First Majestic Resource Corp.
TSX VENTURE : FR
PINK SHEETS : FMJRF
FRANKFURT : 905910

First Majestic Resource Corp.

November 07, 2006 10:06 ET

First Majestic Resource Corp.: Acquisition of DESMIN Closes

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 7, 2006) - FIRST MAJESTIC RESOURCE CORP. (TSX VENTURE:FR)(PINK SHEETS:FMJRF)(FWB:905910) (the "Company") is pleased to announce that further to its news release dated October 5, 2006 the company has now closed the acquisition of DESMIN. As previously announced the company signed an agreement to acquire 100% of the issued and outstanding shares of Desmin S.A. de C. V. ("Desmin"), a privately held Mexican mining company.

Desmin's primary asset is an exploitation contract with Penoles which covers the operations of La Encantada Silver Mine located at the Coahuila State in Mexico. The exploitation contract between Desmin and Penoles gives Desmin the right to all properties within the 700 hectare land package, including the operations of the mine and mill and all the auxiliary installations and associated equipment. It has been agreed that the Company will pay US$1.5million for all the issued and outstanding shares of Desmin resulting in Desmin becoming a wholly owned subsidiary of the Company. The Company has paid the initial US$500,000 payment as required to close the acquisition.

It has been agreed that three equal payments of US$500,000 will be paid as follows; the first payment on closing, the second payment on the 3 month anniversary and the 3rd and final payment will paid on the six month anniversary.

The La Encantada Silver Mine is presently producing 800,000 ounces of silver per year. The mill, which has a total capacity of 800 tpd, is processing 250 tpd of oxide ore grading 500 gpt Ag, which represents less then 40% capacity of the mill. The Company anticipates that these production numbers can be improved significantly over the coming months. In addition, the surrounding ground of 700 hectares represents excellent exploration and development potential with several areas of immediate interest already defined.

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.

FIRST MAJESTIC RESOURCE CORP.

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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