Good day, ladies and gentlemen. Welcome to IMPACT Silver's Q4 2025, full year 2025, period ending December 31st, 2025, financial and production results conference call. Before we begin, we would like to go over our disclosure statement, followed by Mr. Fred Davidson's comments on the quarter's results and a Q&A period. Certain statements in the following conference call regarding IMPACT Silver's core business operations may constitute forward-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 in the forward-looking statements. I would like to now turn it over to President and CEO of IMPACT Silver, Mr. Fred Davidson. Thanks, Jerry. Needless to say, it's an interesting year-end and I think actually going forward is very positive. We're looking at strong metal prices for silver. We're looking at enhanced grades and enhanced tonnage for silver. Let's go forward anyhow. We recorded $48.5 million in the year. That was a 52% increase over the prior year and the gross profit was basically $10.4 million for the year compared to basically a loss of $2.2 million in 2024. The revenue from the Zacualpan in the fourth quarter was almost $15 million and that's a 129% increase over Q4 last year, basically on higher metal prices and improving grades. The gross profit went up to $8.6 million for the quarter and again, $1.1 million. At the end of the year, the company had an incredibly good balance sheet with roughly $24 million in cash and another $4 million in term deposits, et cetera, guaranteed investment certificates and working capital of $31.7 million. Of course, we have no long-term debt. During the forum, let's address the elephant in the room. We've had continuing problems at Plomosas and in spite of some really good drill results. Part of it is explained in that we were following a mine plan from our predecessors and some of the ore that was supposed to be there wasn't there and some of the ore was less than is expected. We did have success in our drilling. The problem was you had to get to it and that meant doing development and in between the sort of defining it and then accessing it and then mining it was going to be probably a good six months. The end result, we were going to sustain losses in that period of time and six months, probably even nine months. The whole strategy was it's a temporary suspension of the mining and that is until we can actually get the exploration and development up to expand that resource to the point where we can mine consistently with good grades and good tonnage. It compounded that within the third and fourth quarter, of course. We had the ground movement there, which caused us to have to relocate our decline and we incurred more costs and had to access lower grade resources while we did that. We had some flooding from the big storms that hit everybody in the West Coast. That was another three or four days. Those were all just part of being in mining. It didn't really affect the reason we made the decision. The decision was fundamentally we weren't going to be able to put enough ore through the mill with the resources that had been indicated previously. We did indicate there were resources that we could access, but you don't do it in a month or a week or even three months. That's why we did it. In between, we haven't stopped on the property. We've only actively mined and explored roughly 10% of the property and we're continuing on. I think we're going to have continued results coming out that are going to be good and ultimately we'll be able to package those together and present something that we can then go ahead on with decent grades and on a continuing basis, a sustainable basis. In between, we have been in discussion with two other mines in the general district and they're in need of a mill. We're going to be processing ore, hopefully fairly shortly, once all the contracts get signed, from a couple of places. That's going to probably more than sustain us. It may even generate a small profit, which would be nice. I think we've addressed the issue. I think we're going to be able to clean up the issue. We're reducing costs at Plomosas and we'll be laying off probably about 75% of the team there for six-nine months. We'll be maintaining the lab and the management, et cetera, because we do intend to put it back into production, but this time with a more defined mine plan and a resource ahead of us that we know we can mine. That's where we are with Plomosas. On the other side, Zacualpan is just going for us and we'll get into more discussions on that. We've had some good underground successes. I think we mentioned well, we have. We talked about the Kena, but that was probably nine months ago and we had some really good results from the Kena. We're accessing the Kena, but the fact is it does take time to develop it. We're just starting to see towards the end of the year, we were starting to see some good results coming out in Kena. We're seeing the grades start to rise, the tonnage start to rise. It's going to be constrained a bit while we do the shaft. We're still working on the shaft. It was built in the 1950s, so it needed major work. We had a second ball mill needed some major work. So when one ball mill went down, we fixed it, got it up. The second ball mill is down, but our tonnage is still up. Once we get the shaft ready, we develop the Kena a little further and we get the ball mills both up and running. I think we're going to see an increase in tonnage and in grade going forward for this year. Overall, we're well-positioned. We've got lots of money in the bank and that was a deliberate intention, recognizing that the market would be unstable. We're in a position to do some things we wouldn't have been able to do last year and that includes being able to take on some targets that we potentially can put back into production. We're looking at Capire as we go forward and that'll be another one we're going to work on. It's been a very busy year and I think other than the loss, which, if you deduct the non-cash items, was actually positive of about $4 million, even with the losses we sustained at Plomosas. Going forward, we've got cash in the bank, no debt and we're going to see Zacualpan delivering on a continuing basis for the near future, which all depends, obviously, on the price of silver. We've improved our management team. We've got a specialist who works on CRDs and he's now taking over as an advisor on Plomosas. We've got another specialist we're bringing in who's going to help us with our overall strategy going forward for possible acquisitions and doing the due diligence on them. That's about it. What else can I say? Things are not looking bad at all. Excellent. Good to hear, Fred. Thank you for that overview. Here are some of the questions we compiled from investors this quarter. Again, in the future, please feel free to send questions to inquiries, plural, at impactsilver.com or call us direct at. Question one is a two-part question. Great quarter, Fred and team. Are investors right to expect an even better Q1 2026 since silver neared $120 U.S. an ounce in January? And the second part of that, discounting the one-time shutdown cost of $8.7 million on Plomosas, there's almost a net income. Can investors expect that at $80+ silver, things will be profitable for IMPACT? Yeah, we're certainly looking at that. The only thing is the write-down was an impairment. An impairment, what it means under IFRS is that you cannot demonstrate at an 18% discount, by the way. You cannot guarantee, prove that you are going to be generating a profit. The impairment itself was calculated on the basis that at 18%, with what we had in front of us, we couldn't generate a profit. Now, we are going to incur, obviously, a few additional costs because we're going to be laying off people. Once that's gone by, we're going to see that, yes, Zacualpan is going to be very strong. Ignore the 120. That was a blip, because remember, when we ship ore, the pricing is generally a month to two months after we've shipped it, or concentrate, rather. We're going to show a very substantial year given the price of metal stays up where it is from Zacualpan alone. Okay, great. Question two, again, on the Plomosas again. It's unfortunate timing of a bit of a lack of news through the first four months and the Plomosas shutdown. Fred and team, can you explain how this shutdown will help IMPACT going forward, aside from stopping the losses? And what does operation arrangement with nearby projects mean? How can the team get best value for Plomosas and what's the strategy here post-suspension? Yeah. Plomosas itself was the first two quarters, things where we could see that we were starting to get the costs and the revenue very close together. What happened and what appears to have happened, quite frankly, is that as I said before, we got into the fact that some of the resources were not as big as anticipated and others required more development and that development has to be written off against what we're going to. We did accelerate the underground drilling, which is additional cost as well, but it did identify and you saw the results. We did identify some things that are pretty attractive. Unfortunately, you've got to develop them and very much like the Kena and Zacualpan. It takes a good six months, nine months to be able to open these areas up for mining on a sustainable basis. If you look at last year, the gross profit for Zacualpan was about $15 million. We lost $4.6 million from Plomosas and that's without the $8 million write-off. It's called an impairment actually under IFRS. Yeah, what we're going to see is that Plomosas cost gets reduced substantially. We're going to see a much better bottom line all the way around. We do want to take it back into production, but only when we're happy this time that what we're going to be processing or what we're going to be developing is actually there. Okay, great. Question three, you mentioned that earlier, Fred. Cash on hand is very good. It's almost a third or a half its market cap, depending on the day. What other catalysts are IMPACT planning with this cash balance and hopefully cash flow? Yeah. Well, first of all, as I mentioned before, Zacualpan is doing quite well and there's even more cash on hand at the end of the quarter. Excuse me. We are talking to, say, processing some more from some people. We're hoping that will actually generate some profits at Plomosas. We are going to be doing an aggressive exploration program and at the same time, we are looking at a couple of potential acquisitions. They're a little earlier stage. In both cases, actually, we're looking at three. They've been taken to a certain point by sort of locals. Some of them they're mining, some they're not. The idea is that we're going to get an option on them and be able to explore them and see if they're worthwhile taking into production. Problem with doing acquisitions right now in this market is, A, obviously, our stock is really underpriced. There's a lot of promoted stocks out there that might have a project, but a single drill hole does not make a mine. It may make the stock. It is very selective. We have to be careful in what we do. Plomosas was a bit of a punch in the nose, quite frankly. I think we can bring it back in line, but I don't want to have to do that every year. Yeah, we're going to be very scrupulous on it. There's some other opportunities out there that we have the cash for and I think we might be a little aggressive in chasing some of these smaller ones that can become bigger ones like Zacualpan has been. Okay, perfect. Question four. Almost 14,000 meters drilled infill and development at Guadalupe and Plomosas. Why does it seem that IMPACT doesn't report these results as other companies? Yeah. Part of the problem is we don't report the stuff that is the underground mining, mainly because it's not processed where it can be reported under 43-101. We can only report really the work that's being done that would be, sorry, on surface and on new projects or new areas. That's part of the reason. I mean, Kena, yes, we reported it when we first got it. It was done with 43-101, et cetera. We haven't been reporting the sort of several dozen drill holes we put in it subsequently. The only thing I can say is we're going to be reporting the ore that's coming from that very shortly. Very shortly. As for the other drilling there is, we generally do it by campaign. People have produced one drill hole and second drill hole. That's all very nice, but it means nothing. We have to provide something that can be interpreted as being an indication of something of substance. We're not a, I hesitate to say that we're not a junior in that sense, in that we are running a company. We're running roughly $45 million-$50 million in revenue. We've got money in the bank. We're not trying to promote things on a one drill hole basis. We will, however, report it on a campaign basis and I think in the very near future, we're going to have a release on that coming up. Okay. Excellent. Question six. At Guadalupe this quarter, IMPACT reached about 190,000 ounces of silver produced. Is that a safe run rate to use of nearly 800,000 ounces a year equivalent, mostly silver, even without Plomosas? Well, I hate using the word equivalence anyhow. I think what we saw for the fourth quarter is probably representative of what we're going to do for the balance of the year. Let's face it, where is the price of silver going to be tomorrow? Yeah. We're seeing the tonnage come. We're seeing the grade come. We're hoping to get the tonnage up a little more. As I say, we're working on the shaft, which has slowed us down. We dedicate a whole shift to rebuilding the shaft as we go. There's 190 meters of it and virtually all the steel has to be replaced. Then, of course, the ball mills, same problem. We had one ball mill go down in the last quarter and we've got a ball mill down right now. Is it going to impact significantly the revenue for the next months to come? come? Not really. Yeah, these things are just part of mining. Fair enough. Yes. I think the run rate we had in the fourth quarter is going to be very representative. Good. Okay. Next question has to do with revenue and cost per ton. The revenue of $391 per ton versus direct cost of $156 is great margins. I know we've seen this in the past, in 2012. Will IMPACT hedge any silver at above $80 an ounce? I know I'm going to be cursed for this, but no. The people who buy our shares are buying silver and if silver goes up more, you're going to see it. If silver goes down more, you're going to see it. However, there are occasions where if we take on a project which is price sensitive, then we may look at that as hedging that specific project. Okay. Question eight. Tonnage at the Guadalupe went up to 419. In previous calls, we noted the aim was to increase it further. The max capacity is currently noted at 500+ tons per day. Will we see this go higher next few quarters, Fred? Yes. Simple enough. Given that all the ball mills are working and the shaft is not getting interfered with, there's no reason to believe that we will not be able to get to that limit, that point at this point in time. Okay. Last question. At these crazy silver prices, Capire seems to make sense even with the previous grades and operations and some cost. The MD&A noted a potential restart with the press release. What's expected here? We're actually pricing out the necessary CapEx right now. The intention would be, it is subject to, I think we've talked about this before, the ordering of a XRT unit and they take delivery time. It's longer. It's probably the only thing that'll delay us going ahead. We've had metallurgical work being done because the group that we were negotiating with on a possible acquisition of it, they've come up with a new model that's more efficient and actually, I understand, a little cheaper. We sent over a bulk sample to have it tested. The results came back as expected, better than expected. Yeah, we're now looking as we price out everything, looking at an order. Okay, perfect. Okay, that's all the question we have for this quarter. Thank you for all the investors that submitted and called in for questions and your continued interest in IMPACT Silver. Please submit questions to us or at inquiries@impactsilver.com. We look forward to hearing from you on our next quarterly call, which is probably mid-May on Q1 2026. For more information, please visit www.impactsilver.com or follow us on Twitter and various social channels on LinkedIn at IMPACT_Silver.