Mexican Silver Mines Ltd.
TSX VENTURE : MSM
FRANKFURT : MS2

Mexican Silver Mines Ltd.

January 23, 2008 09:30 ET

Mexican Silver Reports Further Drill Results From the Vallecillo 13 Hole Phase 1 Drill Program

Drilling and Mapping / Sampling at Vallecillo Delineates a 3.5 km Long Zone of Mineralization

CALGARY, ALBERTA--(Marketwire - Jan. 23, 2008) - Mexican Silver Mines Ltd. ("Mexican Silver") (TSX VENTURE:MSM)(FRANKFURT:MS2)(WKN:A0MSLE) has received assay results from drill holes V-05, V-06, V-11, V-12 and V-13 of its 13-hole phase 1 drill program recently completed on its Vallecillo project. A total of 3,081 meters were drilled by Mexican Silver in this phase of the Vallecillo drilling program. Mexican Silver highlighted certain assay results from drill holes V-01, V-02, V-03, and V-04 in its December 5, 2007 news release. Results remain pending for drill holes V-07, V-08, V-09, and V-10.

The Vallecillo district has been the site of silver-lead mining activities dating back to 1776, where mineralization is hosted within structures and mantos of the Eagle Ford formation in a sequence of interbedded limestones and silty carbonates. The largest historic mine in the district, the Dolores mine, has a known depth of 100 metres. All the other mines in the area, all located on Mexican Silver's Providencia property, have been mined from to depths of ranging from 5 to 20 meters. These historic mines were restricted in depth to the water table due to inadequate mining and water management techniques at the time. The Vallecillo district is located in the southern part of the Mexican Silver's 100-per-cent-owned Providencia concession.

The assay results for these nine drill holes indicate a strong mineralized system at Vallecillo with a strike length of at least 3.5 km, which is open along strike and to depth.

To date, all holes except for V-05 have encountered mineralization and anomalous indications of the mineralizing system, across considerable widths. Conclusions about the geometry of the system can already be drawn and which suggest the design of the second phase of the drill program at Vallecillo. A final appraisal of the phase 1 drill program and planning of the second phase will be undertaken following receipt of the assay results for the remaining four drill holes.

The following tables show the material assay results of drill holes V-01, V-02, V-03, V-04, V-05, V-06, V-11 and V-12.



Vallecillo Drilling results(i) - Phase 1
(i)Results reported are greater than 2 gm / tonne silver ("Ag")

Drill
Hole: V-01 Azimuth: 145 degrees Dip: -70 degrees
Collar Coordinates: Northing: 2,949,867 m Easting: 402,331 m

From To Interval Silver Lead Zinc
m M m gm/tonne ppm ppm
-----------------------------------------------------------------
69.00 71.00 2.00 13.3 7,600 80
85.00 87.00 2.00 3.1 1,690 226
93.00 95.00 2.00 3.7 2,570 67
162.05 163.35 1.30 6.8 1,570 11,500


Drill
Hole: V-02 Azimuth: 145 degrees Dip: -70 degrees
Collar Coordinates: Northing: 2,949,962 m Easting: 402,332 m

From To Interval Silver Lead Zinc
m M m gm/tonne ppm ppm
-----------------------------------------------------------------
211.80 212.80 1.00 3.6 105 715
219.90 220.85 0.95 2.8 32 76
220.85 221.85 1.00 2.9 55 112
221.85 222.80 0.95 4.4 133 31
246.00 248.00 2.00 4.0 982 21
248.00 250.00 2.00 2.0 152 34


Drill
Hole: V-03 Azimuth: 145 degrees Dip: -55 degrees
Collar Coordinates: Northing: 2,949,841 m Easting: 402,166 m

From To Interval Silver Lead Zinc
m M m gm/tonne ppm ppm
-----------------------------------------------------------------
162.3 163.50 1.20 136 95,200 3780
164.85 166.30 1.45 3.9 1,690 108
167.30 168.30 1.00 300.0 9,930 2,660
168.30 169.30 1.00 326.0 7,760 4,010
169.30 170.75 1.45 21.0 3,110 23,400
170.75 171.75 1.00 6.7 840 2,650
171.75 174.20 2.45 7.9 788 850
174.20 177.20 3.00 16.3 1,020 750
179.00 181.00 2.00 2.0 155 616
205.00 207.00 2.00 2.4 123 388
207.00 209.00 2.00 2.3 103 245
209.00 211.00 2.00 2.9 113 340
211.00 213.00 2.00 4.1 189 34
213.00 215.00 2.00 4.2 166 23
215.00 216.00 1.00 5.5 40 13
216.00 217.00 1.00 2.9 42 33
217.00 219.00 2.00 2.1 25 13
219.00 221.00 2.00 3.9 29 171
221.00 223.00 2.00 6.8 53 11
223.00 225.00 2.00 5.2 99 17
225.00 227.00 2.00 4.4 147 25
227.00 229.00 2.00 3.8 172 19
229.00 231.00 2.00 3.2 188 49
231.00 233.00 2.00 3.6 442 73
233.00 235.00 2.00 3.8 253 45
235.00 237.00 2.00 3.8 156 53
237.00 239.00 2.00 3.2 152 101
239.00 241.00 2.00 2.7 60 40
241.00 243.00 2.00 2.3 57 52
243.00 245.00 2.00 3.0 48 58
245.00 247.00 2.00 3.2 60 45
247.00 248.00 1.00 6.4 195 18
248.00 249.00 1.00 5.6 233 117
249.00 251.00 2.00 4.9 83 36
251.00 253.00 2.00 2.7 54 36
253.00 255.00 2.00 2.7 62 47


Drill
Hole: V-04 Azimuth: 145 degrees Dip: -70 degrees
Collar Coordinates: Northing: 2,949,653 m Easting: 402,064 m

From To Interval Silver Lead Zinc
m M m gm/tonne ppm ppm
-----------------------------------------------------------------
125.50 126.25 0.75 6.9 2,960 29,300
167.00 169.00 2.00 2.1 46 190


Drill
Hole: V-06 Azimuth: 145 degrees Dip: -70 degrees
Collar Coordinates: Northing: 2,948,926 m Easting: 401,074 m

From To Interval Silver Lead Zinc
m M m gm/tonne ppm ppm
-----------------------------------------------------------------
50.00 52.00 2.00 23.8 13,400 30
68.00 70.00 2.00 9.0 13,500 196
70.00 72.00 2.00 2.1 119 324
86.00 88.00 2.00 2.9 267 80
88.00 90.00 2.00 2.8 355 89
100.00 102.00 2.00 2.3 80 248


Drill
Hole: V-11 Azimuth: 145 degrees Dip: -55 degrees
Collar Coordinates: Northing: 2,949,817 m Easting: 402,144 m

From To Interval Silver Lead Zinc
m M m gm/tonne ppm ppm
-----------------------------------------------------------------
172.60 173.50 0.90 141.0 122,500 17,900
175.60 176.50 0.90 65.3 50,200 27,200
176.50 177.55 1.05 16.3 30,300 8,560
186.40 187.80 1.40 2.9 886 343
187.80 189.00 1.20 7.9 3,910 9,830
189.00 190.20 1.20 2.2 360 311
191.50 193.30 1.80 3.0 529 4,470
193.30 195.20 1.90 2.2 392 109
195.20 196.20 1.00 2.9 251 66
207.00 209.00 2.00 4.8 297 170
211.00 212.50 1.50 2.1 67 237


Drill
Hole: V-12 Azimuth: 145 degrees Dip: -50 degrees
Collar Coordinates: Northing: 2,948,145 m Easting: 399,980 m

From To Interval Silver Lead Zinc
m M m gm/tonne ppm ppm
-----------------------------------------------------------------
38.70 39.70 1.00 24 714 42
83.95 86.00 2.05 3.0 111 774
106.00 108.00 2.00 2.3 389 125
146.50 147.80 1.30 374.0 123,500 74
147.80 149.80 2.00 6.1 1,480 41
149.80 151.80 2.00 4.3 577 103
151.80 153.80 2.00 2.6 726 31


Drill
Hole: V-13 Azimuth: 145 degrees Dip: -50 degrees
Collar Coordinates: Northing: 2,949,803 m Easting: 402,209 m

From To Interval Silver Lead Zinc
m M m gm/tonne ppm ppm
-----------------------------------------------------------------
157.60 159.90 2.30 8.9 1,025 58,500
159.90 162.25 2.35 6.3 1,165 342
162.25 164.05 2.20 5.3 229 482


Discussion of partial results:

The phase 1 drill program completed by Mexican Silver at Vallecillo was the first ever drilling directed at this district. As the majority of the underground workings are inaccessible, and historic mine maps from the various mines in the district were not available, this drill program provided the first modern subsurface data regarding in situ mineralization. Mexican Silver was cautious in its drilling pattern due to the lack of historic mine maps as it did not want the drill to encounter underground open areas which would result in the loss of the hole and potential damage to the drilling equipment. The subsurface information obtained through this phase of drilling will allow phase 2 drilling to step closer to the historic mining targets. Mexican Silver believes because of this it has not yet drilled through the main vein or mantos but is drilling the conduits of the fluids bringing the mineralization.

In this context, the assay results of the nine drill holes received to date are very favorable, with all holes other than hole V-05, having intersected mineralization. In particular the total widths of intersections with analyses of greater than 1 gm Ag/tonne are impressive: Hole V-01 intersected a sequence of 70.0 meters with values equal to or greater than 1 gm/tonne Ag, and likewise holes V-02 intersected 44.1 meters of greater than 1 gm/tonne Ag, hole V-03 intersected 81.5 meters of greater than 1 gm/tonne Ag, V-04 intersected 43.25 m of greater than 1 gm/tonne Ag, hole V-06 intersected 54.5 meters of greater than 1 gm/tonne Ag, (V-07, V-08, V-09, V-10 results still pending), V-11: intersected 36.06 meters of greater than 1 gm/tonne Ag, V-12: intersected 13.35 meters of greater than 1 gm/tonne Ag and V-13 intersected 6.85 m of greater than 1 gm/tonne Ag. While a final robust statistical analysis will be undertaken following receipt of the assay results for holes V-07, V-08, V-09, V-10, an initial interpretation of the assay results received to date indicate the presence of a strong mineralizing system. Three-dimensional rendering of the data obtained from the 13 hole phase 1 drill program is anticipated to allow Mexican Silver to model the geometry of this system and identify drilling programs needed to further delineate this system, perhaps on a district scale.

Holes V-03, V-11 and V-13 have intersected and partially delineated (at 50 meter centers), a new mineralized manto located 250 meters west of the Dolores shaft. Near the Santa Maria mine hole V-06 intersected 2 meters of 1.34% lead and 23.4 gm of Ag/tonne and then 16 meter further down the hole 2 meter of 1.34% Pb and 23.5 gm of Ag/tonne. Hole V-07 intersected similar veins and mantos nearby V-06. Analytical results for V-07 are pending.

In addition to the drilling program, surface mapping and sampling also made significant progress at Vallecillo. West of the Santa Maria mine, surface mapping has located the trace of a vein with widths of 0.4 to 0.7 meters that continues 1 kilometer to the west to the Magnolia mine where multiple veins were mapped in an area of 300 by 600 meters. Hole V-12, located near the Magnolia mine, intersected a vein with a width of 1.3 meters which assayed at 374 gm/tonne silver and 12.35% lead. The multiple veins sampled on surface near the Magnolia mine averaged 0.2 to 0.8 meters in width with assay results ranging from 10 to 100 gm/tonne silver and 0.5% to 5.0% lead. Additional information regarding this surface mapping and sampling program is anticipated to be announced soon.

Although assay results from four drill holes of the phase 1 drill program remain pending, the current results have already identified in drilling and surface mapping / sampling, a zone of mineralization along 3.5 km of strike. This zone is open along strike in both directions and to depth. Assay results from the remaining four holes of the phase 1 drill program at Vallecillo are expected to be received shortly.

Mexican Silver also announces that significant progress has been made in exploration of its properties located in the Mamulique and Iguana districts. Additional information regarding these exploration activities is anticipated to be announced soon.

Mexican Silver has $11 million in cash and will be initiating a substantial exploration program in 2008.

All drill core samples were shipped to ALS Chemex Laboratory ("Chemex") for analyses. Chemex has an International Standard Organization rating of ISO 9001:2000 and is independent of Mexican Silver. The split drill core sample was crushed and a sub-sample (aliquot) split off, pulverized and screened through a 150 mesh screen. Analyses were preformed using standard acid digestion and spectrographic techniques.

Mexican Silver follows a rigorous Quality Assurance/Quality Control program consisting of inserting standards and duplicates into the sample stream submitted to Chemex for analyses.

Mr. William Dynes, P. Geol., the project supervisor of Mexican Silver's drilling program on the Vallecillo Property, is the Corporation's nominated Qualified Person responsible for monitoring the supervision and quality control of the programs completed within the its properties. Mr. Dynes has reviewed and verified the technical information contained in this news release.

This news release contains forward-looking information including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations and potential mineral recovery processes. Forward-looking information includes disclosure regarding possible future events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action, and therefore, involves inherent risks and uncertainties. When used in this news release. The words "estimated", "plan", "anticipated", "expected", "intend", "believe", and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Mexican Silver to be materially different from any future results, performance or achievement expressed or implied by such forward-looking statements. For any forward-looking information given, management has assumed that the analytical results it has received are reliable, and has applied geological interpretation methodologies which are consistent with industry standards. Although management has a reasonable basis for the conclusions drawn, there can be no assurance that forward-looking statements will prove to be accurate and actual results may differ materially from those currently anticipated in such statements. For such statements, we claim safe harbour.

About Mexican Silver Mines

Mexican Silver Mines is a silver focused junior resource company developing three former silver producing properties in north-eastern Mexico. To learn more about Mexican Silver Mines, please visit: www.mexicansilvermines.com.

ON BEHALF OF THE BOARD OF MEXICAN SILVER MINES LTD.

Feisal Somji, B.Sc., MBA, President and Chief Executive Officer

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this information.

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