First Silver Reserve Inc.

First Silver Reserve Inc.

March 29, 2005 16:10 ET

First Silver Reserve Inc. Reports 2004 Results


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: FIRST SILVER RESERVE INC.

TSX SYMBOL: FSR

MARCH 29, 2005 - 16:10 ET

First Silver Reserve Inc. Reports 2004 Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 29, 2005) - First
Silver Reserve Inc. (TSX:FSR) announced today its 2004 audited financial
results. All amounts are expressed in U.S. dollars.

During the year ended December 31, 2004, First Silver produced 2,141,300
ounces of silver and 4,270 ounces of gold, all from its San Martin
silver mine, as compared to 1,899,300 ounces of silver and 2,798 ounces
of gold in 2003. Revenue for the year ended December 31, 2004 was $15.3
million as compared to $10.1 million in 2003. The Company recorded a
profit of $2.0 million or $0.05 per share for 2004, as compared with a
loss of $1.1 million or $0.03 per share for 2003. The return to
profitability is attributable to an increase in both silver production
and realized silver prices for 2004. As previously noted, production
during 2003 was constrained by an unusually long and severe rainy season
and by delays associated with the repair of one of two ball mills.

Cost of sales were $9.8 million for the year ended December 31, 2004 as
compared to $9.1 million for the year earlier. General and
administrative expenses were $1.2 million for the year as compared to
$1.0 million in 2003. Mine operating costs, net of gold credits, were
$3.82 per ounce of silver in 2004 as compared to $4.21 in 2003. Total
costs, net of gold credits, were $5.17 per ounce of silver in 2004, as
compared to $5.25 in 2003.

A complete set of audited financial statements and Management's
Discussion and Analysis of Financial Condition will be posted to the
Company's web-site www.firstsilver.com and is also available at
www.sedar.com.

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



First Silver Reserve Inc.
Summarized Year End Results (expressed in US dollars)

December 31 2004 December 31 2003(1)
ASSETS
Cash and short-term deposits 1,711,505 418,709
Other current assets 3,618,258 1,424,676
---------------------------------
5,329,763 1,843,385

Property, plant and equipment 3,920,735 3,725,555
---------------------------------
9,250,498 5,568,940
---------------------------------
---------------------------------
LIABILITIES
Current Liabilities 2,669,984 2,131,667
Future taxes payable 1,425,269 615,405
Asset retirement obligations 150,000 138,357
LONG-TERM DEBT 2,516,593 2,488,664
---------------------------------
6,761,846 5,374,093
---------------------------------
SHAREHOLDERS' EQUITY
SHARE CAPITAL 1,604,319 1,317,716
38,191,921 common shares without
par value (2003- 37,956,921)
Contributed Surplus 128,682 -
Currency Translation Adjustment 38,237 (22,878)
RETAINED EARNINGS 717,414 (1,099,991)
---------------------------------
2,488,652 194,847
---------------------------------
9,250,498 5,568,940
---------------------------------
---------------------------------

December 31 2004 December 31 2003(1)
REVENUE
Revenue 15,314,586 10,119,681
OPERATING EXPENSES
Operations 9,858,397 9,100,973
Administration 1,184,918 968,149
Depreciation and depletion 1,338,839 1,017,867
Foreign exchange (gain) loss (4,937) 118,689
Other expense (income) 216,550 (13,887)
---------------------------------
12,594,767 11,191,791
---------------------------------
NET (LOSS) EARNINGS BEFORE INCOME
TAXES 2,719,819 (1,072,110)
Provision for (recovery of)
income taxes 717,108 32,781
---------------------------------
NET (LOSS) EARNINGS FOR THE YEAR 2,002,711 (1,104,891)
---------------------------------
RETAINED EARNINGS - BEGINNING OF
YEAR(1) (1,099,991) 4,900
RETAINED EARNINGS - END OF YEAR 717,414 (1,099,991)
Basic and Diluted (Loss) Earnings
Per Common Share 0.05 ($0.03)

(1) restated



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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    First Silver Reserve Inc.
    Len Brownlie
    (604) 602-9973 or Toll Free 1-888-377-6676
    or
    First Silver Reserve Inc.
    Suite 584 - 885 Dunsmuir Street
    Vancouver, B.C., Canada ,V6C 1N5
    (604) 602-9973 or Toll Free 1-888-377-6676
    (604) 681-5910 (FAX)
    Email: info@firstsilver.com
    Website: www.firstsilver.com