect the fair value estimate.

d) Income (loss) per share

Details of the calculation of loss per share are set out below for:

	Three months ended June 30 Nine months ended June 30 2021 2020 2021 2020
Net income (loss) attributable to shareholders	$ 218,439 $ (195,019) $ (38,902) $ (285,193)
Weighted average number of shares outstanding - Basic Warrants Stock options Weighted average number of shares outstanding - Diluted Income (loss) per share - basic Basic Diluted	144,441,166 116,926,932 146,308,767 113,637,562 6,694,364 - - - 1,493,326 - - -
	152,628,856 116,926,932 146,308,767 113,637,562 $ - $ - $ - $ - $ - $ - $ - $ -

IMPACT Silver Corp.

Notes to the Consolidated Financial Statements June 30, 2021 (Canadian dollars) Unaudited

12. Segmented information

The Company has one operating segment and two reportable segments based on geographic area:

i) Mexico – This part of the business includes the Company’s mining operations and exploration properties ii) Canada – This part of the business includes head office and group services

The segments are determined based on the reports reviewed by the Chief Executive Officer (who is considered the Chief Operating Decision Maker) to make decisions about resources to be allocated to the segment and assess its performance and for which discrete financial information is available.

Details are as follows:	Three months ended June 30 Six months ended June 30 2021 2020 2021 2020	Three months ended June 30 Six months ended June 30 2021 2020 2021 2020
Revenues by geographic area Mexico $ 4,215,562 $ 2,842,355 $ 9,591,422 $ 6,256,063 Net income (loss) by geographic area Mexico $ 530,095 $ 373,539 $ 1,572,326 $ 551,912 Canada (311,656) (568,558) (1,611,227) (837,105) $ 218,439 $ (195,019) $ (38,902) $ (285,193) June 30, December 31, 2021 2020 Assets by geographical area Mexico $ 48,137,507 $ 47,186,039 Canada 18,408,903 17,645,591 $ 66,546,410 $ 64,831,630 Property, plant and equipment by geographical area Mexico $ 19,115,365 $ 19,261,918 Canada 36,834 40,678 $ 19,152,199 $ 19,302,596	$ 4,215,562 $ 2,842,355 $ 9,591,422 $ 6,256,063
	$ 530,095 $ 373,539 $ 1,572,326 $ 551,912 (311,656) (568,558) (1,611,227) (837,105)
	$ 218,439 $ (195,019) $ (38,902) $ (285,193)
		June 30, December 31, 2021 2020
		$ 48,137,507 $ 47,186,039 18,408,903 17,645,591
		$ 66,546,410 $ 64,831,630
		$ 19,115,365 $ 19,261,918 36,834 40,678
		$ 19,152,199 $ 19,302,596