Silvermex Resources Ltd.

Silvermex Resources Ltd.

March 23, 2009 10:47 ET

Silvermex Executes Formal Option Agreement with Silver Standard for San Marcial Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 23, 2009) - Silvermex (TSX VENTURE:SMR) is pleased to report that it has finalized its formal agreement with Silver Standard Resources Inc. (NASDAQ:SSRI)(TSX:SSO) of Vancouver, B.C., to purchase a 100% interest in Silver Standard's San Marcial silver project in Sinaloa State, Mexico. The 4.8 square mile (1,250 hectare) property is located 56 miles (90 kilometres) east of Mazatlan in west central Mexico.

Under the terms of the formal agreement with Silver Standard, Silvermex can acquire a 100% interest by issuing 3 million common shares in three stages by February 1, 2011 at a deemed share value of $0.75 per share for the first 1 million shares and based on the market price of the shares of Silvermex at the time of each subsequent issuance. Silvermex must also pay US$15 million (less the deemed value of the 3 million common shares issued) in either cash or shares at the election of Silver Standard, by February 1, 2011. The US$15 million purchase price is based on Silver Standard's resource estimate of 14.26 million ounces of inferred silver resources on the property, prior to additional drilling by Silvermex. Silvermex must also expend US$1 million on exploration by February 1, 2011.

As reported by Silvermex in its news release dated October 9, 2008, the indicated mineral resource at San Marcial is 18.0 million ozs silver and the inferred resource is 4.4 million ozs silver. The indicated zinc (Zn) resource is 55.3 million lbs. and the indicated lead (Pb) resource is 29.9 million lbs. The inferred Zn resource is 34.7 million pounds and the Pb resource is 19.5 million lbs.

Grade Contained Metal
Ag Pb Zn
Category Tonnes (g/t) (%) (%) Ag (oz) Pb (lb) Zn (lb)
Indicated 3,755,893 149.20 0.36 0.67 18,021,221 29,931,874 55,328,145
Inferred 3,075,403 44.21 0.29 0.51 4,371,018 19,525,788 34,690,817

The above block model resource estimate is based on a cut-off grade of 30 grams of silver per tonne for open pit resources and a cut-off grade of 80 grams of silver per tonne for underground resources.

Cautionary Statement: Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The mineral resource estimate is based on a total of 4,884 metres of diamond drilling in 27 holes, completed by both Silvermex and previous operators.

The mineral resource estimate was audited by Mr. William Lewis, B.Sc., P.Geo. (Micon International Inc.) an independent Qualified Person, and was prepared using CIM definitions for mineral resources as required by National Instrument 43-101.

Qualified Person

Pursuant to National Instrument 43-101, Mr. William Lewis, B.Sc., P.Geo. (Micon International Inc.) is the Qualified Person responsible for the disclosure in this news release.

This News Release contains forward-looking statements. Forward looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans, "anticipates", believes", "estimates", "predicts", "potential", or "continue or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements.

While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect out current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggests herein. Except as required by applicable law the Company does not intend to update any forward-looking statements to conform these statements to actual results.

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

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