First Majestic Resource Corp.

First Majestic Resource Corp.
First Silver Reserve Inc.

First Silver Reserve Inc.

April 05, 2006 20:05 ET

First Majestic Resource Corp.: Acquisition of Majority Interest in First Silver Reserve Inc.

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 5, 2006) - FIRST MAJESTIC RESOURCE CORP. (TSX VENTURE:FR)(PINK SHEETS:FMJRF)(Frankfurt:905910) (the "Company") is pleased to announce that it has entered into an irrevocable Share Purchase Agreement to purchase approximately 63% of the issued and outstanding shares of First Silver Reserve Inc. (TSX:FSR) from the major shareholder of FSR. The major shareholder has been integral in the success of FSR's San Martin Mine which produced 2,100,000 ounces of silver in 2005.

Pursuant to the terms of the Agreement, the purchase price was determined by calculating the 10 day average trading price of FSR's shares on the TSX at the close of trading on April 3, 2006 which equated to $2.165 per share. The total number of shares being purchased by First Majestic is 24,649,200 for an aggregate of $53,365,518 payable in three installments. The purchase price is divided into three payments, the first being $26,682,759 payable on closing and $13,341,380 payable on each of the 12th and 24th month anniversaries of the closing. A 60 day due diligence period has been initiated and will be completed by June 2, 2006. Closing of this transaction will occur following the due diligence period and is anticipated to occur on or before June 2, 2006. An interest fee of 6% per annum will be payable on the two outstanding payments due after closing.

First Silver Reserve is a company focused on the production and exploration of silver in Mexico. First Silver, through its wholly owned subsidiary Minera El Pilon, owns 100% of the San Martin Silver Mine in Jalisco State, Mexico. The Company is in the process of developing an extensive exploration program with the goal of expanding reserves that may allow for increased production beyond the 2.1 million ounces per year average annual silver production. According to the 2003 World Silver Survey, First Silver's San Martin mine was the 14th largest primary producing silver mine in the World. Presently the San Martin mine has a NI 43-101 compliant resource of 43 million ounces of silver. The report dated June 23, 2006 was prepared by Pincock Allen & Holt ("PAH") and can be viewed on

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