First Majestic Silver Corp.

First Majestic Silver Corp.

March 27, 2007 13:00 ET

CORRECTION FROM SOURCE-First Majestic Silver Corp.: Purchase of La Encantada Completes

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 27, 2007) - The following corrects and replaces the press release sent out earlier today at 11:37am ET. Several revisions were made. The corrected release follows:

FIRST MAJESTIC SILVER CORP. (TSX VENTURE:FR)(PINK SHEETS:FRMSF)(FRANKFURT:FMV) (the "Company") is pleased to announce that further to its news release dated December 21, 2006 the Company has now completed the purchase of 100% of the issued and outstanding shares of Minera La Encantada S.A. de C. V. ("La Encantada"), a Mexican mining company previously owned by Minas Penoles SA de CV and Industrias Penoles SA de CV (collectively "Penoles").

La Encantada's primary asset is the La Encantada Silver Mine located in Coahuila State in the northern part of Mexico. This mine has at least 50 years of mining history and has been operated by Penoles from the early 1970's to 2003 after which time the mine was operated by Desmin S.A. de C. V. ("Desmin") until October 31, 2006. First Majestic purchased Desmin last year and thus took over operations of the La Encantada Silver Mine on November 1, 2006.

The La Encantada Silver Mine produced 950,000 ounces of silver for the calendar year 2006. The mill, which has a total capacity of 800 tpd is presently running at only approximately 50% capacity. The Company anticipates production numbers to improve over the coming months.

In addition to the main mine and mill installations, La Encantada owns 985 hectares of surrounding mining claims; surface rights to 2272 hectares of land covering the local landing strip, and all town facilities and buildings which include 170 single family dwellings, recreation facilities, school, hospital and a variety of other structures.

The regional development and exploration potential of the current land holdings is considered by the Company to have excellent prospects with several advanced areas of immediate interest. In order to secure additional land holdings, the Company has recently acquired through staking an additional 3,100 hectares of mining claims surrounding the property which covers additional areas of geological interest.

The Company agreed to pay the total purchase price of US$3,250,000 and a NSR royalty of 4%. An initial payment of US$1,000,000.00 was paid on signing of the original Letter Agreement, leaving a balance of US$2,250,000 which has now been paid in full. The Company has bought out the 4% royalty in exchange for the issuance of 382,582 shares and 191,291 two year warrants exercisable at $6.81. The shares and warrants have now been issued and delivered to Penoles and are subject to a four month hold period which expires July 21, 2007.

First Majestic is a producing silver company focused in Mexico and is aggressively pursuing its business plan to become a senior silver producer through development of its existing assets and the pursuit through acquisition of additional assets that make sense to achieving its corporate objective.


Keith Neumeyer, President

This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of First Majestic Resource Corp. are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and the TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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