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

First Majestic Resource Corp.

October 17, 2006 12:33 ET

First Majestic Resource Corp.: Corporate Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 17, 2006) - FIRST MAJESTIC RESOURCE CORP. (TSX VENTURE:FR)(PINK SHEETS:FMJRF)(FWB:905910) (the "Company") announces a corporate progress update on its activities.

As previously reported on September 15, 2006, construction of the new 800 tpd mill at the La Parrilla Silver Mine is nearing completion. Construction of this much larger mill facility began earlier this year and was scheduled to be brought on line in September and October. The Company is pleased to announce that the first of two 400 tpd lines has been brought online successfully. All testing procedures went well and production through this new mill has commenced. The second 400 tpd line is anticipated to be brought online towards the end of October bringing total mine and mill production up to 800 tpd.

Ongoing resource development is continuing at a rapid pace with the addition of a fifth drill rig at the La Parrilla property. This fifth drill rig will be focussing on upgrading the historic resource at the Quebradillas and Viboras Silver Mines as previously reported on August 28, 2006. A total of 94 holes have now been completed within this large 3400 hectare property. The main focus has primarily been on the large vein systems of La Rosa/Los Rosarios, San Marcos, San Jose, and San Nicolas areas. It is anticipated that an updated 43-101 resource calculation will be available prior to year end.

At the Chalchihuites Group of Properties, exploration and development is also ongoing and has defined the existence of high grade silver mineralization within the San Juan, and Perseverancia Silver Mines. This program which commenced in January has justified additional efforts, both with direct mine openings and additional diamond drilling. A 200 metre decline ramp is being completed in order to access the old San Juan mine and additional diamond drilling is being done at both mines including underground drilling at the Perseverancia. It is planned that production from these two mines will be direct shipped to the mill at La Parrilla.

The San Martin Silver Mine continues production at 800 tpd with an annualized production of 2 million ounces of silver. To date, several measures have been taken in order to reduce overhead costs and a number of improvements have been made within the mine and mill. Underground development at the main Zuloaga vein and at the Condesa-Rosarios system is underway. In addition, four diamond drill rigs will commence to advance further resource development and assist in regional exploration.

At the Candamena Mining District, drilling has commenced at the old La Verde Silver Mine. The road into the project was completed over the summer and one diamond drill rig arrived on site at the end of September. A second drill rig is arriving within the next few weeks. It is anticipated ten diamond drill holes will be completed to test the depth and length extension of the high grade silver vein system historically mined. The La Verde - La Prieta system is a silver bearing vein measuring more than 5 kms in length and is well known for its historic high grade silver mining activity.

Management of First Majestic would also like to take this opportunity to comment on the recent share price activity. Management feels strongly that the recent share price decline is unwarranted and presently does not represent fair value for the Company. In these types of cases, management of public companies are put in a difficult position to try to explain such dramatic moves, but can only speculate on the motives of market participants. Nevertheless, management of First Majestic are maintaining the Company's strategy of continued growth through an aggressive acquisition and development campaign designed to dramatically grow the Company's silver production going forward.

First Majestic is a producing silver company focused in Mexico and is aggressively pursuing its business plan to become a major 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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