Silvermex Resources Ltd.
TSX VENTURE : SMR

Silvermex Resources Ltd.

March 02, 2007 09:45 ET

Silvermex Resources Ltd. Announces $1.6 Million Unit Offering

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 2, 2007) - Silvermex Resources Ltd. (TSX VENTURE:SMR) has engaged Canaccord Capital Corp. as lead agent in connection with a best efforts private placement of 2.0 million units at a price of $0.80 per Unit (the "Unit") for total gross proceeds of $1.6 million. Each Unit will consist of one common share and one-half of a non-transferable common share purchase Warrant. Each whole Warrant will entitle the holder to purchase one additional common share of the Company at a price of $1.00 for a period expiring 24 months from closing. The Agent's compensation will include a cash commission of 8% of the gross proceeds of the Offering, of which the Agent may elect to be paid in Units, a corporate finance fee of 30,000 Units and Agent's Warrants equal to 8% of the units sold through the Offering, exercisable for a period of one year from the date of closing of the Offering. The Units are subject to a hold period of four months.

The proceeds will be used principally to fund resource expansion and step out exploration on the Penasco Quemado property, for geophysics and drilling on the Cerro de Plata property and for general corporate purposes. The proceeds may also be used to help fund the acquisition of new projects.

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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