Mexican Silver Mines Ltd.
TSX VENTURE : MSM
FRANKFURT : MS2

Mexican Silver Mines Ltd.

January 30, 2008 09:30 ET

Mexican Silver Mines Ltd. Announces an Exploration Update on its Iguana Project

CALGARY, ALBERTA--(Marketwire - Jan. 30, 2008) - Mexican Silver Mines Ltd. ("Mexican Silver" or "MSM") (TSX VENTURE:MSM)(FRANKFURT:MS2) is pleased to provide an update on exploration activities at its Iguana project on the Ral Concession. Diamond drilling commenced on the project in the fourth quarter of 2007 with a total of 911 meters being drilled to date utilizing MSM's company owned truck mounted Longyear 44 rig. A total of seven holes are planned in this first phase drilling program at Iguana with three holes completed at this time. Hole IG-04 is currently being drilled at a depth of 200 meters. All assays from sampling of drill core are pending.

The Iguana project is located within MSM's Ral Concession which encompasses an area of 10,160 acres. High grade silver-lead-zinc mineralization is found as replacement mantos and skarns within contact zones of Tertiary granodiorites in contact with Cretaceous limestones. In some of the mine workings, high grade mineralization extends for distances over one hundred meters as a replacement of individual limestone horizons.

At Iguana, both surface and underground rock chip sampling, primarily in the area of the Guadalupe Mine, has returned indications of high grade zones providing MSM with silver assays in the kilogram per ton range. Project scale rock chip and soil sampling has been carried out on a grid covering the entire area of surface alteration which coincides well with the area of historic mining activities. From the mapping program, favorable intrusive/limestone contacts have been defined and trenched exposing potential target zones which are now being drilled.

A geologic interpretation of the lithologies encountered in this drilling indicates that both high angle intrusive dikes and conformable intrusive sills are present within the overall zone of surface alteration that defines the Iguana project. Clay, quartz, sericite and pyrite alteration is seen in a number of the intermediate intrusive phases present in the drill core. Additionally, galena and sphalerite has been observed in varying amounts in spatial relation to these intrusive phases and within the carbonate horizons.

Upon the completion of this first phase drilling program at Iguana, and depending on the distribution and intensity of alteration in the subsurface, consideration will be given to running a close spaced IP survey to further define potential targets.

All drill core samples were shipped to ALS Chemex Laboratory ("Chemex") for analyses. Chemex has an International Standard Organization rating of ISO 9001:2000 and is independent of Mexican Silver. The split drill core sample was crushed and a sub-sample (aliquot) split off, pulverized and screened through a 150 mesh screen. Analyses were performed using standard acid digestion and spectrographic techniques.

Mexican Silver follows a rigorous Quality Assurance/Quality Control program consisting of inserting standards and duplicates into the sample stream submitted to Chemex for analyses. Mr. William Dynes, P. Geol., the project supervisor of Mexican Silver's drilling program on the Vallecillo Property, is the Corporation's nominated Qualified Person responsible for monitoring the supervision and quality control of the programs completed within the its properties. Mr. Dynes has reviewed and verified the technical information contained in this news release.

This news release contains forward-looking information including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations and potential mineral recovery processes. Forward-looking information includes disclosure regarding possible future events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action, and therefore, involves inherent risks and uncertainties. When used in this news release. The words "estimated", "plan", "anticipated", "expected", "intend", "believe", and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Mexican Silver to be materially different from any future results, performance or achievement expressed or implied by such forward-looking statements. For any forward-looking information given, management has assumed that the analytical results it has received are reliable, and has applied geological interpretation methodologies which are consistent with industry standards. Although management has a reasonable basis for the conclusions drawn, there can be no assurance that forward-looking statements will prove to be accurate and actual results may differ materially from those currently anticipated in such statements. For such statements, we claim safe harbour.

About Mexican Silver Mines

Mexican Silver Mines is a silver focused junior resource company developing three former silver producing properties in north-eastern Mexico. To learn more about Mexican Silver Mines, please visit: www.mexicansilvermines.com.

ON BEHALF OF THE BOARD OF MEXICAN SILVER MINES LTD.

Feisal Somji, B.Sc., MBA, President and Chief Executive Officer

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

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