Announcement PDF ASX ANNOUNCEMENT Date: 5 April 2016 Number: 458/050416 DEPTH POTENTIAL AND NEW TARGETS REVEALED AT THE COMMONWEALTH DEPOSIT  At least three south plunging ore shoots identified in drill assay data and new down hole EM data.  All three shoots are undrilled at depth and open, in particular below a previous Impact drill intercept of: 4 m at 41.8 g/t (1.3 ounces per tonne) gold, 93 g/t silver (3 ounces per tonne), 5.5% zinc and 2.3% lead.  Gravity data directly detects known high grade massive sulphide mineralisation at Main Shaft and identifies possible depth extension.  Gravity data also identifies three new nearby targets for massive sulphide mineralisation.  Potential for significant expansion of the Inferred Resource of 100,000 gold equivalent ounces.*  Ongoing interpretation of new gravity and IP data over Silica Hill, Doughnut and Welcome Jack in progress with encouraging results.  Planning in progress for major drill campaign for this Quarter. * For details on the Inferred Resource and the calculation of the gold equivalent ounces please see page 6 of this report. New work at Impact Minerals Limited’s (ASX:IPT) 100% owned Commonwealth gold-silver-zinc-leadcopper project 95 km north of Orange in New South Wales has revealed both the potential to significantly increase the size of known resource at the Commonwealth deposit and identified several new nearby targets for similar deposits of high grade massive sulphide. This new potential has been identified from a review and synthesis of data from drill hole assays, two down-hole electromagnetic (EM) surveys and a ground gravity survey, with the new targets to be tested as part of an extensive drill programme to be undertaken this Quarter. 26 Richardson Street West Perth Western Australia 6005 Tel +61 (8) 6454 6666 Facsimile +61 (8) 6454 6667 Email info@impactminerals.com.au www.impactminerals.com.au Three Ore Shoots with High Grade Drill Assays that are Open at Depth New tree dimensional modelling of the drill hole assay data indicate that there are potentially at least three ore shoots within the Commonwealth deposit that have a previously unrecognised plunge to the south: one at Main Shaft and two at Commonwealth South (Figure 1). The down-plunge extensions of these shoots have not been drilled. At Main Shaft the mineralisation occurs as massive sulphides that contain gold and silver together with zinc, lead and iron sulphides (sphalerite, galena and pyrite) and lesser copper sulphide (chalcopyrite). The drill assay and down hole EM data indicate that the mineralisation is open to the south in particular beneath Hole CMIPT021 that returned an intercept of 8.1 m at 6 g/t gold, 193 g/t silver, 5.9% zinc and 2.3% lead (see announcement 19 February 2015). Figure 1. 3D View looking to the north west of the Commonwealth resource (grey outline) and showing: grade shells for gold (yellow = 1g/t, red/orange = 2 g/t) and copper (green = 500 ppm copper) from drill assay data; interpreted EM conductors (blue rectangles) and interpreted ore shoots (dashed lines). The down plunge extensions of these shoots have not been drilled and are priority drill targets. In the two shoots at Commonwealth South, the majority of the mineralisation occurs as veins and disseminations of gold and silver-rich zinc and lead sulphides. However, Impact, in its maiden drill programme at the project, discovered what could be the edges of two new separate lenses of massive and semi-massive sulphide at the edge of the deposit. These two lenses also help define the two ore shoots (Figure 1 and see announcement 22 September 2014). In the southern most ore shoot, Hole CMIPT017 returned a very high grade intercept at the edge of the deposit of: 4 m at 41.8 g/t (1.3 ounces per tonne) gold, 93 g/t silver (3 ounces per tonne), 5.5% zinc and 2.3% lead from 90 metres down hole. A down hole EM survey identified a modest small conductor located just south of this intercept within the interpreted southern shoot and this is a drill target (Figure 1). In the central shoot, Hole CMIPT014 returned two high-grade drill intercepts in massive sulphide of: 2 m at 6.7 g/t Au, 61.6 g/t Ag, 3.8% Zn, 3.2% Pb from 53 metres; and 4 m at 6.0 g/t Au, 25 g/t Ag, 1.4% Zn, 0.3% Pb from 72 metres down hole. This was the first significant discovery of two massive sulphide lenses at Commonwealth and they occur immediately above and below a prominent unit of rhyolite. Prior to this massive sulphide mineralisation had only been found above the rhyolite. The mineralisation is open at depth (Figure 1). All three shoots will be tested in the upcoming drill programme. Further Depth Potential and New Targets for Massive Sulphide Identified in Ground Gravity Data Massive sulphide bodies, such as at Main Shaft, are commonly very dense and are ideally suited for exploration by the gravity method which measures the relative density of rocks. Accordingly a ground gravity survey covering an area of about 3 square kilometres has been completed over the Commonwealth deposit and surrounding areas at a station spacing of 200 metres by 25 metres or 50 metres. At Commonwealth, detailed geophysical modelling and density measurements taken by Impact on mineralised core show that the gravity survey has successfully directly detected the massive sulphide mineralisation at Main Shaft (Figures 2 and 3). Figure 2. Image of ground gravity data over the Commonwealth resource and immediate surrounding area with warmer colours indicating areas underlain by more dense rocks. There is a coincidence of the gravity anomaly with the massive sulphide mineralisation at Main Shaft at the northern end of the resource. Three other areas of similar density have also been identified. This information has been used to calibrate the gravity data to identify bodies of similar density. From this, four new targets for massive sulphide mineralisation have been identified in and around the Commonwealth resource (Figures 2 and 3): 1. 150 metres east of the Commonwealth deposit; 2. At depth below Commonwealth South. Modelling of the gravity data suggests a moderately dense body may be present down to at least 250 m below surface in an area not tested below 100 metres below surface; 3. 250 metres south west of the Commonwealth deposit; and 4. 400 metres west of the Commonwealth deposit. The first three targets will be tested in the upcoming drill programme. Further work is required at the fourth target to determine its significance. Figure 3. 3D view looking north west of the gravity data following a mathematical inversion process that identifies bodies of similar density. The colours represent shells or surfaces of the same density with the smaller more dense shells shown in the purple-pink colour and slightly less dense larger shells in the burgundy red colour. The Commonwealth deposit as shown in figure 1 is shown for reference. Note the coincidence of a dense body with the massive sulphide mineralisation at Main Shaft and bodies of similar density that are targets for drilling. Next Steps An interpretation of ground gravity data, induced polarisation data and soil geochemistry data is in progress at the Silica Hill, Doughnut and Welcome Jack Prospects. Initial indications are that further drill targets will be identified. A programme of up to 3,000 metres of Reverse Circulation (RC) and diamond drilling and scheduled to start within the next 6 to 8 weeks. This will test a significant number of targets within these four prospects. In addition, given the success of gravity data in identifying the massive sulphide mineralisation at Main Shaft, a further ground gravity survey is underway that will extend coverage to about 8 square kilometres centred on the Commonwealth deposit. About the Commonwealth Mineral Resource Estimate The Inferred Resource at Commonwealth, prepared in accordance with the JORC 2012 Code by independent resource consultants Optiro at a 0.5 g/t gold cut off, is: 720,000 tonnes at 4.5 g/t gold equivalent for a contained 110,000 gold equivalent ounces comprising 2.8 g/t gold, 48 g/t silver, 1.5% zinc, 0.6% lead and 0.1% copper. The resource, which is open along trend and at depth, contains both massive sulphide mineralisation at the Main Shaft prospect and disseminated, vein and lesser massive sulphide mineralization at the Commonwealth South prospect. It extends from surface to an average depth of 90 m, has a strike length of 400 m and is up to 25 m thick. A separate Inferred Mineral Resource (included within the overall resource) has also been calculated for the massive sulphide lens at Main Shaft alone to demonstrate the high grade nature of such deposits that are the principal target for Impact’s exploration programme. The Main Shaft Inferred Resource is: 145,000 tonnes at 9.3 g/t gold equivalent for a contained 47,000 gold equivalent ounces comprising 4.3 g/t gold, 142 g/t silver, 4.8% zinc, 1.7% lead and 0.2% copper. The Commonwealth deposit comprises two areas, Main Shaft and Commonwealth South. The mineralisation at Main Shaft is typical of a volcanogenic massive sulphide (VMS) type system, containing high grade gold, silver, zinc, lead and copper mineralisation which occurs at the upper contact of a rhyolite unit with the overlying volcanic sedimentary rocks. Mineralisation at Commonwealth South occurs at both the upper and lower contacts of the rhyolite and is dominated by 1-50 mm thick stringers and disseminations of sulphide, often associated with intense brecciation and faulting of the rhyolite. The Commonwealth Resource strike length is 400 m and it is open along trend in particular to the south. The mineralisation has been defined to a maximum depth of 150 m and is still open. Twenty one new holes were drilled by Impact in 2014. The total number of holes into the Commonwealth project is 108, comprising 49 reverse circulation (RC) holes, 45 diamond holes, 10 underground channel samples and four underground drill holes. Of these holes, 52 intersected the mineralisation wireframe and were used in the estimation. Although some of the holes are from previous explorers, Impact has twinned some of the higher grade intersections and these have largely confirmed the grades and widths. Quality control measures employed during Impact’s drill programme included the use of certified standards (1% of total sample population), field duplicates (2% of total sample population) and blanks (2% of total sample population). No previous quality assurance/quality control (QAQC) has been carried out at the Commonwealth Project. Analysis of the standards and blanks showed acceptable to good levels of accuracy in the assaying and little contamination. The duplicate samples matched the originals with a high degree of precision. The drill hole database was reviewed and validated by Optiro. Three-dimensional solid wireframes were constructed from sectional interpretations of the mineralisation using a nominal 0.5 g/t gold cut-off grade. Drill hole intercepts were composited downhole to 1 m lengths and gold, silver, copper, zinc, lead and arsenic grade estimation was carried out using ordinary kriging with hard boundaries. Three search passes, with increasing search distances and decreasing minimum sample numbers, were employed to fully inform the model. Less than 1% of blocks were not filled in the first three passes. Further estimation passes were run to assign mean grades to un-estimated blocks. The Commonwealth Mineral Resource estimate has been classified as an Inferred Mineral Resource in accordance with the guidelines of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012). Mineral Resources have been classified on the basis of confidence in geological and grade continuity, geological modelling confidence, grade continuity and limited QAQC. No Measured or Indicated Mineral Resources have been defined. The Mineral Resource estimate for the Commonwealth Project has been reported above a 0.5 ppm gold cut-off grade. The estimate has been depleted for previous historic mining. Grades have been reported as individual elements (gold, silver, zinc, lead and copper) and, in addition, a gold-equivalent grade has been defined. This has used the following Australian dollar commodity prices: Gold $1588/ oz; Silver $19.55/ oz; Copper $2.87/lb; Lead $1.03/lb; Zinc $1.10/lb. There has been no metallurgical testing of the Commonwealth mineralisation to date so no metallurgical recoveries have been incorporated into the gold equivalent calculation. This is commensurate with the classification of the Commonwealth prospect as an Inferred Mineral Resource. Investment by Squadron Resources Pty Limited The Commonwealth gold-silver-zinc-lead project and also Impact’s Broken Hill platinum-copper-nickel project are part of the investment agreement between Impact Minerals and Squadron Resources Pty Ltd, part of the Minderoo Group which represents the philanthropic and business interests of Andrew and Nicola Forrest (see announcement 17 July 2015). As part of the investment agreement, Squadron at its sole discretion, can invest a further A$1 million into either or both of the projects to earn a 19.9% interest after Impact has spent a combined total of $2.5 million on them. It is anticipated that Impact will meet the $2.5 million expenditure target in the September Quarter 2016. Dr Michael G Jones Managing Director The review of exploration activities and results contained in this report is based on information compiled by Dr Mike Jones, a Member of the Australian Institute of Geoscientists. He is a director of the company and works for Impact Minerals Limited. He has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Mike Jones has consented to the inclusion in the report of the matters based on his information in the form and context in which it appears. APPENDIX 1 - SECTION 1 SAMPLING TECHNIQUES AND DATA Criteria JORC Code explanation Commentary Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Rock chip samples Random grab samples were taken at surface which represented favourable geology and alteration to known mineralisation in the region. Samples are variably weathered. Soil Samples About 250g of soil was taken from 15-20cm below surface and sieved to - 2mm size. Samples put in plastic snap seal bags. Samples were subsequently sieved to -250 micron at SGS Laboratories for assay by aqua regia digest. RC Drilling Reverse Circulation (RC) percussion drilling was used to produce a 1m bulk sample (~25kg) which was collected in plastic bags and representative 1m split samples (12.5%, or nominally 3kg) were collected using a riffle splitter and placed in a calico bag. The cyclone was cleaned out with compressed air at the end of each hole and periodically during the drilling. Holes were drilled to optimally intercept interpreted mineralised zones. Diamond Drilling Diamond drilling was used to produce drill core either with a diameter of 63.5 mm (HQ) or 47.6 mm (NQ). Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used Rock chip samples Representative samples at each sample site weigh between 0.8 and 1.2 kg. Sample sites were chosen due to historic rock and soil assay results and the geophysical surveys conducted on the Commonwealth Project. Historic rock sample methods are unknown but are considered immaterial. Soil Samples and Drill Samples Sample representivity was ensured by a combination of Company Procedures regarding quality control (QC) and quality assurance / testing (QA). Examples of QC include (but are not limited to), daily workplace and equipment inspections, as well as drilling and sampling procedures. Examples of QA include (but are not limited to) collection of “field duplicates”, the use of certified standards and blank samples approximately every 50 samples Sampling techniques Criteria Drilling techniques Drill sample recovery JORC Code explanation Commentary Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information Rock chip samples Rock samples were sent to SGS Perth where they were crushed, dried and pulverised (total prep) to produce a 25-30 g subsamples for analysis initially by Aqua Regia digest with ICP-MS finish for base metals then by four acid digest with an ICP/AES finish for ore grade base metal samples and lead collection fire assay with AAS finish for gold. Soil Samples Soil samples were sent to ACME Laboratories in Vancouver for analysis by aqua regia digest or to SGS Laboratories in Perth for analysis by the MMI digest. RC and diamond drill samples RC samples and cut samples of core were submitted to ALS in Orange, NSW. Laboratory sample preparation involved: sample crushed to 70% less than 2mm, riffle/rotary split off 1 kg, pulverise split to >85% passing 75 microns. RC samples analysed by MEICP41 or MEOG46 for ore grade samples, aqua regia digest with ICP OES analysis and AA24 fire assay with AAS finish. Historical diamond and RC samples were sent to Fox Anamet, Brookvale NSW where gold was determined by fire assay, base metals by DCP and AAS methods. Weathered samples contained gossanous sulphide material and fresh samples containing visible pyrite, galena, sphalerite and chalcopyrite. Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, facesampling bit or other type, whether core is oriented and if so, by what method, etc). Diamond drilling accounts for about 50 % of the drilling and comprises NQ (47.6 mm diameter) and HQ (63.5 mm diameter) sized core. Impact diamond core is triple tube and is oriented. Historical diamond core was not oriented. RC drilling accounts for about 50% of the drilling and comprises 4 inch hammer. Method of recording and assessing core and chip sample recoveries and results assessed Diamond core recoveries for all holes are logged and recorded. Recoveries are estimated to be approximately >97% for the Commonwealth Project. No significant core loss or sample recovery problems are observed in the drill core or historic reports. RC samples were visually checked for recovery, moisture and contamination. Diamond core is reconstructed into continuous runs on an angle iron cradle for orientation marking. Depths are checked against the depth given on the core blocks and rod counts are routinely carried out by the driller. Measures taken to maximise sample recovery and ensure representative nature of the samples Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. The RC samples are collected by plastic bag directly from the rig-mounted cyclone and laid directly on the ground in rows of 10. The drill cyclone and sample buckets are cleaned between rod-changes and after each hole to minimise down-hole and/or cross contamination. No sample bias has been established. Criteria JORC Code explanation Logging Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. Commentary Geological logging of samples followed company and industry common practice. Qualitative logging of samples included (but not limited to); lithology, mineralogy, alteration, veining and weathering. Diamond core logging included additional fields such as structure and geotechnical parameters. Magnetic Susceptibility measurements were taken for each 1m RC sample and each 1m diamond core interval. For diamond core, information on structure type, dip, dip direction, texture, shape and fill material has been recorded in the logs. RQD data has been recorded on selected diamond holes. Handheld XRF analysis was completed at 50 cm and 1 m intervals on diamond core and for every metre for RC samples. All logging is quantitative, based on visual field estimates. Systematic photography of the diamond core in the wet and dry form was completed. Chip trays with representative 1m RC samples were collected and photographed then stored for future reference. All diamond drill holes were logged in full. The total length and percentage of the relevant intersections logged All RC chips samples were geologically logged by Impact’s on-site geologist on a 1m basis, with digital capture in the field. Detailed diamond core logging, with digital capture was conducted for 100% of the core by Impact’s on-site geologist. Sub-sampling techniques and sample preparation If core, whether cut or sawn and whether quarter, half or all core taken. All core samples were sampled by half core. Selected intervals of quarter core will be selected for check assays if required. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. RC samples were split using a riffle splitter. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Company procedures were followed to ensure sub-sampling adequacy and consistency. These included (but were not limited to), daily work place inspections of sampling equipment and practices, as well as sub-sample duplicates (“field duplicates”). Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Laboratory QC procedures for rock sample assays involve the use of internal certified reference material as assay standards, along with blanks, duplicates and replicates. The QC procedure for historical diamond and RC samples is unknown but is assumed to have been minimal; however, the impact of historical samples has been somewhat mitigated by recent drilling. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Sample duplicates from the historical drilling were taken from selected intervals and compared to the original assay. Quarter core was taken for diamond samples and riffle resplits for RC samples. Whether sample sizes are appropriate to the grain size of the material being sampled. The samples sizes at Commonwealth are considered appropriate since gold has been identified as predominantly fine-grained by thin section analysis which would indicate the nugget effect is minimal. Criteria Quality of assay data and laboratory tests JORC Code explanation The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Commentary An industry standard fire assay technique for samples using lead collection with an Atomic Absorption Spectrometry (AAS) finish was used for gold and aqua regia digest for base metals and silver. The quality of historical drill sample assays is unknown; however it is reasonable to assume that core samples were representative of the mineralisation. No geophysical tools were used to determine material element concentrations. A handheld XRF was used for qualitative analysis only. For the rock chips, quality control procedures for assays were followed via internal laboratory protocols. Accuracy and precision are within acceptable limits. Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established. Reference standards and blanks are routinely inserted into every batch of samples at a rate of 1 in every 25 samples in the Impact drilling. Impact’s inserted standards in general showed results within expected ranges. The calculated means for Lab standards are very close to expected for the majority of standards and are within industry expectations. Laboratoy repeat checks and original samples correlated very well. There is minimal quality control of historical drill sample assays. Twin holes have been drilled to verify historical drilling. The QAQC results indicate that the assays used for resource estimation are a fair representation of the material that has been sampled. Verification of sampling and assaying Location of data points The verification of significant intersections by either independent or alternative company personnel. Significant intersections from drilling have not been verified by independent or alternative companies or by Impact. The use of twinned holes. Two twin diamond holes versus historic RC holes have been drilled at Commonwealth South and Main Shaft. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Primary assay data for rock chips has been entered into standard Excel templates for plotting in Mapinfo and Target. All historical drill data has been entered digitally by previous explorers and verified internally by Impact. Discuss any adjustment to assay data. No significant adjustments have been required. Accuracy and quality of surveys used to locate drillholes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Recent drill holes have been located by DGPS. Historical drill holes and mine shafts have been verified by DGPS. The grid system for Commonwealth is MGA_GDA94, Zone 55. Criteria JORC Code explanation Commentary Standard government topographic maps have been used for topographic validation. The DGPS is considered sufficiently accurate for elevation data. Quality and adequacy of topographic control. For the diamond holes, down-hole single shot surveys were conducted by the drilling contractor. Surveys were conducted at 6m, 18, 30m and then approximately every 30m down-hole. For the RC drill holes, downhole dip surveys were taken at approximately 30m intervals and at the bottom of the hole. Data spacing and distribution Data spacing for reporting of Exploration Results. Drill spacing of drill holes ranges between 10 and 30 m which is considered adequate for Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Spacing of drill holes ranges between 10 m and 50 m on section and are considered adequate for Mineral Resource estimation procedures. Whether sample compositing has been applied. Sample compositing has been applied for quoting drill composite results only. Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. Drilling is oriented sub-perpendicular to the mineralised trend and stratigraphic contacts as determined by field data and cross section interpretation. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. No significant sample bias has been identified from drilling due to the optimum drill orientation described above. Where present, sample bias will be reported. Sample security The measures taken to ensure sample security. For rock samples, chain of custody is managed by Impact Minerals Ltd. Samples for Commonwealth are delivered by Impact Minerals Ltd personnel to ALS in Orange, NSW or to SGS Perth for prep and assay. Whilst in storage, they are kept in a locked yard. Tracking sheets have been set up to track the progress of batches of samples. Security of historic drill samples is unknown however is considered immaterial. Audits or reviews The results of any audits or reviews of sampling techniques and data. A review of the sampling techniques and data both of historic drill holes and of Impact’s procedures has been completed by Optiro Consultants of Perth, WA. Orientation of data in relation to geological structure SECTION 2 REPORTING OF EXPLORATION RESULTS Criteria JORC Code explanation Commentary Mineral tenement and land tenure status Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settin