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

First Majestic Silver Corp.

March 27, 2007 11:37 ET

First Majestic Silver Corp.: Purchasing of the La Encantada Complete

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 27, 2007) - FIRST MAJESTIC SILVER CORP. (TSX VENTURE:FR)(PINK SHEETS:FRMSF)(FRANKFURT:FMV)(WKN:A0LHKJ) (the "Company") is pleased to announce that further to its news release dated December 21, 2006 the Company has now completed the purchase of 100% of the issued and outstanding shares of Minera La Encantada S.A. de C. V. ("La Encantada"), a Mexican mining company previously owned by Minas Penoles SA de CV and Industrias Penoles SA de CV (collectively "Penoles").

La Encantada's primary asset is the La Encantada Silver Mine located in northern part of Mexico in the Coahuila State. This mine has at least 50 years of mining history and has been operated by Penoles from the early 1970's to 2003 after which time the mine was operated by Desmin S.A. de C. V. ("Desmin") until October 31, 2006. First Majestic purchased Desmin last year and thus took over operations of the La Encantada Silver Mine on November 1, 2006.

The La Encantada Silver Mine for the calendar year 2006 produced 950,000 ounces of silver. The mill, which has a total capacity of 800 tpd is presently running at only approximately 50% capacity. The Company anticipates production numbers will be improved significantly over the coming months.

In addition to the main mine and mill installations, La Encantada owns; 985 hectares of surrounding mining claims; surface rights to 2272 hectares of land covering the local landing strip, and all town facilities and buildings which include 180? single family dwellings, recreation facilities, school house, hospital and a variety of other structures.

The regional development and exploration potential of the current land holdings is considered excellent with several advanced areas of immediate interest. In order to secure additional land holdings, the company has recently acquired through staking an additional 3,100 hectares of mining claims surrounding the property which covers additional areas of geological interest.

The Company agreed to pay the total purchase price of US$3,250,000 and a NSR royalty of 4%. An initial payment of US$1,000,000.00 was paid on signing of the original Letter Agreement, leaving a balance of US$2,250,000 which has now been paid in full.

As part of the original Letter Agreement, the Company had also agreed to buy-out the 4% royalty to zero at an additional cost of US$1,500,000 in common shares and warrants. The shares and warrants were priced on the date of signing which called for the issuance of 382,582 shares and 191,291 two year warrants priced at $6.81. The shares and warrants have now been issued and delivered to Penoles resulting in no further royalty's payable after March 19th, 2007.

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 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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