Mexican Silver Mines Ltd.
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Mexican Silver Mines Ltd.

August 16, 2007 09:30 ET

Mexican Silver Mines Ltd. Initiates Trenching on Vallecillo Project

CALGARY, ALBERTA--(Marketwire - Aug. 16, 2007) -

Mexican Silver Mines Ltd. ("Mexican Silver") (TSX VENTURE:MSM)(FRANKFURT:MS2)(WKN:A0MSLE) is pleased to announce that the trenching program at the Vallecillo district property has commenced.

The Vallecillo district has been the site of primarily silver-lead mining activities dating back to 1776. Mexican Silver has acquired and evaluated all available historic information and has initiated a trenching program to expose the carbonate stratigraphy in the area of the previously mined structures. Mineralization in the district is contained within structures and mantos of the Eagle Ford Formation which is a sequence of interbedded limestones and shales. The largest of the mines in the district, the Dolores Mine, has a known depth of at least 100 meters.

A recent mapping program has been completed at Vallecillo consisting of locating existing mine shafts and wells, mapping of tailings and tracing of visual geological contacts. The objective was to identify the location, direction, inclination and thickness of the main vein.

Five shafts were visited and mapped;

San Pablo Shaft: Water was observed at the 20m mark. Galena associated with calcite was observed in the tailing.

Dolores Shaft: The shaft depth is estimated at 100m and is thought to cut the main vein at 61m.

Cuatro Tubos Shaft: The depth is slightly more than 50m.

Santa Maria Shaft: The water level in the shaft was 30m with total depth of shaft estimated at 50m.

Santa Maria Inclined Shaft: Located 140m to the southeast of the Santa Maria Shaft a 10m deep inclined shaft was observed. According to local knowledge this second shaft was mined 30 years ago to a depth of 20m.

The interpretation of the work carried out by Mexican Silver is that the main vein could possibly be more than 1,600m in length. Based on information contained in historical reports and the dimensions of old mine workings, the main vein, tailings and dumps, it is inferred that this district has produced more than 250,000 tons with grades averaging 2,000 g/t silver, yielding a possible historical production of 15,000,000 oz of silver. Mexican Silver Mines wishes to caution the reader that these inferences are based upon preliminary visual surface observations, historical data and interviews with locals that once worked the area. There is no evidence that any of these workings were exploited past the 100m depth and no drill holes have ever been completed in the Vallecillo district.

Initially Mexican Silver Mines will complete three trenches at the Vallecillo district for the purposes of identifying the trace of the dominant Northeast-Southwest trending structure which controls the mineralization in the district. A multi-hole drill program will be undertaken at the Vallecillo district following the completion of the trenching program and the completion of the drill program that is presently ongoing at Mexican Silver Mines' La Blanca project.

Mr. William Dynes, P. Geol. is the Qualified Person, as defined in NI 43-101, who has reviewed and verified the scientific and technical mining disclosure contained in this new release.

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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