First Silver Reserve Inc.

First Silver Reserve Inc.

March 28, 2005 15:51 ET

First Silver Reserve Inc. Options Silver District in Mexico


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: FIRST SILVER RESERVE INC.

TSX SYMBOL: FSR

MARCH 28, 2005 - 15:51 ET

First Silver Reserve Inc. Options Silver District in
Mexico

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 28, 2005) - First
Silver Reserve Inc. (TSX:FSR) today announced that it has entered into
an option agreement with Consorcio Minero Latinamericano, S.A. de C.V.
(Consorcio), a private Mexican company with a Director in common, for
the purchase of a 100% interest in 7 mining claims covering 3,718 Ha.
(9,187 acres) (the "Cuitaboca Claims") located in the State of Sinaloa,
Mexico.

The Cuitaboca claims cover a series of outcropping epithermal
silver-rich veins hosted in the andesitic lower volcanic series of the
Sierra Madre Occidental Gold-Silver Province. This geological
environment is the host to a number of high grade silver and
polymetallic deposits, such as Tayoltita, La Cienga, Canelas, Bacis,
Candamena and Ocampo. These deposits all occur at the same general
geological horizon, and share similar geologic and mineralogic traits.

The Cuitaboca claims cover an essentially virgin silver district.
Historical exploitation of the veins was hampered by rugged terrain and
the occurrence of primary sulfide mineralization, from which early
workers could not extract precious metals.

In 2001, Geoambiente Mining Inc. ("Geoambiente") of Denver, Colorado
reviewed historical data, mapped the area, measured outcroppings and
systematically collected 205 channel samples over six mineralized
structures. Due to steep topographical conditions, vein exposure showed
vertical extension of the mineralization of up to 300 meters on the vein
structures. By projecting observed outcroppings to a depth of 200 m (656
ft), Geoambiente estimated proven and probable reserves for the property
as 332,150 tonnes grading 0.131 g/t gold, 301 g/t silver, 1.34% lead,
1.66% zinc and 1.23% copper or, approximately, 3.2 million ounces of
silver. Geoambiente estimated an inferred resource of 2,290,850 tonnes
at the same grade, or approximately 22.2 million ounces of silver The
reader is cautioned that these estimates do not conform to National
Instrument 43-101 requirements for reporting reserves and resources. The
Company is not treating these historic estimates as current reserves or
resources. These reserve and resource estimates should not be relied
upon until they have been verified by further due diligence, suitable
geological investigations and by a report prepared by a Qualified Person
in accordance with National Instrument 43-101.

Recently, the property vender built a 27 km road to the southern-most
claims. An additional 7 km of road building is currently underway to
reach the northern most vein structures. Once the road has been
completed, the Company will begin a preliminary exploration program.

To purchase the claims, First Silver must pay a total of US$2,500,000 in
staged cash payments by November 25, 2010 (US$20,000 paid). A 2.5% net
smelter returns royalty on the claims may be purchased for $500,000
during the term of the agreement or for a period of 12 months thereafter.

First Silver Reserve is a company focused on the production and
exploration of precious metals in Mexico. First Silver owns and operates
the San Martin Mine in Jalisco State, Mexico.

On behalf of the Board of Directors

"Len Brownlie"

Director

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 Silver Reserve Inc. 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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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    First Silver Reserve Inc.
    Len Brownlie
    Director
    (604) 602-9973 or Toll Free 1-888-377-6676
    (604) 681-5910 (FAX)
    Email: info@firstsilver.com
    Website: www.firstsilver.com