First Majestic Silver Corp.
PINK SHEETS : FRMSF
FRANKFURT : FMV
TSX : FR

First Majestic Silver Corp.

July 15, 2008 08:30 ET

First Majestic Silver Corp.: 2nd Quarter Production Shows Continued Ramp-Up

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 15, 2008) - First Majestic Silver Corp. (TSX:FR) (PINK SHEETS:FRMSF) (FRANKFURT:FMV) (WKN:A0LHKJ) ("First Majestic" or the "Company") is pleased to announce that production in the second quarter ending June 30th 2008 increased again to a record 1,271,141 equivalent ounces of silver representing a 20% increase over the prior quarter production and an increase of 49% over the same quarter in the prior year.

The equivalent silver production for the quarter consisted of 1,109,821 ounces of silver representing a 24% increase from the prior quarter, 1,987,551 pounds of lead representing a 7% increase over the previous quarter, 482 ounces of gold representing an increase of 101% and 82,758 pounds of zinc which represents a decrease of 74% compared to the previous quarter. During the quarter the combined recoveries of silver at the three different mines showed a minor decrease from 71% to 70%. The overall average silver head grade in the quarter for the three mines decreased to 230 g/t of silver compared to the previous quarter of 248 g/t of silver which was a result of the higher throughput achieved at each mill and a decrease of high grade ore being shipped from the Perseverancia Silver Mine due to construction.

The ore processed during the quarter at the Company's three operating silver mines; the La Parrilla Silver Mine, the San Martin Silver Mine and the La Encantada Silver Mine, amounted to a record production of 213,994 tonnes representing a 35% increase over the previous quarter and an increase of 37% over the same quarter of 2007. The La Parrilla Silver Mine is now operating over capacity and in addition, substantial increases in mining activity are occurring at the San Martin Silver Mine as a result of improvements made in the past quarters now taking effect.

The Company's aggressive development program continues at all three mines. This activity is ongoing for the purpose of opening up additional producing stopes, improving grade control, and increasing resource development and exploration. A total of 7,161 meters of development was completed in the quarter compared with 6,006 metres of underground development completed in the previous quarter. This program is important as it provides access to new areas within the different mines and prepares the mines for continued growth of silver production in 2008.

Reserve and Resource development remains to be a top priority for the Company. Presently 22 drill rigs are operating which represents one of the largest drilling programs in Mexico; with seven rigs at La Parrilla, three at the Chalchihuites, nine at San Martin and three at La Encantada. In addition, two more rigs are being added, one at the San Juan Silver mine and one additional rig is being deployed at La Parrilla. This will bring the total to twenty four rigs operating across the Company's properties by the end of July. Also, in line with the Company's aggressive resource development strategy, 20,325 meters of diamond drilling was completed during the quarter showing an increase with respect to the previous quarter of 98%, covering a total of 92 holes. Plans for 2008 include the completion of over 82,000 metres of drilling and over 46,000 metres of underground development.

As a result of the recently completed equity offering of $45 million, the Company has been able to expand both its development and exploration programs, which will continue for the foreseeable future and will assist the Company in meeting its performance objectives. Furthermore, expansion programs at La Parrilla and San Martin Silver Mines are presently in the planning stage and ground breaking and construction of the new 3500 tpd Cyanide mill at the La Encantada Silver Mine is now underway.

Management at First Majestic is focused on executing the Company's business plan by continuing the ongoing improvements at each mine and mill and achieving its production and resource targets for 2008.

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

FIRST MAJESTIC SILVER CORP.

Keith Neumeyer, President & CEO

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 Silver 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.

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