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

Mexican Silver Mines Ltd.

January 28, 2008 12:36 ET

Mexican Silver Mines Ltd. Announces Exploration Results From the Magnolia Mine Area Within the Vallecillo Ag-Pb-Zn Mining District

CALGARY, ALBERTA--(Marketwire - Jan. 28, 2008) - Mexican Silver Mines Ltd. ("Mexican Silver" or "MSM") (TSX VENTURE:MSM)(FRANKFURT:MS2) is pleased to announce additional information regarding exploration at the Magnolia mine area within the Vallecillo Ag-Pb-Zn mining district. MSM's Phase I exploration program at the Vallecillo district consisted of surface mapping, sampling and initial diamond drilling on multiple targets located along a five kilometer long structure that hosts mineralization within the Vallecillo district. These multiple targets are known as the Dolores mine, the Santa Maria mine, the Magnolia mine and the Coronel mine. The Magnolia mine area is located approximately three kilometers west of the Dolores shaft, the main historic producer in the district.

Detailed surface mapping and rock chip sampling within the Magnolia mine area has been completed with positive results. Multiple vein systems have been identified from the historic workings and have been sampled both on the surface and in underground stopes. These samples averaged from 0.2 to 0.8 meters in width with assay results ranging from 10 to 100 gm/tonne silver. Lead assays averaged from 0.5% to 5.0%. Potential targets at Magnolia include both lateral extensions to the mineralization at depths to 30 meters where the historic workings are located and within the stratigraphic sequence beneath the workings which provide significant upside to the project.

A single drill hole, V-12, was drilled 50 meters to the east of the Magnolia shaft and, as previously reported, intersected 1.3 meters of calcite/sulphide vein material that assayed 374 gm/tonne Ag and 12.35% Pb. This mineralized interval was located at down hole depth of 146.5 to 147.8 meters. Additionally, an intercept of one meter assaying 24 g/t Ag was drilled from 38.7 to 39.7 meters. Historically, the underground stopes and mine workings at Magnolia are estimated to have been developed to depths of only 30 meters. This intercept of 11 oz/t Ag and 12% Pb at 146 meters depth represents a newly discovered zone of mineralization that will be further evaluated in the Phase II drilling program at Vallecillo. The Eagle Ford formation hosts the majority of the mineralization in the district and is the host for the intercepts encountered in drill hole V-12.

The mineralization found at the Magnolia mine area, both in drill hole V-12 and in the underground workings, is situated on the crest of the northwesterly trending Vallecillo anticline. This anticlinal feature is a favorable structural location for mineralization to be emplaced. All of the mines located within the Vallecillo structural zone are present on this anticline. The Dolores and Santa Maria mines are on the eastern limb of the anticline; the Magnolia mine area is on the crest of the anticline and the Coronel mine area is located on the western limb. Mexican Silver is evaluating the use of a variety of ground geophysical techniques to augment the exploration program in the district prior to the start of Phase II drilling.

The Vallecillo district has been the site of silver-lead mining activities dating back to 1776, where mineralization is hosted within structures and mantos in a sequence of interbedded limestones and silty carbonates. The largest historic mine in the district, the Dolores mine, has a known depth of 100 metres. The Vallecillo district is located in the southern part of the Mexican Silver's 100-per-cent-owned Providencia concession.

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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