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

First Majestic Silver Corp.

December 15, 2006 17:16 ET

First Majestic Silver Corp.: Deadline to Receive Cash Option Expires

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 15, 2006) - First Majestic Silver Corp. (TSX VENTURE:FR)(PINK SHEETS:FRMSF)(FWB:FMV) (WKN: A0LHKJ) (the "Company" or "First Majestic") announces that the deadline for shareholders of First Silver Reserve Inc. ("First Silver"), now a wholly owned subsidiary of the Company, to elect the cash option as more particularly described in the Plan of Arrangement (the "Arrangement") mailed August 11, 2006, has expired effective the close of business December 13, 2006.

Pursuant to the terms of the Arrangement, shareholders of First Silver who deposited their completed Letters of Transmittal with Pacific Corporate Trust Company ("PCTC") prior to the close of business on December 13, 2006 received either (i) one common share of First Majestic for every two common shares of First Silver, or (ii) cash compensation in the amount of $2.165 per First Silver share, 50% payable upon deposit of the Letter of Transmittal and the balance payable in two equal installments over two years, with interest payable quarterly at 6.0% per annum on the unpaid balance.

As at the close of business December 13, 2006, a total of $777,677 had been paid to those shareholders who elected for the cash option representing 718,408 shares of First Silver. A total of 6,403,144 shares of First Silver have been deposited with PCTC for exchange into 3,201,572 shares of First Majestic. Effective December 14, 2006, the remaining First Silver shareholders are no longer entitled to elect to receive the cash option and thus are only entitled to receive First Majestic shares. First Silver shareholders who continue to hold First Silver shares have a period of six years, to September 14, 2012, during which time they may surrender the certificate(s) representing the First Silver shares held by themselves, following which time they lose all rights to receive any consideration under the Arrangement. As at December 14, 2006, a total of 19,345,769 First Silver shares have not been surrendered of which First Majestic owns 12,324,600 shares, therefore 3,510,584 shares of First Majestic may potentially be issued assuming all are exchanged.

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 SILVER 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 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.

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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