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

First Majestic Silver Corp.

March 21, 2007 08:11 ET

First Majestic Silver Corp. Announces $40 Million Unit Offering

TORONTO, ONTARIO--(CCNMatthews - March 21, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

FIRST MAJESTIC SILVER CORP. (TSX VENTURE:FR)(PINK SHEETS:FRMSF)(FRANKFURT:FMV) (WKN:A0LHKJ) is pleased to announce that it has entered into an agreement with Sprott Securities Inc. and CIBC World Markets Inc. as co lead underwriters and including Blackmont Capital Inc. (the "Underwriters") pursuant to which the Underwriters have agreed to purchase 8 million Units on an underwritten basis, at a price of $5.00 per Unit (the "Issue Price") for aggregate proceeds to First Majestic Silver Corp. of $40 million. The Underwriters have the option to purchase an additional 15% of the Offering at the Issue Price at any time prior to the closing date. Each Unit will entitle the holder to acquire one common share and one-half of one share purchase warrant. Each whole share purchase warrant will be exercisable at a price of $6.50 for a period of 18 months from the date of closing. The Underwriters will receive a commission of 5.5% of the gross proceeds of the offering at closing. The offering is scheduled to close on or about April 12th, 2007 and is subject to certain conditions including, but not limited to, satisfactory due diligence and the receipt of all necessary approvals including the approval of the TSX Venture Exchange.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an application exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

FIRST MAJESTIC SILVER CORP.

Keith Neumeyer, President & CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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